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: 811-05088
The AB Portfolios
(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)
Stephen M. Woetzel
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: August 31, 2024
Date of reporting period: August 31, 2024
ITEM 1. REPORTS TO STOCKHOLDERS.
Please scan QR code for
Fund Information
AB All Market Total Return Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB All Market Total Return Portfolio (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABWYX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Advisor Class | $88 | 0.82% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024 all share classes of the Fund underperformed the Morgan Stanley Capital International All Country World Index (“MSCI ACWI”) (net) (the “benchmark”), before sales charges. Relative to the benchmark, overall allocation to equities detracted, while allocation to alternatives and fixed-income assets contributed. Security selection was negative within fixed income and equities, and positive within alternatives.
The Fund used derivatives for hedging and investment purposes. During the 12-month period, currency forwards, interest rate swaps, total return swaps and purchased options detracted from absolute performance, while futures, credit default swaps and written options added.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Advisor Class | MSCI ACWI (net) | Bloomberg Global Aggregate Bond Index (USD hedged) |
|---|
| 08/14 | $10,000 | $10,000 | $10,000 |
| 08/15 | $9,679 | $9,371 | $10,223 |
| 08/16 | $10,192 | $10,050 | $10,958 |
| 08/17 | $11,210 | $11,770 | $10,988 |
| 08/18 | $11,436 | $13,113 | $11,070 |
| 08/19 | $12,142 | $13,077 | $12,258 |
| 08/20 | $12,346 | $15,237 | $12,660 |
| 08/21 | $14,991 | $19,602 | $12,755 |
| 08/22 | $12,502 | $16,488 | $11,480 |
| 08/23 | $12,815 | $18,788 | $11,544 |
| 08/24 | $14,769 | $23,192 | $12,407 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Advisor Class (without sales charges) | 15.25% | 3.99% | 3.98% |
| Advisor Class (with sales charges) | 15.25% | 3.99% | 3.98% |
| MSCI ACWI (net) | 23.44% | 12.14% | 8.78% |
| Bloomberg Global Aggregate Bond Index (USD hedged) | 7.48% | 0.24% | 2.18% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABWYX-A for the most recent performance information.
| Net Assets | $443,988,580 |
| # of Portfolio Holdings | 634 |
| Portfolio Turnover Rate | 182% |
| Total Advisory Fees Paid | $2,395,948 |
Graphical Representation of Holdings
| Value | Value |
|---|
| United States | 60.7% |
| Japan | 4.5% |
| United Kingdom | 4.3% |
| Canada | 2.7% |
| France | 2.1% |
| Germany | 1.7% |
| Italy | 1.3% |
| Australia | 1.2% |
| Spain | 1.1% |
| Denmark | 0.9% |
| Netherlands | 0.9% |
| South Korea | 0.7% |
| Switzerland | 0.7% |
| Others | 5.9% |
| Short-Term Investments | 14.3% |
| Other assets less liabilities | -3.1% |
| Value | Value |
|---|
| Common Stocks | 41.6% |
| Investment Companies | 14.0% |
| Governments - Treasuries | 12.5% |
| Corporates - Investment Grade | 7.5% |
| Mortgage Pass-Throughs | 4.2% |
| Inflation-Linked Securities | 1.4% |
| Collateralized Loan Obligations | 1.0% |
| Covered Bonds | 0.9% |
| Collateralized Mortgage Obligations | 0.9% |
| Other Assets | 19.1% |
| Other assets less liabilities | -3.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABWYX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABWYX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB All Market Total Return Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB All Market Total Return Portfolio (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABWAX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $115 | 1.07% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024 all share classes of the Fund underperformed the Morgan Stanley Capital International All Country World Index (“MSCI ACWI”) (net) (the “benchmark”), before sales charges. Relative to the benchmark, overall allocation to equities detracted, while allocation to alternatives and fixed-income assets contributed. Security selection was negative within fixed income and equities, and positive within alternatives.
The Fund used derivatives for hedging and investment purposes. During the 12-month period, currency forwards, interest rate swaps, total return swaps and purchased options detracted from absolute performance, while futures, credit default swaps and written options added.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Class A | MSCI ACWI (net) | Bloomberg Global Aggregate Bond Index (USD hedged) |
|---|
| 08/14 | $9,572 | $10,000 | $10,000 |
| 08/15 | $9,241 | $9,371 | $10,223 |
| 08/16 | $9,715 | $10,050 | $10,958 |
| 08/17 | $10,648 | $11,770 | $10,988 |
| 08/18 | $10,839 | $13,113 | $11,070 |
| 08/19 | $11,477 | $13,077 | $12,258 |
| 08/20 | $11,643 | $15,237 | $12,660 |
| 08/21 | $14,106 | $19,602 | $12,755 |
| 08/22 | $11,730 | $16,488 | $11,480 |
| 08/23 | $11,994 | $18,788 | $11,544 |
| 08/24 | $13,789 | $23,192 | $12,407 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Class A (without sales charges) | 14.96% | 3.74% | 3.72% |
| Class A (with sales charges) | 10.06% | 2.84% | 3.27% |
| MSCI ACWI (net) | 23.44% | 12.14% | 8.78% |
| Bloomberg Global Aggregate Bond Index (USD hedged) | 7.48% | 0.24% | 2.18% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABWAX-A for the most recent performance information.
| Net Assets | $443,988,580 |
| # of Portfolio Holdings | 634 |
| Portfolio Turnover Rate | 182% |
| Total Advisory Fees Paid | $2,395,948 |
Graphical Representation of Holdings
| Value | Value |
|---|
| United States | 60.7% |
| Japan | 4.5% |
| United Kingdom | 4.3% |
| Canada | 2.7% |
| France | 2.1% |
| Germany | 1.7% |
| Italy | 1.3% |
| Australia | 1.2% |
| Spain | 1.1% |
| Denmark | 0.9% |
| Netherlands | 0.9% |
| South Korea | 0.7% |
| Switzerland | 0.7% |
| Others | 5.9% |
| Short-Term Investments | 14.3% |
| Other assets less liabilities | -3.1% |
| Value | Value |
|---|
| Common Stocks | 41.6% |
| Investment Companies | 14.0% |
| Governments - Treasuries | 12.5% |
| Corporates - Investment Grade | 7.5% |
| Mortgage Pass-Throughs | 4.2% |
| Inflation-Linked Securities | 1.4% |
| Collateralized Loan Obligations | 1.0% |
| Covered Bonds | 0.9% |
| Collateralized Mortgage Obligations | 0.9% |
| Other Assets | 19.1% |
| Other assets less liabilities | -3.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABWAX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABWAX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB All Market Total Return Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB All Market Total Return Portfolio (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABWCX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $197 | 1.84% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024 all share classes of the Fund underperformed the Morgan Stanley Capital International All Country World Index (“MSCI ACWI”) (net) (the “benchmark”), before sales charges. Relative to the benchmark, overall allocation to equities detracted, while allocation to alternatives and fixed-income assets contributed. Security selection was negative within fixed income and equities, and positive within alternatives.
The Fund used derivatives for hedging and investment purposes. During the 12-month period, currency forwards, interest rate swaps, total return swaps and purchased options detracted from absolute performance, while futures, credit default swaps and written options added.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Class C | MSCI ACWI (net) | Bloomberg Global Aggregate Bond Index (USD hedged) |
|---|
| 08/14 | $10,000 | $10,000 | $10,000 |
| 08/15 | $9,582 | $9,371 | $10,223 |
| 08/16 | $9,994 | $10,050 | $10,958 |
| 08/17 | $10,878 | $11,770 | $10,988 |
| 08/18 | $10,988 | $13,113 | $11,070 |
| 08/19 | $11,543 | $13,077 | $12,258 |
| 08/20 | $11,620 | $15,237 | $12,660 |
| 08/21 | $13,982 | $19,602 | $12,755 |
| 08/22 | $11,536 | $16,488 | $11,480 |
| 08/23 | $11,701 | $18,788 | $11,544 |
| 08/24 | $13,357 | $23,192 | $12,407 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Class C (without sales charges) | 14.15% | 2.96% | 2.94% |
| Class C (with sales charges) | 13.15% | 2.96% | 2.94% |
| MSCI ACWI (net) | 23.44% | 12.14% | 8.78% |
| Bloomberg Global Aggregate Bond Index (USD hedged) | 7.48% | 0.24% | 2.18% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABWCX-A for the most recent performance information.
| Net Assets | $443,988,580 |
| # of Portfolio Holdings | 634 |
| Portfolio Turnover Rate | 182% |
| Total Advisory Fees Paid | $2,395,948 |
Graphical Representation of Holdings
| Value | Value |
|---|
| United States | 60.7% |
| Japan | 4.5% |
| United Kingdom | 4.3% |
| Canada | 2.7% |
| France | 2.1% |
| Germany | 1.7% |
| Italy | 1.3% |
| Australia | 1.2% |
| Spain | 1.1% |
| Denmark | 0.9% |
| Netherlands | 0.9% |
| South Korea | 0.7% |
| Switzerland | 0.7% |
| Others | 5.9% |
| Short-Term Investments | 14.3% |
| Other assets less liabilities | -3.1% |
| Value | Value |
|---|
| Common Stocks | 41.6% |
| Investment Companies | 14.0% |
| Governments - Treasuries | 12.5% |
| Corporates - Investment Grade | 7.5% |
| Mortgage Pass-Throughs | 4.2% |
| Inflation-Linked Securities | 1.4% |
| Collateralized Loan Obligations | 1.0% |
| Covered Bonds | 0.9% |
| Collateralized Mortgage Obligations | 0.9% |
| Other Assets | 19.1% |
| Other assets less liabilities | -3.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABWCX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABWCX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB All Market Total Return Portfolio
Annual Shareholder Report
This annual shareholder report contains important information about the AB All Market Total Return Portfolio (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABWIX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class I | $90 | 0.82% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024 all share classes of the Fund underperformed the Morgan Stanley Capital International All Country World Index (“MSCI ACWI”) (net) (the “benchmark”), before sales charges. Relative to the benchmark, overall allocation to equities detracted, while allocation to alternatives and fixed-income assets contributed. Security selection was negative within fixed income and equities, and positive within alternatives.
The Fund used derivatives for hedging and investment purposes. During the 12-month period, currency forwards, interest rate swaps, total return swaps and purchased options detracted from absolute performance, while futures, credit default swaps and written options added.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Class I | MSCI ACWI (net) | Bloomberg Global Aggregate Bond Index (USD hedged) |
|---|
| 08/14 | $10,000 | $10,000 | $10,000 |
| 08/15 | $9,682 | $9,371 | $10,223 |
| 08/16 | $10,194 | $10,050 | $10,958 |
| 08/17 | $11,205 | $11,770 | $10,988 |
| 08/18 | $11,426 | $13,113 | $11,070 |
| 08/19 | $12,132 | $13,077 | $12,258 |
| 08/20 | $12,331 | $15,237 | $12,660 |
| 08/21 | $14,975 | $19,602 | $12,755 |
| 08/22 | $12,483 | $16,488 | $11,480 |
| 08/23 | $12,452 | $18,788 | $11,544 |
| 08/24 | $14,855 | $23,192 | $12,407 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Class I (without sales charges) | 19.30% | 4.13% | 4.04% |
| Class I (with sales charges) | 19.30% | 4.13% | 4.04% |
| MSCI ACWI (net) | 23.44% | 12.14% | 8.78% |
| Bloomberg Global Aggregate Bond Index (USD hedged) | 7.48% | 0.24% | 2.18% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABWIX-A for the most recent performance information.
| Net Assets | $443,988,580 |
| # of Portfolio Holdings | 634 |
| Portfolio Turnover Rate | 182% |
| Total Advisory Fees Paid | $2,395,948 |
Graphical Representation of Holdings
| Value | Value |
|---|
| United States | 60.7% |
| Japan | 4.5% |
| United Kingdom | 4.3% |
| Canada | 2.7% |
| France | 2.1% |
| Germany | 1.7% |
| Italy | 1.3% |
| Australia | 1.2% |
| Spain | 1.1% |
| Denmark | 0.9% |
| Netherlands | 0.9% |
| South Korea | 0.7% |
| Switzerland | 0.7% |
| Others | 5.9% |
| Short-Term Investments | 14.3% |
| Other assets less liabilities | -3.1% |
| Value | Value |
|---|
| Common Stocks | 41.6% |
| Investment Companies | 14.0% |
| Governments - Treasuries | 12.5% |
| Corporates - Investment Grade | 7.5% |
| Mortgage Pass-Throughs | 4.2% |
| Inflation-Linked Securities | 1.4% |
| Collateralized Loan Obligations | 1.0% |
| Covered Bonds | 0.9% |
| Collateralized Mortgage Obligations | 0.9% |
| Other Assets | 19.1% |
| Other assets less liabilities | -3.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABWIX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABWIX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
AB Sustainable Thematic Balanced Portfolio
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Sustainable Thematic Balanced Portfolio (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABPYX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Advisor Class | $80 | 0.75% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024 all share classes of the Fund underperformed the 60% / 40% blend of S&P 500 Index / Bloomberg US Government/Credit Index (the “benchmark”), before sales charges. Security selection within fixed-income assets detracted, as did overall asset class allocation, relative to the fixed-income component of the blended benchmark. Within equities, overall security selection detracted, particularly selection within health care and financials. Contributions from selection within consumer staples helped offset some of these losses. Overall sector selection contributed as underweights to energy and consumer discretionary offset losses from an overweight to health care and an underweight to communication services.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Advisor Class | S&P 500 Index | 60% S&P 500 Index / 40% Bloomberg US Government/Credit Index |
|---|
| 08/14 | $10,000 | $10,000 | $10,000 |
| 08/15 | $9,869 | $10,048 | $10,088 |
| 08/16 | $10,276 | $11,309 | $11,141 |
| 08/17 | $10,908 | $13,145 | $12,221 |
| 08/18 | $11,168 | $15,730 | $13,558 |
| 08/19 | $11,705 | $16,189 | $14,468 |
| 08/20 | $11,942 | $19,740 | $16,859 |
| 08/21 | $13,831 | $25,893 | $19,878 |
| 08/22 | $11,370 | $22,986 | $17,617 |
| 08/23 | $12,259 | $26,650 | $19,235 |
| 08/24 | $14,013 | $33,882 | $22,871 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Advisor Class (without sales charges) | 14.31% | 3.67% | 3.43% |
| Advisor Class (with sales charges) | 14.31% | 3.67% | 3.43% |
| S&P 500 Index | 27.14% | 15.92% | 12.98% |
| 60% S&P 500 Index / 40% Bloomberg US Government/Credit Index | 18.90% | 9.59% | 8.62% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABPYX-A for the most recent performance information.
| Net Assets | $100,510,832 |
| # of Portfolio Holdings | 81 |
| Portfolio Turnover Rate | 53% |
| Total Advisory Fees Paid | $275,817 |
Graphical Representation of Holdings
| Value | Value |
|---|
| Common Stocks | 59.6% |
| Governments - Treasuries | 32.7% |
| Agencies | 2.7% |
| Short-Term Investments | 4.7% |
| Other assets less liabilities | 0.3% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABPYX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABPYX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
AB Sustainable Thematic Balanced Portfolio
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Sustainable Thematic Balanced Portfolio (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABPAX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $107 | 1.00% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024 all share classes of the Fund underperformed the 60% / 40% blend of S&P 500 Index / Bloomberg US Government/Credit Index (the “benchmark”), before sales charges. Security selection within fixed-income assets detracted, as did overall asset class allocation, relative to the fixed-income component of the blended benchmark. Within equities, overall security selection detracted, particularly selection within health care and financials. Contributions from selection within consumer staples helped offset some of these losses. Overall sector selection contributed as underweights to energy and consumer discretionary offset losses from an overweight to health care and an underweight to communication services.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Class A | S&P 500 Index | 60% S&P 500 Index / 40% Bloomberg US Government/Credit Index |
|---|
| 08/14 | $9,576 | $10,000 | $10,000 |
| 08/15 | $9,424 | $10,048 | $10,088 |
| 08/16 | $9,788 | $11,309 | $11,141 |
| 08/17 | $10,368 | $13,145 | $12,221 |
| 08/18 | $10,590 | $15,730 | $13,558 |
| 08/19 | $11,063 | $16,189 | $14,468 |
| 08/20 | $11,259 | $19,740 | $16,859 |
| 08/21 | $13,008 | $25,893 | $19,878 |
| 08/22 | $10,662 | $22,986 | $17,617 |
| 08/23 | $11,471 | $26,650 | $19,235 |
| 08/24 | $13,084 | $33,882 | $22,871 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Class A (without sales charges) | 14.06% | 3.41% | 3.17% |
| Class A (with sales charges) | 9.21% | 2.52% | 2.72% |
| S&P 500 Index | 27.14% | 15.92% | 12.98% |
| 60% S&P 500 Index / 40% Bloomberg US Government/Credit Index | 18.90% | 9.59% | 8.62% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABPAX-A for the most recent performance information.
| Net Assets | $100,510,832 |
| # of Portfolio Holdings | 81 |
| Portfolio Turnover Rate | 53% |
| Total Advisory Fees Paid | $275,817 |
Graphical Representation of Holdings
| Value | Value |
|---|
| Common Stocks | 59.6% |
| Governments - Treasuries | 32.7% |
| Agencies | 2.7% |
| Short-Term Investments | 4.7% |
| Other assets less liabilities | 0.3% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABPAX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABPAX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
AB Sustainable Thematic Balanced Portfolio
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Sustainable Thematic Balanced Portfolio (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABPCX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $186 | 1.75% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024 all share classes of the Fund underperformed the 60% / 40% blend of S&P 500 Index / Bloomberg US Government/Credit Index (the “benchmark”), before sales charges. Security selection within fixed-income assets detracted, as did overall asset class allocation, relative to the fixed-income component of the blended benchmark. Within equities, overall security selection detracted, particularly selection within health care and financials. Contributions from selection within consumer staples helped offset some of these losses. Overall sector selection contributed as underweights to energy and consumer discretionary offset losses from an overweight to health care and an underweight to communication services.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Class C | S&P 500 Index | 60% S&P 500 Index / 40% Bloomberg US Government/Credit Index |
|---|
| 08/14 | $10,000 | $10,000 | $10,000 |
| 08/15 | $9,764 | $10,048 | $10,088 |
| 08/16 | $10,066 | $11,309 | $11,141 |
| 08/17 | $10,581 | $13,145 | $12,221 |
| 08/18 | $10,725 | $15,730 | $13,558 |
| 08/19 | $11,125 | $16,189 | $14,468 |
| 08/20 | $11,233 | $19,740 | $16,859 |
| 08/21 | $12,878 | $25,893 | $19,878 |
| 08/22 | $10,466 | $22,986 | $17,617 |
| 08/23 | $11,183 | $26,650 | $19,235 |
| 08/24 | $12,647 | $33,882 | $22,871 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Class C (without sales charges) | 13.08% | 2.60% | 2.38% |
| Class C (with sales charges) | 12.08% | 2.60% | 2.38% |
| S&P 500 Index | 27.14% | 15.92% | 12.98% |
| 60% S&P 500 Index / 40% Bloomberg US Government/Credit Index | 18.90% | 9.59% | 8.62% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABPCX-A for the most recent performance information.
| Net Assets | $100,510,832 |
| # of Portfolio Holdings | 81 |
| Portfolio Turnover Rate | 53% |
| Total Advisory Fees Paid | $275,817 |
Graphical Representation of Holdings
| Value | Value |
|---|
| Common Stocks | 59.6% |
| Governments - Treasuries | 32.7% |
| Agencies | 2.7% |
| Short-Term Investments | 4.7% |
| Other assets less liabilities | 0.3% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABPCX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABPCX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
AB Sustainable Thematic Balanced Portfolio
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Sustainable Thematic Balanced Portfolio (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/APWIX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class I | $80 | 0.75% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024 all share classes of the Fund underperformed the 60% / 40% blend of S&P 500 Index / Bloomberg US Government/Credit Index (the “benchmark”), before sales charges. Security selection within fixed-income assets detracted, as did overall asset class allocation, relative to the fixed-income component of the blended benchmark. Within equities, overall security selection detracted, particularly selection within health care and financials. Contributions from selection within consumer staples helped offset some of these losses. Overall sector selection contributed as underweights to energy and consumer discretionary offset losses from an overweight to health care and an underweight to communication services.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Class I | S&P 500 Index | 60% S&P 500 Index / 40% Bloomberg US Government/Credit Index |
|---|
| 08/14 | $10,000 | $10,000 | $10,000 |
| 08/15 | $9,859 | $10,048 | $10,088 |
| 08/16 | $10,264 | $11,309 | $11,141 |
| 08/17 | $10,889 | $13,145 | $12,221 |
| 08/18 | $11,144 | $15,730 | $13,558 |
| 08/19 | $11,670 | $16,189 | $14,468 |
| 08/20 | $11,906 | $19,740 | $16,859 |
| 08/21 | $13,789 | $25,893 | $19,878 |
| 08/22 | $11,330 | $22,986 | $17,617 |
| 08/23 | $12,227 | $26,650 | $19,235 |
| 08/24 | $13,983 | $33,882 | $22,871 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Class I (without sales charges) | 14.36% | 3.68% | 3.41% |
| Class I (with sales charges) | 14.36% | 3.68% | 3.41% |
| S&P 500 Index | 27.14% | 15.92% | 12.98% |
| 60% S&P 500 Index / 40% Bloomberg US Government/Credit Index | 18.90% | 9.59% | 8.62% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/APWIX-A for the most recent performance information.
| Net Assets | $100,510,832 |
| # of Portfolio Holdings | 81 |
| Portfolio Turnover Rate | 53% |
| Total Advisory Fees Paid | $275,817 |
Graphical Representation of Holdings
| Value | Value |
|---|
| Common Stocks | 59.6% |
| Governments - Treasuries | 32.7% |
| Agencies | 2.7% |
| Short-Term Investments | 4.7% |
| Other assets less liabilities | 0.3% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/APWIX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/APWIX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
AB Sustainable Thematic Balanced Portfolio
Please scan QR code for
Fund Information
Annual Shareholder Report
This annual shareholder report contains important information about the AB Sustainable Thematic Balanced Portfolio (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ABPZX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class Z | $80 | 0.75% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024 all share classes of the Fund underperformed the 60% / 40% blend of S&P 500 Index / Bloomberg US Government/Credit Index (the “benchmark”), before sales charges. Security selection within fixed-income assets detracted, as did overall asset class allocation, relative to the fixed-income component of the blended benchmark. Within equities, overall security selection detracted, particularly selection within health care and financials. Contributions from selection within consumer staples helped offset some of these losses. Overall sector selection contributed as underweights to energy and consumer discretionary offset losses from an overweight to health care and an underweight to communication services.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund, a broad-based securities market index and an additional index that corresponds to the Fund's investment strategies, over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Class Z | S&P 500 Index | 60% S&P 500 Index / 40% Bloomberg US Government/Credit Index |
|---|
| 12/21 | $10,000 | $10,290 | $10,170 |
| 08/22 | $8,373 | $8,629 | $8,733 |
| 08/23 | $9,025 | $10,005 | $9,535 |
| 08/24 | $10,323 | $12,720 | $11,337 |
Average Annual Total Returns
| 1 Year | Since Inception Tuesday, December 14, 2021 |
|---|
| Class Z (without sales charges) | 14.38% | 1.18% |
| Class Z (with sales charges) | 14.38% | 1.18% |
| S&P 500 Index | 27.14% | 9.26% |
| 60% S&P 500 Index / 40% Bloomberg US Government/Credit Index | 18.90% | 4.73% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ABPZX-A for the most recent performance information.
| Net Assets | $100,510,832 |
| # of Portfolio Holdings | 81 |
| Portfolio Turnover Rate | 53% |
| Total Advisory Fees Paid | $275,817 |
Graphical Representation of Holdings
| Value | Value |
|---|
| Common Stocks | 59.6% |
| Governments - Treasuries | 32.7% |
| Agencies | 2.7% |
| Short-Term Investments | 4.7% |
| Other assets less liabilities | 0.3% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ABPZX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ABPZX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Tax-Managed Wealth Appreciation Strategy
Annual Shareholder Report
This annual shareholder report contains important information about the AB Tax-Managed Wealth Appreciation Strategy (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ATWYX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Advisor Class | $45 | 0.40% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024, all share classes of the Fund outperformed the Morgan Stanley Capital International All Country World Index (“MSCI ACWI”) (net) (the “benchmark”), before sales charges. The primary driver of outperformance was positive security selection, particularly within industrials, consumer staples and technology. Sector selection had a slightly negative impact, with cash drag being the largest detractor, while gains from underweights to materials and consumer staples helped offset some losses. Currency selection also slightly detracted from performance.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Advisor Class | MSCI ACWI (net) |
|---|
| 08/14 | $10,000 | $10,000 |
| 08/15 | $9,590 | $9,371 |
| 08/16 | $10,118 | $10,050 |
| 08/17 | $11,663 | $11,770 |
| 08/18 | $13,110 | $13,113 |
| 08/19 | $12,922 | $13,077 |
| 08/20 | $14,574 | $15,237 |
| 08/21 | $18,967 | $19,602 |
| 08/22 | $15,956 | $16,488 |
| 08/23 | $17,917 | $18,788 |
| 08/24 | $22,456 | $23,192 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Advisor Class (without sales charges) | 25.33% | 11.69% | 8.43% |
| Advisor Class (with sales charges) | 25.33% | 11.69% | 8.43% |
| MSCI ACWI (net) | 23.44% | 12.14% | 8.78% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ATWYX-A for the most recent performance information.
| Net Assets | $856,955,581 |
| # of Portfolio Holdings | 101 |
| Portfolio Turnover Rate | 10% |
| Total Advisory Fees Paid | $2,611,304 |
Graphical Representation of Holdings
| Value | Value |
|---|
| Investment Companies | 41.8% |
| Information Technology | 17.6% |
| Health Care | 9.1% |
| Financials | 7.7% |
| Communication Services | 6.4% |
| Consumer Discretionary | 4.8% |
| Industrials | 3.8% |
| Consumer Staples | 3.5% |
| Energy | 1.9% |
| Materials | 1.6% |
| Utilities | 1.0% |
| Real Estate | 0.7% |
| Short-Term Investments | 0.1% |
| Value | Value |
|---|
| Common Stocks | 58.1% |
| Investment Companies | 41.8% |
| Short-Term Investments | 0.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ATWYX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ATWYX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Tax-Managed Wealth Appreciation Strategy
Annual Shareholder Report
This annual shareholder report contains important information about the AB Tax-Managed Wealth Appreciation Strategy (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ATWAX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $73 | 0.65% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024, all share classes of the Fund outperformed the Morgan Stanley Capital International All Country World Index (“MSCI ACWI”) (net) (the “benchmark”), before sales charges. The primary driver of outperformance was positive security selection, particularly within industrials, consumer staples and technology. Sector selection had a slightly negative impact, with cash drag being the largest detractor, while gains from underweights to materials and consumer staples helped offset some losses. Currency selection also slightly detracted from performance.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Class A | MSCI ACWI (net) |
|---|
| 08/14 | $9,577 | $10,000 |
| 08/15 | $9,161 | $9,371 |
| 08/16 | $9,641 | $10,050 |
| 08/17 | $11,084 | $11,770 |
| 08/18 | $12,429 | $13,113 |
| 08/19 | $12,223 | $13,077 |
| 08/20 | $13,743 | $15,237 |
| 08/21 | $17,842 | $19,602 |
| 08/22 | $14,973 | $16,488 |
| 08/23 | $16,769 | $18,788 |
| 08/24 | $20,964 | $23,192 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Class A (without sales charges) | 25.01% | 11.39% | 8.15% |
| Class A (with sales charges) | 19.69% | 10.42% | 7.68% |
| MSCI ACWI (net) | 23.44% | 12.14% | 8.78% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ATWAX-A for the most recent performance information.
| Net Assets | $856,955,581 |
| # of Portfolio Holdings | 101 |
| Portfolio Turnover Rate | 10% |
| Total Advisory Fees Paid | $2,611,304 |
Graphical Representation of Holdings
| Value | Value |
|---|
| Investment Companies | 41.8% |
| Information Technology | 17.6% |
| Health Care | 9.1% |
| Financials | 7.7% |
| Communication Services | 6.4% |
| Consumer Discretionary | 4.8% |
| Industrials | 3.8% |
| Consumer Staples | 3.5% |
| Energy | 1.9% |
| Materials | 1.6% |
| Utilities | 1.0% |
| Real Estate | 0.7% |
| Short-Term Investments | 0.1% |
| Value | Value |
|---|
| Common Stocks | 58.1% |
| Investment Companies | 41.8% |
| Short-Term Investments | 0.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ATWAX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ATWAX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Tax-Managed Wealth Appreciation Strategy
Annual Shareholder Report
This annual shareholder report contains important information about the AB Tax-Managed Wealth Appreciation Strategy (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/ATWCX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $158 | 1.41% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024, all share classes of the Fund outperformed the Morgan Stanley Capital International All Country World Index (“MSCI ACWI”) (net) (the “benchmark”), before sales charges. The primary driver of outperformance was positive security selection, particularly within industrials, consumer staples and technology. Sector selection had a slightly negative impact, with cash drag being the largest detractor, while gains from underweights to materials and consumer staples helped offset some losses. Currency selection also slightly detracted from performance.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Class C | MSCI ACWI (net) |
|---|
| 08/14 | $10,000 | $10,000 |
| 08/15 | $9,501 | $9,371 |
| 08/16 | $9,923 | $10,050 |
| 08/17 | $11,321 | $11,770 |
| 08/18 | $12,601 | $13,113 |
| 08/19 | $12,297 | $13,077 |
| 08/20 | $13,727 | $15,237 |
| 08/21 | $17,687 | $19,602 |
| 08/22 | $14,727 | $16,488 |
| 08/23 | $16,365 | $18,788 |
| 08/24 | $20,309 | $23,192 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Class C (without sales charges) | 24.10% | 10.56% | 7.34% |
| Class C (with sales charges) | 23.10% | 10.56% | 7.34% |
| MSCI ACWI (net) | 23.44% | 12.14% | 8.78% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/ATWCX-A for the most recent performance information.
| Net Assets | $856,955,581 |
| # of Portfolio Holdings | 101 |
| Portfolio Turnover Rate | 10% |
| Total Advisory Fees Paid | $2,611,304 |
Graphical Representation of Holdings
| Value | Value |
|---|
| Investment Companies | 41.8% |
| Information Technology | 17.6% |
| Health Care | 9.1% |
| Financials | 7.7% |
| Communication Services | 6.4% |
| Consumer Discretionary | 4.8% |
| Industrials | 3.8% |
| Consumer Staples | 3.5% |
| Energy | 1.9% |
| Materials | 1.6% |
| Utilities | 1.0% |
| Real Estate | 0.7% |
| Short-Term Investments | 0.1% |
| Value | Value |
|---|
| Common Stocks | 58.1% |
| Investment Companies | 41.8% |
| Short-Term Investments | 0.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/ATWCX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/ATWCX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Wealth Appreciation Strategy
Annual Shareholder Report
This annual shareholder report contains important information about the AB Wealth Appreciation Strategy (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/AWAYX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Advisor Class | $47 | 0.42% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024, all share classes of the Fund outperformed the Morgan Stanley Capital International All Country World Index (“MSCI ACWI”) (net) (the “benchmark”), before sales charges. The primary driver of outperformance was positive security selection, particularly within technology, industrials and consumer staples. Sector selection had a slightly negative impact, with cash drag being the largest detractor, while gains from underweights to materials and consumer staples helped offset some losses. Currency selection also slightly detracted from performance.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Advisor Class | MSCI ACWI (net) |
|---|
| 08/14 | $10,000 | $10,000 |
| 08/15 | $9,534 | $9,371 |
| 08/16 | $9,993 | $10,050 |
| 08/17 | $11,459 | $11,770 |
| 08/18 | $12,884 | $13,113 |
| 08/19 | $12,692 | $13,077 |
| 08/20 | $14,353 | $15,237 |
| 08/21 | $18,762 | $19,602 |
| 08/22 | $15,785 | $16,488 |
| 08/23 | $17,759 | $18,788 |
| 08/24 | $22,330 | $23,192 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Advisor Class (without sales charges) | 25.74% | 11.96% | 8.37% |
| Advisor Class (with sales charges) | 25.74% | 11.96% | 8.37% |
| MSCI ACWI (net) | 23.44% | 12.14% | 8.78% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/AWAYX-A for the most recent performance information.
| Net Assets | $1,251,824,365 |
| # of Portfolio Holdings | 80 |
| Portfolio Turnover Rate | 12% |
| Total Advisory Fees Paid | $3,946,427 |
Graphical Representation of Holdings
| Value | Value |
|---|
| Investment Companies | 41.4% |
| Information Technology | 17.4% |
| Health Care | 9.3% |
| Financials | 7.3% |
| Communication Services | 6.6% |
| Consumer Discretionary | 4.4% |
| Industrials | 4.0% |
| Consumer Staples | 3.4% |
| Energy | 1.9% |
| Materials | 1.7% |
| Utilities | 1.1% |
| Real Estate | 1.1% |
| Short-Term Investments | 0.5% |
| Other assets less liabilities | -0.1% |
| Value | Value |
|---|
| Common Stocks | 58.2% |
| Investment Companies | 41.4% |
| Short-Term Investments | 0.5% |
| Other assets less liabilities | -0.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/AWAYX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/AWAYX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Wealth Appreciation Strategy
Annual Shareholder Report
This annual shareholder report contains important information about the AB Wealth Appreciation Strategy (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/AWAAX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class A | $76 | 0.67% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024, all share classes of the Fund outperformed the Morgan Stanley Capital International All Country World Index (“MSCI ACWI”) (net) (the “benchmark”), before sales charges. The primary driver of outperformance was positive security selection, particularly within technology, industrials and consumer staples. Sector selection had a slightly negative impact, with cash drag being the largest detractor, while gains from underweights to materials and consumer staples helped offset some losses. Currency selection also slightly detracted from performance.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Class A | MSCI ACWI (net) |
|---|
| 08/14 | $9,575 | $10,000 |
| 08/15 | $9,106 | $9,371 |
| 08/16 | $9,519 | $10,050 |
| 08/17 | $10,884 | $11,770 |
| 08/18 | $12,213 | $13,113 |
| 08/19 | $11,996 | $13,077 |
| 08/20 | $13,537 | $15,237 |
| 08/21 | $17,652 | $19,602 |
| 08/22 | $14,811 | $16,488 |
| 08/23 | $16,620 | $18,788 |
| 08/24 | $20,852 | $23,192 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Class A (without sales charges) | 25.46% | 11.69% | 8.09% |
| Class A (with sales charges) | 20.15% | 10.72% | 7.63% |
| MSCI ACWI (net) | 23.44% | 12.14% | 8.78% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/AWAAX-A for the most recent performance information.
| Net Assets | $1,251,824,365 |
| # of Portfolio Holdings | 80 |
| Portfolio Turnover Rate | 12% |
| Total Advisory Fees Paid | $3,946,427 |
Graphical Representation of Holdings
| Value | Value |
|---|
| Investment Companies | 41.4% |
| Information Technology | 17.4% |
| Health Care | 9.3% |
| Financials | 7.3% |
| Communication Services | 6.6% |
| Consumer Discretionary | 4.4% |
| Industrials | 4.0% |
| Consumer Staples | 3.4% |
| Energy | 1.9% |
| Materials | 1.7% |
| Utilities | 1.1% |
| Real Estate | 1.1% |
| Short-Term Investments | 0.5% |
| Other assets less liabilities | -0.1% |
| Value | Value |
|---|
| Common Stocks | 58.2% |
| Investment Companies | 41.4% |
| Short-Term Investments | 0.5% |
| Other assets less liabilities | -0.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/AWAAX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/AWAAX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
Please scan QR code for
Fund Information
AB Wealth Appreciation Strategy
Annual Shareholder Report
This annual shareholder report contains important information about the AB Wealth Appreciation Strategy (the “Fund”) for the period of September 1, 2023 to August 31, 2024. You can find additional information about the Fund at https://www.abfunds.com/link/AB/AWACX-A. You can also request this information by contacting us at (800) 227 4618.
What were the Fund costs for the last year?
(Based on a hypothetical $10,000 investment)
| Class Name | Cost of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|
| Class C | $162 | 1.44% |
How did the Fund perform last year? What affected the Fund’s performance?
During the 12-month period ended August 31, 2024, all share classes of the Fund outperformed the Morgan Stanley Capital International All Country World Index (“MSCI ACWI”) (net) (the “benchmark”), before sales charges. The primary driver of outperformance was positive security selection, particularly within technology, industrials and consumer staples. Sector selection had a slightly negative impact, with cash drag being the largest detractor, while gains from underweights to materials and consumer staples helped offset some losses. Currency selection also slightly detracted from performance.
Top contributors to performance:
Top detractors from performance:
The following graph shows the performance of hypothetical $10,000 investments in the Fund and a broad-based securities market index over the most recently completed 10 fiscal years of the Fund, or since inception, if shorter. The Fund's performance reflects sales charges and assumes the reinvestment of dividends.
| Class C | MSCI ACWI (net) |
|---|
| 08/14 | $10,000 | $10,000 |
| 08/15 | $9,438 | $9,371 |
| 08/16 | $9,797 | $10,050 |
| 08/17 | $11,115 | $11,770 |
| 08/18 | $12,372 | $13,113 |
| 08/19 | $12,067 | $13,077 |
| 08/20 | $13,513 | $15,237 |
| 08/21 | $17,485 | $19,602 |
| 08/22 | $14,565 | $16,488 |
| 08/23 | $16,219 | $18,788 |
| 08/24 | $20,189 | $23,192 |
Average Annual Total Returns
| 1 Year | 5 Years | 10 Years |
|---|
| Class C (without sales charges) | 24.48% | 10.84% | 7.28% |
| Class C (with sales charges) | 23.48% | 10.84% | 7.28% |
| MSCI ACWI (net) | 23.44% | 12.14% | 8.78% |
The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares.
Visit https://www.abfunds.com/link/AB/AWACX-A for the most recent performance information.
| Net Assets | $1,251,824,365 |
| # of Portfolio Holdings | 80 |
| Portfolio Turnover Rate | 12% |
| Total Advisory Fees Paid | $3,946,427 |
Graphical Representation of Holdings
| Value | Value |
|---|
| Investment Companies | 41.4% |
| Information Technology | 17.4% |
| Health Care | 9.3% |
| Financials | 7.3% |
| Communication Services | 6.6% |
| Consumer Discretionary | 4.4% |
| Industrials | 4.0% |
| Consumer Staples | 3.4% |
| Energy | 1.9% |
| Materials | 1.7% |
| Utilities | 1.1% |
| Real Estate | 1.1% |
| Short-Term Investments | 0.5% |
| Other assets less liabilities | -0.1% |
| Value | Value |
|---|
| Common Stocks | 58.2% |
| Investment Companies | 41.4% |
| Short-Term Investments | 0.5% |
| Other assets less liabilities | -0.1% |
Availability of Additional Information
You can find additional information on the Fund’s website at https://www.abfunds.com/link/AB/AWACX-A, including the Fund's:
• Prospectus
• Financial information
• Fund holdings
• Proxy voting information
You can also request this information by contacting us at (800) 227 4618.
Shareholders who have consented to receive a single annual or semi-annual shareholder report at a shared address may revoke this consent by contacting us at (800) 227 4618.
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
Information regarding the Fund’s Board of Directors’/Trustees’ review of the advisory agreement is available on the Fund’s website https://www.abfunds.com/link/AB/AWACX-A. You can request this information, free of charge, by contacting us at (800) 227 4618 or by scanning the QR code below.
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.
Please scan QR code for
Fund Information
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 19(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., Jorge A. Bermudez and Carol C. McMullen 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, quarterly press release review (for those Funds that issue quarterly 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 All Market Total Return | | | 2023 | | | $ | 106,481 | | | | | | | $ | 43,281 | |
| | | 2024 | | | $ | 106,481 | | | | | | | $ | 23,964 | |
AB Wealth Appreciation Strategy | | | 2023 | | | $ | 44,723 | | | | | | | $ | 31,202 | |
| | | 2024 | | | $ | 44,723 | | | | | | | $ | 11,478 | |
AB Sustainable Thematic Balanced | | | 2023 | | | $ | 47,641 | | | | | | | $ | 21,582 | |
| | | 2024 | | | $ | 47,641 | | | | | | | $ | 15,456 | |
AB TM Wealth Appreciation Strategy | | | 2023 | | | $ | 44,723 | | | | | | | $ | 23,040 | |
| | | 2024 | | | $ | 44,723 | | | | | | | $ | 12,679 | |
(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) No percentage of services addressed by (b) and (c) of this Item 4 were approved pursuant to the waiver provision of paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. No amounts are reported for Item 4 (d).
(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 All Market Total Return | | | 2023 | | | $ | 1,738,461 | | | $ | 43,281 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (43,281 | ) |
| | | 2024 | | | $ | 2,077,868 | | | $ | 23,964 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (23,964 | ) |
AB Wealth Appreciation Strategy | | | 2023 | | | $ | 1,726,382 | | | $ | 31,202 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (31,202 | ) |
| | | 2024 | | | $ | 2,065,382 | | | $ | 11,478 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (11,478 | ) |
AB Sustainable Thematic Balanced | | | 2023 | | | $ | 1,716,762 | | | $ | 21,582 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (21,582 | ) |
| | | 2024 | | | $ | 2,069,360 | | | $ | 15,456 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (15,456 | ) |
AB TM Wealth Appreciation Strategy | | | 2023 | | | $ | 1,718,220 | | | $ | 23,040 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (23,040 | ) |
| | | 2024 | | | $ | 2,066,583 | | | $ | 12,679 | |
| | | | | | | | | | $ | — | |
| | | | | | | | | | $ | (12,679 | ) |
(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.
(i) Not applicable.
(j) Not applicable.
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. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
AUG 08.31.24
ANNUAL REPORT
AB ALL MARKET TOTAL 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.
CONSOLIDATED PORTFOLIO OF INVESTMENTS
August 31, 2024
| | | | | | | | | | | | |
| Company | | | | |
Shares | | | U.S. $ Value | |
| |
COMMON STOCKS – 41.6% | | | | | | | | | | | | |
Information Technology – 10.6% | | | | | | | | | | | | |
Communications Equipment – 0.6% | | | | | | | | | | | | |
F5, Inc.(a) | | | | | | | 1,111 | | | $ | 225,700 | |
GCI Liberty, Inc.(a)(b)(c) | | | | | | | 2,664 | | | | – 0 | – |
Infinera Corp.(a) | | | | | | | 119,795 | | | | 753,511 | |
Juniper Networks, Inc. | | | | | | | 28,857 | | | | 1,121,960 | |
Motorola Solutions, Inc. | | | | | | | 887 | | | | 392,089 | |
| | | | | | | | | | | | |
| | | | 2,493,260 | |
| | | | | |
Electronic Equipment, Instruments & Components – 0.5% | | | | | | | | | | | | |
Amphenol Corp. – Class A | | | | | | | 14,569 | | | | 982,679 | |
CDW Corp./DE | | | | | | | 4,290 | | | | 967,996 | |
Trimble, Inc.(a) | | | | | | | 6,211 | | | | 352,101 | |
| | | | | | | | | | | | |
| | | | 2,302,776 | |
| | | | | |
IT Services – 1.1% | | | | | | | | | | | | |
Accenture PLC – Class A | | | | | | | 2,773 | | | | 948,227 | |
Akamai Technologies, Inc.(a) | | | | | | | 5,169 | | | | 526,411 | |
Amdocs Ltd. | | | | | | | 5,057 | | | | 439,807 | |
CGI, Inc.(a) | | | | | | | 1,583 | | | | 178,345 | |
Gartner, Inc.(a) | | | | | | | 2,410 | | | | 1,185,624 | |
GoDaddy, Inc. – Class A(a) | | | | | | | 923 | | | | 154,520 | |
Keywords Studios PLC | | | | | | | 4,436 | | | | 141,334 | |
Nomura Research Institute Ltd.(d) | | | | | | | 7,300 | | | | 245,552 | |
Perficient, Inc.(a) | | | | | | | 7,347 | | | | 552,274 | |
VeriSign, Inc.(a) | | | | | | | 2,938 | | | | 540,298 | |
| | | | | | | | | | | | |
| | | | 4,912,392 | |
| | | | | |
Semiconductors & Semiconductor Equipment – 2.2% | | | | | | | | | | | | |
Analog Devices, Inc. | | | | | | | 2,311 | | | | 542,715 | |
Applied Materials, Inc. | | | | | | | 3,591 | | | | 708,361 | |
ASML Holding NV | | | | | | | 609 | | | | 549,217 | |
Broadcom, Inc. | | | | | | | 9,705 | | | | 1,580,168 | |
Infineon Technologies AG | | | | | | | 12,825 | | | | 470,667 | |
NVIDIA Corp. | | | | | | | 38,062 | | | | 4,543,461 | |
QUALCOMM, Inc. | | | | | | | 2,307 | | | | 404,417 | |
Taiwan Semiconductor Manufacturing Co., Ltd. | | | | | | | 29,000 | | | | 858,555 | |
| | | | | | | | | | | | |
| | | | 9,657,561 | |
| | | | | |
Software – 4.8% | |
Adobe, Inc.(a) | | | | | | | 882 | | | | 506,630 | |
ANSYS, Inc.(a) | | | | | | | 3,427 | | | | 1,101,506 | |
AppLovin Corp. – Class A(a) | | | | | | | 2,066 | | | | 191,869 | |
Autodesk, Inc.(a) | | | | | | | 1,420 | | | | 366,928 | |
Cadence Design Systems, Inc.(a) | | | | | | | 1,790 | | | | 481,385 | |
| | |
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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 1 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | |
Shares | | | U.S. $ Value | |
| |
Constellation Software, Inc./Canada | | | | | | | 205 | | | $ | 669,418 | |
Dassault Systemes SE | | | | | | | 5,777 | | | | 225,764 | |
DocuSign, Inc.(a) | | | | | | | 6,108 | | | | 361,655 | |
Dropbox, Inc. – Class A(a) | | | | | | | 13,884 | | | | 349,044 | |
Fair Isaac Corp.(a) | | | | | | | 445 | | | | 769,970 | |
HashiCorp, Inc. – Class A(a) | | | | | | | 34,459 | | | | 1,169,539 | |
Intuit, Inc. | | | | | | | 783 | | | | 493,494 | |
Manhattan Associates, Inc.(a) | | | | | | | 1,279 | | | | 338,206 | |
Matterport, Inc.(a) | | | | | | | 140,640 | | | | 637,099 | |
Microsoft Corp. | | | | | | | 21,602 | | | | 9,011,058 | |
Oracle Corp. | | | | | | | 8,922 | | | | 1,260,589 | |
Roper Technologies, Inc. | | | | | | | 3,203 | | | | 1,775,775 | |
SAP SE | | | | | | | 1,815 | | | | 398,290 | |
ServiceNow, Inc.(a) | | | | | | | 832 | | | | 711,360 | |
Trend Micro, Inc./Japan | | | | | | | 6,100 | | | | 366,750 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 21,186,329 | |
| | | | | | | | | | | | |
Technology Hardware, Storage & Peripherals – 1.4% | | | | | | | | | | | | |
Apple, Inc. | | | | | | | 18,863 | | | | 4,319,627 | |
Hewlett Packard Enterprise Co. | | | | | | | 16,018 | | | | 310,269 | |
Logitech International SA (REG) | | | | | | | 4,053 | | | | 368,140 | |
NetApp, Inc. | | | | | | | 2,573 | | | | 310,612 | |
Samsung Electronics Co., Ltd. | | | | | | | 18,262 | | | | 1,014,241 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,322,889 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 46,875,207 | |
| | | | | | | | | | | | |
Financials – 6.7% | | | | | | | | | | | | |
Banks – 1.9% | | | | | | | | | | | | |
ABN AMRO Bank NV (CVA) | | | | | | | 13,413 | | | | 230,531 | |
BNP Paribas SA | | | | | | | 6,790 | | | | 469,648 | |
CaixaBank SA(d) | | | | | | | 59,563 | | | | 358,757 | |
Citigroup, Inc. | | | | | | | 6,794 | | | | 425,576 | |
DBS Group Holdings Ltd. | | | | | | | 20,490 | | | | 572,169 | |
First Bancshares, Inc. (The) | | | | | | | 11,254 | | | | 385,562 | |
First Citizens BancShares, Inc./NC – Class A | | | | | | | 166 | | | | 337,096 | |
Heartland Financial USA, Inc. | | | | | | | 16,614 | | | | 926,397 | |
ING Groep NV | | | | | | | 20,485 | | | | 372,461 | |
Japan Post Bank Co., Ltd. | | | | | | | 33,400 | | | | 313,909 | |
JPMorgan Chase & Co. | | | | | | | 2,791 | | | | 627,417 | |
Mitsubishi UFJ Financial Group, Inc. | | | | | | | 38,000 | | | | 400,908 | |
NatWest Group PLC | | | | | | | 164,933 | | | | 751,382 | |
Nordea Bank Abp (Stockholm) | | | | | | | 28,305 | | | | 334,252 | |
Oversea-Chinese Banking Corp., Ltd. | | | | | | | 48,600 | | | | 541,719 | |
Royal Bank of Canada | | | | | | | 2,133 | | | | 257,957 | |
Standard Chartered PLC | | | | | | | 35,030 | | | | 360,437 | |
Sumitomo Mitsui Financial Group, Inc. | | | | | | | 6,300 | | | | 415,757 | |
| | |
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2 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | |
Shares | | | U.S. $ Value | |
| |
UniCredit SpA | | | | | | | 9,256 | | | $ | 384,727 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,466,662 | |
| | | | | | | | | | | | |
Capital Markets – 1.9% | |
Ameriprise Financial, Inc. | | | | | | | 844 | | | | 379,327 | |
Assetmark Financial Holdings, Inc.(a) | | | | | | | 10,433 | | | | 366,720 | |
B3 SA – Brasil Bolsa Balcao | | | | | | | 252,700 | | | | 568,535 | |
BlackRock, Inc. | | | | | | | 296 | | | | 266,936 | |
Charles Schwab Corp. (The) | | | | | | | 16,615 | | | | 1,081,637 | |
CVC Capital Partners PLC(a)(e) | | | | | | | 18,264 | | | | 386,418 | |
EQT AB(d) | | | | | | | 7,136 | | | | 239,218 | |
Euronext NV | | | | | | | 3,297 | | | | 352,101 | |
Goldman Sachs Group, Inc. (The) | | | | | | | 2,978 | | | | 1,519,525 | |
Intermediate Capital Group PLC | | | | | | | 17,089 | | | | 479,541 | |
Julius Baer Group Ltd. | | | | | | | 16,345 | | | | 956,484 | |
London Stock Exchange Group PLC | | | | | | | 3,570 | | | | 481,887 | |
MSCI, Inc. | | | | | | | 310 | | | | 179,983 | |
SEI Investments Co. | | | | | | | 4,836 | | | | 327,059 | |
Singapore Exchange Ltd. | | | | | | | 25,300 | | | | 209,888 | |
TMX Group Ltd.(d) | | | | | | | 10,373 | | | | 330,898 | |
UBS Group AG (REG) | | | | | | | 13,216 | | | | 407,258 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 8,533,415 | |
| | | | | | | | | | | | |
Consumer Finance – 0.5% | |
Ally Financial, Inc. | | | | | | | 7,823 | | | | 337,876 | |
American Express Co. | | | | | | | 1,022 | | | | 264,340 | |
Discover Financial Services | | | | | | | 7,799 | | | | 1,081,799 | |
Synchrony Financial | | | | | | | 6,855 | | | | 344,532 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,028,547 | |
| | | | | | | | | | | | |
Financial Services – 1.4% | |
Berkshire Hathaway, Inc. – Class B(a) | | | | | | | 443 | | | | 210,833 | |
Corebridge Financial, Inc. | | | | | | | 10,843 | | | | 320,519 | |
Curo Group Holdings Corp.(a)(b)(c) | | | | | | | 7,850 | | | | 36,618 | |
Fiserv, Inc.(a) | | | | | | | 3,499 | | | | 610,925 | |
Mastercard, Inc. – Class A | | | | | | | 6,299 | | | | 3,044,559 | |
Nuvei Corp.(d) | | | | | | | 16,807 | | | | 559,001 | |
Visa, Inc. – Class A | | | | | | | 5,783 | | | | 1,598,248 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,380,703 | |
| | | | | | | | | | | | |
Insurance – 1.0% | |
Allstate Corp. (The) | | | | | | | 1,031 | | | | 194,797 | |
Aviva PLC | | | | | | | 52,225 | | | | 347,335 | |
AXA SA | | | | | | | 13,105 | | | | 498,765 | |
Everest Group Ltd. | | | | | | | 884 | | | | 346,740 | |
Japan Post Holdings Co., Ltd. | | | | | | | 35,300 | | | | 344,922 | |
Markel Group, Inc.(a) | | | | | | | 212 | | | | 339,344 | |
Marsh & McLennan Cos., Inc. | | | | | | | 2,391 | | | | 543,976 | |
Medibank Pvt Ltd.(d) | | | | | | | 85,689 | | | | 223,707 | |
| | |
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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 3 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | |
Shares | | | U.S. $ Value | |
| |
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen (REG) | | | | | | | 426 | | | $ | 230,484 | |
Poste Italiane SpA | | | | | | | 15,978 | | | | 222,474 | |
Progressive Corp. (The) | | | | | | | 1,051 | | | | 265,062 | |
Sampo Oyj – Class A | | | | | | | 8,204 | | | | 365,745 | |
T&D Holdings, Inc.(d) | | | | | | | 21,200 | | | | 359,194 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,282,545 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 29,691,872 | |
| | | | | | | | | | | | |
Health Care – 6.3% | | | | | | | | | | | | |
Biotechnology – 0.7% | | | | | | | | | | | | |
AbbVie, Inc. | | | | | | | 6,062 | | | | 1,190,031 | |
Alnylam Pharmaceuticals, Inc.(a) | | | | | | | 869 | | | | 228,278 | |
Amgen, Inc. | | | | | | | 1,085 | | | | 362,206 | |
G1 Therapeutics, Inc.(a) | | | | | | | 13,881 | | | | 98,694 | |
Genmab A/S(a) | | | | | | | 214 | | | | 59,516 | |
Gilead Sciences, Inc. | | | | | | | 8,123 | | | | 641,717 | |
Incyte Corp.(a) | | | | | | | 2,106 | | | | 138,280 | |
Neurocrine Biosciences, Inc.(a) | | | | | | | 1,466 | | | | 186,270 | |
United Therapeutics Corp.(a) | | | | | | | 664 | | | | 241,397 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,146,389 | |
| | | | | | | | | | | | |
Health Care Equipment & Supplies – 1.3% | | | | | | | | | | | | |
Axonics, Inc.(a) | | | | | | | 17,899 | | | | 1,237,984 | |
Cooper Cos., Inc. (The)(a) | | | | | | | 11,337 | | | | 1,198,661 | |
IDEXX Laboratories, Inc.(a) | | | | | | | 659 | | | | 317,196 | |
Medtronic PLC | | | | | | | 15,259 | | | | 1,351,642 | |
ResMed, Inc. | | | | | | | 1,386 | | | | 339,598 | |
Silk Road Medical, Inc.(a) | | | | | | | 21,853 | | | | 592,435 | |
Surmodics, Inc.(a) | | | | | | | 19,547 | | | | 774,648 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,812,164 | |
| | | | | | | | | | | | |
Health Care Providers & Services – 1.5% | | | | | | | | | | | | |
Amedisys, Inc.(a) | | | | | | | 12,078 | | | | 1,183,765 | |
Centene Corp.(a) | | | | | | | 4,485 | | | | 353,552 | |
Cigna Group (The) | | | | | | | 964 | | | | 348,785 | |
Elevance Health, Inc. | | | | | | | 4,038 | | | | 2,248,722 | |
McKesson Corp. | | | | | | | 1,801 | | | | 1,010,505 | |
PetIQ, Inc.(a) | | | | | | | 78 | | | | 2,383 | |
UnitedHealth Group, Inc. | | | | | | | 1,765 | | | | 1,041,703 | |
Universal Health Services, Inc. – Class B | | | | | | | 1,487 | | | | 353,861 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,543,276 | |
| | | | | | | | | | | | |
Life Sciences Tools & Services – 0.6% | | | | | | | | | | | | |
Illumina, Inc.(a) | | | | | | | 4,769 | | | | 626,647 | |
IQVIA Holdings, Inc.(a) | | | | | | | 4,768 | | | | 1,199,390 | |
Thermo Fisher Scientific, Inc. | | | | | | | 1,476 | | | | 907,843 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,733,880 | |
| | | | | | | | | | | | |
| | |
| |
4 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | |
Shares | | | U.S. $ Value | |
| |
Pharmaceuticals – 2.2% | | | | | | | | | | | | |
AstraZeneca PLC | | | | | | | 1,739 | | | $ | 304,787 | |
AstraZeneca PLC (Sponsored ADR) | | | | | | | 6,359 | | | | 557,176 | |
Bristol-Myers Squibb Co. | | | | | | | 740 | | | | 36,963 | |
Calliditas Therapeutics AB – Class B(a) | | | | | | | 1,647 | | | | 33,170 | |
Catalent, Inc.(a) | | | | | | | 19,663 | | | | 1,198,656 | |
Eli Lilly & Co. | | | | | | | 1,471 | | | | 1,412,189 | |
Johnson & Johnson | | | | | | | 309 | | | | 51,251 | |
Merck & Co., Inc. | | | | | | | 10,725 | | | | 1,270,376 | |
Novartis AG (REG) | | | | | | | 2,957 | | | | 357,259 | |
Novo Nordisk A/S – Class B | | | | | | | 15,212 | | | | 2,113,101 | |
Revance Therapeutics, Inc.(a) | | | | | | | 11,396 | | | | 74,872 | |
Roche Holding AG (Genusschein) | | | | | | | 1,532 | | | | 518,614 | |
Takeda Pharmaceutical Co., Ltd. | | | | | | | 10,400 | | | | 309,629 | |
Zoetis, Inc. | | | | | | | 8,788 | | | | 1,612,510 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,850,553 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 28,086,262 | |
| | | | | | | | | | | | |
Industrials – 4.8% | | | | | | | | | | | | |
Aerospace & Defense – 0.5% | | | | | | | | | | | | |
Axon Enterprise, Inc.(a) | | | | | | | 588 | | | | 214,602 | |
BAE Systems PLC | | | | | | | 20,097 | | | | 361,339 | |
Heroux-Devtek, Inc.(a) | | | | | | | 16,010 | | | | 372,436 | |
Huntington Ingalls Industries, Inc. | | | | | | | 1,225 | | | | 346,393 | |
Kongsberg Gruppen ASA | | | | | | | 3,188 | | | | 336,903 | |
Leonardo SpA | | | | | | | 12,424 | | | | 316,940 | |
RTX Corp. | | | | | | | 1,015 | | | | 125,190 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,073,803 | |
| | | | | | | | | | | | |
Air Freight & Logistics – 0.1% | | | | | | | | | | | | |
DSV A/S | | | | | | | 3,753 | | | | 670,685 | |
| | | | | | | | | | | | |
| | | |
Building Products – 0.7% | | | | | | | | | | | | |
Carlisle Cos., Inc. | | | | | | | 838 | | | | 355,145 | |
Lennox International, Inc. | | | | | | | 572 | | | | 337,589 | |
Masco Corp. | | | | | | | 4,172 | | | | 331,924 | |
Otis Worldwide Corp. | | | | | | | 15,258 | | | | 1,444,780 | |
Owens Corning | | | | | | | 2,066 | | | | 348,596 | |
ROCKWOOL A/S – Class B | | | | | | | 351 | | | | 152,298 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,970,332 | |
| | | | | | | | | | | | |
Commercial Services & Supplies – 0.4% | | | | | | | | | | | | |
Cintas Corp. | | | | | | | 484 | | | | 389,678 | |
Republic Services, Inc. | | | | | | | 1,215 | | | | 252,975 | |
Stericycle, Inc.(a) | | | | | | | 17,658 | | | | 1,046,413 | |
Veralto Corp. | | | | | | | 3,124 | | | | 351,232 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,040,298 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 5 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | |
Shares | | | U.S. $ Value | |
| |
Construction & Engineering – 0.2% | | | | | | | | | | | | |
EMCOR Group, Inc. | | | | | | | 917 | | | $ | 360,436 | |
Shimizu Corp. | | | | | | | 51,300 | | | | 343,933 | |
Stantec, Inc. | | | | | | | 4,065 | | | | 332,916 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,037,285 | |
| | | | | | | | | | | | |
Electrical Equipment – 0.5% | | | | | | | | | | | | |
Eaton Corp. PLC | | | | | | | 3,240 | | | | 994,453 | |
Exide Technologies(a)(b)(c) | | | | | | | 13 | | | | 5,525 | |
Prysmian SpA(d) | | | | | | | 13,145 | | | | 925,847 | |
Schneider Electric SE | | | | | | | 1,412 | | | | 360,201 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,286,026 | |
| | | | | | | | | | | | |
Ground Transportation – 0.1% | | | | | | | | | | | | |
Canadian National Railway Co. | | | | | | | 2,367 | | | | 278,897 | |
| | | | | | | | | | | | |
| | | |
Industrial Conglomerates – 0.2% | | | | | | | | | | | | |
Hitachi Ltd. | | | | | | | 10,400 | | | | 256,568 | |
Siemens AG (REG) | | | | | | | 2,405 | | | | 452,394 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 708,962 | |
| | | | | | | | | | | | |
Machinery – 0.4% | | | | | | | | | | | | |
Deere & Co. | | | | | | | 1,476 | | | | 569,352 | |
Marel HF(e) | | | | | | | 169,520 | | | | 616,504 | |
Snap-on, Inc. | | | | | | | 224 | | | | 63,558 | |
Volvo AB – Class A | | | | | | | 5,771 | | | | 155,347 | |
Volvo AB – Class B | | | | | | | 8,408 | | | | 223,573 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,628,334 | |
| | | | | | | | | | | | |
Passenger Airlines – 0.1% | | | | | | | | | | | | |
Hawaiian Holdings, Inc.(a) | | | | | | | 40,221 | | | | 696,628 | |
| | | | | | | | | | | | |
| | | |
Professional Services – 1.3% | | | | | | | | | | | | |
Automatic Data Processing, Inc. | | | | | | | 6,957 | | | | 1,919,506 | |
Experian PLC | | | | | | | 7,618 | | | | 370,145 | |
Genpact Ltd. | | | | | | | 6,160 | | | | 241,657 | |
Leidos Holdings, Inc. | | | | | | | 2,250 | | | | 356,647 | |
Paychex, Inc. | | | | | | | 2,330 | | | | 305,696 | |
RELX PLC (Amsterdam) | | | | | | | 13,345 | | | | 623,083 | |
RELX PLC (London) | | | | | | | 5,509 | | | | 257,161 | |
SS&C Technologies Holdings, Inc. | | | | | | | 4,568 | | | | 343,011 | |
Sterling Check Corp.(a) | | | | | | | 18,882 | | | | 305,700 | |
Verisk Analytics, Inc. | | | | | | | 1,336 | | | | 364,487 | |
Wolters Kluwer NV | | | | | | | 3,604 | | | | 616,309 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,703,402 | |
| | | | | | | | | | | | |
Trading Companies & Distributors – 0.2% | | | | | | | | | | | | |
McGrath RentCorp | | | | | | | 9,945 | | | | 1,075,552 | |
| | | | | | | | | | | | |
| | |
| |
6 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | |
Shares | | | U.S. $ Value | |
| |
Transportation Infrastructure – 0.1% | | | | | | | | | | | | |
Aena SME SA | | | | | | | 1,699 | | | $ | 341,917 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 21,512,121 | |
| | | | | | | | | | | | |
Consumer Discretionary – 4.4% | | | | | | | | | | | | |
Automobile Components – 0.1% | | | | | | | | | | | | |
Aisin Corp. | | | | | | | 9,800 | | | | 344,386 | |
| | | | | | | | | | | | |
| | | |
Automobiles – 0.3% | | | | | | | | | | | | |
Honda Motor Co., Ltd. | | | | | | | 41,400 | | | | 456,859 | |
Mazda Motor Corp. | | | | | | | 41,500 | | | | 350,517 | |
Nissan Motor Co., Ltd.(d) | | | | | | | 107,200 | | | | 316,923 | |
Tesla, Inc.(a) | | | | | | | 1,223 | | | | 261,857 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,386,156 | |
| | | | | | | | | | | | |
Broadline Retail – 1.0% | | | | | | | | | | | | |
Alibaba Group Holding Ltd. | | | | | | | 700 | | | | 7,255 | |
Alibaba Group Holding Ltd. (Sponsored ADR) | | | | | | | 8,464 | | | | 705,390 | |
Amazon.com, Inc.(a) | | | | | | | 19,000 | | | | 3,391,500 | |
Edcon Ltd. Series A(a)(b)(c) | | | | | | | 465,862 | | | | – 0 | – |
Edcon Ltd. Series B(a)(b)(c) | | | | | | | 73,623 | | | | – 0 | – |
MercadoLibre, Inc.(a) | | | | | | | 201 | | | | 414,394 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,518,539 | |
| | | | | | | | | | | | |
Diversified Consumer Services – 0.3% | | | | | | | | | | | | |
Pearson PLC | | | | | | | 25,376 | | | | 353,641 | |
Service Corp. International/US | | | | | | | 8,779 | | | | 687,133 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,040,774 | |
| | | | | | | | | | | | |
Hotels, Restaurants & Leisure – 1.4% | | | | | | | | | | | | |
Airbnb, Inc. – Class A(a) | | | | | | | 1,622 | | | | 190,277 | |
Amadeus IT Group SA(d) | | | | | | | 4,478 | | | | 302,157 | |
Aristocrat Leisure Ltd.(d) | | | | | | | 9,400 | | | | 346,967 | |
Bally’s Corp.(a) | | | | | | | 6,372 | | | | 109,598 | |
Booking Holdings, Inc. | | | | | | | 167 | | | | 652,841 | |
Compass Group PLC | | | | | | | 16,027 | | | | 506,538 | |
Everi Holdings, Inc.(a) | | | | | | | 20,272 | | | | 264,550 | |
Expedia Group, Inc.(a) | | | | | | | 209 | | | | 29,070 | |
InterContinental Hotels Group PLC | | | | | | | 5,151 | | | | 515,534 | |
Kindred Group PLC | | | | | | | 97,602 | | | | 1,210,971 | |
Lottery Corp., Ltd. (The)(d) | | | | | | | 70,640 | | | | 237,899 | |
PlayAGS, Inc.(a) | | | | | | | 10,441 | | | | 118,192 | |
Starbucks Corp. | | | | | | | 8,212 | | | | 776,609 | |
Yum China Holdings, Inc. | | | | | | | 21,429 | | | | 724,514 | |
Yum! Brands, Inc. | | | | | | | 2,493 | | | | 336,356 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 6,322,073 | |
| | | | | | | | | | | | |
Household Durables – 0.2% | | | | | | | | | | | | |
PulteGroup, Inc. | | | | | | | 2,697 | | | | 355,060 | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 7 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | |
Shares | | | U.S. $ Value | |
| |
Vizio Holding Corp. – Class A(a) | | | | | | | 57,700 | | | $ | 647,971 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,003,031 | |
| | | | | | | | | | | | |
Specialty Retail – 0.6% | | | | | | | | | | | | |
Aaron’s Co., Inc. (The) | | | | | | | 15,234 | | | | 153,711 | |
AutoZone, Inc.(a) | | | | | | | 234 | | | | 744,466 | |
Dick’s Sporting Goods, Inc. | | | | | | | 1,515 | | | | 358,994 | |
Home Depot, Inc. (The) | | | | | | | 47 | | | | 17,320 | |
Industria de Diseno Textil SA | | | | | | | 6,653 | | | | 360,430 | |
TJX Cos., Inc. (The) | | | | | | | 8,927 | | | | 1,046,869 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,681,790 | |
| | | | | | | | | | | | |
Textiles, Apparel & Luxury Goods – 0.5% | | | | | | | | | | | | |
Capri Holdings Ltd.(a) | | | | | | | 6,532 | | | | 233,323 | |
Christian Dior SE | | | | | | | 305 | | | | 210,029 | |
Deckers Outdoor Corp.(a) | | | | | | | 188 | | | | 180,347 | |
NIKE, Inc. – Class B | | | | | | | 12,906 | | | | 1,075,328 | |
Pandora A/S | | | | | | | 2,091 | | | | 366,245 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,065,272 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 19,362,021 | |
| | | | | | | | | | | | |
Consumer Staples – 2.4% | | | | | | | | | | | | |
Beverages – 1.1% | | | | | | | | | | | | |
Asahi Group Holdings Ltd. | | | | | | | 27,539 | | | | 1,027,911 | |
Carlsberg AS – Class B | | | | | | | 6,942 | | | | 815,528 | |
Coca-Cola Co. (The) | | | | | | | 20,692 | | | | 1,499,549 | |
Coca-Cola HBC AG – Class DI | | | | | | | 2,285 | | | | 84,844 | |
Constellation Brands, Inc. – Class A | | | | | | | 4,358 | | | | 1,049,014 | |
Pernod Ricard SA | | | | | | | 2,664 | | | | 379,296 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,856,142 | |
| | | | | | | | | | | | |
Consumer Staples Distribution & Retail – 0.7% | | | | | | | | | | | | |
Albertsons Cos., Inc. – Class A | | | | | | | 55,576 | | | | 1,090,401 | |
Costco Wholesale Corp. | | | | | | | 99 | | | | 88,346 | |
George Weston Ltd. | | | | | | | 2,086 | | | | 339,280 | |
Koninklijke Ahold Delhaize NV(d) | | | | | | | 9,142 | | | | 313,879 | |
Loblaw Cos., Ltd. | | | | | | | 2,517 | | | | 328,490 | |
Target Corp. | | | | | | | 1,449 | | | | 222,595 | |
Tesco PLC | | | | | | | 71,084 | | | | 331,418 | |
Walmart, Inc. | | | | | | | 5,235 | | | | 404,299 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,118,708 | |
| | | | | | | | | | | | |
Food Products – 0.3% | | | | | | | | | | | | |
Bunge Global SA | | | | | | | 3,295 | | | | 334,047 | |
Kellanova | | | | | | | 8,211 | | | | 661,889 | |
Tyson Foods, Inc. – Class A | | | | | | | 5,292 | | | | 340,328 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,336,264 | |
| | | | | | | | | | | | |
| | |
| |
8 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | |
Shares | | | U.S. $ Value | |
| |
Household Products – 0.2% | | | | | | | | | | | | |
Kimberly-Clark Corp. | | | | | | | 2,551 | | | $ | 369,028 | |
Procter & Gamble Co. (The) | | | | | | | 2,252 | | | | 386,308 | |
Southeastern Grocers, Inc.(a)(b)(c) | | | | | | | 8,714 | | | | 6,318 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 761,654 | |
| | | | | | | | | | | | |
Tobacco – 0.1% | | | | | | | | | | | | |
Imperial Brands PLC | | | | | | | 12,035 | | | | 345,436 | |
Philip Morris International, Inc. | | | | | | | 2,661 | | | | 328,075 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 673,511 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 10,746,279 | |
| | | | | | | | | | | | |
Communication Services – 2.2% | | | | | | | | | | | | |
Diversified Telecommunication Services – 0.2% | | | | | | | | | | | | |
Comcast Corp. – Class A | | | | | | | 10,907 | | | | 431,590 | |
Consolidated Communications Holdings, Inc.(a) | | | | | | | 53,613 | | | | 245,012 | |
HKT Trust & HKT Ltd. – Class SS | | | | | | | 172,000 | | | | 218,389 | |
Singapore Telecommunications Ltd. | | | | | | | 79,400 | | | | 190,420 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,085,411 | |
| | | | | | | | | | | | |
Entertainment – 0.6% | | | | | | | | | | | | |
Electronic Arts, Inc. | | | | | | | 4,430 | | | | 672,563 | |
Endeavor Group Holdings, Inc. – Class A(d) | | | | | | | 21,749 | | | | 597,662 | |
Live Nation Entertainment, Inc.(a) | | | | | | | 2,421 | | | | 236,459 | |
Netflix, Inc.(a) | | | | | | | 1,339 | | | | 939,108 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,445,792 | |
| | | | | | | | | | | | |
Interactive Media & Services – 1.3% | | | | | | | | | | | | |
Alphabet, Inc. – Class A | | | | | | | 4,477 | | | | 731,452 | |
Alphabet, Inc. – Class C | | | | | | | 16,816 | | | | 2,776,490 | |
Auto Trader Group PLC | | | | | | | 16,672 | | | | 187,258 | |
Meta Platforms, Inc. – Class A | | | | | | | 3,224 | | | | 1,680,703 | |
Rightmove PLC | | | | | | | 39,612 | | | | 290,177 | |
Scout24 SE | | | | | | | 3,598 | | | | 274,473 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,940,553 | |
| | | | | | | | | | | | |
Media – 0.1% | | | | | | | | | | | | |
Fox Corp. – Class B | | | | | | | 8,594 | | | | 330,267 | |
Informa PLC | | | | | | | 17,256 | | | | 189,985 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 520,252 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 9,992,008 | |
| | | | | | | | | | | | |
Energy – 1.3% | | | | | | | | | | | | |
Energy Equipment & Services – 0.4% | | | | | | | | | | | | |
Artsonig Pty Ltd.(a)(b)(c) | | | | | | | 51,133 | | | | – 0 | – |
ChampionX Corp. | | | | | | | 36,211 | | | | 1,127,248 | |
CHC Group LLC(a)(b)(c) | | | | | | | 1,138 | | | | – 0 | – |
Schlumberger NV | | | | | | | 15,842 | | | | 696,890 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,824,138 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 9 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | |
Shares | | | U.S. $ Value | |
| |
Oil, Gas & Consumable Fuels – 0.9% | | | | | | | | | | | | |
Chevron Corp. | | | | | | | 2,921 | | | $ | 432,162 | |
Devon Energy Corp. | | | | | | | 7,314 | | | | 327,521 | |
Equinor ASA | | | | | | | 8,995 | | | | 241,359 | |
Exxon Mobil Corp. | | | | | | | 1,378 | | | | 162,521 | |
Imperial Oil Ltd.(d) | | | | | | | 4,384 | | | | 330,187 | |
Inpex Corp. | | | | | | | 23,100 | | | | 340,522 | |
Shell PLC | | | | | | | 47,084 | | | | 1,668,352 | |
Suncor Energy, Inc.(d) | | | | | | | 8,685 | | | | 352,259 | |
TotalEnergies SE | | | | | | | 4,221 | | | | 290,370 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,145,253 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,969,391 | |
| | | | | | | | | | | | |
Materials – 1.3% | |
Chemicals – 0.5% | |
Ecolab, Inc. | | | | | | | 2,737 | | | | 692,954 | |
Evonik Industries AG | | | | | | | 928 | | | | 20,592 | |
Linde PLC | | | | | | | 1,277 | | | | 610,725 | |
Sherwin-Williams Co. (The) | | | | | | | 1,092 | | | | 403,352 | |
Sumitomo Chemical Co., Ltd.(d) | | | | | | | 106,100 | | | | 305,465 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,033,088 | |
| | | | | | | | | | | | |
Construction Materials – 0.1% | |
CRH PLC (London) | | | | | | | 3,782 | | | | 337,614 | |
| | | | | | | | | | | | |
|
Containers & Packaging – 0.1% | |
Avery Dennison Corp. | | | | | | | 1,560 | | | | 346,086 | |
Smurfit WestRock PLC | | | | | | | 1,876 | | | | 88,960 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 435,046 | |
| | | | | | | | | | | | |
Metals & Mining – 0.6% | |
Haynes International, Inc. | | | | | | | 12,942 | | | | 778,332 | |
Kinross Gold Corp. | | | | | | | 36,691 | | | | 331,612 | |
Lundin Mining Corp.(d) | | | | | | | 14,626 | | | | 151,724 | |
Osisko Mining, Inc.(a) | | | | | | | 25,135 | | | | 89,711 | |
Rio Tinto PLC | | | | | | | 5,292 | | | | 333,647 | |
Teck Resources Ltd. – Class B | | | | | | | 9,771 | | | | 467,868 | |
United States Steel Corp. | | | | | | | 17,122 | | | | 649,095 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,801,989 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,607,737 | |
| | | | | | | | | | | | |
Utilities – 1.0% | |
Electric Utilities – 0.6% | |
ALLETE, Inc. | | | | | | | 9,481 | | | | 602,518 | |
American Electric Power Co., Inc. | | | | | | | 4,054 | | | | 406,535 | |
Avangrid, Inc. | | | | | | | 1,326 | | | | 47,325 | |
Enel SpA | | | | | | | 50,419 | | | | 383,219 | |
Entergy Corp. | | | | | | | 2,796 | | | | 337,449 | |
NextEra Energy, Inc. | | | | | | | 2,643 | | | | 212,788 | |
| | |
| |
10 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | |
Shares | | | U.S. $ Value | |
| |
NRG Energy, Inc. | | | | | | | 3,090 | | | $ | 262,681 | |
Origin Energy Ltd. | | | | | | | 45,905 | | | | 309,499 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,562,014 | |
| | | | | | | | | | | | |
Independent Power and Renewable Electricity Producers – 0.1% | | | | | | | | | | | | |
Atlantica Sustainable Infrastructure PLC | | | | | | | 14,580 | | | | 317,990 | |
Encavis AG(a) | | | | | | | 2,309 | | | | 44,036 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 362,026 | |
| | | | | | | | | | | | |
| | | |
Multi-Utilities – 0.3% | | | | | | | | | | | | |
Centrica PLC | | | | | | | 195,584 | | | | 332,097 | |
Consolidated Edison, Inc. | | | | | | | 3,351 | | | | 340,328 | |
DTE Energy Co. | | | | | | | 2,755 | | | | 344,430 | |
Engie SA | | | | | | | 5,421 | | | | 95,476 | |
National Grid PLC | | | | | | | 21,665 | | | | 285,377 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,397,708 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,321,748 | |
| | | | | | | | | | | | |
Real Estate – 0.6% | | | | | | | | | | | | |
Real Estate Management & Development – 0.3% | | | | | | | | | | | | |
CBRE Group, Inc. – Class A(a) | | | | | | | 7,769 | | | | 894,523 | |
Mitsui Fudosan Co., Ltd. | | | | | | | 23,500 | | | | 254,552 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,149,075 | |
| | | | | | | | | | | | |
| | | |
Specialized REITs – 0.3% | | | | | | | | | | | | |
American Tower Corp. | | | | | | | 4,562 | | | | 1,022,161 | |
VICI Properties, Inc. | | | | | | | 10,837 | | | | 362,823 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,384,984 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,534,059 | |
| | | | | | | | | | | | |
Total Common Stocks
(cost $141,689,540) | | | | | | | | | | | 184,698,705 | |
| | | | | |
| | | | | | | | | | | | |
INVESTMENT COMPANIES – 14.0% | | | | | | | | | | | | |
Funds and Investment Trusts – 14.0%(f) | | | | | | | | | | | | |
iShares Core International Aggregate Bond ETF(d) | | | | | | | 261,584 | | | | 13,416,643 | |
iShares Core MSCI EAFE ETF | | | | | | | 344,960 | | | | 26,627,463 | |
iShares Core MSCI Emerging Markets ETF | | | | | | | 402,798 | | | | 21,936,379 | |
| | | | | | | | | | | | |
| | | |
Total Investment Companies
(cost $58,855,331) | | | | | | | | | | | 61,980,485 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 11 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
GOVERNMENTS - TREASURIES – 12.5% | | | | | | | | | | | | |
Australia – 0.5% | |
Australia Government Bond
Series 140
4.50%, 04/21/2033(e) | | | AUD | | | | 2,520 | | | $ | 1,778,528 | |
Series 150
3.00%, 03/21/2047(e) | | | | | | | 525 | | | | 281,879 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,060,407 | |
| | | | | | | | | | | | |
Austria – 0.4% | |
Republic of Austria Government Bond
0.00%, 02/20/2031(e) | | | EUR | | | | 1,278 | | | | 1,194,707 | |
0.90%, 02/20/2032(e) | | | | | | | 800 | | | | 779,493 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,974,200 | |
| | | | | | | | | | | | |
Belgium – 0.2% | | | | | | | | | | | | |
Kingdom of Belgium Government Bond
Series 84
1.45%, 06/22/2037(e) | | | | | | | 787 | | | | 725,429 | |
| | | | | | | | | | | | |
| | | |
Colombia – 0.4% | | | | | | | | | | | | |
Colombian TES
Series B
6.25%, 07/09/2036 | | | COP | | | | 371,400 | | | | 64,184 | |
7.25%, 10/26/2050 | | | | | | | 1,333,600 | | | | 219,044 | |
13.25%, 02/09/2033 | | | | | | | 5,080,300 | | | | 1,433,046 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,716,274 | |
| | | | | | | | | | | | |
Finland – 0.4% | |
Finland Government Bond
2.50%, 04/15/2030(e) | | | EUR | | | | 1,520 | | | | 1,675,890 | |
| | | | | | | | | | | | |
|
France – 0.3% | |
French Republic Government Bond OAT
Series OAT
3.50%, 11/25/2033(e) | | | | | | | 1,069 | | | | 1,236,387 | |
| | | | | | | | | | | | |
|
Germany – 1.1% | |
Bundesrepublik Deutschland Bundesanleihe
2.20%, 02/15/2034(e) | | | | | | | 3,772 | | | | 4,153,269 | |
3.25%, 07/04/2042(e) | | | | | | | 585 | | | | 712,188 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 4,865,457 | |
| | | | | | | | | | | | |
Italy – 0.6% | |
Italy Buoni Poliennali Del Tesoro
Series 10Y
4.20%, 03/01/2034(e) | | | | | | | 1,656 | | | | 1,919,085 | |
Series 13Y
4.05%, 10/30/2037(e) | | | | | | | 599 | | | | 675,159 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,594,244 | |
| | | | | | | | | | | | |
| | |
| |
12 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Japan – 2.4% | |
Japan Government Five Year Bond
Series 161
0.30%, 06/20/2028 | | | JPY | | | | 682,400 | | | $ | 4,647,172 | |
Japan Government Twenty Year Bond
Series 183
1.40%, 12/20/2042 | | | | | | | 307,500 | | | | 2,024,696 | |
Japan Government Thirty Year Bond
Series 82
1.80%, 03/20/2054 | | | | | | | 399,700 | | | | 2,552,158 | |
Japan Government Forty Year Bond
Series 4
2.20%, 03/20/2051 | | | | | | | 161,700 | | | | 1,146,124 | |
Series 16
1.30%, 03/20/2063 | | | | | | | 110,950 | | | | 566,514 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 10,936,664 | |
| | | | | | | | | | | | |
South Korea – 0.4% | | | | | | | | | | | | |
Korea Treasury Bond
Series 3312
4.125%, 12/10/2033 | | | KRW | | | | 2,015,170 | | | | 1,629,926 | |
| | | | | | | | | | | | |
|
Spain – 0.3% | |
Spain Government Bond
3.90%, 07/30/2039(e) | | | EUR | | | | 1,309 | | | | 1,523,339 | |
| | | | | | | | | | | | |
|
United Kingdom – 1.3% | |
United Kingdom Gilt
1.25%, 10/22/2041(e) | | | GBP | | | | 1,401 | | | | 1,159,606 | |
1.50%, 07/31/2053(e) | | | | | | | 625 | | | | 427,512 | |
1.75%, 09/07/2037(e) | | | | | | | 734 | | | | 734,851 | |
4.125%, 07/22/2029(e) | | | | | | | 926 | | | | 1,228,082 | |
4.375%, 07/31/2054(e) | | | | | | | 1,732 | | | | 2,219,748 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 5,769,799 | |
| | | | | | | | | | | | |
United States – 4.2% | |
U.S. Treasury Bonds
1.125%, 08/15/2040 | | | U.S.$ | | | | 3,640 | | | | 2,338,131 | |
1.25%, 05/15/2050 | | | | | | | 2,130 | | | | 1,123,015 | |
2.00%, 08/15/2051 | | | | | | | 1,368 | | | | 869,963 | |
2.375%, 02/15/2042 | | | | | | | 2,306 | | | | 1,764,320 | |
4.625%, 05/15/2054 | | | | | | | 1,237 | | | | 1,324,987 | |
U.S. Treasury Notes
4.25%, 02/28/2029 | | | | | | | 8,416 | | | | 8,594,431 | |
4.875%, 05/31/2026 | | | | | | | 2,689 | | | | 2,726,814 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 18,741,661 | |
| | | | | | | | | | | | |
Total Governments - Treasuries
(cost $52,750,467) | | | | | | | | | | | 55,449,677 | |
| | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 13 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
CORPORATES - INVESTMENT GRADE – 7.5% | | | | | | | | | | | | |
Financial Institutions – 3.7% | | | | | | | | | | | | |
Banking – 3.0% | |
ABN AMRO Bank NV
Series E
5.50%, 09/21/2033(e) | | | EUR | | | | 200 | | | $ | 232,894 | |
AIB Group PLC
Series E
2.25%, 04/04/2028(e) | | | | | | | 382 | | | | 409,992 | |
Banco Bilbao Vizcaya Argentaria SA
6.138%, 09/14/2028 | | | U.S.$ | | | | 400 | | | | 415,728 | |
Banco Santander SA
4.175%, 03/24/2028 | | | | | | | 200 | | | | 196,714 | |
Series E
5.75%, 08/23/2033(e) | | | EUR | | | | 200 | | | | 233,880 | |
Bank of America Corp.
Series E
0.654%, 10/26/2031(e) | | | | | | | 370 | | | | 345,812 | |
Bank of Ireland Group PLC
Series E
4.625%, 11/13/2029(e) | | | | | | | 232 | | | | 267,542 | |
Banque Federative du Credit Mutuel SA
1.25%, 06/03/2030(e) | | | | | | | 200 | | | | 194,088 | |
3.875%, 06/16/2032(e) | | | | | | | 300 | | | | 330,347 | |
Barclays PLC
4.506%, 01/31/2033(e) | | | | | | | 100 | | | | 114,584 | |
5.088%, 06/20/2030 | | | U.S.$ | | | | 202 | | | | 201,105 | |
Series E
8.407%, 11/14/2032(e) | | | GBP | | | | 141 | | | | 196,951 | |
BNP Paribas SA
2.159%, 09/15/2029(e) | | | U.S.$ | | | | 304 | | | | 274,248 | |
Series E
2.75%, 07/25/2028(e) | | | EUR | | | | 200 | | | | 217,101 | |
BPCE SA
2.277%, 01/20/2032(e) | | | U.S.$ | | | | 329 | | | | 274,853 | |
3.116%, 10/19/2032(e) | | | | | | | 250 | | | | 212,362 | |
CaixaBank SA
6.208%, 01/18/2029(e) | | | | | | | 255 | | | | 265,794 | |
Capital One Financial Corp.
6.377%, 06/08/2034 | | | | | | | 126 | | | | 133,750 | |
Commerzbank AG
Series E
4.625%, 01/17/2031(e) | | | EUR | | | | 200 | | | | 229,868 | |
Cooperatieve Rabobank UA
3.649%, 04/06/2028(e) | | | U.S.$ | | | | 418 | | | | 407,333 | |
| | |
| |
14 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | |
| Company | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Deutsche Bank AG
5.375%, 01/11/2029(e) | | EUR | | | 300 | | | $ | 348,868 | |
HSBC Holdings PLC
2.013%, 09/22/2028 | | U.S.$ | | | 295 | | | | 272,120 | |
6.364%, 11/16/2032(e) | | EUR | | | 223 | | | | 263,133 | |
ING Groep NV
4.125%, 08/24/2033(e) | | | | | 200 | | | | 221,896 | |
6.083%, 09/11/2027 | | U.S.$ | | | 200 | | | | 205,326 | |
Intesa Sanpaolo SpA
3.875%, 07/14/2027(e) | | | | | 416 | | | | 403,765 | |
JPMorgan Chase & Co.
Series E
4.457%, 11/13/2031(e) | | EUR | | | 470 | | | | 548,949 | |
KBC Group NV
Series E
4.875%, 04/25/2033(e) | | | | | 300 | | | | 340,985 | |
Lloyds Banking Group PLC
Series E
4.75%, 09/21/2031(e) | | | | | 341 | | | | 399,852 | |
Mizuho Financial Group, Inc.
3.153%, 07/16/2030 | | U.S.$ | | | 512 | | | | 475,981 | |
5.382%, 07/10/2030 | | | | | 200 | | | | 205,402 | |
Morgan Stanley
4.656%, 03/02/2029 | | EUR | | | 352 | | | | 406,011 | |
5.424%, 07/21/2034 | | U.S.$ | | | 133 | | | | 136,626 | |
Nationwide Building Society
3.96%, 07/18/2030(e) | | | | | 207 | | | | 198,842 | |
NatWest Group PLC
3.032%, 11/28/2035 | | | | | 239 | | | | 210,291 | |
Series E
5.763%, 02/28/2034(e) | | EUR | | | 173 | | | | 202,920 | |
Santander UK Group Holdings PLC
2.469%, 01/11/2028 | | U.S.$ | | | 285 | | | | 269,222 | |
6.534%, 01/10/2029 | | | | | 200 | | | | 209,776 | |
Societe Generale SA
6.447%, 01/12/2027(e) | | | | | 384 | | | | 389,702 | |
Standard Chartered PLC
2.608%, 01/12/2028(e) | | | | | 424 | | | | 401,685 | |
Sumitomo Mitsui Financial Group, Inc.
5.424%, 07/09/2031 | | | | | 398 | | | | 412,141 | |
Svenska Handelsbanken AB
Series E
4.625%, 08/23/2032(e) | | GBP | | | 161 | | | | 205,582 | |
Swedbank AB
Series G
3.625%, 08/23/2032(e) | | EUR | | | 303 | | | | 333,777 | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 15 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
UBS Group AG
7.75%, 03/01/2029(e) | | | EUR | | | | 213 | | | $ | 267,740 | |
UniCredit SpA
1.982%, 06/03/2027(e) | | | U.S.$ | | | | 200 | | | | 189,962 | |
Wells Fargo & Co.
5.083%, 04/26/2028 | | | CAD | | | | 273 | | | | 207,221 | |
Series E
1.741%, 05/04/2030(e) | | | EUR | | | | 336 | | | | 344,398 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 13,227,119 | |
| | | | | | | | | | | | |
Finance – 0.1% | | | | | | | | | | | | |
Air Lease Corp.
5.40%, 06/01/2028 | | | CAD | | | | 175 | | | | 134,116 | |
Aviation Capital Group LLC
1.95%, 09/20/2026(e) | | | U.S.$ | | | | 215 | | | | 202,143 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 336,259 | |
| | | | | | | | | | | | |
Insurance – 0.3% | | | | | | | | | | | | |
Athene Global Funding
5.526%, 07/11/2031(e) | | | | | | | 316 | | | | 323,331 | |
6.216% (SOFR + 0.85%), 05/08/2026(e)(g) | | | | | | | 156 | | | | 155,802 | |
Credit Agricole Assurances SA
4.75%, 09/27/2048(e) | | | EUR | | | | 200 | | | | 224,763 | |
Metropolitan Life Global Funding I
Series E
4.00%, 04/05/2028(e) | | | | | | | 239 | | | | 272,132 | |
UnitedHealth Group, Inc.
5.75%, 07/15/2064 | | | U.S.$ | | | | 340 | | | | 356,769 | |
Zurich Finance Ireland Designated Activity Co.
Series E
3.00%, 04/19/2051(e) | | | | | | | 240 | | | | 205,894 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,538,691 | |
| | | | | | | | | | | | |
REITs – 0.3% | | | | | | | | | | | | |
American Tower Corp.
0.875%, 05/21/2029 | | | EUR | | | | 425 | | | | 416,694 | |
Annington Funding PLC
Series E
3.184%, 07/12/2029(e) | | | GBP | | | | 116 | | | | 137,136 | |
Digital Intrepid Holding BV
0.625%, 07/15/2031(e) | | | EUR | | | | 390 | | | | 347,553 | |
GLP Capital LP/GLP Financing II, Inc.
3.25%, 01/15/2032 | | | U.S.$ | | | | 111 | | | | 96,940 | |
WEA Finance LLC
2.875%, 01/15/2027(e) | | | | | | | 212 | | | | 201,633 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,199,956 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 16,302,025 | |
| | | | | | | | | | | | |
| | |
| |
16 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Industrial – 3.3% | |
Basic – 0.0% | | | | | | | | | | | | |
Inversiones CMPC SA
6.125%, 02/26/2034(e) | | | U.S.$ | | | | 200 | | | $ | 210,800 | |
| | | | | | | | | | | | |
|
Capital Goods – 0.1% | |
Boeing Co. (The)
5.15%, 05/01/2030 | | | | | | | 111 | | | | 110,708 | |
6.298%, 05/01/2029(e) | | | | | | | 131 | | | | 136,801 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 247,509 | |
| | | | | | | | | | | | |
Communications - Media – 0.2% | | | | | | | | | | | | |
Cox Communications, Inc.
1.80%, 10/01/2030(e) | | | | | | | 166 | | | | 138,160 | |
5.70%, 06/15/2033(e) | | | | | | | 265 | | | | 270,350 | |
Grupo Televisa SAB
8.50%, 03/11/2032 | | | | | | | 175 | | | | 204,641 | |
Interpublic Group of Cos., Inc. (The)
5.375%, 06/15/2033 | | | | | | | 178 | | | | 180,768 | |
Meta Platforms, Inc.
4.65%, 08/15/2062 | | | | | | | 154 | | | | 138,494 | |
Warnermedia Holdings, Inc.
5.141%, 03/15/2052 | | | | | | | 177 | | | | 134,375 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,066,788 | |
| | | | | | | | | | | | |
Communications - Telecommunications – 0.3% | | | | | | | | | | | | |
Bell Telephone Co. of Canada or Bell Canada
4.55%, 02/09/2030 | | | CAD | | | | 182 | | | | 136,588 | |
5.15%, 02/09/2053 | | | | | | | 188 | | | | 134,643 | |
5.85%, 11/10/2032 | | | | | | | 347 | | | | 278,472 | |
CK Hutchison Group Telecom Finance SA
1.50%, 10/17/2031(e) | | | EUR | | | | 216 | | | | 206,571 | |
TELUS Corp.
Series CAG
5.25%, 11/15/2032 | | | CAD | | | | 542 | | | | 418,133 | |
Vodafone Group PLC
4.20%, 12/13/2027(e) | | | AUD | | | | 210 | | | | 140,190 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,314,597 | |
| | | | | | | | | | | | |
Consumer Cyclical - Automotive – 0.4% | | | | | | | | | | | | |
American Honda Finance Corp.
Series E
3.65%, 04/23/2031 | | | EUR | | | | 225 | | | | 250,665 | |
General Motors Financial Co., Inc.
6.10%, 01/07/2034 | | | U.S.$ | | | | 385 | | | | 402,710 | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 17 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Harley-Davidson Financial Services, Inc.
3.05%, 02/14/2027(e) | | | U.S.$ | | | | 281 | | | $ | 268,788 | |
5.95%, 06/11/2029(e) | | | | | | | 102 | | | | 104,296 | |
Hyundai Capital America
1.80%, 01/10/2028(e) | | | | | | | 449 | | | | 408,038 | |
Lear Corp.
4.25%, 05/15/2029 | | | | | | | 419 | | | | 410,561 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,845,058 | |
| | | | | | | | | | | | |
Consumer Cyclical - Entertainment – 0.1% | | | | | | | | | | | | |
Hasbro, Inc.
3.55%, 11/19/2026 | | | | | | | 333 | | | | 323,966 | |
6.05%, 05/14/2034 | | | | | | | 80 | | | | 82,901 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 406,867 | |
| | | | | | | | | | | | |
Consumer Cyclical - Other – 0.2% | | | | | | | | | | | | |
DR Horton, Inc.
5.00%, 10/15/2034 | | | | | | | 165 | | | | 164,512 | |
Marriott International, Inc./MD
Series HH
2.85%, 04/15/2031 | | | | | | | 93 | | | | 82,498 | |
MDC Holdings, Inc.
6.00%, 01/15/2043 | | | | | | | 197 | | | | 207,074 | |
PulteGroup, Inc.
7.875%, 06/15/2032 | | | | | | | 169 | | | | 199,378 | |
Sands China Ltd.
4.375%, 06/18/2030 | | | | | | | 211 | | | | 199,263 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 852,725 | |
| | | | | | | | | | | | |
Consumer Non-Cyclical – 0.7% | | | | | | | | | | | | |
Altria Group, Inc.
3.125%, 06/15/2031 | | | EUR | | | | 258 | | | | 270,366 | |
Cargill, Inc.
3.875%, 04/24/2030(e) | | | | | | | 250 | | | | 285,652 | |
Cencosud SA
5.95%, 05/28/2031(e) | | | U.S.$ | | | | 200 | | | | 206,080 | |
Coca-Cola Co. (The)
5.40%, 05/13/2064 | | | | | | | 132 | | | | 136,414 | |
CommonSpirit Health
5.318%, 12/01/2034 | | | | | | | 337 | | | | 343,936 | |
CVS Health Corp.
1.75%, 08/21/2030 | | | | | | | 164 | | | | 138,011 | |
5.70%, 06/01/2034(d) | | | | | | | 267 | | | | 273,469 | |
Imperial Brands Finance PLC
5.875%, 07/01/2034(e) | | | | | | | 267 | | | | 272,495 | |
Kroger Co. (The)
4.60%, 08/15/2027 | | | | | | | 103 | | | | 103,276 | |
| | |
| |
18 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Loblaw Cos., Ltd.
6.54%, 02/17/2033(e) | | | CAD | | | | 165 | | | $ | 136,855 | |
Metro, Inc./CN
4.657%, 02/07/2033 | | | | | | | 553 | | | | 418,155 | |
Saputo, Inc.
5.25%, 11/29/2029 | | | | | | | 536 | | | | 415,878 | |
Stryker Corp.
3.375%, 12/11/2028 | | | EUR | | | | 121 | | | | 134,830 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 3,135,417 | |
| | | | | | | | | | | | |
Energy – 0.7% | | | | | | | | | | | | |
BP Capital Markets PLC
3.625%, 03/22/2029(e)(h) | | | | | | | 346 | | | | 370,057 | |
Continental Resources, Inc./OK
5.75%, 01/15/2031(e) | | | U.S.$ | | | | 198 | | | | 200,861 | |
Devon Energy Corp.
7.95%, 04/15/2032 | | | | | | | 139 | | | | 162,961 | |
Enbridge Pipelines, Inc.
2.82%, 05/12/2031 | | | CAD | | | | 124 | | | | 83,912 | |
Enbridge, Inc.
6.10%, 11/09/2032 | | | | | | | 445 | | | | 361,978 | |
ONEOK Partners LP
6.65%, 10/01/2036 | | | U.S.$ | | | | 126 | | | | 138,897 | |
Raizen Fuels Finance SA
6.45%, 03/05/2034(e) | | | | | | | 200 | | | | 209,962 | |
Saudi Arabian Oil Co.
5.75%, 07/17/2054(d)(e) | | | | | | | 200 | | | | 201,846 | |
Suncor Energy, Inc.
6.85%, 06/01/2039 | | | | | | | 181 | | | | 202,351 | |
TotalEnergies SE
Series NC7
1.625%, 10/25/2027(e)(h) | | | EUR | | | | 334 | | | | 341,823 | |
TransCanada PipeLines Ltd.
5.277%, 07/15/2030(e) | | | CAD | | | | 350 | | | | 271,859 | |
Var Energi ASA
7.50%, 01/15/2028(e) | | | U.S.$ | | | | 245 | | | | 261,337 | |
Series E
5.50%, 05/04/2029(e) | | | EUR | | | | 115 | | | | 135,698 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,943,542 | |
| | | | | | | | | | | | |
Other Industrial – 0.1% | | | | | | | | | | | | |
LKQ Dutch Bond BV
4.125%, 03/13/2031 | | | | | | | 243 | | | | 271,900 | |
| | | | | | | | | | | | |
| | | |
Services – 0.1% | | | | | | | | | | | | |
Booking Holdings, Inc.
4.50%, 11/15/2031 | | | | | | | 171 | | | | 202,512 | |
4.75%, 11/15/2034 | | | | | | | 168 | | | | 203,102 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 405,614 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 19 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Technology – 0.3% | | | | | | | | | | | | |
Broadridge Financial Solutions, Inc.
2.60%, 05/01/2031 | | | U.S.$ | | | | 397 | | | $ | 345,449 | |
Fidelity National Information Services, Inc.
2.00%, 05/21/2030 | | | EUR | | | | 134 | | | | 137,428 | |
Fiserv, Inc.
1.625%, 07/01/2030 | | | | | | | 144 | | | | 144,271 | |
5.625%, 08/21/2033 | | | U.S.$ | | | | 261 | | | | 273,063 | |
Honeywell International, Inc.
4.125%, 11/02/2034 | | | EUR | | | | 293 | | | | 339,396 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,239,607 | |
| | | | | | | | | | | | |
Transportation - Railroads – 0.0% | |
Lima Metro Line 2 Finance Ltd.
4.35%, 04/05/2036(e) | | | U.S.$ | | | | 213 | | | | 198,225 | |
| | | | | | | | | | | | |
|
Transportation - Services – 0.1% | |
Heathrow Funding Ltd.
6.45%, 12/10/2031(e) | | | GBP | | | | 192 | | | | 270,715 | |
Ryder System, Inc.
6.60%, 12/01/2033 | | | U.S.$ | | | | 361 | | | | 399,302 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 670,017 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 14,808,666 | |
| | | | | | | | | | | | |
Utility – 0.5% | | | | | | | | | | | | |
Electric – 0.3% | | | | | | | | | | | | |
AltaLink LP
3.99%, 06/30/2042 | | | CAD | | | | 116 | | | | 78,114 | |
Electricite de France SA
Series MPLE
5.993%, 05/23/2030(e) | | | | | | | 262 | | | | 207,669 | |
Enel Finance International NV
2.50%, 07/12/2031(e) | | | U.S.$ | | | | 274 | | | | 232,999 | |
Series E
3.375%, 07/23/2028(e) | | | EUR | | | | 122 | | | | 136,103 | |
Engie Energia Chile SA
6.375%, 04/17/2034(e) | | | U.S.$ | | | | 200 | | | | 210,250 | |
Niagara Mohawk Power Corp.
4.278%, 12/15/2028(e) | | | | | | | 343 | | | | 336,161 | |
Vistra Operations Co., LLC
6.00%, 04/15/2034(e) | | | | | | | 66 | | | | 68,939 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,270,235 | |
| | | | | | | | | | | | |
Natural Gas – 0.1% | | | | | | | | | | | | |
Energir, Inc.
6.30%, 10/31/2033 | | | CAD | | | | 165 | | | | 138,896 | |
Grupo Energia Bogota SA ESP
7.85%, 11/09/2033(e) | | | U.S.$ | | | | 200 | | | | 227,062 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 365,958 | |
| | | | | | | | | | | | |
| | |
| |
20 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Other Utility – 0.1% | | | | | | | | | | | | |
Buffalo Energy Mexico Holdings/Buffalo Energy Infrastructure/Buffalo Energy
7.875%, 02/15/2039(e) | | | U.S.$ | | | | 200 | | | $ | 214,444 | |
Suez SACA
Series E
4.50%, 11/13/2033(e) | | | EUR | | | | 300 | | | | 348,672 | |
5.00%, 11/03/2032(e) | | | | | | | 100 | | | | 119,756 | |
| | | | | |
| | | | | | | | | | | 682,872 | |
| | | | | |
| | | | | | | | | | | 2,319,065 | |
| | | | | |
Total Corporates - Investment Grade
(cost $32,320,911) | | | | | | | | | | | 33,429,756 | |
| | | | | |
| | | | | | | | | | | | |
MORTGAGE PASS-THROUGHS – 4.2% | | | | | | | | | | | | |
Agency Fixed Rate 30-Year – 4.2% | | | | | | | | | | | | |
Government National Mortgage Association
Series 2020
2.50%, 09/23/2054, TBA | | | U.S.$ | | | | 1,675 | | | | 1,463,694 | |
Series 2022
3.00%, 09/23/2054, TBA | | | | | | | 416 | | | | 376,295 | |
4.00%, 09/23/2054, TBA | | | | | | | 318 | | | | 303,869 | |
4.50%, 09/23/2054, TBA | | | | | | | 2,316 | | | | 2,266,969 | |
Series 2023
5.00%, 09/15/2054, TBA | | | | | | | 2,802 | | | | 2,796,078 | |
5.50%, 09/15/2054, TBA | | | | | | | 7,804 | | | | 7,854,378 | |
Uniform Mortgage-Backed Security
Series 2021
2.00%, 09/16/2054, TBA | | | | | | | 1,398 | | | | 1,143,411 | |
Series 2024
6.00%, 09/15/2054, TBA | | | | | | | 2,038 | | | | 2,075,332 | |
6.50%, 09/17/2054, TBA | | | | | | | 364 | | | | 374,792 | |
| | | | | |
Total Mortgage Pass-Throughs
(cost $18,649,916) | | | | | | | | | | | 18,654,818 | |
| | | | | |
| | | | | | | | | | | | |
INFLATION-LINKED SECURITIES – 1.4% | |
Canada – 0.1% | |
Canadian Government Real Return Bond
Series CPI
4.00%, 12/01/2031 | | | CAD | | | | 397 | | | | 347,633 | |
| | | | | |
|
Sweden – 0.1% | |
Sweden Inflation Linked Bond
Series 3104
3.50%, 12/01/2028(e) | | | SEK | | | | 1,580 | | | | 278,938 | |
Series 3113
0.125%, 12/01/2027(e) | | | | | | | 2,250 | | | | 279,314 | |
| | | | | |
| | | | | | | | | | | 558,252 | |
| | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 21 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
United States – 1.2% | |
U.S. Treasury Inflation Index
0.125%, 04/15/2026 (TIPS) | | | U.S.$ | | | | 1,390 | | | $ | 1,339,933 | |
0.125%, 04/15/2027 (TIPS) | | | | | | | 2,837 | | | | 2,706,205 | |
1.375%, 07/15/2033 (TIPS) | | | | | | | 1,428 | | | | 1,387,614 | |
| | | | | |
| | | | | | | | | | | 5,433,752 | |
| | | | | |
Total Inflation-Linked Securities
(cost $6,196,869) | | | | | | | | | | | 6,339,637 | |
| | | | | |
| | | | | | | | | | | | |
COLLATERALIZED LOAN OBLIGATIONS – 1.0% | | | | | | | | | | | | |
CLO - Floating Rate – 1.0% | |
AIMCO CLO
Series 2018-AA, Class A
6.567% (CME Term SOFR 3 Month + 1.28%), 04/17/2031(e)(g) | | | | | | | 281 | | | | 280,705 | |
AMMC CLO 25 Ltd.
Series 2022-25A, Class A1R
6.651% (CME Term SOFR 3 Month + 1.35%), 04/15/2035(e)(g) | | | | | | | 500 | | | | 500,019 | |
Apidos CLO XV
Series 2013-15A, Class BRR
7.094% (CME Term SOFR 3 Month + 1.81%), 04/20/2031(e)(g) | | | | | | | 250 | | | | 250,435 | |
Apidos CLO XXXII Ltd.
Series 2019-32A
6.382% (CME Term SOFR 3 Month + 1.10%), 01/20/2033(e)(g) | | | | | | | 530 | | | | 529,995 | |
CIFC Funding Ltd.
Series 2018-2A
6.584% (CME Term SOFR 3 Month + 1.30%), 04/20/2031(e)(g) | | | | | | | 428 | | | | 428,176 | |
Series 2018-3A, Class B
7.141% (CME Term SOFR 3 Month + 1.86%), 07/18/2031(e)(g) | | | | | | | 500 | | | | 500,558 | |
Series 2019-3A, Class A2R
7.198% (CME Term SOFR 3 Month + 1.91%), 10/16/2034(e)(g) | | | | | | | 250 | | | | 250,190 | |
Juniper Valley Park CLO Ltd.
Series 2023-1A
6.532% (CME Term SOFR 3 Month + 1.25%), 07/20/2036 (e)(g) | | | | | | | 260 | | | | 260,102 | |
Signal Peak CLO 11 Ltd.
Series 2024-11A, Class A1
6.771% (CME Term SOFR 3 Month + 1.45%), 07/18/2037(e)(g) | | | | | | | 500 | | | | 500,550 | |
| | |
| |
22 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Voya CLO Ltd.
Series 2013-2A, Class A1R
6.516% (CME Term SOFR 3 Month + 1.23%), 04/25/2031(e)(g) | | | U.S.$ | | | | 314 | | | $ | 314,098 | |
Series 2018-1A, Class A1
6.491% (CME Term SOFR 3 Month + 1.21%), 04/19/2031(e)(g) | | | | | | | 295 | | | | 294,991 | |
Series 2018-2A, Class A2
6.813% (CME Term SOFR 3 Month + 1.51%), 07/15/2031(e)(g) | | | | | | | 500 | | | | 500,645 | |
| | | | | | | | | | | | |
| | | |
Total Collateralized Loan Obligations
(cost $4,610,290) | | | | | | | | | | | 4,610,464 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
COVERED BONDS – 0.9% | |
France – 0.5% | |
BPCE SFH SA
0.625%, 09/22/2027(e) | | | EUR | | | | 700 | | | | 726,324 | |
Cie de Financement Foncier SA
3.125%, 05/18/2027(e) | | | | | | | 500 | | | | 557,558 | |
Credit Agricole Home Loan SFH SA
Series E
0.875%, 08/31/2027(e) | | | | | | | 700 | | | | 732,174 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 2,016,056 | |
| | | | | | | | | | | | |
Canada – 0.1% | |
Bank of Montreal
Series E
0.125%, 01/26/2027(e) | | | | | | | 533 | | | | 552,832 | |
| | | | | | | | | | | | |
|
Australia – 0.1% | |
National Australia Bank Ltd.
Series E
0.875%, 02/19/2027(e) | | | | | | | 522 | | | | 549,962 | |
| | | | | | | | | | | | |
|
South Korea – 0.1% | |
Korea Housing Finance Corp.
3.714%, 04/11/2027(e) | | | | | | | 484 | | | | 545,538 | |
| | | | | | | | | | | | |
|
Spain – 0.1% | |
Banco de Sabadell SA
1.00%, 04/26/2027(e) | | | | | | | 500 | | | | 526,121 | |
| | | | | | | | | | | | |
| | | |
Total Covered Bonds
(cost $4,041,301) | | | | | | | | | | | 4,190,509 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 23 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.9% | | | | | | | | | | | | |
Risk Share Floating Rate – 0.9% | |
Connecticut Avenue Securities Trust
Series 2022-R06, Class 1M1
8.099% (CME Term SOFR + 2.75%), 05/25/2042(e)(g) | | | U.S.$ | | | | 237 | | | $ | 244,007 | |
Series 2022-R08, Class 1M1
7.899% (CME Term SOFR + 2.55%), 07/25/2042(e)(g) | | | | | | | 288 | | | | 295,764 | |
Series 2022-R08, Class 1M2
8.949% (CME Term SOFR + 3.60%), 07/25/2042(e)(g) | | | | | | | 400 | | | | 422,080 | |
Series 2023-R01, Class 1M1
7.748% (CME Term SOFR + 2.40%), 12/25/2042(e)(g) | | | | | | | 389 | | | | 400,854 | |
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes
Series 2021-DNA7, Class M2
7.149% (CME Term SOFR + 1.80%), 11/25/2041(e)(g) | | | | | | | 400 | | | | 404,234 | |
Series 2022-DNA1, Class M1A
6.349% (CME Term SOFR + 1.00%), 01/25/2042(e)(g) | | | | | | | 392 | | | | 392,188 | |
Series 2022-DNA1, Class M1B
7.199% (CME Term SOFR + 1.85%), 01/25/2042(e)(g) | | | | | | | 500 | | | | 505,625 | |
Series 2022-DNA2, Class M1A
6.649% (CME Term SOFR + 1.30%), 02/25/2042(e)(g) | | | | | | | 354 | | | | 354,193 | |
Series 2022-DNA4, Class M1A
7.549% (CME Term SOFR + 2.20%), 05/25/2042(e)(g) | | | | | | | 370 | | | | 376,547 | |
Series 2022-DNA6, Class M1A
7.499% (CME Term SOFR + 2.15%), 09/25/2042(e)(g) | | | | | | | 210 | | | | 212,073 | |
Series 2023-DNA2, Class M1B
8.598% (CME Term SOFR + 3.25%), 04/25/2043(e)(g) | | | | | | | 250 | | | | 264,352 | |
| | | | | | | | | | | | |
| | | |
Total Collateralized Mortgage Obligations
(cost $3,879,126) | | | | | | | | | | | 3,871,917 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | |
| |
24 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
GOVERNMENTS - SOVEREIGN AGENCIES – 0.6% | | | | | | | | | | | | |
Belgium – 0.2% | |
Dexia SA
Series E
0.01%, 01/22/2027(e) | | | EUR | | | | 700 | | | $ | 726,022 | |
| | | | | | | | | | | | |
|
Canada – 0.0% | |
Canada Housing Trust No. 1
4.25%, 03/15/2034(e) | | | CAD | | | | 235 | | | | 184,093 | |
| | | | | | | | | | | | |
|
France – 0.1% | |
SNCF Reseau
Series E
3.125%, 10/25/2028(e) | | | EUR | | | | 600 | | | | 668,274 | |
| | | | | | | | | | | | |
|
Japan – 0.2% | |
Development Bank of Japan, Inc.
Series G
3.50%, 09/13/2027(e) | | | | | | | 593 | | | | 669,622 | |
| | | | | | | | | | | | |
|
Netherlands – 0.1% | |
BNG Bank NV
3.50%, 07/19/2027 | | | AUD | | | | 819 | | | | 545,565 | |
| | | | | | | | | | | | |
| | | |
Total Governments - Sovereign Agencies
(cost $2,692,848) | | | | | | | | | | | 2,793,576 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
LOCAL GOVERNMENTS - PROVINCIAL BONDS – 0.6% | | | | | | | | | | | | |
Canada – 0.6% | |
Hydro Quebec Interest Strip
Zero Coupon, 08/15/2038 | | | CAD | | | | 144 | | | | 59,277 | |
Zero Coupon, 08/15/2041 | | | | | | | 144 | | | | 51,038 | |
Zero Coupon, 02/15/2042 | | | | | | | 144 | | | | 49,900 | |
Zero Coupon, 08/15/2042 | | | | | | | 144 | | | | 48,858 | |
Zero Coupon, 02/15/2043 | | | | | | | 144 | | | | 47,690 | |
Zero Coupon, 02/15/2044 | | | | | | | 144 | | | | 45,670 | |
Zero Coupon, 08/15/2044 | | | | | | | 144 | | | | 44,683 | |
Series JN
Zero Coupon, 02/15/2046 | | | | | | | 144 | | | | 41,983 | |
Province of Ontario Canada
2.90%, 12/02/2046 | | | | | | | 1,283 | | | | 767,891 | |
3.45%, 06/02/2045 | | | | | | | 478 | | | | 315,819 | |
3.50%, 06/02/2043 | | | | | | | 471 | | | | 316,262 | |
Province of Ontario Generic Coupon Strip
Zero Coupon, 12/02/2036 | | | | | | | 144 | | | | 64,889 | |
Zero Coupon, 06/02/2037 | | | | | | | 144 | | | | 63,401 | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 25 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Zero Coupon, 12/02/2037 | | | CAD | | | | 144 | | | $ | 61,501 | |
Zero Coupon, 06/02/2038 | | | | | | | 144 | | | | 60,418 | |
Zero Coupon, 12/02/2038 | | | | | | | 144 | | | | 58,942 | |
Zero Coupon, 06/02/2039 | | | | | | | 144 | | | | 57,573 | |
Zero Coupon, 06/02/2040 | | | | | | | 144 | | | | 54,713 | |
Zero Coupon, 12/02/2040 | | | | | | | 144 | | | | 53,133 | |
Zero Coupon, 06/02/2041 | | | | | | | 144 | | | | 51,770 | |
Zero Coupon, 12/02/2041 | | | | | | | 144 | | | | 51,134 | |
Zero Coupon, 06/02/2042 | | | | | | | 144 | | | | 49,809 | |
Series INT
Zero Coupon, 06/02/2043 | | | | | | | 144 | | | | 47,492 | |
Zero Coupon, 12/02/2045 | | | | | | | 144 | | | | 42,618 | |
Zero Coupon, 06/02/2046 | | | | | | | 144 | | | | 41,895 | |
Zero Coupon, 12/02/2046 | | | | | | | 144 | | | | 40,792 | |
Zero Coupon, 06/02/2047 | | | | | | | 144 | | | | 40,240 | |
| | | | | | | | | | | | |
| | | |
Total Local Governments - Provincial Bonds
(cost $2,553,064) | | | | | | | | | | | 2,629,391 | |
| | | | | |
| | | | | | | | | | | | |
ASSET-BACKED SECURITIES – 0.5% | | | | | | | | | | | | |
Other ABS - Fixed Rate – 0.4% | | | | | | | | | | | | |
CCG Receivables Trust
Series 2024-1, Class A2
4.99%, 03/15/2032(e) | | | U.S.$ | | | | 361 | | | | 361,418 | |
Crossroads Asset Trust
Series 2024-A, Class A2
5.90%, 08/20/2030(b)(e) | | | | | | | 251 | | | | 253,879 | |
DLLMT LLC
Series 2024-1A, Class A2
5.08%, 02/22/2027(e) | | | | | | | 410 | | | | 410,255 | |
M&T Equipment Notes
Series 2024-1A, Class A2
4.99%, 08/18/2031(e) | | | | | | | 182 | | | | 182,108 | |
NMEF Funding LLC
Series 2024-A, Class A2
5.15%, 12/15/2031(e) | | | | | | | 310 | | | | 310,432 | |
Sierra Timeshare Receivables Funding LLC
Series 2024-2A, Class A
5.14%, 06/20/2041(e) | | | | | | | 162 | | | | 163,605 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,681,697 | |
| | | | | | | | | | | | |
Autos – Fixed Rate – 0.1% | | | | | | | | | | | | |
Ally Bank Auto Credit-Linked Notes
Series 2024-A, Class A2
5.681%, 05/17/2032(e) | | | | | | | 239 | | | | 241,951 | |
PenFed Auto Receivables Owner Trust
Series 2024-A, Class A3
4.70%, 06/15/2029(e) | | | | | | | 163 | | | | 163,169 | |
| | |
| |
26 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Wheels Fleet Lease Funding 1 LLC
Series 2024-2A, Class A1
4.87%, 06/21/2039(e) | | | U.S.$ | | | | 248 | | | $ | 249,055 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 654,175 | |
| | | | | | | | | | | | |
Total Asset-Backed Securities
(cost $2,326,072) | | | | | | | | | | | 2,335,872 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
SUPRANATIONALS – 0.5% | | | | | | | | | | | | |
European Investment Bank
1.80%, 01/19/2027 | | | AUD | | | | 851 | | | | 547,994 | |
European Union
Series NGEU
3.375%, 10/05/2054(e) | | | EUR | | | | 754 | | | | 832,402 | |
Inter-American Development Bank
Series E
7.00%, 01/25/2029(i) | | | INR | | | | 56,000 | | | | 672,104 | |
| | | | | | | | | | | | |
| | | |
Total Supranationals
(cost $1,999,882) | | | | | | | | | | | 2,052,500 | |
| | | | | |
| | | | | | | | | | | | |
LOCAL GOVERNMENTS - REGIONAL BONDS – 0.4% | | | | | | | | | | | | |
Australia – 0.2% | | | | | | | | | | | | |
Treasury Corp. of Victoria
2.25%, 11/20/2034 | | | AUD | | | | 787 | | | | 421,106 | |
2.00%, 11/20/2037 | | | | | | | 300 | | | | 142,230 | |
Treasury Corp. of Victoria
2.25%, 09/15/2033(e) | | | | | | | 933 | | | | 517,098 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 1,080,434 | |
| | | | | | | | | | | | |
Japan – 0.2% | | | | | | | | | | | | |
Japan Finance Organization for Municipalities
Series G
0.05%, 02/12/2027(e) | | | EUR | | | | 668 | | | | 690,027 | |
| | | | | | | | | | | | |
| | | |
Total Local Governments - Regional Bonds
(cost $1,683,218) | | | | | | | | | | | 1,770,461 | |
| | | | | |
| | | | | | | | | | | | |
GOVERNMENTS - SOVEREIGN BONDS – 0.4% | | | | | | | | | | | | |
Chile – 0.1% | | | | | | | | | | | | |
Chile Electricity Lux MPC SARL
6.01%, 01/20/2033(e) | | | U.S.$ | | | | 311 | | | | 321,025 | |
Chile Government International Bond
4.125%, 07/05/2034 | | | EUR | | | | 348 | | | | 397,964 | |
| | | | | | | | | | | | |
| | | | | | | | | | | 718,989 | |
| | | | | | | | | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 27 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Hungary – 0.1% | | | | | | | | | | | | |
Hungary Government International Bond
Series 10Y
5.375%, 09/12/2033(e) | | | EUR | | | | 224 | | | $ | 263,859 | |
| | | | | | | | | | | | |
| | | |
Indonesia – 0.1% | | | | | | | | | | | | |
Indonesia Government International Bond
1.00%, 07/28/2029 | | | | | | | 349 | | | | 343,107 | |
| | | | | | | | | | | | |
| | | |
Romania – 0.1% | | | | | | | | | | | | |
Romanian Government International Bond
6.625%, 09/27/2029(e) | | | | | | | 277 | | | | 331,839 | |
| | | | | | | | | | | | |
| | | |
Total Governments - Sovereign Bonds
(cost $1,603,959) | | | | | | | | | | | 1,657,794 | |
| | | | | |
| | | | | | | | | | | | |
QUASI-SOVEREIGNS – 0.3% | | | | | | | | | | | | |
Quasi-Sovereign Bonds – 0.3% | | | | | | | | | | | | |
Chile – 0.1% | | | | | | | | | | | | |
Corp. Nacional del Cobre de Chile
5.125%, 02/02/2033(e) | | | U.S.$ | | | | 485 | | | | 476,967 | |
| | | | | | | | | | | | |
| | | |
Hungary – 0.0% | | | | | | | | | | | | |
Magyar Export-Import Bank Zrt
6.125%, 12/04/2027(e) | | | | | | | 255 | | | | 259,702 | |
| | | | | | | | | | | | |
| | | |
Mexico – 0.1% | | | | | | | | | | | | |
Comision Federal de Electricidad
3.348%, 02/09/2031(e) | | | | | | | 316 | | | | 272,056 | |
| | | | | | | | | | | | |
| | | |
Saudi Arabia – 0.1% | | | | | | | | | | | | |
Gaci First Investment Co.
4.875%, 02/14/2035(e) | | | | | | | 277 | | | | 273,451 | |
| | | | | | | | | | | | |
| | | |
Total Quasi-Sovereigns
(cost $1,238,397) | | | | | | | | | | | 1,282,176 | |
| | | | | |
| | | | | | | | | | | | |
COMMERCIAL MORTGAGE-BACKED SECURITIES – 0.3% | | | | | | | | | | | | |
Non-Agency Floating Rate CMBS – 0.3% | | | | | | | | | |
BOCA Commercial Mortgage Trust
Series 2024-BOCA, Class A
7.241% (CME Term SOFR 1 Month + 1.92%), 08/15/2041(e)(g) | | | | | | | 408 | | | | 407,742 | |
BX Commercial Mortgage Trust
Series 2024-BIO2, Class A
5.594%, 08/13/2041(e) | | | | | | | 281 | | | | 284,497 | |
HLTN Commercial Mortgage Trust
Series 2024-DPLO
6.978% (CME Term SOFR 1 Month + 1.64%), 06/15/2041(e)(g) | | | | | | | 304 | | | | 301,770 | |
| | |
| |
28 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Wells Fargo Commercial Mortgage Trust
Series 2024-MGP, Class A12
7.041% (CME Term SOFR 1 Month + 1.69%), 08/15/2041(e)(g) | | | U.S.$ | | | | 242 | | | $ | 241,195 | |
| | | | | | | | | | | | |
| | | |
Total Commercial Mortgage-Backed Securities
(cost $1,232,273) | | | | | | | | | | | 1,235,204 | |
| | | | | |
| | | | | | | | | | | | |
CORPORATES - NON-INVESTMENT
GRADE – 0.1% | | | | | | | | | | | | |
Financial Institutions – 0.1% | | | | | | | | | | | | |
Finance – 0.1% | | | | | | | | | | | | |
Curo Group Holdings Corp.
13.00%, 08/01/2028(b)(c) | | | | | | | 219 | | | | 227,485 | |
| | | | | | | | | | | | |
| | | |
Industrial – 0.0% | | | | | | | | | | | | |
Basic – 0.0% | | | | | | | | | | | | |
ERP Iron Ore LLC
9.039%, 12/31/2019(a)(b)(c)(j)(k) | | | | | | | 12 | | | | – 0 | – |
Magnetation LLC/Mag Finance Corp.
11.00%, 05/15/2018(a)(b)(c)(i)(j) | | | | | | | 146 | | | | – 0 | – |
| | | | | | | | | | | | |
| | | | – 0 | – |
| | | | | |
Communications - Media – 0.0% | | | | | | | | | | | | |
National CineMedia LLC
5.75%, 08/15/2026(a)(b)(c)(l) | | | | | | | 33 | | | | – 0 | – |
Sinclair Television Group, Inc.
5.50%, 03/01/2030(e) | | | | | | | 2 | | | | 1,195 | |
| | | | | | | | | | | | |
| | | | 1,195 | |
| | | | | |
Consumer Cyclical - Automotive – 0.0% | | | | | | | | | | | | |
Exide Technologies
(Exchange Priority)
11.00%, 10/31/2024(a)(b)(c)(i)(l) | | | | | | | 59 | | | | – 0 | – |
(First Lien)
11.00%, 10/31/2024(a)(b)(c)(i)(l) | | | | | | | 24 | | | | – 0 | – |
| | | | | | | | | | | | |
| | | | – 0 | – |
| | | | | |
Services – 0.0% | |
Monitronics International, Inc.
9.125%, 04/01/2020(a)(b)(c)(j)(l) | | | | | | | 120 | | | | – 0 | – |
| | | | | | | | | | | | |
| | | |
Technology – 0.0% | | | | | | | | | | | | |
GoTo Group, Inc.
5.50%, 05/01/2028(e) | | | | | | | 119 | | | | 64,574 | |
| | | | | | | | | | | | |
| | | | 65,769 | |
| | | | | |
Total Corporates - Non-Investment Grade
(cost $361,148) | | | | | | | | | | | 293,254 | |
| | | | | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 29 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | |
Shares | | | U.S. $ Value | |
| |
PREFERRED STOCKS – 0.0% | | | | | | | | | | | | |
Industrials – 0.0% | | | | | | | | | | | | |
Consumer Cyclical - Automotive – 0.0% | | | | | | | | | | | | |
Exide International Holdings LP
0.00%(a)(b)(c)
(cost $87,984) | | | | | | | 117 | | | $ | 125,775 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
RIGHTS – 0.0% | | | | | | | | | | | | |
Health Care – 0.0% | | | | | | | | | | | | |
Biotechnology – 0.0% | | | | | | | | | | | | |
Contra Chinook Therape (CVR)(a)(b)(c) | | | | | | | 30,997 | | | | 12,089 | |
Mirati Therapeutics, Inc. (CVR)(a)(b)(c) | | | | | | | 25,914 | | | | 18,140 | |
| | | | | | | | | |
| | | | 30,229 | |
| | | | | |
Health Care Providers & Services – 0.0% | | | | | | | | | | | | |
ABIOMED, Inc. (CVR)(a)(b)(c) | | | | | | | 3,960 | | | | 4,039 | |
| | | | | | | | | |
| | | | 34,268 | |
| | | | | |
Materials – 0.0% | | | | | | | | | | | | |
Paper & Forest Products – 0.0% | | | | | | | | | | | | |
Contra Resolute Forest Products, Inc. (CVR)(a)(b)(c) | | | | | | | 14,789 | | | | 21,000 | |
| | | | | | | | | |
Total Rights
(cost $55,268) | | | | | | | | | | | 55,268 | |
| | | | | |
| | | |
| | | | | | Principal
Amount
(000) | | | | |
EMERGING MARKETS - TREASURIES – 0.0% | | | | | | | | | | | | |
Russia – 0.0% | | | | | | | | | | | | |
Russian Federal Bond – OFZ
Series 6212
7.05%, 01/19/2028(b)
(cost $358,851) | | | RUB | | | | 23,770 | | | | 52,443 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
EMERGING MARKETS - CORPORATE BONDS – 0.0% | | | | | | | | | | | | |
Industrial – 0.0% | | | | | | | | | | | | |
Communications -
Telecommunications – 0.0% | | | | | | | | | | | | |
Digicel Group Holdings Ltd.
Zero Coupon, 12/31/2030(b)(i) | | | U.S.$ | | | | 9 | | | | 132 | |
| | | | | | | | | | | | |
Consumer Cyclical - Retailers – 0.0% | | | | | | | | | | | | |
Edcon Ltd.
Zero Coupon, 06/25/2023(a)(b)(c)(j) | | | ZAR | | | | 2 | | | | – 0 | – |
K2016470219 South Africa Ltd.
3.00%, 12/31/2022(a)(b)(c)(i)(j) | | | U.S.$ | | | | 40 | | | | – 0 | – |
| | |
| |
30 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
K2016470260 South Africa Ltd.
25.00%, 12/31/2022(a)(b)(c)(i)(j) | | | U.S.$ | | | | 28 | | | $ | – 0 | – |
| | | | | | | | | | | | |
| | | | | | | | | | | – 0 | – |
| | | | | | | | | | | | |
Total Emerging Markets - Corporate Bonds
(cost $72,336) | | | | | | | | | | | 132 | |
| | | | | |
| | | |
| | | | | | Shares | | | | |
WARRANTS – 0.0% | | | | | | | | | | | | |
Software – 0.0% | | | | | | | | | | | | |
Constellation Software, Inc.,
expiring 03/31/2040(a)(b)(c)(d)
(cost $0) | | | | | | | 541 | | | | – 0 | – |
| | | | | | | | | |
| | | |
| | | | | | Principal
Amount
(000) | | | | |
SHORT-TERM INVESTMENTS – 14.3% | | | | | | | | | | | | |
GOVERNMENTS - TREASURIES – 7.5% | | | | | | | | | | | | |
Japan – 7.5% | | | | | | | | | | | | |
Japan Treasury Discount Bill
Series 1234
0.00%, 09/02/2024 | | | JPY | | | | 1,340,000 | | | | 9,166,154 | |
Series 1249
0.00%, 11/11/2024 | | | | | | | 253,800 | | | | 1,735,697 | |
Series 1250
0.00%, 11/18/2024 | | | | | | | 3,255,350 | | | | 22,262,372 | |
| | | | | | | | | | | | |
| | | |
Total Governments - Treasuries
(cost $32,530,359) | | | | | | | | | | | 33,164,223 | |
| | | | | |
| | | |
| | | | | | Shares | | | | |
Investment Companies – 5.1% | | | | | | | | | | | | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 5.16%(f)(m)(n)
(cost $22,608,550) | | | | | | | 22,608,550 | | | | 22,608,550 | |
| | | | | | | | | |
| | | |
| | | | | | Principal
Amount
(000) | | | | |
U.S. TREASURY BILLS – 1.7% | | | | | | | | | | | | |
United States – 1.7% | | | | | | | | | | | | |
U.S. Treasury Bill
Zero Coupon, 11/14/2024 | | | U.S.$ | | | | 2,869 | | | | 2,839,984 | |
Zero Coupon, 12/12/2024 | | | | | | | 1,355 | | | | 1,336,745 | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 31 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | |
| Company | | | | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
Zero Coupon, 01/16/2025 | | | U.S.$ | | | | 3,434 | | | $ | 3,373,161 | |
| | | | | | | | | | | | |
| | | |
Total U.S. Treasury Bills
(cost $7,543,043) | | | | | | | | | | | 7,549,890 | |
| | | | | |
| | | |
Total Investments Before Security Lending Collateral for Securities
Loaned – 102.0%
(cost $401,941,003) | | | | | | | | | | | 452,832,477 | |
| | | | | |
| | | |
| | | | | | Shares | | | | |
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED – 1.1% | | | | | | | | | | | | |
Investment Companies – 1.1% | | | | | | | | | | | | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 5.16%(f)(m)(n)
(cost $4,756,338) | | | | | | | 4,756,338 | | | | 4,756,338 | |
| | | | | | | | | | | | |
| | | |
Total Investments – 103.1%
(cost $406,697,341) | | | | | | | | | | | 457,588,815 | |
Other assets less liabilities – (3.1)% | | | | | | | | | | | (13,600,235 | ) |
| | | | | | | | | | | | |
| | | |
Net Assets – 100.0% | | | | | | | | | | $ | 443,988,580 | |
| | | | | | | | | | | | |
FUTURES (see Note D)
| | | | | | | | | | | | | | | | |
| Description | | Number of
Contracts | | | Expiration
Month | | | Current
Notional | | | Value and
Unrealized
Appreciation
(Depreciation) | |
Purchased Contracts | |
10 Yr Australian Bond Futures | | | 87 | | | | September 2024 | | | $ | 6,864,678 | | | $ | 162,104 | |
10 Yr Japan Bond (OSE) Futures | | | 28 | | | | September 2024 | | | | 27,718,449 | | | | 298,013 | |
Euro Buxl 30 Yr Bond Futures | | | 40 | | | | September 2024 | | | | 5,947,936 | | | | 272,627 | |
Euro STOXX 50 Index Futures | | | 40 | | | | September 2024 | | | | 2,197,977 | | | | 10,099 | |
Euro-BOBL Futures | | | 54 | | | | December 2024 | | | | 7,100,912 | | | | (8,416 | ) |
Euro-Bund Futures | | | 154 | | | | September 2024 | | | | 22,795,711 | | | | 464,739 | |
Euro-Schatz Futures | | | 54 | | | | December 2024 | | | | 6,366,108 | | | | (3,940 | ) |
FTSE 100 Index Futures | | | 6 | | | | September 2024 | | | | 660,918 | | | | 14,769 | |
FTSE KLCI Futures | | | 68 | | | | September 2024 | | | | 1,314,772 | | | | 26,056 | |
Gold 100 OZ Futures | | | 9 | | | | December 2024 | | | | 2,274,840 | | | | 84,747 | |
Hang Seng Index Futures | | | 10 | | | | September 2024 | | | | 1,150,966 | | | | 13,096 | |
Long Gilt Futures | | | 25 | | | | December 2024 | | | | 3,240,566 | | | | (24,653 | ) |
MSCI Emerging Markets Futures | | | 34 | | | | September 2024 | | | | 1,870,000 | | | | 29,831 | |
S&P 500 E-Mini Futures | | | 210 | | | | September 2024 | | | | 59,440,500 | | | | 1,523,118 | |
S&P/TSX 60 Index Futures | | | 23 | | | | September 2024 | | | | 4,785,174 | | | | 135,955 | |
SET 50 Futures | | | 746 | | | | September 2024 | | | | 3,762,511 | | | | 188,914 | |
SPI 200 Futures | | | 9 | | | | September 2024 | | | | 1,225,792 | | | | 35,741 | |
TOPIX Index Futures | | | 14 | | | | September 2024 | | | | 2,600,520 | | | | (19,729 | ) |
U.S. Long Bond (CBT) Futures | | | 144 | | | | December 2024 | | | | 17,730,000 | | | | (176,841 | ) |
| | |
| |
32 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | |
| Description | | Number of
Contracts | | | Expiration
Month | | | Current
Notional | | | Value and
Unrealized
Appreciation
(Depreciation) | |
U.S. T-Note 2 Yr (CBT) Futures | | | 145 | | | | December 2024 | | | $ | 30,094,297 | | | $ | (43,318 | ) |
U.S. T-Note 5 Yr (CBT) Futures | | | 395 | | | | December 2024 | | | | 43,212,383 | | | | (95,458 | ) |
U.S. Ultra Bond (CBT) Futures | | | 34 | | | | September 2024 | | | | 4,450,813 | | | | 292,110 | |
U.S. Ultra Bond (CBT) Futures | | | 78 | | | | December 2024 | | | | 10,291,125 | | | | (118,483 | ) |
WIG20 Index Futures | | | 160 | | | | September 2024 | | | | 1,971,760 | | | | (68,841 | ) |
|
Sold Contracts | |
5 Yr Canadian Bond Futures | | | 11 | | | | December 2024 | | | | 930,672 | | | | 5,124 | |
10 Yr Australian Bond Futures | | | 31 | | | | September 2024 | | | | 2,446,035 | | | | (9,750 | ) |
10 Yr Canadian Bond Futures | | | 19 | | | | December 2024 | | | | 1,734,976 | | | | 17,281 | |
10 Yr Japan Bond (OSE) Futures | | | 5 | | | | September 2024 | | | | 4,949,723 | | | | (42,262 | ) |
Euro Buxl 30 Yr Bond Futures | | | 3 | | | | September 2024 | | | | 446,095 | | | | (11,698 | ) |
Euro STOXX 50 Index Futures | | | 10 | | | | September 2024 | | | | 549,494 | | | | (2,714 | ) |
Euro-BOBL Futures | | | 24 | | | | December 2024 | | | | 3,155,961 | | | | 769 | |
Euro-Bund Futures | | | 46 | | | | September 2024 | | | | 6,809,108 | | | | (79,873 | ) |
FTSE 100 Index Futures | | | 14 | | | | September 2024 | | | | 1,542,142 | | | | (9,400 | ) |
FTSE China A50 Futures | | | 171 | | | | September 2024 | | | | 2,009,250 | | | | 7,107 | |
FTSE Taiwan Index Futures | | | 3 | | | | September 2024 | | | | 224,190 | | | | (777 | ) |
FTSE/JSE Top 40 Futures | | | 30 | | | | September 2024 | | | | 1,281,307 | | | | 7,735 | |
Long Gilt Futures | | | 24 | | | | December 2024 | | | | 3,110,944 | | | | 21,619 | |
MSCI Singapore IX ETS Futures | | | 193 | | | | September 2024 | | | | 4,754,194 | | | | (22,004 | ) |
NSE IFSC Nifty 50 Index Futures | | | 63 | | | | September 2024 | | | | 3,199,392 | | | | (24,751 | ) |
OMXS 30 Index Futures | | | 19 | | | | September 2024 | | | | 481,051 | | | | (18,929 | ) |
S&P 500 E-Mini Futures | | | 1 | | | | September 2024 | | | | 283,050 | | | | (1,577 | ) |
U.S. 10 Yr Ultra Futures | | | 51 | | | | December 2024 | | | | 5,989,312 | | | | 37,505 | |
U.S. T-Note 2 Yr (CBT) Futures | | | 26 | | | | December 2024 | | | | 5,396,219 | | | | 7,279 | |
U.S. T-Note 10 Yr (CBT) Futures | | | 142 | | | | December 2024 | | | | 16,125,875 | | | | 87,404 | |
U.S. Ultra Bond (CBT) Futures | | | 34 | | | | September 2024 | | | | 4,450,812 | | | | (311,366 | ) |
U.S. Ultra Bond (CBT) Futures | | | 3 | | | | December 2024 | | | | 395,812 | | | | 4,456 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | 2,653,418 | |
| | | | | | | | | | | | | | | | |
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 | | BRL | 7,339 | | | USD | | | 1,329 | | | | 09/04/2024 | | | $ | 26,835 | |
Bank of America, NA | | BRL | 9,289 | | | USD | | | 1,642 | | | | 09/04/2024 | | | | (6,251 | ) |
Bank of America, NA | | USD | 1,598 | | | BRL | | | 9,038 | | | | 09/04/2024 | | | | 5,741 | |
Bank of America, NA | | USD | 1,370 | | | BRL | | | 7,590 | | | | 09/04/2024 | | | | (23,572 | ) |
Bank of America, NA | | CLP | 779,949 | | | USD | | | 844 | | | | 09/12/2024 | | | | (9,005 | ) |
Bank of America, NA | | COP | 6,674,887 | | | USD | | | 1,630 | | | | 09/12/2024 | | | | 35,371 | |
Bank of America, NA | | COP | 4,294,662 | | | USD | | | 1,016 | | | | 09/12/2024 | | | | (9,583 | ) |
Bank of America, NA | | CZK | 68,422 | | | USD | | | 2,938 | | | | 09/12/2024 | | | | (83,958 | ) |
Bank of America, NA | | HUF | 769,814 | | | USD | | | 2,104 | | | | 09/12/2024 | | | | (60,202 | ) |
Bank of America, NA | | PEN | 2,560 | | | USD | | | 681 | | | | 09/12/2024 | | | | (2,172 | ) |
Bank of America, NA | | USD | 159 | | | CLP | | | 145,634 | | | | 09/12/2024 | | | | 379 | |
Bank of America, NA | | USD | 1,086 | | | COP | | | 4,452,835 | | | | 09/12/2024 | | | | (22,927 | ) |
Bank of America, NA | | USD | 596 | | | CZK | | | 13,810 | | | | 09/12/2024 | | | | 13,548 | |
Bank of America, NA | | USD | 1,206 | | | PEN | | | 4,523 | | | | 09/12/2024 | | | | 595 | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 33 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | |
| Counterparty | | Contracts to
Deliver
(000) | | | In Exchange
For
(000) | | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation) | |
Bank of America, NA | | USD | 686 | | | PEN | | | 2,562 | | | | 09/12/2024 | | | $ | (2,333 | ) |
Bank of America, NA | | INR | 149,142 | | | USD | | | 1,779 | | | | 09/13/2024 | | | | 694 | |
Bank of America, NA | | INR | 405,711 | | | USD | | | 4,830 | | | | 09/13/2024 | | | | (7,077 | ) |
Bank of America, NA | | USD | 4,885 | | | INR | | | 408,901 | | | | 09/13/2024 | | | | (9,419 | ) |
Bank of America, NA | | AUD | 3,547 | | | USD | | | 2,364 | | | | 09/19/2024 | | | | (37,883 | ) |
Bank of America, NA | | SEK | 40,029 | | | USD | | | 3,927 | | | | 09/19/2024 | | | | 25,288 | |
Bank of America, NA | | SEK | 70,191 | | | USD | | | 6,673 | | | | 09/19/2024 | | | | (168,282 | ) |
Bank of America, NA | | USD | 827 | | | AUD | | | 1,262 | | | | 09/19/2024 | | | | 27,203 | |
Bank of America, NA | | USD | 2,299 | | | NOK | | | 25,289 | | | | 09/19/2024 | | | | 86,490 | |
Bank of America, NA | | USD | 1,710 | | | SEK | | | 18,279 | | | | 09/19/2024 | | | | 71,974 | |
Bank of America, NA | | USD | 4,348 | | | NZD | | | 7,248 | | | | 09/26/2024 | | | | 183,494 | |
Bank of America, NA | | CNH | 3,778 | | | USD | | | 521 | | | | 09/27/2024 | | | | (13,307 | ) |
Bank of America, NA | | USD | 338 | | | CNH | | | 2,444 | | | | 09/27/2024 | | | | 7,987 | |
Bank of America, NA | | KRW | 991,925 | | | USD | | | 727 | | | | 10/18/2024 | | | | (16,494 | ) |
Bank of America, NA | | USD | 724 | | | KRW | | | 981,460 | | | | 10/18/2024 | | | | 12,053 | |
Bank of America, NA | | USD | 490 | | | KRW | | | 652,023 | | | | 10/18/2024 | | | | (873 | ) |
Bank of America, NA | | CHF | 928 | | | USD | | | 1,108 | | | | 10/25/2024 | | | | 9,396 | |
Bank of America, NA | | USD | 3,367 | | | EUR | | | 3,007 | | | | 10/25/2024 | | | | (34,609 | ) |
Bank of America, NA | | USD | 2,222 | | | PHP | | | 124,554 | | | | 10/25/2024 | | | | (7,610 | ) |
Bank of America, NA | | CAD | 9,186 | | | USD | | | 6,777 | | | | 11/07/2024 | | | | (52,235 | ) |
Bank of America, NA | | USD | 8,802 | | | CAD | | | 11,930 | | | | 11/07/2024 | | | | 67,839 | |
Bank of America, NA | | GBP | 6,917 | | | USD | | | 9,159 | | | | 11/08/2024 | | | | 71,133 | |
Bank of America, NA | | USD | 6,446 | | | GBP | | | 4,868 | | | | 11/08/2024 | | | | (50,065 | ) |
Bank of America, NA | | TWD | 17,633 | | | USD | | | 562 | | | | 11/22/2024 | | | | 5,230 | |
Bank of America, NA | | USD | 207 | | | TWD | | | 6,529 | | | | 11/22/2024 | | | | (787 | ) |
Barclays Bank PLC | | BRL | 928 | | | USD | | | 168 | | | | 09/04/2024 | | | | 2,852 | |
Barclays Bank PLC | | BRL | 11,348 | | | USD | | | 1,974 | | | | 09/04/2024 | | | | (39,147 | ) |
Barclays Bank PLC | | USD | 2,170 | | | BRL | | | 12,276 | | | | 09/04/2024 | | | | 7,799 | |
Barclays Bank PLC | | USD | 176 | | | CLP | | | 166,984 | | | | 09/12/2024 | | | | 6,539 | |
Barclays Bank PLC | | USD | 382 | | | PEN | | | 1,435 | | | | 09/12/2024 | | | | 999 | |
Barclays Bank PLC | | INR | 54,871 | | | USD | | | 655 | | | | 09/13/2024 | | | | 1,201 | |
Barclays Bank PLC | | USD | 3,336 | | | INR | | | 280,037 | | | | 09/13/2024 | | | | 3,295 | |
Barclays Bank PLC | | SEK | 13,138 | | | USD | | | 1,252 | | | | 09/19/2024 | | | | (28,488 | ) |
Barclays Bank PLC | | USD | 767 | | | AUD | | | 1,149 | | | | 09/19/2024 | | | | 11,059 | |
Barclays Bank PLC | | USD | 1,976 | | | SEK | | | 21,177 | | | | 09/19/2024 | | | | 88,501 | |
Barclays Bank PLC | | NZD | 2,180 | | | USD | | | 1,279 | | | | 09/26/2024 | | | | (84,246 | ) |
Barclays Bank PLC | | USD | 2,821 | | | MXN | | | 51,409 | | | | 09/26/2024 | | | | (219,332 | ) |
Barclays Bank PLC | | USD | 167 | | | BRL | | | 928 | | | | 10/02/2024 | | | | (2,875 | ) |
Barclays Bank PLC | | USD | 136 | | | KRW | | | 188,569 | | | | 10/18/2024 | | | | 4,897 | |
Barclays Bank PLC | | IDR | 30,390,375 | | | USD | | | 1,857 | | | | 10/25/2024 | | | | (99,370 | ) |
Barclays Bank PLC | | PHP | 40,519 | | | USD | | | 720 | | | | 10/25/2024 | | | | 130 | |
Barclays Bank PLC | | PHP | 64,173 | | | USD | | | 1,095 | | | | 10/25/2024 | | | | (45,642 | ) |
Barclays Bank PLC | | USD | 1,074 | | | EUR | | | 963 | | | | 10/25/2024 | | | | (7,380 | ) |
Barclays Bank PLC | | USD | 3,294 | | | IDR | | | 53,658,353 | | | | 10/25/2024 | | | | 160,818 | |
Barclays Bank PLC | | USD | 759 | | | IDR | | | 11,720,078 | | | | 10/25/2024 | | | | (4,441 | ) |
Barclays Bank PLC | | USD | 2,347 | | | PHP | | | 137,117 | | | | 10/25/2024 | | | | 91,120 | |
Barclays Bank PLC | | MYR | 18,201 | | | USD | | | 4,153 | | | | 11/21/2024 | | | | (80,366 | ) |
Barclays Bank PLC | | USD | 2,136 | | | MYR | | | 9,269 | | | | 11/21/2024 | | | | 20,049 | |
Barclays Bank PLC | | TWD | 25,358 | | | USD | | | 804 | | | | 11/22/2024 | | | | 2,653 | |
BNP Paribas SA | | CLP | 3,087,448 | | | USD | | | 3,373 | | | | 09/12/2024 | | | | (5,669 | ) |
BNP Paribas SA | | USD | 539 | | | PLN | | | 2,125 | | | | 09/12/2024 | | | | 9,407 | |
| | |
| |
34 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | |
| Counterparty | | Contracts to
Deliver
(000) | | | In Exchange
For
(000) | | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation) | |
BNP Paribas SA | | EUR | 17,604 | | | USD | | | 19,231 | | | | 10/17/2024 | | | $ | (267,364 | ) |
BNP Paribas SA | | USD | 1,647 | | | EUR | | | 1,477 | | | | 10/25/2024 | | | | (9,633 | ) |
Citibank, NA | | CZK | 15,705 | | | USD | | | 690 | | | | 09/12/2024 | | | | (3,896 | ) |
Citibank, NA | | PEN | 1,259 | | | USD | | | 334 | | | | 09/12/2024 | | | | (2,023 | ) |
Citibank, NA | | USD | 2,012 | | | COP | | | 8,201,251 | | | | 09/12/2024 | | | | (53,398 | ) |
Citibank, NA | | INR | 28,344 | | | USD | | | 337 | | | | 09/13/2024 | | | | (468 | ) |
Citibank, NA | | USD | 1,361 | | | INR | | | 114,296 | | | | 09/13/2024 | | | | 1,761 | |
Citibank, NA | | USD | 970 | | | INR | | | 81,175 | | | | 09/13/2024 | | | | (1,797 | ) |
Citibank, NA | | MXN | 12,661 | | | USD | | | 639 | | | | 09/26/2024 | | | | (1,197 | ) |
Citibank, NA | | USD | 1,676 | | | MXN | | | 31,696 | | | | 09/26/2024 | | | | (71,622 | ) |
Citibank, NA | | SGD | 906 | | | USD | | | 691 | | | | 10/18/2024 | | | | (4,723 | ) |
Citibank, NA | | USD | 691 | | | SGD | | | 909 | | | | 10/18/2024 | | | | 6,896 | |
Citibank, NA | | EUR | 2,674 | | | USD | | | 2,954 | | | | 10/25/2024 | | | | (8,523 | ) |
Citibank, NA | | USD | 671 | | | IDR | | | 10,891,259 | | | | 10/25/2024 | | | | 30,612 | |
Deutsche Bank AG | | COP | 1,114,678 | | | USD | | | 277 | | | | 09/12/2024 | | | | 11,051 | |
Deutsche Bank AG | | CZK | 16,990 | | | USD | | | 733 | | | | 09/12/2024 | | | | (17,359 | ) |
Deutsche Bank AG | | PEN | 845 | | | USD | | | 226 | | | | 09/12/2024 | | | | 663 | |
Deutsche Bank AG | | USD | 1,271 | | | HUF | | | 462,842 | | | | 09/12/2024 | | | | 30,427 | |
Deutsche Bank AG | | USD | 256 | | | PEN | | | 957 | | | | 09/12/2024 | | | | (909 | ) |
Deutsche Bank AG | | INR | 223,049 | | | USD | | | 2,663 | | | | 09/13/2024 | | | | 4,096 | |
Deutsche Bank AG | | SEK | 6,008 | | | USD | | | 587 | | | | 09/19/2024 | | | | 1,280 | |
Deutsche Bank AG | | SEK | 26,637 | | | USD | | | 2,537 | | | | 09/19/2024 | | | | (59,252 | ) |
Deutsche Bank AG | | USD | 4,302 | | | AUD | | | 6,524 | | | | 09/19/2024 | | | | 115,200 | |
Deutsche Bank AG | | USD | 584 | | | NOK | | | 6,422 | | | | 09/19/2024 | | | | 21,694 | |
Deutsche Bank AG | | USD | 908 | | | SEK | | | 9,521 | | | | 09/19/2024 | | | | 20,395 | |
Deutsche Bank AG | | NZD | 2,099 | | | USD | | | 1,313 | | | | 09/26/2024 | | | | 675 | |
Deutsche Bank AG | | KRW | 1,866,266 | | | USD | | | 1,410 | | | | 10/18/2024 | | | | 11,047 | |
Deutsche Bank AG | | KRW | 784,228 | | | USD | | | 576 | | | | 10/18/2024 | | | | (11,941 | ) |
Deutsche Bank AG | | | EUR814 | | | USD | | | 895 | | | | 10/25/2024 | | | | (7,414 | ) |
Deutsche Bank AG | | PHP | 45,084 | | | USD | | | 801 | | | | 10/25/2024 | | | | (140 | ) |
Deutsche Bank AG | | USD | 163 | | | IDR | | | 2,636,028 | | | | 10/25/2024 | | | | 7,129 | |
Deutsche Bank AG | | USD | 227 | | | IDR | | | 3,512,111 | | | | 10/25/2024 | | | | (971 | ) |
Deutsche Bank AG | | USD | 169 | | | PHP | | | 9,687 | | | | 10/25/2024 | | | | 3,244 | |
Goldman Sachs Bank USA | | BRL | 3,817 | | | USD | | | 675 | | | | 09/04/2024 | | | | (2,425 | ) |
Goldman Sachs Bank USA | | USD | 693 | | | BRL | | | 3,817 | | | | 09/04/2024 | | | | (15,418 | ) |
Goldman Sachs Bank USA | | CLP | 248,711 | | | USD | | | 269 | | | | 09/12/2024 | | | | (3,085 | ) |
Goldman Sachs Bank USA | | PEN | 7,216 | | | USD | | | 1,931 | | | | 09/12/2024 | | | | 5,476 | |
Goldman Sachs Bank USA | | USD | 216 | | | CLP | | | 205,709 | | | | 09/12/2024 | | | | 9,443 | |
Goldman Sachs Bank USA | | USD | 378 | | | CLP | | | 344,779 | | | | 09/12/2024 | | | | (1,176 | ) |
Goldman Sachs Bank USA | | USD | 532 | | | COP | | | 2,148,660 | | | | 09/12/2024 | | | | (19,097 | ) |
Goldman Sachs Bank USA | | INR | 158,309 | | | USD | | | 1,886 | | | | 09/13/2024 | | | | (1,071 | ) |
Goldman Sachs Bank USA | | USD | 421 | | | INR | | | 35,305 | | | | 09/13/2024 | | | | 258 | |
Goldman Sachs Bank USA | | NOK | 25,289 | | | USD | | | 2,352 | | | | 09/19/2024 | | | | (33,385 | ) |
Goldman Sachs Bank USA | | USD | 536 | | | AUD | | | 791 | | | | 09/19/2024 | | | | (329 | ) |
Goldman Sachs Bank USA | | NZD | 13,491 | | | USD | | | 8,144 | | | | 09/26/2024 | | | | (290,979 | ) |
Goldman Sachs Bank USA | | USD | 1,286 | | | EUR | | | 1,174 | | | | 09/26/2024 | | | | 13,195 | |
Goldman Sachs Bank USA | | USD | 1,212 | | | NZD | | | 2,056 | | | | 09/26/2024 | | | | 73,368 | |
Goldman Sachs Bank USA | | USD | 3,037 | | | JPY | | | 445,874 | | | | 10/17/2024 | | | | 31,765 | |
Goldman Sachs Bank USA | | KRW | 1,213,153 | | | USD | | | 916 | | | | 10/18/2024 | | | | 6,005 | |
Goldman Sachs Bank USA | | KRW | 1,174,310 | | | USD | | | 852 | | | | 10/18/2024 | | | | (27,961 | ) |
Goldman Sachs Bank USA | | CHF | 4,963 | | | USD | | | 5,873 | | | | 10/25/2024 | | | | (933 | ) |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 35 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Contracts to
Deliver
(000) | | | In Exchange
For
(000) | | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation) | |
Goldman Sachs Bank USA | | IDR | 18,559,996 | | | | USD | | | | 1,196 | | | | 10/25/2024 | | | $ | 1,378 | |
Goldman Sachs Bank USA | | IDR | 10,433,117 | | | | USD | | | | 671 | | | | 10/25/2024 | | | | (221 | ) |
Goldman Sachs Bank USA | | USD | 632 | | | | CHF | | | | 542 | | | | 10/25/2024 | | | | 9,644 | |
Goldman Sachs Bank USA | | USD | 3,993 | | | | IDR | | | | 64,760,712 | | | | 10/25/2024 | | | | 175,971 | |
Goldman Sachs Bank USA | | USD | 348 | | | | PHP | | | | 19,646 | | | | 10/25/2024 | | | | 934 | |
Goldman Sachs Bank USA | | USD | 713 | | | | MYR | | | | 3,107 | | | | 11/21/2024 | | | | 9,514 | |
Goldman Sachs Bank USA | | TWD | 8,455 | | | | USD | | | | 269 | | | | 11/22/2024 | | | | 1,967 | |
HSBC Bank USA | | COP | 1,387,693 | | | | USD | | | | 345 | | | | 09/12/2024 | | | | 13,093 | |
HSBC Bank USA | | USD | 343 | | | | PEN | | | | 1,280 | | | | 09/12/2024 | | | | (1,124 | ) |
HSBC Bank USA | | USD | 332 | | | | INR | | | | 27,881 | | | | 09/13/2024 | | | | 65 | |
HSBC Bank USA | | SGD | 906 | | | | USD | | | | 676 | | | | 10/18/2024 | | | | (20,118 | ) |
HSBC Bank USA | | USD | 673 | | | | SGD | | | | 900 | | | | 10/18/2024 | | | | 18,679 | |
HSBC Bank USA | | IDR | 10,822,130 | | | | USD | | | | 680 | | | | 10/25/2024 | | | | (16,738 | ) |
HSBC Bank USA | | USD | 335 | | | | IDR | | | | 5,354,653 | | | | 10/25/2024 | | | | 9,687 | |
JPMorgan Chase Bank, NA | | BRL | 9,907 | | | | USD | | | | 1,752 | | | | 09/04/2024 | | | | (6,293 | ) |
JPMorgan Chase Bank, NA | | JPY | 1,340,000 | | | | USD | | | | 8,702 | | | | 09/04/2024 | | | | (464,323 | ) |
JPMorgan Chase Bank, NA | | USD | 1,746 | | | | BRL | | | | 9,907 | | | | 09/04/2024 | | | | 11,788 | |
JPMorgan Chase Bank, NA | | COP | 5,716,356 | | | | USD | | | | 1,412 | | | | 09/12/2024 | | | | 47,027 | |
JPMorgan Chase Bank, NA | | CZK | 13,890 | | | | USD | | | | 617 | | | | 09/12/2024 | | | | 3,958 | |
JPMorgan Chase Bank, NA | | PLN | 6,932 | | | | USD | | | | 1,760 | | | | 09/12/2024 | | | | (28,945 | ) |
JPMorgan Chase Bank, NA | | USD | 229 | | | | CLP | | | | 213,220 | | | | 09/12/2024 | | | | 4,793 | |
JPMorgan Chase Bank, NA | | USD | 165 | | | | CLP | | | | 150,840 | | | | 09/12/2024 | | | | (162 | ) |
JPMorgan Chase Bank, NA | | USD | 204 | | | | COP | | | | 832,121 | | | | 09/12/2024 | | | | (5,524 | ) |
JPMorgan Chase Bank, NA | | USD | 1,266 | | | | PLN | | | | 4,986 | | | | 09/12/2024 | | | | 20,820 | |
JPMorgan Chase Bank, NA | | USD | 1,603 | | | | INR | | | | 134,296 | | | | 09/13/2024 | | | | (2,010 | ) |
JPMorgan Chase Bank, NA | | AUD | 1,259 | | | | USD | | | | 826 | | | | 09/19/2024 | | | | (26,935 | ) |
JPMorgan Chase Bank, NA | | JPY | 1,588,831 | | | | USD | | | | 10,884 | | | | 10/17/2024 | | | | (52,573 | ) |
JPMorgan Chase Bank, NA | | USD | 701 | | | | ZAR | | | | 12,596 | | | | 10/17/2024 | | | | 2,861 | |
JPMorgan Chase Bank, NA | | KRW | 609,636 | | | | USD | | | | 443 | | | | 10/18/2024 | | | | (14,201 | ) |
JPMorgan Chase Bank, NA | | EUR | 1,516 | | | | USD | | | | 1,701 | | | | 10/25/2024 | | | | 20,634 | |
JPMorgan Chase Bank, NA | | USD | 309 | | | | IDR | | | | 4,939,755 | | | | 10/25/2024 | | | | 8,898 | |
JPMorgan Chase Bank, NA | | JPY | 3,256,000 | | | | USD | | | | 22,339 | | | | 11/20/2024 | | | | (176,736 | ) |
JPMorgan Chase Bank, NA | | TWD | 5,698 | | | | USD | | | | 178 | | | | 11/22/2024 | | | | (1,887 | ) |
Morgan Stanley Capital Services, Inc. | | CLP | 197,374 | | | | USD | | | | 208 | | | | 09/12/2024 | | | | (8,104 | ) |
Morgan Stanley Capital Services, Inc. | | COP | 5,888,294 | | | | USD | | | | 1,476 | | | | 09/12/2024 | | | | 69,939 | |
Morgan Stanley Capital Services, Inc. | | EUR | 17,528 | | | | USD | | | | 19,020 | | | | 09/12/2024 | | | | (361,813 | ) |
Morgan Stanley Capital Services, Inc. | | USD | 300 | | | | PEN | | | | 1,123 | | | | 09/12/2024 | | | | (106 | ) |
Morgan Stanley Capital Services, Inc. | | USD | 540 | | | | PLN | | | | 2,127 | | | | 09/12/2024 | | | | 9,255 | |
Morgan Stanley Capital Services, Inc. | | INR | 17,928 | | | | USD | | | | 213 | | | | 09/13/2024 | | | | (413 | ) |
Morgan Stanley Capital Services, Inc. | | USD | 516 | | | | INR | | | | 43,263 | | | | 09/13/2024 | | | | 223 | |
Morgan Stanley Capital Services, Inc. | | AUD | 14,089 | | | | USD | | | | 9,370 | | | | 09/19/2024 | | | | (169,865 | ) |
Morgan Stanley Capital Services, Inc. | | NOK | 67,984 | | | | USD | | | | 6,338 | | | | 09/19/2024 | | | | (74,588 | ) |
| | |
| |
36 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | |
| Counterparty | | Contracts to
Deliver
(000) | | | In Exchange
For
(000) | | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation) | |
Morgan Stanley Capital Services, Inc. | | USD | 1,661 | | | | AUD | | | | 2,529 | | | | 09/19/2024 | | | $ | 51,743 | |
Morgan Stanley Capital Services, Inc. | | USD | 6,721 | | | | SEK | | | | 70,838 | | | | 09/19/2024 | | | | 183,508 | |
Morgan Stanley Capital Services, Inc. | | NZD | 1,837 | | | | USD | | | | 1,106 | | | | 09/26/2024 | | | | (42,468 | ) |
Morgan Stanley Capital Services, Inc. | | USD | 978 | | | | NZD | | | | 1,642 | | | | 09/26/2024 | | | | 48,566 | |
Morgan Stanley Capital Services, Inc. | | CNH | 41,154 | | | | USD | | | | 5,685 | | | | 09/27/2024 | | | | (134,900 | ) |
Morgan Stanley Capital Services, Inc. | | KRW | 3,143,424 | | | | USD | | | | 2,294 | | | | 10/18/2024 | | | | (62,632 | ) |
Morgan Stanley Capital Services, Inc. | | USD | 2,503 | | | | KRW | | | | 3,427,921 | | | | 10/18/2024 | | | | 66,933 | |
Morgan Stanley Capital Services, Inc. | | USD | 148 | | | | KRW | | | | 197,362 | | | | 10/18/2024 | | | | (267 | ) |
Morgan Stanley Capital Services, Inc. | | EUR | 3,028 | | | | USD | | | | 3,320 | | | | 10/25/2024 | | | | (35,616 | ) |
Morgan Stanley Capital Services, Inc. | | USD | 5,222 | | | | EUR | | | | 4,763 | | | | 10/25/2024 | | | | 56,016 | |
Morgan Stanley Capital Services, Inc. | | USD | 5,446 | | | | MYR | | | | 24,086 | | | | 11/21/2024 | | | | 156,244 | |
Morgan Stanley Capital Services, Inc. | | TWD | 36,152 | | | | USD | | | | 1,138 | | | | 11/22/2024 | | | | (3,793 | ) |
State Street Bank & Trust Co. | | CZK | 39,073 | | | | USD | | | | 1,674 | | | | 09/12/2024 | | | | (51,683 | ) |
State Street Bank & Trust Co. | | HUF | 120,907 | | | | USD | | | | 344 | | | | 09/12/2024 | | | | 3,712 | |
State Street Bank & Trust Co. | | HUF | 243,577 | | | | USD | | | | 673 | | | | 09/12/2024 | | | | (11,592 | ) |
State Street Bank & Trust Co. | | PLN | 920 | | | | USD | | | | 239 | | | | 09/12/2024 | | | | 1,167 | |
State Street Bank & Trust Co. | | PLN | 5,129 | | | | USD | | | | 1,303 | | | | 09/12/2024 | | | | (20,401 | ) |
State Street Bank & Trust Co. | | THB | 121,115 | | | | USD | | | | 3,347 | | | | 09/12/2024 | | | | (233,893 | ) |
State Street Bank & Trust Co. | | USD | 1,379 | | | | CZK | | | | 31,898 | | | | 09/12/2024 | | | | 29,486 | |
State Street Bank & Trust Co. | | USD | 506 | | | | CZK | | | | 11,431 | | | | 09/12/2024 | | | | (1,247 | ) |
State Street Bank & Trust Co. | | USD | 2,575 | | | | HUF | | | | 932,135 | | | | 09/12/2024 | | | | 46,494 | |
State Street Bank & Trust Co. | | USD | 908 | | | | HUF | | | | 321,363 | | | | 09/12/2024 | | | | (3,931 | ) |
State Street Bank & Trust Co. | | USD | 1,418 | | | | PLN | | | | 5,592 | | | | 09/12/2024 | | | | 25,208 | |
State Street Bank & Trust Co. | | USD | 257 | | | | PLN | | | | 992 | | | | 09/12/2024 | | | | (1,051 | ) |
State Street Bank & Trust Co. | | USD | 3,018 | | | | THB | | | | 105,632 | | | | 09/12/2024 | | | | 105,538 | |
State Street Bank & Trust Co. | | AUD | 404 | | | | USD | | | | 274 | | | | 09/19/2024 | | | | 845 | |
State Street Bank & Trust Co. | | AUD | 2,388 | | | | USD | | | | 1,597 | | | | 09/19/2024 | | | | (19,496 | ) |
State Street Bank & Trust Co. | | NOK | 22,940 | | | | USD | | | | 2,115 | | | | 09/19/2024 | | | | (49,229 | ) |
State Street Bank & Trust Co. | | SEK | 3,264 | | | | USD | | | | 320 | | | | 09/19/2024 | | | | 2,285 | |
State Street Bank & Trust Co. | | SEK | 5,101 | | | | USD | | | | 484 | | | | 09/19/2024 | | | | (13,387 | ) |
State Street Bank & Trust Co. | | USD | 908 | | | | AUD | | | | 1,374 | | | | 09/19/2024 | | | | 23,023 | |
State Street Bank & Trust Co. | | USD | 333 | | | | AUD | | | | 490 | | | | 09/19/2024 | | | | (1,333 | ) |
State Street Bank & Trust Co. | | USD | 1,508 | | | | NOK | | | | 16,481 | | | | 09/19/2024 | | | | 46,195 | |
State Street Bank & Trust Co. | | USD | 670 | | | | NOK | | | | 7,027 | | | | 09/19/2024 | | | | (6,857 | ) |
State Street Bank & Trust Co. | | USD | 1,599 | | | | SEK | | | | 16,828 | | | | 09/19/2024 | | | | 41,047 | |
State Street Bank & Trust Co. | | MXN | 39,024 | | | | USD | | | | 2,053 | | | | 09/26/2024 | | | | 78,620 | |
State Street Bank & Trust Co. | | NZD | 701 | | | | USD | | | | 417 | | | | 09/26/2024 | | | | (20,978 | ) |
State Street Bank & Trust Co. | | USD | 261 | | | | MXN | | | | 5,005 | | | | 09/26/2024 | | | | (7,354 | ) |
State Street Bank & Trust Co. | | USD | 1,219 | | | | NZD | | | | 2,021 | | | | 09/26/2024 | | | | 44,435 | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 37 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | |
| Counterparty | | Contracts to
Deliver
(000) | | | In Exchange
For
(000) | | | Settlement
Date | | | Unrealized
Appreciation
(Depreciation) | |
State Street Bank & Trust Co. | | CNH | 6,377 | | | USD | | | 890 | | | | 09/27/2024 | | | $ | (11,895 | ) |
State Street Bank & Trust Co. | | USD | 1,056 | | | CNH | | | 7,497 | | | | 09/27/2024 | | | | 3,779 | |
State Street Bank & Trust Co. | | JPY | 375,460 | | | USD | | | 2,605 | | | | 10/17/2024 | | | | 20,639 | |
State Street Bank & Trust Co. | | JPY | 12,853 | | | USD | | | 88 | | | | 10/17/2024 | | | | (110 | ) |
State Street Bank & Trust Co. | | USD | 483 | | | ZAR | | | 8,690 | | | | 10/17/2024 | | | | 2,276 | |
State Street Bank & Trust Co. | | ZAR | 8,690 | | | USD | | | 487 | | | | 10/17/2024 | | | | 1,417 | |
State Street Bank & Trust Co. | | ZAR | 12,596 | | | USD | | | 703 | | | | 10/17/2024 | | | | (968 | ) |
State Street Bank & Trust Co. | | SGD | 449 | | | USD | | | 335 | | | | 10/18/2024 | | | | (10,073 | ) |
State Street Bank & Trust Co. | | USD | 348 | | | SGD | | | 453 | | | | 10/18/2024 | | | | 281 | |
State Street Bank & Trust Co. | | CHF | 193 | | | USD | | | 229 | | | | 10/25/2024 | | | | 224 | |
State Street Bank & Trust Co. | | CHF | 292 | | | USD | | | 342 | | | | 10/25/2024 | | | | (4,015 | ) |
State Street Bank & Trust Co. | | EUR | 1,230 | | | USD | | | 1,348 | | | | 10/25/2024 | | | | (14,826 | ) |
State Street Bank & Trust Co. | | USD | 239 | | | CHF | | | 204 | | | | 10/25/2024 | | | | 2,341 | |
State Street Bank & Trust Co. | | USD | 1,560 | | | EUR | | | 1,416 | | | | 10/25/2024 | | | | 9,332 | |
State Street Bank & Trust Co. | | USD | 201 | | | EUR | | | 181 | | | | 10/25/2024 | | | | (438 | ) |
State Street Bank & Trust Co. | | CAD | 616 | | | USD | | | 454 | | | | 11/07/2024 | | | | (3,899 | ) |
State Street Bank & Trust Co. | | USD | 270 | | | CAD | | | 366 | | | | 11/07/2024 | | | | 2,225 | |
State Street Bank & Trust Co. | | USD | 204 | | | CAD | | | 274 | | | | 11/07/2024 | | | | (430 | ) |
State Street Bank & Trust Co. | | USD | 345 | | | GBP | | | 261 | | | | 11/08/2024 | | | | (2,014 | ) |
UBS AG | | USD | 2,188 | | | JPY | | | 318,723 | | | | 10/17/2024 | | | | 5,776 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | (1,388,812 | ) |
| | | | | | | | | | | | | | | | | | |
CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Description | | Fixed
Rate
(Pay)
Receive | | | Payment
Frequency | | | Implied
Credit
Spread at
August 31,
2024 | | | Notional
Amount
(000) | | | Market
Value | | | Upfront
Premiums
Paid
(Received) | | | Unrealized
Appreciation
(Depreciation) | |
Buy Contracts | |
CDX-NAHY Series 42, 5 Year Index, 06/20/2029* | | | (5.00 | )% | | | Quarterly | | | | 3.21 | % | | USD | 13,370 | | | $ | (1,089,680 | ) | | $ | (846,635 | ) | | $ | (243,045 | ) |
iTraxx-Europe Series 41, 5 Year Index, 06/20/2029* | | | (1.00 | ) | | | Quarterly | | | | 0.53 | | | EUR | 3,010 | | | | (77,748 | ) | | | (72,323 | ) | | | (5,425 | ) |
|
Sale Contracts | |
CDX-NAHY Series 42, 5 Year Index, 06/20/2029* | | | 5.00 | | | | Quarterly | | | | 3.21 | | | USD | 11,000 | | | | 898,134 | | | | 718,583 | | | | 179,551 | |
iTraxx Xover Series 41, 5 Year Index, 06/20/2029* | | | 5.00 | | | | Quarterly | | | | 2.88 | | | EUR | 2,500 | | | | 267,423 | | | | 231,850 | | | | 35,573 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | (1,871 | ) | | $ | 31,475 | | | $ | (33,346 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| |
38 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED 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) | |
CNY | | | 107,330 | | | | 02/21/2025 | | | China 7-Day
Reverse
Repo Rate | | 2.620% | | Quarterly | | $ | 61,451 | | | $ | – 0 | – | | $ | 61,451 | |
SEK | | | 14,495 | | | | 08/30/2026 | | | 2.290% | | 3 Month
STIBOR | | Annual/Quarterly | | | (759 | ) | | | – 0 | – | | | (759 | ) |
SEK | | | 14,495 | | | | 09/02/2026 | | | 2.257% | | 3 Month
STIBOR | | Annual/Quarterly | | | (222 | ) | | | – 0 | – | | | (222 | ) |
SEK | | | 14,495 | | | | 09/02/2026 | | | 2.298% | | 3 Month
STIBOR | | Annual/Quarterly | | | (1,341 | ) | | | – 0 | – | | | (1,341 | ) |
SEK | | | 14,494 | | | | 09/02/2026 | | | 2.265% | | 3 Month
STIBOR | | Annual/Quarterly | | | (441 | ) | | | – 0 | – | | | (441 | ) |
SEK | | | 13,261 | | | | 09/02/2026 | | | 2.250% | | 3 Month
STIBOR | | Annual/Quarterly | | | (29 | ) | | | – 0 | – | | | (29 | ) |
CHF | | | 253 | | | | 05/10/2034 | | | 1.195% | | 1 Day
SARON | | Annual | | | (12,551 | ) | | | – 0 | – | | | (12,551 | ) |
CHF | | | 122 | | | | 06/06/2034 | | | 1.280% | | 1 Day
SARON | | Annual | | | (7,302 | ) | | | – 0 | – | | | (7,302 | ) |
CHF | | | 141 | | | | 06/13/2034 | | | 1.290% | | 1 Day
SARON | | Annual | | | (8,616 | ) | | | – 0 | – | | | (8,616 | ) |
SEK | | | 836 | | | | 06/26/2034 | | | 3 Month
STIBOR | | 2.613% | | Quarterly/Annual | | | 2,170 | | | | – 0 | – | | | 2,170 | |
SEK | | | 1,867 | | | | 07/01/2034 | | | 3 Month
STIBOR | | 2.587% | | Quarterly/Annual | | | 4,426 | | | | – 0 | – | | | 4,426 | |
CHF | | | 154 | | | | 07/15/2034 | | | 0.977% | | 1 Day
SARON | | Annual | | | (3,914 | ) | | | – 0 | – | | | (3,914 | ) |
CHF | | | 159 | | | | 07/16/2034 | | | 0.990% | | 1 Day
SARON | | Annual | | | (4,289 | ) | | | – 0 | – | | | (4,289 | ) |
SEK | | | 3,510 | | | | 07/19/2034 | | | 3 Month
STIBOR | | 2.438% | | Quarterly/Annual | | | 3,956 | | | | – 0 | – | | | 3,956 | |
SEK | | | 2,751 | | | | 07/22/2034 | | | 3 Month
STIBOR | | 2.426% | | Quarterly/Annual | | | 2,834 | | | | – 0 | – | | | 2,834 | |
SEK | | | 2,119 | | | | 08/02/2034 | | | 3 Month
STIBOR | | 2.366% | | Quarterly/Annual | | | 1,140 | | | | – 0 | – | | | 1,140 | |
SEK | | | 10,258 | | | | 08/05/2034 | | | 3 Month
STIBOR | | 2.307% | | Quarterly/Annual | | | 405 | | | | – 0 | – | | | 405 | |
CHF | | | 201 | | | | 08/05/2034 | | | 0.817% | | 1 Day
SARON | | Annual | | | (1,455 | ) | | | – 0 | – | | | (1,455 | ) |
CHF | | | 174 | | | | 08/05/2034 | | | 0.827% | | 1 Day
SARON | | Annual | | | (1,459 | ) | | | – 0 | – | | | (1,459 | ) |
NZD | | | 2,601 | | | | 08/06/2034 | | | 3 Month
BKBM | | 3.945% | | Quarterly/Semi-Annual | | | (9,404 | ) | | | – 0 | – | | | (9,404 | ) |
NOK | | | 3,349 | | | | 08/08/2034 | | | 6 Month
NIBOR | | 3.350% | | Semi-Annual/Annual | | | (3,304 | ) | | | – 0 | – | | | (3,304 | ) |
CHF | | | 315 | | | | 08/08/2034 | | | 0.741% | | 1 Day
SARON | | Annual | | | 461 | | | | – 0 | – | | | 461 | |
SEK | | | 4,043 | | | | 08/13/2034 | | | 3 Month
STIBOR | | 2.284% | | Quarterly/Annual | | | (554 | ) | | | – 0 | – | | | (554 | ) |
CHF | | | 198 | | | | 08/13/2034 | | | 0.788% | | 1 Day
SARON | | Annual | | | (776 | ) | | | – 0 | – | | | (776 | ) |
SEK | | | 2,658 | | | | 08/16/2034 | | | 3 Month
STIBOR | | 2.243% | | Quarterly/Annual | | | (1,274 | ) | | | – 0 | – | | | (1,274 | ) |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 39 |
CONSOLIDATED 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) | |
NOK | | | 2,031 | | | | 08/16/2034 | | | 6 Month
NIBOR | | 3.453% | | Semi-
Annual/
Annual | | $ | (313 | ) | | $ | – 0 | – | | $ | (313 | ) |
NZD | | | 1,168 | | | | 08/16/2034 | | | 3 Month
BKBM | | 3.862% | | Quarterly/
Semi-
Annual | | | (8,952 | ) | | | – 0 | – | | | (8,952 | ) |
NOK | | | 2,630 | | | | 08/22/2034 | | | 6 Month
NIBOR | | 3.443% | | Semi-
Annual/
Annual | | | (574 | ) | | | – 0 | – | | | (574 | ) |
NOK | | | 8,751 | | | | 08/27/2034 | | | 6 Month
NIBOR | | 3.433% | | Semi-
Annual/
Annual | | | (2,241 | ) | | | – 0 | – | | | (2,241 | ) |
NZD | | | 256 | | | | 08/27/2034 | | | 3 Month
BKBM | | 3.886% | | Quarterly/
Semi-
Annual | | | (1,605 | ) | | | – 0 | – | | | (1,605 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | $ | 5,468 | | | $ | – 0 | – | | $ | 5,468 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL RETURN SWAPS (see Note D)
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
Receive Total Return on Reference Obligation | |
JPMorgan Chase Bank, NA | |
Network International Holdings PLC | | SONIA plus
0.30% | | | Maturity | | | | GBP | | | | 905 | | | | 08/10/2026 | | | $ | 6,010 | |
Merrill Lynch International | |
Bloomberg Commodity Index | | 0.00% | | | Maturity | | | | USD | | | | 14,297 | | | | 09/16/2024 | | | | (781,394 | ) |
Morgan Stanley Capital Services LLC | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 120 | | | | 10/20/2025 | | | | 10,567 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 80 | | | | 10/20/2025 | | | | (1,122 | ) |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 73 | | | | 10/20/2025 | | | | 5,392 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 73 | | | | 10/20/2025 | | | | 5,871 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 72 | | | | 10/20/2025 | | | | 5,837 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 71 | | | | 10/20/2025 | | | | 5,604 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 48 | | | | 10/20/2025 | | | | 3,213 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 46 | | | | 10/20/2025 | | | | 3,594 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 43 | | | | 10/20/2025 | | | | 2,046 | |
| | |
| |
40 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 38 | | | | 10/20/2025 | | | $ | 2,172 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 36 | | | | 10/20/2025 | | | | 1,488 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 35 | | | | 10/20/2025 | | | | 1,274 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 34 | | | | 10/20/2025 | | | | (74 | ) |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 32 | | | | 10/20/2025 | | | | 2,110 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 31 | | | | 10/20/2025 | | | | 787 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 26 | | | | 10/20/2025 | | | | 816 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 25 | | | | 10/20/2025 | | | | 1,062 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 24 | | | | 10/20/2025 | | | | 1,734 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 24 | | | | 10/20/2025 | | | | 1,737 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 9 | | | | 10/20/2025 | | | | 187 | |
Canadian Western Bank | | CORRA plus
0.40% | | | Maturity | | | | CAD | | | | 6 | | | | 10/20/2025 | | | | 204 | |
Darktrace PLC | | EFFR plus
0.30% | | | Maturity | | | | USD | | | | 82 | | | | 10/20/2025 | | | | 3,388 | |
Darktrace PLC | | EFFR plus
0.30% | | | Maturity | | | | USD | | | | 76 | | | | 10/20/2025 | | | | 3,135 | |
Darktrace PLC | | EFFR plus
0.30% | | | Maturity | | | | USD | | | | 56 | | | | 10/20/2025 | | | | 2,212 | |
Darktrace PLC | | EFFR plus
0.30% | | | Maturity | | | | USD | | | | 49 | | | | 10/20/2025 | | | | 1,937 | |
Darktrace PLC | | EFFR plus
0.30% | | | Maturity | | | | USD | | | | 39 | | | | 10/20/2025 | | | | 1,696 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 101 | | | | 10/20/2025 | | | | 25,894 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 91 | | | | 10/20/2025 | | | | 25,371 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 89 | | | | 10/20/2025 | | | | 23,460 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 61 | | | | 10/20/2025 | | | | 15,946 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 61 | | | | 10/20/2025 | | | | 18,249 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 54 | | | | 10/20/2025 | | | | 13,995 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 54 | | | | 10/20/2025 | | | | 17,237 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 49 | | | | 10/20/2025 | | | | 14,006 | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 41 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 44 | | | | 10/20/2025 | | | $ | 11,515 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 39 | | | | 10/20/2025 | | | | 11,524 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 38 | | | | 10/20/2025 | | | | 11,212 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 35 | | | | 10/20/2025 | | | | 9,191 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 35 | | | | 10/20/2025 | | | | 9,027 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 31 | | | | 10/20/2025 | | | | 8,676 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 30 | | | | 10/20/2025 | | | | 8,032 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 30 | | | | 10/20/2025 | | | | 8,870 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 26 | | | | 10/20/2025 | | | | 8,998 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 24 | | | | 10/20/2025 | | | | 6,089 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 22 | | | | 10/20/2025 | | | | 6,629 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 17 | | | | 10/20/2025 | | | | 5,298 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 16 | | | | 10/20/2025 | | | | 4,197 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 12 | | | | 10/20/2025 | | | | 3,187 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 12 | | | | 10/20/2025 | | | | 3,446 | |
DS Smith PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 5 | | | | 10/20/2025 | | | | 1,399 | |
Hargreaves Lansdown PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 43 | | | | 10/20/2025 | | | | 426 | |
Hargreaves Lansdown PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 43 | | | | 10/20/2025 | | | | 529 | |
KOSPI 200 Futures | | 0.00% | | | Maturity | | | | KRW | | | | 544,200 | | | | 09/12/2024 | | | | (3,374 | ) |
KOSPI 200 Futures | | 0.00% | | | Maturity | | | | KRW | | | | 544,200 | | | | 09/12/2024 | | | | (7,183 | ) |
KOSPI 200 Futures | | 0.00% | | | Maturity | | | | KRW | | | | 272,100 | | | | 09/12/2024 | | | | (3,261 | ) |
Neoen SA | | EURIBOR
plus 0.50% | | | Maturity | | | | EUR | | | | 2 | | | | 10/20/2025 | | | | 20 | |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 45 | | | | 10/20/2025 | | | | 2,260 | |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 40 | | | | 10/20/2025 | | | | 1,721 | |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 39 | | | | 10/20/2025 | | | | 508 | |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 30 | | | | 10/20/2025 | | | | 855 | |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 30 | | | | 10/20/2025 | | | | 458 | |
| | |
| |
42 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 28 | | | | 10/20/2025 | | | $ | (1,007 | ) |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 25 | | | | 10/20/2025 | | | | 882 | |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 25 | | | | 10/20/2025 | | | | 1,247 | |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 25 | | | | 10/20/2025 | | | | 393 | |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 25 | | | | 10/20/2025 | | | | 338 | |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 24 | | | | 10/20/2025 | | | | 286 | |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 20 | | | | 10/20/2025 | | | | (1,008 | ) |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 18 | | | | 10/20/2025 | | | | (703 | ) |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 17 | | | | 10/20/2025 | | | | 556 | |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 10 | | | | 10/20/2025 | | | | 45 | |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 2 | | | | 10/20/2025 | | | | (83 | ) |
Spirent Communications PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 1 | | | | 10/20/2025 | | | | (23 | ) |
Stelco Holdings, Inc. | | CORRA
plus 0.40% | | | Maturity | | | | CAD | | | | 432 | | | | 10/20/2025 | | | | (3,477 | ) |
Stelco Holdings, Inc. | | CORRA
plus 0.40% | | | Maturity | | | | CAD | | | | 214 | | | | 10/20/2025 | | | | (1,722 | ) |
Stelco Holdings, Inc. | | CORRA
plus 0.40% | | | Maturity | | | | CAD | | | | 105 | | | | 10/20/2025 | | | | (515 | ) |
Stelco Holdings, Inc. | | CORRA
plus 0.40% | | | Maturity | | | | CAD | | | | 62 | | | | 10/20/2025 | | | | (173 | ) |
Swiss Market Index Futures | | 0.00% | | | Maturity | | | | CHF | | | | 249 | | | | 09/20/2024 | | | | (370 | ) |
Virgin Money UK PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 36 | | | | 10/20/2025 | | | | (5 | ) |
Virgin Money UK PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 31 | | | | 10/20/2025 | | | | (70 | ) |
Virgin Money UK PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 24 | | | | 10/20/2025 | | | | 20 | |
Virgin Money UK PLC | | SONIA plus
0.50% | | | Maturity | | | | GBP | | | | 4 | | | | 10/20/2025 | | | | (3 | ) |
|
Pay Total Return on Reference Obligation | |
Goldman Sachs International | | | | |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 367 | | | | 07/15/2025 | | | | (14,304 | ) |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 172 | | | | 07/15/2025 | | | | (5,517 | ) |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 82 | | | | 07/15/2025 | | | | (2,813 | ) |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 43 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 65 | | | | 07/15/2025 | | | $ | (3,106 | ) |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 64 | | | | 07/15/2025 | | | | (2,324 | ) |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 56 | | | | 07/15/2025 | | | | (48 | ) |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 56 | | | | 07/15/2025 | | | | (2,078 | ) |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 55 | | | | 07/15/2025 | | | | 1,189 | |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 53 | | | | 07/15/2025 | | | | (2,137 | ) |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 46 | | | | 07/15/2025 | | | | (234 | ) |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 37 | | | | 07/15/2025 | | | | (546 | ) |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 34 | | | | 07/15/2025 | | | | (122 | ) |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 33 | | | | 07/15/2025 | | | | (740 | ) |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 33 | | | | 07/15/2025 | | | | (277 | ) |
Capital One Financial Corp. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 15 | | | | 07/15/2025 | | | | (606 | ) |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 254 | | | | 07/15/2025 | | | | 63,914 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 103 | | | | 07/15/2025 | | | | 15,397 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 74 | | | | 07/15/2025 | | | | 9,643 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 68 | | | | 07/15/2025 | | | | 9,555 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 61 | | | | 07/15/2025 | | | | 15,433 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 58 | | | | 07/15/2025 | | | | 7,571 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 55 | | | | 07/15/2025 | | | | 6,960 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 55 | | | | 07/15/2025 | | | | 14,096 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 52 | | | | 07/15/2025 | | | | 6,130 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 43 | | | | 07/15/2025 | | | | 4,909 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 41 | | | | 07/15/2025 | | | | 5,276 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 39 | | | | 07/15/2025 | | | | 6,168 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 36 | | | | 07/15/2025 | | | | 14 | |
| | |
| |
44 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 36 | | | | 07/15/2025 | | | $ | 4,592 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 35 | | | | 07/15/2025 | | | | (230 | ) |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 34 | | | | 07/15/2025 | | | | 3,838 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 30 | | | | 07/15/2025 | | | | 4,270 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 24 | | | | 07/15/2025 | | | | 2,537 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 18 | | | | 07/15/2025 | | | | 4,423 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 15 | | | | 07/15/2025 | | | | 1,635 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 15 | | | | 07/15/2025 | | | | 1,067 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 12 | | | | 07/15/2025 | | | | 1,999 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 6 | | | | 07/15/2025 | | | | 803 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 4 | | | | 07/15/2025 | | | | 635 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 1 | | | | 07/15/2025 | | | | 101 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 1 | | | | 07/15/2025 | | | | 119 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 0 | *** | | | 07/15/2025 | | | | 72 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 0 | *** | | | 07/15/2025 | | | | 50 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 0 | *** | | | 07/15/2025 | | | | 38 | |
Schlumberger Ltd. | | SOFR minus
0.35% | | | Maturity | | | | USD | | | | 0 | *** | | | 07/15/2025 | | | | 28 | |
Morgan Stanley Capital Services LLC | | | | |
Cleveland-Cliffs, Inc. | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 65 | | | | 10/20/2025 | | | | 13,119 | |
Cleveland-Cliffs, Inc. | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 26 | | | | 10/20/2025 | | | | 4,509 | |
Cleveland-Cliffs, Inc. | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 8 | | | | 10/20/2025 | | | | 371 | |
Cleveland-Cliffs, Inc. | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 0 | *** | | | 10/20/2025 | | | | 34 | |
CoStar Group, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 101 | | | | 10/20/2025 | | | | 12,600 | |
CoStar Group, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 44 | | | | 10/20/2025 | | | | 5,261 | |
CoStar Group, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 39 | | | | 10/20/2025 | | | | 4,659 | |
CoStar Group, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 26 | | | | 10/20/2025 | | | | 3,143 | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 45 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
CoStar Group, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 16 | | | | 10/20/2025 | | | $ | 2,586 | |
CoStar Group, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 13 | | | | 10/20/2025 | | | | 2,176 | |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 15 | | | | 10/20/2025 | | | | (2,320 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 14 | | | | 10/20/2025 | | | | (2,536 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 12 | | | | 10/20/2025 | | | | (1,770 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 10 | | | | 10/20/2025 | | | | (1,792 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 10 | | | | 10/20/2025 | | | | (1,314 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 10 | | | | 10/20/2025 | | | | (1,220 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 9 | | | | 10/20/2025 | | | | (1,448 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 6 | | | | 10/20/2025 | | | | (734 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 4 | | | | 10/20/2025 | | | | (639 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 3 | | | | 10/20/2025 | | | | (478 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 3 | | | | 10/20/2025 | | | | (365 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 1 | | | | 10/20/2025 | | | | (145 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 1 | | | | 10/20/2025 | | | | (102 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 0 | *** | | | 10/20/2025 | | | | (42 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 0 | *** | | | 10/20/2025 | | | | (42 | ) |
First Advantage Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 0 | *** | | | 10/20/2025 | | | | (22 | ) |
IBOVESPA Futures | | 0.00% | | | Maturity | | | | BRL | | | | 3,730 | | | | 10/16/2024 | | | | 1,913 | |
IBOVESPA Futures | | 0.00% | | | Maturity | | | | BRL | | | | 2,763 | | | | 10/16/2024 | | | | 1,166 | |
IBOVESPA Futures | | 0.00% | | | Maturity | | | | BRL | | | | 1,796 | | | | 10/16/2024 | | | | (1,822 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 150 | | | | 10/20/2025 | | | | (2,916 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 136 | | | | 10/20/2025 | | | | (4,701 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 90 | | | | 10/20/2025 | | | | (12,520 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 62 | | | | 10/20/2025 | | | | (3,884 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 62 | | | | 10/20/2025 | | | | (3,424 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 49 | | | | 10/20/2025 | | | | (1,961 | ) |
| | |
| |
46 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 47 | | | | 10/20/2025 | | | $ | (2,439 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 45 | | | | 10/20/2025 | | | | (5,750 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 39 | | | | 10/20/2025 | | | | (3,774 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 38 | | | | 10/20/2025 | | | | (1,780 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 36 | | | | 10/20/2025 | | | | (6,035 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 35 | | | | 10/20/2025 | | | | (6,035 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 34 | | | | 10/20/2025 | | | | (2,256 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 30 | | | | 10/20/2025 | | | | (4,155 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 29 | | | | 10/20/2025 | | | | (5,096 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 24 | | | | 10/20/2025 | | | | (3,752 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 16 | | | | 10/20/2025 | | | | (818 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 13 | | | | 10/20/2025 | | | | (824 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 12 | | | | 10/20/2025 | | | | (537 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 12 | | | | 10/20/2025 | | | | (454 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 10 | | | | 10/20/2025 | | | | (534 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 8 | | | | 10/20/2025 | | | | (387 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 6 | | | | 10/20/2025 | | | | (82 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 4 | | | | 10/20/2025 | | | | (265 | ) |
International Paper Co. | | SONIA minus
0.35% | | | Maturity | | | | GBP | | | | 1 | | | | 10/20/2025 | | | | (72 | ) |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 72 | | | | 10/20/2025 | | | | 8,588 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 51 | | | | 10/20/2025 | | | | 8,585 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 37 | | | | 10/20/2025 | | | | 3,044 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 27 | | | | 10/20/2025 | | | | 4,020 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 21 | | | | 10/20/2025 | | | | 3,461 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 20 | | | | 10/20/2025 | | | | 2,214 | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 47 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
John Bean Technologies Corp. | | EURIBOR
minus 0.35% | | | Maturity | | | | EUR | | | | 18 | | | | 10/20/2025 | | | $ | 1,992 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 16 | | | | 10/20/2025 | | | | 1,695 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 14 | | | | 10/20/2025 | | | | 975 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 13 | | | | 10/20/2025 | | | | 901 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 12 | | | | 10/20/2025 | | | | 1,403 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 12 | | | | 10/20/2025 | | | | 1,234 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 11 | | | | 10/20/2025 | | | | 1,315 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 8 | | | | 10/20/2025 | | | | 639 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 8 | | | | 10/20/2025 | | | | 961 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 8 | | | | 10/20/2025 | | | | 948 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 8 | | | | 10/20/2025 | | | | 845 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 5 | | | | 10/20/2025 | | | | 431 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 4 | | | | 10/20/2025 | | | | 676 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 1 | | | | 10/20/2025 | | | | 281 | |
John Bean Technologies Corp. | | EURIBOR
minus 0.40% | | | Maturity | | | | EUR | | | | 0 | *** | | | 10/20/2025 | | | | 60 | |
National Bank of Canada | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 129 | | | | 10/20/2025 | | | | (7,456 | ) |
National Bank of Canada | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 86 | | | | 10/20/2025 | | | | 1,555 | |
National Bank of Canada | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 78 | | | | 10/20/2025 | | | | (4,318 | ) |
National Bank of Canada | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 52 | | | | 10/20/2025 | | | | (2,941 | ) |
National Bank of Canada | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 51 | | | | 10/20/2025 | | | | (2,973 | ) |
National Bank of Canada | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 51 | | | | 10/20/2025 | | | | (3,056 | ) |
National Bank of Canada | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 51 | | | | 10/20/2025 | | | | (2,944 | ) |
National Bank of Canada | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 47 | | | | 10/20/2025 | | | | (2,023 | ) |
National Bank of Canada | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 45 | | | | 10/20/2025 | | | | (2,471 | ) |
National Bank of Canada | | CORRA
minus 0.35% | | | Maturity | | | | CAD | | | | 41 | | | | 10/20/2025 | | | | (2,017 | ) |
| | |
| |
48 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 39 | | | | 10/20/2025 | | | $ | (1,344 | ) |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 38 | | | | 10/20/2025 | | | | (1,417 | ) |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 36 | | | | 10/20/2025 | | | | 270 | |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 34 | | | | 10/20/2025 | | | | (720 | ) |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 28 | | | | 10/20/2025 | | | | (796 | ) |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 28 | | | | 10/20/2025 | | | | (1,465 | ) |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 26 | | | | 10/20/2025 | | | | (925 | ) |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 26 | | | | 10/20/2025 | | | | (1,499 | ) |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 26 | | | | 10/20/2025 | | | | (1,679 | ) |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 25 | | | | 10/20/2025 | | | | (1,368 | ) |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 25 | | | | 10/20/2025 | | | | (1,546 | ) |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 22 | | | | 10/20/2025 | | | | (1,457 | ) |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 19 | | | | 10/20/2025 | | | | (1,050 | ) |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 10 | | | | 10/20/2025 | | | | (178 | ) |
National Bank of Canada | | CORRA minus
0.35% | | | Maturity | | | | CAD | | | | 6 | | | | 10/20/2025 | | | | (205 | ) |
Renasant Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 341 | | | | 10/20/2025 | | | | (7,005 | ) |
Renasant Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 29 | | | | 10/20/2025 | | | | (701 | ) |
Renasant Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 9 | | | | 10/20/2025 | | | | (567 | ) |
Renasant Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 5 | | | | 10/20/2025 | | | | (334 | ) |
Renasant Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 5 | | | | 10/20/2025 | | | | (35 | ) |
Renasant Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 3 | | | | 10/20/2025 | | | | (165 | ) |
Renasant Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 1 | | | | 10/20/2025 | | | | (69 | ) |
Renasant Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 0 | *** | | | 10/20/2025 | | | | (11 | ) |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 84 | | | | 10/20/2025 | | | | 936 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 71 | | | | 10/20/2025 | | | | 4,611 | |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 49 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 63 | | | | 10/20/2025 | | | $ | 653 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 57 | | | | 10/20/2025 | | | | 4,363 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 56 | | | | 10/20/2025 | | | | 3,355 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 41 | | | | 10/20/2025 | | | | 3,665 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 34 | | | | 10/20/2025 | | | | 3,084 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 31 | | | | 10/20/2025 | | | | 2,092 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 29 | | | | 10/20/2025 | | | | 2,719 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 28 | | | | 10/20/2025 | | | | 509 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 27 | | | | 10/20/2025 | | | | 1,768 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 21 | | | | 10/20/2025 | | | | 1,749 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 14 | | | | 10/20/2025 | | | | 2,571 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 12 | | | | 10/20/2025 | | | | 614 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 11 | | | | 10/20/2025 | | | | 1,119 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 11 | | | | 10/20/2025 | | | | 376 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 9 | | | | 10/20/2025 | | | | 579 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 7 | | | | 10/20/2025 | | | | 911 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 6 | | | | 10/20/2025 | | | | 277 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 4 | | | | 10/20/2025 | | | | 518 | |
Synopsys, Inc. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 1 | | | | 10/20/2025 | | | | 24 | |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 119 | | | | 10/20/2025 | | | | (25,514 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 75 | | | | 10/20/2025 | | | | (15,862 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 71 | | | | 10/20/2025 | | | | (14,015 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 71 | | | | 10/20/2025 | | | | (13,774 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 65 | | | | 10/20/2025 | | | | (14,124 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 51 | | | | 10/20/2025 | | | | (11,004 | ) |
| | |
| |
50 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 48 | | | | 10/20/2025 | | | $ | (8,544 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 44 | | | | 10/20/2025 | | | | (2,533 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 43 | | | | 10/20/2025 | | | | 339 | |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 34 | | | | 10/20/2025 | | | | (5,334 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 31 | | | | 10/20/2025 | | | | (4,864 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 29 | | | | 10/20/2025 | | | | (5,541 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 25 | | | | 10/20/2025 | | | | (1,983 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 24 | | | | 10/20/2025 | | | | (3,739 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 23 | | | | 10/20/2025 | | | | (4,389 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 23 | | | | 10/20/2025 | | | | (4,877 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 22 | | | | 10/20/2025 | | | | (4,634 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 21 | | | | 10/20/2025 | | | | (3,405 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 18 | | | | 10/20/2025 | | | | (2,794 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 18 | | | | 10/20/2025 | | | | (3,752 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 17 | | | | 10/20/2025 | | | | (3,209 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 16 | | | | 10/20/2025 | | | | (3,082 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 13 | | | | 10/20/2025 | | | | (2,658 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 7 | | | | 10/20/2025 | | | | (1,301 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 6 | | | | 10/20/2025 | | | | (1,243 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 5 | | | | 10/20/2025 | | | | (1,134 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 5 | | | | 10/20/2025 | | | | (976 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 4 | | | | 10/20/2025 | | | | (830 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 4 | | | | 10/20/2025 | | | | (312 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 2 | | | | 10/20/2025 | | | | (256 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 2 | | | | 10/20/2025 | | | | (465 | ) |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 51 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 2 | | | | 10/20/2025 | | | $ | (181 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 2 | | | | 10/20/2025 | | | | (223 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 2 | | | | 10/20/2025 | | | | (161 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 1 | | | | 10/20/2025 | | | | (308 | ) |
UMB Financial Corp. | | EFFR minu
0.35% | | | Maturity | | | | USD | | | | 1 | | | | 10/20/2025 | | | | (102 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 1 | | | | 10/20/2025 | | | | (205 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 1 | | | | 10/20/2025 | | | | (91 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 1 | | | | 10/20/2025 | | | | (44 | ) |
UMB Financial Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 0 | *** | | | 10/20/2025 | | | | (29 | ) |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 99 | | | | 10/20/2025 | | | | 28,307 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 55 | | | | 10/20/2025 | | | | 16,202 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 48 | | | | 10/20/2025 | | | | 17,425 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 40 | | | | 10/20/2025 | | | | 13,351 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 33 | | | | 10/20/2025 | | | | 10,339 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 25 | | | | 10/20/2025 | | | | 8,688 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 21 | | | | 10/20/2025 | | | | 7,671 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 19 | | | | 10/20/2025 | | | | 5,388 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 18 | | | | 10/20/2025 | | | | 6,231 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 17 | | | | 10/20/2025 | | | | 5,068 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 13 | | | | 10/20/2025 | | | | 4,769 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 10 | | | | 10/20/2025 | | | | 3,408 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 9 | | | | 10/20/2025 | | | | 2,595 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 9 | | | | 10/20/2025 | | | | 2,905 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 6 | | | | 10/20/2025 | | | | 1,735 | |
WillScot Holdings Corp. | | EFFR minus
0.35% | | | Maturity | | | | USD | | | | 3 | | | | 10/20/2025 | | | | 1,168 | |
| | |
| |
52 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty &
Referenced Obligation | | Rate Paid/
Received | | | Payment
Frequency | | | Current
Notional
(000) | | | Maturity
Date | | | Unrealized
Appreciation
(Depreciation) | |
WillScot Holdings Corp. | |
| EFFR minus
0.35% |
| | | Maturity | | | | USD | | | | 3 | | | | 10/20/2025 | | | $ | 1,092 | |
WillScot Holdings Corp. | |
| EFFR minus
0.35% |
| | | Maturity | | | | USD | | | | 2 | | | | 10/20/2025 | | | | 579 | |
WillScot Holdings Corp. | |
| EFFR minus
0.35% |
| | | Maturity | | | | USD | | | | 1 | | | | 10/20/2025 | | | | 182 | |
WillScot Holdings Corp. | |
| EFFR minus
0.35% |
| | | Maturity | | | | USD | | | | 0 | *** | | | 10/20/2025 | | | | 54 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | $ | (333,972 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| *** | Notional amount less than 500. |
| (a) | Non-income producing security. |
| (b) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
| (c) | Fair valued by the Adviser. |
| (d) | Represents entire or partial securities out on loan. See Note E for securities lending information. |
| (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 August 31, 2024, the aggregate market value of these securities amounted to $65,472,104 or 14.7% of net assets. |
| (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) | Floating Rate Security. Stated interest/floor/ceiling rate was in effect at August 31, 2024. |
| (h) | Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date. |
| (i) | Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.15% of net assets as of August 31, 2024, are considered illiquid and restricted. Additional information regarding such securities follows: |
| | | | | | | | | | | | | | | | |
144A/Restricted & Illiquid
Securities | | Acquisition
Date | | | Cost | | | Market
Value | | | Percentage of
Net Assets | |
Digicel Group Holdings Ltd.
Zero Coupon, 12/31/2030 | | | 11/16/2023 | | | $ | 970 | | | $ | 132 | | | | 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 -
12/01/2019 |
| | | 17,967 | | | | – 0 | – | | | 0.00 | % |
Inter-American Development Bank
Series E
7.00%, 01/25/2029 | | | 06/06/2024 | | | | 667,366 | | | | 672,104 | | | | 0.15 | % |
K2016470219 South Africa Ltd. 3.00%, 12/31/2022 | | | 04/26/2017 | | | | 40,373 | | | | – 0 | – | | | 0.00 | % |
K2016470260 South Africa Ltd. 25.00%, 12/31/2022 | | | 04/26/2017 | | | | 30,993 | | | | – 0 | – | | | 0.00 | % |
Magnetation LLC/Mag Finance Corp.
11.00%, 05/15/2018 | | | 04/26/2017 | | | | 15 | | | | – 0 | – | | | 0.00 | % |
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 53 |
CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)
| (j) | Defaulted matured security. |
| (k) | Pay-In-Kind Payments (PIK). The issuer may pay cash interest and/or interest in additional debt securities. Rates shown are the rates in effect at August 31, 2024. |
| (m) | Affiliated investments. |
| (n) | 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) CNY – Chinese Yuan Renminbi COP – Colombian Peso CZK – Czech Koruna EUR – Euro GBP – Great British Pound 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 RUB – Russian Ruble SEK – Swedish Krona SGD – Singapore Dollar THB – Thailand Baht TWD – New Taiwan Dollar USD – United States Dollar ZAR – South African Rand |
Glossary:
ABS – Asset-Backed Securities
ADR – American Depositary Receipt
BKBM – Bank Bill Benchmark (New Zealand)
BOBL – Bundesobligationen
CBT – Chicago Board of Trade
CDX-NAHY – North American High Yield Credit Default Swap Index
CLO – Collateralized Loan Obligations
CMBS – Commercial Mortgage-Backed Securities
CME – Chicago Mercantile Exchange
CORRA – Canadian Overnight Repo Rate Average
CVR – Contingent Value Right
EAFE – Europe, Australia, and Far East
EFFR – Federal Funds Effective Rate
ETF – Exchange Traded Fund
ETS – Emission Trading Scheme
EURIBOR – Euro Interbank Offered Rate
FTSE – Financial Times Stock Exchange
IFSC – International Financial Services Centre
JSE – Johannesburg Stock Exchange
KLCI – Kuala Lumpur Composite Index
KOSPI – Korea Composite Stock Price Index
MSCI – Morgan Stanley Capital International
NIBOR – Norwegian Interbank Offered Rate
NSE – National Stock Exchange
OMXS – Stockholm Stock Exchange
OSE – Osaka Securities Exchange
REG – Registered Shares
SARON – Swiss Average Rate Overnight
SET – Stock Exchange of Thailand
SOFR – Secured Overnight Financing Rate
SONIA – Sterling Overnight Index Average
SPI – Share Price Index
STIBOR – Stockholm Interbank Offered Rate
TBA – To Be Announced
TIPS – Treasury Inflation Protected Security
TOPIX – Tokyo Price Index
TSX – Toronto Stock Exchange
See notes to consolidated financial statements.
| | |
| |
54 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED STATEMENT OF ASSETS & LIABILITIES
August 31, 2024
| | | | |
| Assets | | | | |
Investments in securities, at value | | | | |
Unaffiliated issuers (cost $379,332,453) | | $ | 430,223,927 | (a) |
Affiliated issuers (cost $27,364,888—including investment of cash collateral for securities loaned of $4,756,338) | | | 27,364,888 | |
Cash | | | 4,347 | |
Cash collateral due from broker | | | 9,953,406 | |
Foreign currencies, at value (cost $722,491) | | | 699,112 | |
Unrealized appreciation on forward currency exchange contracts | | | 2,968,732 | |
Receivable for investment securities sold and foreign currency transactions | | | 1,938,050 | |
Unaffiliated interest and dividends receivable | | | 1,885,281 | |
Unrealized appreciation on total return swaps | | | 820,146 | |
Receivable for variation margin on futures | | | 380,764 | |
Receivable for shares of beneficial interest sold | | | 231,130 | |
Affiliated dividends receivable | | | 75,937 | |
Receivable for variation margin on centrally cleared swaps | | | 3,766 | |
Receivable due from Adviser | | | 2,934 | |
| | | | |
Total assets | | | 476,552,420 | |
| | | | |
| Liabilities | |
Payable for investment securities purchased | | | 20,129,590 | |
Payable for collateral received on securities loaned | | | 4,755,552 | |
Unrealized depreciation on forward currency exchange contracts | | | 4,357,544 | |
Unrealized depreciation on total return swaps | | | 1,154,118 | |
Cash collateral due to broker | | | 358,000 | |
Payable for shares of beneficial interest redeemed | | | 261,674 | |
Advisory fee payable | | | 203,951 | |
Distribution fee payable | | | 83,421 | |
Foreign capital gains tax payable | | | 24,318 | |
Transfer Agent fee payable | | | 14,185 | |
Trustees’ fees payable | | | 6,683 | |
Collateral due to securities lending agent | | | 786 | |
Accrued expenses | | | 1,214,018 | |
| | | | |
Total liabilities | | | 32,563,840 | |
| | | | |
Net Assets | | $ | 443,988,580 | |
| | | | |
| Composition of Net Assets | |
Shares of beneficial interest, at par | | $ | 285 | |
Additional paid-in capital | | | 441,840,541 | |
Distributable earnings | | | 2,147,754 | |
| | | | |
Net Assets | | $ | 443,988,580 | |
| | | | |
| (a) | Includes securities on loan with a value of $10,220,729 (see Note E). |
See notes to consolidated financial statements.
| | |
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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 55 |
CONSOLIDATED STATEMENT OF ASSETS & LIABILITIES (continued)
Net Asset Value Per Share—unlimited shares authorized, $.00001 par value
| | | | | | | | | | | | |
| Class | | Net Assets | | | Shares
Outstanding | | | Net Asset
Value | |
| |
| A | | $ | 387,761,763 | | | | 24,964,510 | | | $ | 15.53 | * |
| |
| C | | $ | 2,892,419 | | | | 189,511 | | | $ | 15.26 | |
| |
| Advisor | | $ | 53,008,717 | | | | 3,362,806 | | | $ | 15.76 | |
| |
| I | | $ | 325,681 | | | | 20,266 | | | $ | 16.07 | |
| |
| * | The maximum offering price per share for Class A shares was $16.22 which reflects a sales charge of 4.25%. |
See notes to consolidated financial statements.
| | |
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56 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED STATEMENT OF OPERATIONS
Year Ended August 31, 2024
| | | | | | | | |
| Investment Income | |
Interest (net of foreign taxes withheld of $2,943) | | $ | 8,628,519 | | | | | |
Dividends | | | | | | | | |
Unaffiliated issuers (net of foreign taxes withheld of $166,929) | | | 4,708,677 | | | | | |
Affiliated issuers | | | 1,122,864 | | | | | |
Securities lending income | | | 54,162 | | | | | |
Other income | | | 3,138 | | | $ | 14,517,360 | |
| | | | | | | | |
| Expenses | | | | | | | | |
Advisory fee (see Note B) | | | 2,430,975 | | | | | |
Distribution fee—Class A | | | 955,993 | | | | | |
Distribution fee—Class C | | | 32,261 | | | | | |
Distribution fee—Class R | | | 7,531 | | | | | |
Distribution fee—Class K | | | 8,083 | | | | | |
Transfer agency—Class A | | | 377,235 | | | | | |
Transfer agency—Class C | | | 3,584 | | | | | |
Transfer agency—Advisor Class | | | 50,674 | | | | | |
Transfer agency—Class R | | | 3,921 | | | | | |
Transfer agency—Class K | | | 6,555 | | | | | |
Transfer agency—Class I | | | 285 | | | | | |
Custody and accounting | | | 347,732 | | | | | |
Audit and tax | | | 136,923 | | | | | |
Registration fees | | | 96,718 | | | | | |
Printing | | | 72,798 | | | | | |
Legal | | | 49,982 | | | | | |
Trustees’ fees | | | 25,423 | | | | | |
Miscellaneous | | | 83,067 | | | | | |
| | | | | | | | |
Total expenses | | | 4,689,740 | | | | | |
Less: expenses waived and reimbursed by the Adviser (see Notes B & E) | | | (35,027 | ) | | | | |
| | | | | | | | |
Net expenses | | | | | | | 4,654,713 | |
| | | | | | | | |
Net investment income | | | | | | | 9,862,647 | |
| | | | | | | | |
See notes to consolidated financial statements.
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 57 |
CONSOLIDATED STATEMENT OF OPERATIONS (continued)
| | | | | | | | |
| Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | |
Investment transactions(a) | | | | | | $ | 34,655,336 | |
Forward currency exchange contracts | | | | | | | 546,654 | |
Futures | | | | | | | (871,855 | ) |
Options written | | | | | | | 94,923 | |
Swaps | | | | | | | (295,013 | ) |
Foreign currency transactions | | | | | | | 71,605 | |
Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
Investments(b) | | | | | | | 16,625,091 | |
Forward currency exchange contracts | | | | | | | (1,636,284 | ) |
Futures | | | | | | | 3,102,979 | |
Swaps | | | | | | | (738,467 | ) |
Foreign currency denominated assets and liabilities | | | | | | | 43 | |
| | | | | | | | |
Net gain on investment and foreign currency transactions | | | | | | | 51,555,012 | |
| | | | | | | | |
Contributions from Affiliates (see Note B) | | | | | | | 29,592 | |
| | | | | | | | |
Net Increase in Net Assets from Operations | | | | | | $ | 61,447,251 | |
| | | | | | | | |
| (a) | Net of foreign realized capital gains taxes of $3,781. |
| (b) | Net of increase in accrued foreign capital gains taxes on unrealized gains of $1,370. |
See notes to consolidated financial statements.
| | |
| |
58 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | |
| | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | |
| Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 9,862,647 | | | $ | 9,933,942 | |
Net realized gain (loss) on investment and foreign currency transactions | | | 34,201,650 | | | | (42,150,629 | ) |
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities | | | 17,353,362 | | | | 41,439,348 | |
Contributions from Affiliates (see Note B) | | | 29,592 | | | | – 0 | – |
| | | | | | | | |
Net increase in net assets from operations | | | 61,447,251 | | | | 9,222,661 | |
Distributions to Shareholders | | | | | | | | |
Class A | | | (4,839,663 | ) | | | (11,341,430 | ) |
Class C | | | (10,518 | ) | | | (85,218 | ) |
Advisor Class | | | (773,807 | ) | | | (1,764,477 | ) |
Class R | | | (17,281 | ) | | | (67,905 | ) |
Class K | | | (55,423 | ) | | | (149,176 | ) |
Class I | | | (3,973 | ) | | | (7,883 | ) |
| Transactions in Shares of Beneficial Interest | | | | | | | | |
Net decrease (see Note F) | | | (69,147,592 | ) | | | (50,470,277 | ) |
| | | | | | | | |
Total decrease | | | (13,401,006 | ) | | | (54,663,705 | ) |
| Net Assets | | | | | | | | |
Beginning of period | | | 457,389,586 | | | | 512,053,291 | |
| | | | | | | | |
End of period | | $ | 443,988,580 | | | $ | 457,389,586 | |
| | | | | | | | |
See notes to consolidated financial statements.
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 59 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2024
NOTE A
Significant Accounting Policies
The AB Portfolios (the “Company”) is registered under the Investment Company Act of 1940 (the “1940 Act”) as a diversified, open-end management investment company. The Company, which is a Massachusetts Business Trust, operates as a series company currently comprised of five series. Each series is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB All Market Total Return Portfolio (the “Fund”). 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 AB All Market Total Return Portfolio (Cayman), 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 August 31, 2024, net assets of the Fund were $443,988,580, of which $9,750,558, or approximately 2%, 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 offers Class A, Class C, Advisor Class and Class I shares. Class R, Class K, Class T and Class Z shares have been authorized but currently are not offered. Effective May 20, 2024, Class R and Class K were liquidated. 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. Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Advisor Class and Class I shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eight 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
| | |
| |
60 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 Trustees (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
| | |
| |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
the same as the fair value of the security. Factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange-traded funds are valued at the closing market price per share.
Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.
2. Fair Value Measurements
In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on 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
| | |
| |
62 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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.
Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar
| | |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 August 31, 2024:
| | | | | | | | | | | | | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Common Stocks: | | | | | | | | | | | | | | | | |
Information Technology | | $ | 42,378,031 | | | $ | 4,497,176 | | | $ | 0 | (a) | | $ | 46,875,207 | |
Financials | | | 18,429,594 | | | | 11,225,660 | | | | 36,618 | | | | 29,691,872 | |
Health Care | | | 24,423,356 | | | | 3,662,906 | | | | – 0 | – | | | 28,086,262 | |
Industrials | | | 14,741,953 | | | | 6,764,643 | | | | 5,525 | | | | 21,512,121 | |
Consumer Discretionary | | | 14,686,641 | | | | 4,675,380 | | | | 0 | (a) | | | 19,362,021 | |
Consumer Staples | | | 7,755,528 | | | | 2,984,433 | | | | 6,318 | | | | 10,746,279 | |
Communication Services | | | 8,641,306 | | | | 1,350,702 | | | | – 0 | – | | | 9,992,008 | |
Energy | | | 3,428,788 | | | | 2,540,603 | | | | 0 | (a) | | | 5,969,391 | |
Materials | | | 4,610,419 | | | | 997,318 | | | | – 0 | – | | | 5,607,737 | |
Utilities | | | 2,872,044 | | | | 1,449,704 | | | | – 0 | – | | | 4,321,748 | |
Real Estate | | | 2,279,507 | | | | 254,552 | | | | – 0 | – | | | 2,534,059 | |
Investment Companies | | | 61,980,485 | | | | – 0 | – | | | – 0 | – | | | 61,980,485 | |
Governments – Treasuries | | | – 0 | – | | | 55,449,677 | | | | – 0 | – | | | 55,449,677 | |
Corporates – Investment Grade | | | – 0 | – | | | 33,429,756 | | | | – 0 | – | | | 33,429,756 | |
Mortgage Pass-Throughs | | | – 0 | – | | | 18,654,818 | | | | – 0 | – | | | 18,654,818 | |
Inflation-Linked Securities | | | – 0 | – | | | 6,339,637 | | | | – 0 | – | | | 6,339,637 | |
Collateralized Loan Obligations | | | – 0 | – | | | 4,610,464 | | | | – 0 | – | | | 4,610,464 | |
Covered Bonds | | | – 0 | – | | | 4,190,509 | | | | – 0 | – | | | 4,190,509 | |
| | |
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64 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Collateralized Mortgage Obligations | | $ | – 0 | – | | $ | 3,871,917 | | | $ | – 0 | – | | $ | 3,871,917 | |
Governments – Sovereign Agencies | | | – 0 | – | | | 2,793,576 | | | | – 0 | – | | | 2,793,576 | |
Local Governments – Provincial Bonds | | | – 0 | – | | | 2,629,391 | | | | – 0 | – | | | 2,629,391 | |
Asset-Backed Securities | | | – 0 | – | | | 2,081,993 | | | | 253,879 | | | | 2,335,872 | |
Supranationals | | | – 0 | – | | | 2,052,500 | | | | – 0 | – | | | 2,052,500 | |
Local Governments – Regional Bonds | | | – 0 | – | | | 1,770,461 | | | | – 0 | – | | | 1,770,461 | |
Governments – Sovereign Bonds | | | – 0 | – | | | 1,657,794 | | | | – 0 | – | | | 1,657,794 | |
Quasi-Sovereigns | | | – 0 | – | | | 1,282,176 | | | | – 0 | – | | | 1,282,176 | |
Commercial Mortgage-Backed Securities | | | – 0 | – | | | 1,235,204 | | | | – 0 | – | | | 1,235,204 | |
Corporates – Non-Investment Grade | | | – 0 | – | | | 65,769 | | | | 227,485 | (a) | | | 293,254 | |
Preferred Stocks | | | – 0 | – | | | – 0 | – | | | 125,775 | | | | 125,775 | |
Emerging Markets – Treasuries | | | – 0 | – | | | – 0 | – | | | 52,443 | | | | 52,443 | |
Rights | | | – 0 | – | | | – 0 | – | | | 55,268 | | | | 55,268 | |
Emerging Markets – Corporate Bonds | | | – 0 | – | | | – 0 | – | | | 132 | (a) | | | 132 | |
Warrants | | | – 0 | – | | | – 0 | – | | | 0 | (a) | | | – 0 | – |
Short-Term Investments: | | | | | | | | | | | | | | | | |
Governments – Treasuries | | | – 0 | – | | | 33,164,223 | | | | – 0 | – | | | 33,164,223 | |
Investment Companies | | | 22,608,550 | | | | – 0 | – | | | – 0 | – | | | 22,608,550 | |
U.S. Treasury Bills | | | – 0 | – | | | 7,549,890 | | | | – 0 | – | | | 7,549,890 | |
Investments of Cash Collateral for Securities Loaned in Affiliated Money Market Fund | | | 4,756,338 | | | | – 0 | – | | | – 0 | – | | | 4,756,338 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 233,592,540 | | | | 223,232,832 | | | | 763,443 | (a) | | | 457,588,815 | |
Other Financial Instruments(b): | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Futures | | | 3,748,198 | | | | – 0 | – | | | – 0 | – | | | 3,748,198 | (c) |
Forward Currency Exchange Contracts | | | – 0 | – | | | 2,968,732 | | | | – 0 | – | | | 2,968,732 | |
Centrally Cleared Credit Default Swaps | | | – 0 | – | | | 1,165,557 | | | | – 0 | – | | | 1,165,557 | (c) |
Centrally Cleared Interest Rate Swaps | | | – 0 | – | | | 76,843 | | | | – 0 | – | | | 76,843 | (c) |
Total Return Swaps | | | – 0 | – | | | 820,146 | | | | – 0 | – | | | 820,146 | |
Liabilities: | | | | | | | | | | | | | | | | |
Futures | | | (1,094,780 | ) | | | – 0 | – | | | – 0 | – | | | (1,094,780 | )(c) |
Forward Currency Exchange Contracts | | | – 0 | – | | | (4,357,544 | ) | | | – 0 | – | | | (4,357,544 | ) |
Centrally Cleared Credit Default Swaps | | | – 0 | – | | | (1,167,428 | ) | | | – 0 | – | | | (1,167,428 | )(c) |
Centrally Cleared Interest Rate Swaps | | | – 0 | – | | | (71,375 | ) | | | – 0 | – | | | (71,375 | )(c) |
Total Return Swaps | | | – 0 | – | | | (1,154,118 | ) | | | – 0 | – | | | (1,154,118 | ) |
| | | | | | | | | | | | | | | | |
Total | | $ | 236,245,958 | | | $ | 221,513,645 | | | $ | 763,443 | (a) | | $ | 458,523,046 | |
| | | | | | | | | | | | | | | | |
| (a) | The Fund held securities with zero market value at period end. |
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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 65 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
| (b) | Other financial instruments include reverse repurchase agreements and derivative instruments, such as futures, forwards and swaps. Derivative instruments 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, 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
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 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. Investment transactions are accounted for on the date the securities are purchased or sold. The Fund accounts for distributions received from real estate investment trust (“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 series or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.
7. Dividends and Distributions
Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.
8. Cash and Short-Term Investments
Cash and short-term investments include cash on hand and short-term investments with maturities of less than one year when purchased.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the terms of the investment advisory agreement (the “Advisory Agreement”), the Fund pays the Adviser an advisory fee at an annual rate of .55% 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. Effective June 1, 2024, the Adviser has voluntarily agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses on an annual basis to 1.07%, 1.82%, .82% and .82% of the daily average net assets for the Class A, Class C, Advisor Class and Class I, respectively. For the year ended August 31, 2024, such reimbursements/waivers amounted to $9.
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.
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 $146,659 for the year ended August 31, 2024.
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 $3,300 from the sale of Class A shares and received $809 and $131 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended August 31, 2024.
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 had 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. Effective September 1, 2023, the Adviser has contractually agreed to waive .05% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .15%) until August 31, 2024. 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
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended August 31, 2024, such waiver amounted to $31,303.
A summary of the Fund’s transactions in AB mutual funds for the year ended August 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | |
Fund | | Market Value
8/31/23
(000) | | | Purchases
at Cost
(000) | | | Sales
Proceeds
(000) | | | Market Value
8/31/24
(000) | | | Dividend
Income
(000) | |
Government Money Market Portfolio | | $ | 13,629 | | | $ | 574,930 | | | $ | 565,950 | | | $ | 22,609 | | | $ | 1,123 | |
Government Money Market Portfolio* | | | 3,295 | | | | 151,639 | | | | 150,178 | | | | 4,756 | | | | 31 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | $ | 27,365 | | | $ | 1,154 | |
| | | | | | | | | | | | | | | | | | | | |
| * | Investments of cash collateral for securities lending transactions (see Note E). |
During the year ended August 31, 2024, the Adviser reimbursed the Fund $29,592 for trading losses incurred due to a trade entry error.
NOTE C
Distribution Plan
The Fund has adopted a Plan for each class of shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .50% 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 and Class I shares. The fees are accrued daily and paid monthly. 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 Plan provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. The Fund is not obligated under the Plan to pay any distribution services fee in excess of the amounts set forth above. The purpose of the payments to the Distributor under the Plan is to compensate the Distributor for its distribution services with respect to the sale of the Fund’s shares. Since the Distributor’s compensation is not directly tied to its expenses, the amount of compensation received by it under the Plan during any year may be more or less than its actual expenses. For this reason, the Plan is characterized by the staff of the Securities and Exchange Commission as being a “compensation” plan.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
In the event that the Plan is terminated or not continued, no distribution services fees (other than current amounts accrued but not yet paid) would be owed by the Fund to the Distributor with respect to the relevant class. The Plan 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 August 31, 2024 were as follows:
| | | | | | | | |
| | | Purchases | | | Sales | |
Investment securities (excluding U.S. government securities) | | $ | 459,224,495 | | | $ | 456,656,854 | |
U.S. government securities | | | 211,324,017 | | | | 190,966,007 | |
The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:
| | | | |
Cost | | $ | 431,039,864 | |
| | | | |
Gross unrealized appreciation | | $ | 61,760,522 | |
Gross unrealized depreciation | | | (34,472,774 | ) |
| | | | |
Net unrealized appreciation | | $ | 27,287,748 | |
| | | | |
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:
The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon for non-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
At the time the Fund enters into futures, the Fund deposits with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the exchange on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly. Such receipts, payments or adjustments 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.
During the year ended August 31, 2024, 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
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 August 31, 2024, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.
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 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
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 the 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.
During the year ended August 31, 2024, the Fund held purchased options for hedging and non-hedging purposes.
During the year ended August 31, 2024, the Fund held written options for hedging and non-hedging purposes.
The Fund may enter into swaps for investment purposes or 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, rates or indexes for a specified amount of an underlying asset or inflation. 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, inflation 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
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 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 with the broker or segregates at its custodian cash or securities as collateral to satisfy initial margin requirements set by the clearinghouse on which the transaction is effected. Pursuant to the contract, with respect to cash collateral, 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; in the case of securities collateral, the Fund agrees to adjust the securities position held in the segregated account accordingly. Such receipts, payments or adjustments 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
| | |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 the 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 August 31, 2024, the Fund held interest rate swaps for hedging and non-hedging purposes.
Credit Default Swaps:
The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 August 31, 2024, 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 August 31, 2024, 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
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 August 31, 2024, 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 | |
Interest rate contracts | | Receivable for variation margin on futures | | $ | 1,671,030 | * | | Payable for variation margin on futures | | $ | 926,058 | * |
| | | | |
Equity contracts | | Receivable for variation margin on futures | | | 1,992,421 | * | | Payable for variation margin on futures | | | 168,722 | * |
| | | | |
Commodity contracts | | Receivable for variation margin on futures | | | 84,747 | * | | | | | | |
| | | | |
Credit contracts | | Receivable for variation margin on centrally cleared swaps | | | 215,124 | * | | Payable for variation margin on centrally cleared swaps | | | 248,470 | * |
Interest rate contracts | | Receivable for variation margin on centrally cleared swaps | | | 76,843 | * | | Payable for variation margin on centrally cleared swaps | | | 71,375 | * |
| | |
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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 | |
| | | | |
Foreign currency contracts | | Unrealized appreciation on forward currency exchange contracts | | $ | 2,968,732 | | | Unrealized depreciation on forward currency exchange contracts | | $ | 4,357,544 | |
| | | | |
Commodity contracts | | | | | | | | Unrealized depreciation on total return swaps | | | 781,394 | |
| | | | |
Equity contracts | | Unrealized appreciation on total return swaps | | | 820,146 | | | Unrealized depreciation on total return swaps | | | 372,724 | |
| | | | | | | | | | | | |
Total | | | | $ | 7,829,043 | | | | | $ | 6,926,287 | |
| | | | | | | | | | | | |
| * | Only variation margin receivable/payable at period end is reported within the consolidated statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the consolidated portfolio of investments. |
| | | | | | | | | | |
Derivative Type | | Location of Gain or (Loss) on Derivatives Within
Consolidated
Statement of
Operations | | Realized Gain
or (Loss) on
Derivatives | | | Change in
Unrealized
Appreciation or
(Depreciation) | |
Interest rate contracts | | Net realized gain (loss) on futures; Net change in unrealized appreciation (depreciation) of futures | | $ | (1,791,573 | ) | | $ | 530,053 | |
| | | |
Equity contracts | | Net realized gain (loss) on futures; Net change in unrealized appreciation (depreciation) of futures | | | 1,268,255 | | | | 2,488,179 | |
| | | |
Commodity contracts | | Net realized gain (loss) on futures; Net change in unrealized appreciation (depreciation) of futures | | | (348,537 | ) | | | 84,747 | |
| | | |
Foreign currency contracts | | Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) of forward currency exchange contracts | | | 546,654 | | | | (1,636,284 | ) |
| | |
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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) | |
| | | |
Equity contracts | | Net realized gain (loss) on investment transactions; Net change in unrealized appreciation (depreciation) of investments | | $ | (190,457 | ) | | $ | – 0 | – |
| | | |
Equity contracts | | Net realized gain (loss) on options written; Net change in unrealized appreciation (depreciation) of options written | | | 94,923 | | | | – 0 | – |
| | | |
Interest rate contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | (897,289 | ) | | | 416,316 | |
| | | |
Commodity contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | (472,493 | ) | | | (1,381,015 | ) |
| | | |
Credit contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | 1,222,499 | | | | (246,178 | ) |
| | | |
Equity contracts | | Net realized gain (loss) on swaps; Net change in unrealized appreciation (depreciation) of swaps | | | (147,730 | ) | | | 472,410 | |
| | | | | | | | | | |
Total | | | | $ | (715,748 | ) | | $ | 728,228 | |
| | | | | | | | | | |
The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended August 31, 2024:
| | | | |
Futures: | | | | |
Average notional amount of buy contracts | | $ | 253,128,377 | |
Average notional amount of sale contracts | | $ | 74,337,994 | |
Forward Currency Exchange Contracts: | | | | |
Average principal amount of buy contracts | | $ | 123,186,205 | |
Average principal amount of sale contracts | | $ | 145,657,081 | |
Purchased Options: | | | | |
Average notional amount | | $ | 17,575,000 | (a) |
Options Written: | | | | |
Average notional amount | | $ | 16,910,000 | (a) |
| | |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
| | | | |
Centrally Cleared Interest Rate Swaps: | | | | |
Average notional amount | | $ | 36,857,661 | |
Credit Default Swaps: | | | | |
Average notional amount of buy contracts | | $ | 450,594 | (b) |
Average notional amount of sale contracts | | $ | 1,338,037 | (b) |
Centrally Cleared Credit Default Swaps: | | | | |
Average notional amount of buy contracts | | $ | 13,054,842 | |
Average notional amount of sale contracts | | $ | 20,155,255 | |
Total Return Swaps: | | | | |
Average notional amount | | $ | 88,510,198 | |
| (a) | Positions were open for two 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 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 August 31, 2024. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.
AB All Market Total Return Portfolio
| | | | | | | | | | | | | | | | | | | | |
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 | | $ | 651,250 | | | $ | (618,644 | ) | | $ | – 0 | – | | $ | – 0 | – | | $ | 32,606 | |
Barclays Bank PLC | | | 401,912 | | | | (401,912 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
BNP Paribas SA | | | 9,407 | | | | (9,407 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
Citibank, NA | | | 39,269 | | | | (39,269 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
Deutsche Bank AG | | | 226,901 | | | | (97,986 | ) | | | – 0 | – | | | – 0 | – | | | 128,915 | |
Goldman Sachs Bank USA/Goldman Sachs International | | | 531,380 | | | | (431,162 | ) | | | – 0 | – | | | – 0 | – | | | 100,218 | |
HSBC Bank USA | | | 41,524 | | | | (37,980 | ) | | | – 0 | – | | | – 0 | – | | | 3,544 | |
JPMorgan Chase Bank, NA | | | 126,789 | | | | (126,789 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
Morgan Stanley Capital Services LLC/Morgan Stanley Capital Services, Inc. | | | 1,264,101 | | | | (1,232,207 | ) | | | (31,894 | ) | | | – 0 | – | | | – 0 | – |
State Street Bank & Trust Co. | | | 490,569 | | | | (490,569 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
UBS AG | | | 5,776 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | 5,776 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 3,788,878 | | | $ | (3,485,925 | ) | | $ | (31,894 | ) | | $ | – 0 | – | | $ | 271,059 | ^ |
| | | | | | | | | | | | | | | | | | | | |
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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 | |
Bank of America, NA | | $ | 618,644 | | | $ | (618,644 | ) | | $ | – 0 | – | | $ | – 0 | – | | $ | – 0 | – |
Barclays Bank PLC | | | 611,287 | | | | (401,912 | ) | | | – 0 | – | | | – 0 | – | | | 209,375 | |
BNP Paribas SA | | | 282,666 | | | | (9,407 | ) | | | – 0 | – | | | – 0 | – | | | 273,259 | |
Citibank, NA | | | 147,647 | | | | (39,269 | ) | | | – 0 | – | | | – 0 | – | | | 108,378 | |
Deutsche Bank AG | | | 97,986 | | | | (97,986 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
Goldman Sachs Bank USA/Goldman Sachs International | | | 431,162 | | | | (431,162 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
HSBC Bank USA | | | 37,980 | | | | (37,980 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
JPMorgan Chase Bank, NA | | | 779,589 | | | | (126,789 | ) | | | – 0 | – | | | – 0 | – | | | 652,800 | |
Morgan Stanley Capital Services LLC/Morgan Stanley Capital Services, Inc. | | | 1,232,207 | | | | (1,232,207 | ) | | | – 0 | – | | | – 0 | – | | | – 0 | – |
State Street Bank & Trust Co. | | | 491,100 | | | | (490,569 | ) | | | – 0 | – | | | – 0 | – | | | 531 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 4,730,268 | | | $ | (3,485,925 | ) | | $ | – 0 | – | | $ | – 0 | – | | $ | 1,244,343 | ^ |
| | | | | | | | | | | | | | | | | | | | |
| * | 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. |
AB All Market Total Return Portfolio (Cayman), Ltd.
| | | | | | | | | | | | | | | | | | | | |
| | | Derivative
Liabilities
Subject to a
MA | | | Derivatives
Available
for Offset | | | Cash
Collateral
Pledged* | | | Security
Collateral
Pledged* | | | Net Amount
of Derivative
Liabilities | |
Merrill Lynch International | | $ | 781,394 | | | $ | – 0 | – | | $ | (781,394 | ) | | $ | – 0 | – | | $ | – 0 | – |
| | | | | | | | | | | | | | | | | | | | |
Total | | $ | 781,394 | | | $ | – 0 | – | | $ | (781,394 | ) | | $ | – 0 | – | | $ | 0 | ^ |
| | | | | | | | | | | | | | | | | | | | |
| * | The actual collateral received/pledged may be more than the amount reported due to over-collateralization. |
| ^ | Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty. |
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
| | |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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. If the Fund cannot sell or repledge any non-cash collateral, such collateral will not be reflected in the portfolio of investments. If a loan is collateralized by cash, the Fund will be compensated for the loan from a portion of the net return from the income earned on cash collateral after a rebate is paid to the borrower (in some cases, this rebate may be a “negative rebate” or fee paid by the borrower to the Fund in connection with the loan), and payments are made for fees of the securities lending agent and for certain other administrative expenses. If the Fund receives non-cash collateral, the Fund will receive a fee from the borrower generally equal to a negotiated percentage of the market value of the loaned securities. The Fund will have the right to call a loan and obtain the securities loaned at any time on notice to the borrower within the normal and customary settlement time for the securities. While the securities are on loan, the borrower is obligated to pay the Fund amounts equal to any dividend income or other distributions from the securities; however, these distributions will not be afforded the same preferential tax treatment as qualified dividends. The Fund will not be able to exercise voting rights with respect to any securities during the existence of a loan, but will have the right to regain ownership of loaned securities in order to exercise voting or other ownership rights. Collateral received and securities loaned are marked to market daily to ensure that the securities loaned are secured by collateral. The lending agent currently invests the cash collateral received in Government Money Market Portfolio, an eligible money market vehicle, in accordance with the investment restrictions of the Fund, and as approved by the Board. The collateral received on securities loaned is recorded as an asset as well as a corresponding liability in the consolidated statement of assets and liabilities. The collateral will be adjusted 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
| | |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
fees of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. When the Fund lends securities, its investment performance will continue to reflect changes in the value of the securities loaned. A principal risk of lending portfolio securities is that the borrower may fail to return the loaned securities upon termination of the loan and that the collateral will not be sufficient to replace the loaned securities. The lending agent has agreed to indemnify the Fund in the case of default of any securities borrower.
A summary of the Fund’s transactions surrounding securities lending for the year ended August 31, 2024 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 | |
| $ | 10,220,729 | | | $ | 4,756,338 | | | $ | 5,872,206 | | | $ | 22,891 | | | $ | 31,271 | | | $ | 3,715 | |
NOTE F
Shares of Beneficial Interest
Transactions in shares of beneficial interest for each class were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | | | | | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | | | | |
| | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 247,327 | | | | 439,135 | | | | | | | $ | 3,542,710 | | | $ | 5,927,103 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 311,496 | | | | 761,623 | | | | | | | | 4,339,144 | | | | 10,175,281 | | | | | |
| | | | | |
Shares converted from Class C | | | 72,638 | | | | 105,389 | | | | | | | | 1,005,830 | | | | 1,398,702 | | | | | |
| | | | | |
Shares redeemed | | | (4,289,258 | ) | | | (4,220,474 | ) | | | | | | | (61,079,337 | ) | | | (56,223,088 | ) | | | | |
| | | | | |
Net decrease | | | (3,657,797 | ) | | | (2,914,327 | ) | | | | | | $ | (52,191,653 | ) | | $ | (38,722,002 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class C | | | | | |
Shares sold | | | 24,510 | | | | 22,612 | | | | | | | $ | 347,168 | | | $ | 295,272 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 737 | | | | 6,109 | | | | | | | | 10,151 | | | | 80,456 | | | | | |
| | | | | |
Shares converted to Class A | | | (73,905 | ) | | | (107,406 | ) | | | | | | | (1,005,830 | ) | | | (1,398,702 | ) | | | | |
| | | | | |
Shares redeemed | | | (47,716 | ) | | | (69,972 | ) | | | | | | | (682,364 | ) | | | (904,070 | ) | | | | |
| | | | | |
Net decrease | | | (96,374 | ) | | | (148,657 | ) | | | | | | $ | (1,330,875 | ) | | $ | (1,927,044 | ) | | | | |
| | | | | |
| | |
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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 83 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | | | | | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | | | | |
| | | | | | | | |
| Advisor Class | | | | | |
Shares sold | | | 347,603 | | | | 447,987 | | | | | | | $ | 5,048,072 | | | $ | 6,071,201 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 44,478 | | | | 106,511 | | | | | | | | 628,031 | | | | 1,441,100 | | | | | |
| | | | | |
Shares redeemed | | | (982,177 | ) | | | (1,170,791 | ) | | | | | | | (13,918,454 | ) | | | (15,794,141 | ) | | | | |
| | | | | |
Net decrease | | | (590,096 | ) | | | (616,293 | ) | | | | | | $ | (8,242,351 | ) | | $ | (8,281,840 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class R | | | | | |
Shares sold | | | 14,424 | | | | 57,415 | | | | | | | $ | 204,704 | | | $ | 751,015 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 1,256 | | | | 5,152 | | | | | | | | 17,281 | | | | 67,905 | | | | | |
| | | | | |
Shares redeemed | | | (193,438 | ) | | | (95,800 | ) | | | | | | | (2,774,324 | ) | | | (1,275,482 | ) | | | | |
| | | | | |
Net decrease | | | (177,758 | ) | | | (33,233 | ) | | | | | | $ | (2,552,339 | ) | | $ | (456,562 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class K | | | | | |
Shares sold | | | 14,479 | | | | 26,465 | | | | | | | $ | 209,856 | | | $ | 348,897 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 3,999 | | | | 11,225 | | | | | | | | 55,422 | | | | 149,174 | | | | | |
| | | | | |
Shares redeemed | | | (354,211 | ) | | | (116,946 | ) | | | | | | | (5,128,362 | ) | | | (1,557,433 | ) | | | | |
| | | | | |
Net decrease | | | (335,733 | ) | | | (79,256 | ) | | | | | | $ | (4,863,084 | ) | | $ | (1,059,362 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class I | | | | | |
Shares sold | | | 1,422 | | | | 966 | | | | | | | $ | 30,161 | (a) | | $ | 13,236 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends | | | 276 | | | | 517 | | | | | | | | 3,973 | | | | 7,082 | | | | | |
| | | | | |
Shares redeemed | | | (97 | ) | | | (3,189 | ) | | | | | | | (1,424 | ) | | | (43,785 | ) | | | | |
| | | | | |
Net increase (decrease) | | | 1,601 | | | | (1,706 | ) | | | | | | $ | 32,710 | | | $ | (23,467 | ) | | | | |
| | | | | |
| (a) | Includes contribution of $8,765 from Adviser. |
NOTE G
Risks Involved in Investing in the Fund
Market Risk—The value of the Fund’s assets will fluctuate as the market or markets in which the Fund invests 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. It includes the risk that a particular style of investing may be underperforming the market generally.
Allocation Risk—The allocation of investments among different investm ent styles, such as equity or debt, growth or value, U.S. or non-U.S.
| | |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
securities, or diversification strategies, may have a more significant effect on the Fund’s net asset value, or NAV, when one of these investments is performing more poorly than another.
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 (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations.
High Yield Debt 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 oblig ations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of the junk bond market generally and less secondary market liquidity.
Interest-Rate Risk—Changes in interest rates will affect the value of the Fund’s 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 secur ities 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 recent end of a period of historically low rates and the effects of potent ial central bank monetary policy, and government fiscal policy, initiatives and market reactions to those initiatives.
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.
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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 85 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Currency Risk—Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.
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.
Alternative Investments Risk—Many alternative investments can be volatile and may be illiquid. Their performance may have little correlation with the performance of equity or fixed-income markets, and they may not perform in accordance with expectations.
Capitalization Risk—Investments in small- and mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in small-capitalization companies may have additional risks because these companies have limited product lines, markets, or financial resources.
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 asset, reference rate or index, 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.
Commodity Risk—Investing in commodities and commodity-linked derivative instruments may subject the Fund to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by overall market movements, commodity index volatility, changes in interest rates, or factors affecting a
| | |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
particular industry or commodity, such as drought, floods, weather, lives tock disease, embargoes, tariffs and international economic, political and regulatory developments.
Subsidiary Risk—By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary. 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 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. In addition, changes in federal tax laws applicable to the Fund or interpretations thereof could limit the Fund’s ability to gain exposure to commodities investments through investments in the Subsidiary.
Short Sale Risk—Short sales involve the risk that the Fund will incur a loss by subsequently buying a security at a higher price than the price at which it sold the security. The amount of such loss is theoretically unlimited, as it will be based on the increase in value of the security sold short. In contrast, the risk of loss from a long position is limited to the Fund’s investment in the security, because the price of the security cannot fall below zero. The Fund may not always be able to close out a short position on favorable terms.
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 Replacement Risk—The Fund may be exposed to debt secur ities, derivatives or other financial instruments that recently transitioned from the London Interbank Offered Rate (“LIBOR”) as a benchmark or reference rate for various interest rate calculations. The use of LIBOR was phased out in June 2023 and transitioned to the Secured Overnight Financing Rate (“SOFR”). SOFR is a broad measure of the cost of borrowi ng cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market. There can be no assurance that instruments linked to SOFR will have the same volume or liquidity as did the market for LIBOR-linked financial instruments prior to LIBOR’s disc ontinuance or unavailability.
| | |
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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 87 |
NOTES TO CONSOLIDATED 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 investm ent techniques and risk analyses in making investment decisions for the Fund, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will gene rate 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. Commitm ent 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 August 31, 2024.
NOTE I
Distributions to Shareholders
The tax character of distributions paid during the fiscal years ended August 31, 2024 and August 31, 2023 were as follows:
| | | | | | | | |
| | | 2024 | | | 2023 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 5,700,665 | | | $ | 13,416,089 | |
Net long-term capital gains | | | – 0 | – | | | – 0 | – |
| | | | | | | | |
Total taxable distributions paid | | $ | 5,700,665 | | | $ | 13,416,089 | |
| | | | | | | | |
As of August 31, 2024, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | |
Undistributed ordinary income | | $ | 3,265,189 | |
Accumulated capital and other losses | | | (18,637,120 | )(a) |
Unrealized appreciation (depreciation) | | | 27,257,410 | (b) |
| | | | |
Total accumulated earnings (deficit) | | $ | 11,885,479 | (c) |
| | | | |
| | |
| |
88 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
| (a) | As of August 31, 2024, the Fund had a net capital loss carryforward of $17,555,463. During the fiscal year, the Fund utilized $37,056,525 of capital loss carry forwards to offset current year net realized gains. As of August 31, 2024, the cumulative deferred loss on straddles was $1,081,657. |
| (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 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. |
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 August 31, 2024, the Fund had a net short-term capital loss carryforward of $17,555,463, which may be carried forward for an indefinite period.
During the current fiscal year, permanent differences primarily due to book/tax differences associated with the treatment of earnings from the Subsidiary and contributions from the Adviser resulted in a net decrease in distributable earnings and a net increase in additional paid-in capital. These reclassifications had no effect on net assets.
NOTE J
Recent Accounting Pronouncements
In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.
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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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 89 |
CONSOLIDATED FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | |
Net asset value, beginning of period | | | $ 13.68 | | | | $ 13.75 | | | | $ 18.16 | | | | $ 15.44 | | | | $ 15.65 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .31 | | | | .28 | | | | .10 | | | | .16 | | | | .19 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | 1.72 | | | | .02 | (c) | | | (2.90 | ) | | | 3.03 | | | | .07 | (c) |
| | | | | |
Contributions from Affiliates | | | .00 | (d) | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) |
| | | | | |
Capital contributions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) |
| | | | |
Net increase (decrease) in net asset value from operations | | | 2.03 | | | | .30 | | | | (2.80 | ) | | | 3.19 | | | | .26 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.18 | ) | | | (.37 | ) | | | – 0 | – | | | (.47 | ) | | | (.34 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (1.61 | ) | | | – 0 | – | | | (.13 | ) |
| | | | |
Total dividends and distributions | | | (.18 | ) | | | (.37 | ) | | | (1.61 | ) | | | (.47 | ) | | | (.47 | ) |
| | | | |
Net asset value, end of period | | | $ 15.53 | | | | $ 13.68 | | | | $ 13.75 | | | | $ 18.16 | | | | $ 15.44 | |
| | | | |
| | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(e) | | | 14.96 | % | | | 2.26 | % | | | (16.85 | )% | | | 21.16 | % | | | 1.44 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $387,762 | | | | $391,500 | | | | $433,654 | | | | $586,995 | | | | $530,168 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(f)‡ | | | 1.07 | % | | | 1.08 | % | | | 1.02 | % | | | 1.03 | % | | | 1.03 | % |
| | | | | |
Expenses, before waivers/reimbursements(f)‡ | | | 1.08 | % | | | 1.10 | % | | | 1.03 | % | | | 1.05 | % | | | 1.04 | % |
| | | | | |
Net investment income(b) | | | 2.21 | % | | | 2.08 | % | | | .64 | % | | | .99 | % | | | 1.23 | % |
| | | | | |
Portfolio turnover rate | | | 182 | % | | | 70 | % | | | 105 | % | | | 117 | % | | | 76 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .02 | % | | | .02 | % | | | .02 | % | | | .02 | % | | | .02 | % |
See footnote summary on page 94.
| | |
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90 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 13.42 | | | | $ 13.45 | | | | $ 17.92 | | | | $ 15.20 | | | | $ 15.38 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income (loss)(a)(b) | | | .20 | | | | .17 | | | | (.02 | ) | | | (.10 | ) | | | .08 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | 1.68 | | | | .03 | (c) | | | (2.84 | ) | | | 3.13 | | | | .05 | (c) |
| | | | | |
Contributions from Affiliates | | | .00 | (d) | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) |
| | | | | |
Capital contributions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) |
| | | | |
Net increase (decrease) in net asset value from operations | | | 1.88 | | | | .20 | | | | (2.86 | ) | | | 3.03 | | | | .13 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.04 | ) | | | (.23 | ) | | | – 0 | – | | | (.31 | ) | | | (.18 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (1.61 | ) | | | – 0 | – | | | (.13 | ) |
| | | | |
Total dividends and distributions | | | (.04 | ) | | | (.23 | ) | | | (1.61 | ) | | | (.31 | ) | | | (.31 | ) |
| | | | |
Net asset value, end of period | | | $ 15.26 | | | | $ 13.42 | | | | $ 13.45 | | | | $ 17.92 | | | | $ 15.20 | |
| | | | |
|
Total Return | |
| | | | | |
Total investment return based on net asset value(e) | | | 14.15 | % | | | 1.43 | % | | | (17.50 | )% | | | 20.33 | % | | | .67 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $2,892 | | | | $3,835 | | | | $5,845 | | | | $10,537 | | | | $23,156 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(f)‡ | | | 1.84 | % | | | 1.84 | % | | | 1.78 | % | | | 1.78 | % | | | 1.79 | % |
| | | | | |
Expenses, before waivers/reimbursements(f)‡ | | | 1.85 | % | | | 1.86 | % | | | 1.79 | % | | | 1.80 | % | | | 1.80 | % |
| | | | | |
Net investment income (loss)(b) | | | 1.45 | % | | | 1.31 | % | | | (.16 | )% | | | (.61 | )% | | | .52 | % |
| | | | | |
Portfolio turnover rate | | | 182 | % | | | 70 | % | | | 105 | % | | | 117 | % | | | 76 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .02 | % | | | .02 | % | | | .02 | % | | | .02 | % | | | .02 | % |
See footnote summary on page 94.
| | |
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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 91 |
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 13.88 | | | | $ 13.95 | | | | $ 18.35 | | | | $ 15.60 | | | | $ 15.81 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .35 | | | | .32 | | | | .14 | | | | .20 | | | | .23 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | 1.74 | | | | .02 | (c) | | | (2.93 | ) | | | 3.06 | | | | .07 | (c) |
| | | | | |
Contributions from Affiliates | | | .00 | (d) | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) |
| | | | | |
Capital contributions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) |
| | | | |
Net increase (decrease) in net asset value from operations | | | 2.09 | | | | .34 | | | | (2.79 | ) | | | 3.26 | | | | .30 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.21 | ) | | | (.41 | ) | | | – 0 | – | | | (.51 | ) | | | (.38 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (1.61 | ) | | | – 0 | – | | | (.13 | ) |
| | | | |
Total dividends and distributions | | | (.21 | ) | | | (.41 | ) | | | (1.61 | ) | | | (.51 | ) | | | (.51 | ) |
| | | | |
Net asset value, end of period | | | $ 15.76 | | | | $ 13.88 | | | | $ 13.95 | | | | $ 18.35 | | | | $ 15.60 | |
| | | | |
|
Total Return | |
| | | | | |
Total investment return based on net asset value(e) | | | 15.25 | % | | | 2.50 | % | | | (16.61 | )% | | | 21.43 | % | | | 1.68 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $53,009 | | | | $54,860 | | | | $63,739 | | | | $84,018 | | | | $75,493 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(f)‡ | | | .82 | % | | | .83 | % | | | .77 | % | | | .78 | % | | | .78 | % |
| | | | | |
Expenses, before waivers/reimbursements(f)‡ | | | .83 | % | | | .85 | % | | | .78 | % | | | .79 | % | | | .79 | % |
| | | | | |
Net investment income(b) | | | 2.46 | % | | | 2.33 | % | | | .89 | % | | | 1.22 | % | | | 1.48 | % |
| | | | | |
Portfolio turnover rate | | | 182 | % | | | 70 | % | | | 105 | % | | | 117 | % | | | 76 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .02 | % | | | .02 | % | | | .02 | % | | | .02 | % | | | .02 | % |
See footnote summary on page 94.
| | |
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92 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class I | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 13.67 | | | | $ 14.11 | | | | $ 18.55 | | | | $ 15.76 | | | | $ 15.97 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income (loss)(a)(b) | | | .36 | | | | (.04 | )(h) | | | .14 | | | | .22 | | | | .22 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | 1.80 | | | | .01 | (c) | | | (2.97 | ) | | | 3.07 | | | | .07 | (c) |
| | | | | |
Contributions from Affiliates | | | .45 | | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) |
| | | | | |
Capital contributions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (d) |
| | | | |
Net increase (decrease) in net asset value from operations | | | 2.61 | | | | (.03 | ) | | | (2.83 | ) | | | 3.29 | | | | .29 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.21 | ) | | | (.41 | ) | | | – 0 | – | | | (.50 | ) | | | (.37 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | – 0 | – | | | (1.61 | ) | | | – 0 | – | | | (.13 | ) |
| | | | |
Total dividends and distributions | | | (.21 | ) | | | (.41 | ) | | | (1.61 | ) | | | (.50 | ) | | | (.50 | ) |
| | | | |
Net asset value, end of period | | | $ 16.07 | | | | $ 13.67 | | | | $ 14.11 | | | | $ 18.55 | | | | $ 15.76 | |
| | | | |
|
Total Return | |
| | | | | |
Total investment return based on net asset value(e) | | | 19.30 | %* | | | (.25 | )%(h) | | | (16.64 | )% | | | 21.44 | % | | | 1.64 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $326 | | | | $255 | | | | $287 | | | | $338 | | | | $271 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(f)‡ | | | .82 | % | | | 3.48 | %(h) | | | .80 | % | | | .81 | % | | | .80 | % |
| | | | | |
Expenses, before waivers/reimbursements(f)‡ | | | .83 | % | | | 3.50 | %(h) | | | .81 | % | | | .83 | % | | | .82 | % |
| | | | | |
Net investment income (loss)(b) | | | 2.47 | % | | | (.32 | )%(h) | | | .88 | % | | | 1.31 | % | | | 1.44 | % |
| | | | | |
Portfolio turnover rate. | | | 182 | % | | | 70 | % | | | 105 | % | | | 117 | % | | | 76 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .02 | % | | | .02 | % | | | .02 | % | | | .02 | % | | | .02 | % |
See footnote summary on page 94
| | |
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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 93 |
CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest 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) | 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 August 31, 2024, August 31, 2023, August 31, 2022, August 31, 2021 and August 31, 2020, such waiver amounted to .01%, .02%, .01%, .01% and .01%, respectively. |
| (h) | Reflects a onetime non-recurring accrual adjustment. |
| *Includes | a contribution from the Adviser which enhanced the performance for the year ended August 31, 2024 by 3.38%. |
See notes to consolidated financial statements.
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94 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Trustees of
AB All Market Total Return Portfolio
Opinion on the Financial Statements
We have audited the accompanying consolidated statement of assets and liabilities of AB All Market Total Return Portfolio (the “Fund”) (one of the series constituting The AB Portfolios (the “Company”)), including the consolidated portfolio of investments, as of August 31, 2024, 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 series constituting The AB Portfolios) at August 31, 2024, 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, and performing procedures that respond to those risks. Such procedures
| | |
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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 95 |
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 August 31, 2024, 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
October 28, 2024
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96 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
2024 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 August 31, 2024. For individual shareholders, the Fund designates 45.83% of dividends paid as qualified dividend income. For corporate shareholders, 24.00% of dividends paid qualify for the dividends received deduction. For foreign shareholders, 68.41% of ordinary 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 2025.
| | |
| |
| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 97 |
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
The disinterested trustees (the “directors”) of The AB Portfolios (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB All Market Total Return Portfolio (the “Fund”) at a meeting held in-person on October 31-November 2, 2023 (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 of 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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98 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:
Nature, Extent and Quality of Services Provided
The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.
Costs of Services Provided and Profitability
The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2021 and 2022 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 noted that the Fund was not profitable to the Adviser in the periods reviewed.
Fall-Out Benefits
The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to soft dollar arrangements (whereby investment advisers receive brokerage and research services from brokers that execute agency transactions for their clients); 12b-1 fees and sales charges received by the
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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 99 |
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 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 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 periods ended July 31, 2023 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review and their discussion with the Adviser of the reasons for the Fund’s underperformance in the periods reviewed, the directors concluded that the Fund’s investment performance was acceptable. The directors determined to continue to monitor the Fund’s performance closely.
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 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
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100 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
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 Advisor Class shares of the Fund in comparison to the medians for 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. 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 a median. After reviewing and discussing the Adviser’s explanation 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 schedules 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
| | |
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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 101 |
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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102 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
NOTES
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| abfunds.com | | AB ALL MARKET TOTAL RETURN PORTFOLIO | 103 |
NOTES
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104 | AB ALL MARKET TOTAL RETURN PORTFOLIO | | abfunds.com |
AB ALL MARKET TOTAL RETURN PORTFOLIO
1345 Avenue of the Americas
New York, NY 10105
800 221 5672
AMTR-0151-0824 
AUG 08.31.24
ANNUAL REPORT
AB SUSTAINABLE THEMATIC BALANCED 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.
PORTFOLIO OF INVESTMENTS
August 31, 2024
| | | | | | | | |
| Company | |
Shares | | | U.S. $ Value | |
| |
COMMON STOCKS – 59.6% | | | | | | | | |
Information Technology – 22.6% | | | | | | | | |
Communications Equipment – 1.1% | | | | | | | | |
Arista Networks, Inc.(a) | | | 3,148 | | | $ | 1,112,440 | |
GCI Liberty, Inc.(a)(b)(c) | | | 486 | | | | – 0 | – |
| | | | | | | | |
| | | | 1,112,440 | |
| | | | | |
Electronic Equipment, Instruments & Components – 3.4% | | | | | | | | |
Flex Ltd.(a) | | | 60,724 | | | | 1,972,923 | |
TE Connectivity Ltd. | | | 9,673 | | | | 1,485,773 | |
| | | | | | | | |
| | | | 3,458,696 | |
| | | | | |
IT Services – 1.3% | | | | | | | | |
Accenture PLC – Class A | | | 3,877 | | | | 1,325,740 | |
| | | | | | | | |
| | |
Semiconductors & Semiconductor Equipment – 6.9% | | | | | | | | |
Monolithic Power Systems, Inc. | | | 1,531 | | | | 1,430,995 | |
NVIDIA Corp. | | | 23,352 | | | | 2,787,528 | |
NXP Semiconductors NV | | | 5,335 | | | | 1,367,681 | |
Taiwan Semiconductor Manufacturing Co., Ltd. (Sponsored ADR) | | | 8,027 | | | | 1,378,236 | |
| | | | | | | | |
| | | | 6,964,440 | |
| | | | | |
Software – 9.9% | | | | | | | | |
Adobe, Inc.(a) | | | 2,844 | | | | 1,633,622 | |
Bentley Systems, Inc. – Class B | | | 12,564 | | | | 646,669 | |
Cadence Design Systems, Inc.(a) | | | 4,558 | | | | 1,225,783 | |
Fair Isaac Corp.(a) | | | 640 | | | | 1,107,373 | |
Intuit, Inc. | | | 2,406 | | | | 1,516,405 | |
Microsoft Corp. | | | 5,409 | | | | 2,256,310 | |
Palo Alto Networks, Inc.(a) | | | 4,183 | | | | 1,517,258 | |
| | | | | | | | |
| | | | 9,903,420 | |
| | | | | |
| | | | 22,764,736 | |
| | | | | |
Health Care – 13.3% | | | | | | | | |
Health Care Equipment & Supplies – 6.8% | | | | | | | | |
Alcon, Inc. | | | 15,162 | | | | 1,481,024 | |
Becton Dickinson & Co. | | | 5,699 | | | | 1,381,495 | |
GE HealthCare Technologies, Inc.(a) | | | 19,294 | | | | 1,636,517 | |
Hologic, Inc.(a) | | | 11,057 | | | | 898,271 | |
STERIS PLC | | | 5,834 | | | | 1,406,577 | |
| | | | | | | | |
| | | | 6,803,884 | |
| | | | | |
Health Care Providers & Services – 1.5% | | | | | | | | |
UnitedHealth Group, Inc. | | | 2,598 | | | | 1,533,340 | |
| | | | | | | | |
| | |
Life Sciences Tools & Services – 3.9% | | | | | | | | |
Bruker Corp. | | | 16,599 | | | | 1,115,287 | |
| | |
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| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 1 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | |
Shares | | | U.S. $ Value | |
| |
Danaher Corp. | | | 4,986 | | | $ | 1,342,780 | |
ICON PLC(a) | | | 4,575 | | | | 1,473,424 | |
| | | | | | | | |
| | | | 3,931,491 | |
| | | | | |
Pharmaceuticals – 1.1% | | | | | | | | |
Johnson & Johnson | | | 6,490 | | | | 1,076,431 | |
| | | | | | | | |
| | | | | | | 13,345,146 | |
| | | | | | | | |
Industrials – 9.6% | | | | | | | | |
Aerospace & Defense – 1.1% | | | | | | | | |
Hexcel Corp. | | | 17,710 | | | | 1,120,866 | |
| | | | | | | | |
| | |
Commercial Services & Supplies – 5.3% | | | | | | | | |
Tetra Tech, Inc. | | | 6,071 | | | | 1,443,320 | |
Veralto Corp. | | | 19,919 | | | | 2,239,493 | |
Waste Management, Inc. | | | 7,855 | | | | 1,665,574 | |
| | | | | | | | |
| | | | | | | 5,348,387 | |
| | | | | | | | |
Construction & Engineering – 1.2% | | | | | | | | |
AECOM | | | 11,497 | | | | 1,151,309 | |
| | | | | | | | |
| | |
Electrical Equipment – 1.2% | | | | | | | | |
Rockwell Automation, Inc. | | | 4,515 | | | | 1,228,215 | |
| | | | | | | | |
| | |
Professional Services – 0.8% | | | | | | | | |
Maximus, Inc. | | | 8,818 | | | | 813,549 | |
| | | | | | | | |
| | | | | | | 9,662,326 | |
| | | | | | | | |
Financials – 5.6% | | | | | | | | |
Capital Markets – 1.5% | | | | | | | | |
Intercontinental Exchange, Inc. | | | 9,139 | | | | 1,476,406 | |
| | | | | | | | |
| | |
Financial Services – 2.0% | | | | | | | | |
Visa, Inc. – Class A | | | 7,422 | | | | 2,051,218 | |
| | | | | | | | |
| | |
Insurance – 2.1% | | | | | | | | |
Aflac, Inc. | | | 18,737 | | | | 2,067,815 | |
| | | | | | | | |
| | | | | | | 5,595,439 | |
| | | | | | | | |
Consumer Staples – 3.5% | | | | | | | | |
Household Products – 1.6% | | | | | | | | |
Procter & Gamble Co. (The) | | | 9,326 | | | | 1,599,782 | |
| | | | | | | | |
| | |
Personal Care Products – 1.9% | | | | | | | | |
Unilever PLC (Sponsored ADR) | | | 28,886 | | | | 1,871,524 | |
| | | | | | | | |
| | | | | | | 3,471,306 | |
| | | | | | | | |
Consumer Discretionary – 3.1% | | | | | | | | |
Automobile Components – 1.3% | | | | | | | | |
Aptiv PLC(a) | | | 18,788 | | | | 1,343,906 | |
| | | | | | | | |
| | |
| |
2 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | |
Shares | | | U.S. $ Value | |
| |
Household Durables – 0.8% | | | | | | | | |
TopBuild Corp.(a) | | | 1,998 | | | $ | 785,254 | |
| | | | | | | | |
| | |
Textiles, Apparel & Luxury Goods – 1.0% | | | | | | | | |
On Holding AG – Class A(a)(d) | | | 20,153 | | | | 946,788 | |
| | | | | | | | |
| | | | | | | 3,075,948 | |
| | | | | | | | |
Utilities – 1.9% | | | | | | | | |
Electric Utilities – 1.9% | | | | | | | | |
NextEra Energy, Inc. | | | 24,229 | | | | 1,950,677 | |
| | | | | | | | |
| | |
Total Common Stocks
(cost $44,469,805) | | | | | | | 59,865,578 | |
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | | |
GOVERNMENTS - TREASURIES – 32.7% | | | | | | | | |
United States – 32.7% | | | | | | | | |
U.S. Treasury Bonds | | | | | | | | |
2.50%, 02/15/2046 | | $ | 196 | | | | 145,880 | |
3.00%, 05/15/2042 | | | 126 | | | | 106,031 | |
3.00%, 02/15/2048 | | | 557 | | | | 446,070 | |
3.625%, 02/15/2053 | | | 63 | | | | 56,940 | |
3.875%, 02/15/2043 | | | 122 | | | | 116,050 | |
3.875%, 05/15/2043 | | | 96 | | | | 90,621 | |
4.25%, 02/15/2054 | | | 186 | | | | 187,221 | |
4.375%, 08/15/2043 | | | 138 | | | | 139,596 | |
4.50%, 02/15/2044 | | | 62 | | | | 63,368 | |
4.75%, 11/15/2043 | | | 3,337 | | | | 3,543,467 | |
4.75%, 11/15/2053 | | | 3,304 | | | | 3,608,915 | |
6.125%, 08/15/2029 | | | 825 | | | | 911,551 | |
U.S. Treasury Notes | | | | | | | | |
0.625%, 05/15/2030 | | | 55 | | | | 46,284 | |
2.50%, 03/31/2027 | | | 615 | | | | 595,301 | |
2.75%, 08/15/2032 | | | 139 | | | | 128,597 | |
3.50%, 01/31/2028 | | | 1,003 | | | | 993,671 | |
3.75%, 12/31/2028 | | | 434 | | | | 433,832 | |
3.875%, 12/31/2027 | | | 454 | | | | 455,561 | |
3.875%, 08/15/2033 | | | 114 | | | | 113,323 | |
4.00%, 02/29/2028 | | | 624 | | | | 628,582 | |
4.00%, 06/30/2028 | | | 261 | | | | 263,303 | |
4.00%, 01/31/2029 | | | 48 | | | | 48,192 | |
4.125%, 09/30/2027 | | | 2,576 | | | | 2,601,760 | |
4.125%, 10/31/2027 | | | 2,035 | | | | 2,054,714 | |
4.125%, 11/15/2032 | | | 138 | | | | 140,427 | |
4.375%, 07/31/2026 | | | 202 | | | | 203,313 | |
4.375%, 11/30/2028 | | | 466 | | | | 477,623 | |
| | |
| |
| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 3 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Principal
Amount
(000) | | | U.S. $ Value | |
| |
4.375%, 05/15/2034 | | $ | 2,078 | | | $ | 2,155,041 | |
4.50%, 04/15/2027 | | | 912 | | | | 926,962 | |
4.50%, 11/15/2033 | | | 2,165 | | | | 2,264,898 | |
4.625%, 03/15/2026 | | | 588 | | | | 592,090 | |
4.625%, 09/30/2028 | | | 4,689 | | | | 4,841,392 | |
4.875%, 10/31/2028 | | | 1,402 | | | | 1,461,804 | |
4.875%, 10/31/2030 | | | 1,968 | | | | 2,084,235 | |
| | | | | | | | |
| | |
Total Governments - Treasuries
(cost $32,242,792) | | | | | | | 32,926,615 | |
| | | | | |
| | | | | | | | |
AGENCIES – 2.7% | | | | | | | | |
Agency Debentures – 2.7% | | | | | | | | |
Federal Home Loan Banks
4.125%, 01/15/2027 | | | 100 | | | | 100,457 | |
4.50%, 03/13/2026 | | | 1,000 | | | | 1,004,390 | |
Federal National Mortgage Association
6.625%, 11/15/2030 | | | 1,382 | | | | 1,584,412 | |
| | | | | | | | |
| | |
Total Agencies
(cost $2,900,250) | | | | | | | 2,689,259 | |
| | | | | |
| | |
| | | Shares | | | | |
SHORT-TERM INVESTMENTS – 4.7% | | | | | | | | |
Investment Companies – 3.0% | | | | | | | | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 5.16%(e)(f)(g)
(cost $3,037,135) | | | 3,037,135 | | | | 3,037,135 | |
| | | | | | | | |
| | |
| | | Principal
Amount
(000) | | | | |
U.S. Treasury Bills – 1.7% | | | | | | | | |
United States – 1.7% | | | | | | | | |
U.S. Treasury Bill
Zero Coupon, 10/31/2024
(cost $1,673,622) | | $ | 1,688 | | | | 1,674,130 | |
| | | | | | | | |
| | |
Total Investments – 99.7%
(cost $84,323,604) | | | | | | | 100,192,717 | |
Other assets less liabilities – 0.3% | | | | | | | 318,115 | |
| | | | | |
| | |
Net Assets – 100.0% | | | | | | $ | 100,510,832 | |
| | | | | |
| (a) | Non-income producing security. |
| (b) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
| (c) | Fair valued by the Adviser. |
| | |
| |
4 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| (d) | Represents entire or partial securities out on loan. See Note E for securities lending information. |
| (e) | Affiliated investments. |
| (f) | The rate shown represents the 7-day yield as of period end. |
| (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. |
Glossary:
ADR – American Depositary Receipt
See notes to financial statements.
| | |
| |
| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 5 |
STATEMENT OF ASSETS & LIABILITIES
August 31, 2024
| | | | |
| Assets | |
Investments in securities, at value | | | | |
Unaffiliated issuers (cost $81,286,469) | | $ | 97,155,582 | (a) |
Affiliated issuers (cost $3,037,135) | | | 3,037,135 | |
Cash | | | 3,650 | |
Foreign currencies, at value (cost $210,856) | | | 213,798 | |
Unaffiliated interest and dividends receivable | | | 582,834 | |
Receivable for investment securities sold | | | 485,326 | |
Affiliated dividends receivable | | | 11,535 | |
Receivable for shares of beneficial interest sold | | | 4,978 | |
Receivable due from Adviser | | | 334 | |
| | | | |
Total assets | | | 101,495,172 | |
| | | | |
| Liabilities | |
Payable for investment securities purchased | | | 522,695 | |
Advisory fee payable | | | 169,475 | |
Custody and accounting fees payable | | | 142,896 | |
Audit and tax fee payable | | | 56,060 | |
Distribution fee payable | | | 21,014 | |
Trustees’ fees payable | | | 5,503 | |
Payable for shares of beneficial interest redeemed | | | 5,314 | |
Transfer Agent fee payable | | | 3,337 | |
Accrued expenses | | | 58,046 | |
| | | | |
Total liabilities | | | 984,340 | |
| | | | |
Net Assets | | $ | 100,510,832 | |
| | | | |
| Composition of Net Assets | |
Shares of beneficial interest, at par | | $ | 79 | |
Additional paid-in capital | | | 96,252,082 | |
Distributable earnings | | | 4,258,671 | |
| | | | |
Net Assets | | $ | 100,510,832 | |
| | | | |
| (a) | Includes securities on loan with a value of $937,298 (see Note E). |
Net Asset Value Per Share—unlimited shares authorized, $.00001 par value
| | | | | | | | | | | | |
| Class | | Net Assets | | | Shares
Outstanding | | | Net Asset
Value | |
| |
| A | | $ | 94,011,676 | | | | 7,387,559 | | | $ | 12.73 | * |
| |
| C | | $ | 1,514,660 | | | | 119,984 | | | $ | 12.62 | |
| |
| Advisor | | $ | 4,918,209 | | | | 382,706 | | | $ | 12.85 | |
| |
| I | | $ | 49,959 | | | | 3,837 | | | $ | 13.02 | |
| |
| Z | | $ | 16,328 | | | | 1,280 | | | $ | 12.76 | |
| |
| * | The maximum offering price per share for Class A shares was $13.30 which reflects a sales charge of 4.25%. |
See notes to financial statements.
| | |
| |
6 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
STATEMENT OF OPERATIONS
Year Ended August 31, 2024
| | | | | | | | |
| Investment Income | | | | | | | | |
Interest (net of foreign taxes withheld of $5) | | $ | 1,481,618 | | | | | |
Dividends | | | | | | | | |
Unaffiliated issuers (net of foreign taxes withheld of $6,431) | | | 558,899 | | | | | |
Affiliated issuers | | | 90,915 | | | | | |
Securities lending income | | | 6,227 | | | | | |
Other income | | | 76 | | | $ | 2,137,735 | |
| | | | | | | | |
| Expenses | |
Advisory fee (see Note B) | | | 498,598 | | | | | |
Distribution fee—Class A | | | 228,268 | | | | | |
Distribution fee—Class C | | | 16,911 | | | | | |
Distribution fee—Class R | | | 12,529 | | | | | |
Distribution fee—Class K | | | 1,249 | | | | | |
Transfer agency—Class A | | | 100,067 | | | | | |
Transfer agency—Class C | | | 1,974 | | | | | |
Transfer agency—Advisor Class | | | 3,981 | | | | | |
Transfer agency—Class R | | | 6,335 | | | | | |
Transfer agency—Class K | | | 999 | | | | | |
Transfer agency—Class I | | | 45 | | | | | |
Transfer agency—Class Z | | | 5 | | | | | |
Registration fees | | | 107,642 | | | | | |
Audit and tax | | | 68,015 | | | | | |
Legal | | | 43,558 | | | | | |
Printing | | | 34,938 | | | | | |
Trustees’ fees | | | 20,922 | | | | | |
Custody and accounting | | | 63,673 | | | | | |
Miscellaneous | | | 17,909 | | | | | |
| | | | | | | | |
Total expenses | | | 1,227,618 | | | | | |
Less: expenses waived and reimbursed by the Adviser (see Notes B & E) | | | (222,781 | ) | | | | |
| | | | | | | | |
Net expenses | | | | | | | 1,004,837 | |
| | | | | |
Net investment income | | | | | | | 1,132,898 | |
| | | | | |
| Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions | | | | | | | | |
Net realized loss on: | |
Investment transactions | | | | | | | (2,567,840 | ) |
Foreign currency transactions | | | | | | | (50 | ) |
Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
Investments | | | | | | | 14,401,017 | |
Foreign currency denominated assets and liabilities | | | | | | | 2,031 | |
| | | | | |
Net gain on investment and foreign currency transactions | | | | | | | 11,835,158 | |
| | | | | |
Net Increase in Net Assets from Operations | | | | | | $ | 12,968,056 | |
| | | | | |
See notes to financial statements.
| | |
| |
| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 7 |
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | |
| | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | |
| Increase (Decrease) in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 1,132,898 | | | $ | 712,698 | |
Net realized loss on investment transactions | | | (2,567,890 | ) | | | (9,084,779 | ) |
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities | | | 14,403,048 | | | | 15,747,799 | |
| | | | | | | | |
Net increase in net assets from operations | | | 12,968,056 | | | | 7,375,718 | |
Distributions to Shareholders | |
Class A | | | (818,185 | ) | | | (4,013,369 | ) |
Class C | | | – 0 | – | | | (136,995 | ) |
Advisor Class | | | (39,519 | ) | | | (161,555 | ) |
Class R | | | (24,021 | ) | | | (169,446 | ) |
Class K | | | (4,248 | ) | | | (65,318 | ) |
Class I | | | (479 | ) | | | (1,452 | ) |
Class Z | | | (206 | ) | | | (337 | ) |
| Transactions in Shares of Beneficial Interest | | | | | | | | |
Net decrease | | | (15,220,629 | ) | | | (14,322,602 | ) |
| | | | | | | | |
Total decrease | | | (3,139,231 | ) | | | (11,495,356 | ) |
| Net Assets | | | | | | | | |
Beginning of period | | | 103,650,063 | | | | 115,145,419 | |
| | | | | | | | |
End of period | | $ | 100,510,832 | | | $ | 103,650,063 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
8 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS
August 31, 2024
NOTE A
Significant Accounting Policies
The AB Portfolios (the “Company”) is registered under the Investment Company Act of 1940 (the “1940 Act”) as a diversified, open-end management investment company. The Company, which is a Massachusetts Business Trust, operates as a series company currently comprised of five series. Each series is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Sustainable Thematic Balanced Portfolio (the “Fund”). The Fund offers Class A, Class C, Advisor Class, Class I and Class Z shares. Class R, Class K and Class T shares have been authorized but currently are not offered. Effective May 20, 2024, Class R and Class K were liquidated. 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. Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Advisor Class and Class I shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eight 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 Trustees (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.
| | |
| |
| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 9 |
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
| | |
| |
10 | AB SUSTAINABLE THEMATIC BALANCED 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) |
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
| | |
| |
| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 11 |
NOTES TO FINANCIAL STATEMENTS (continued)
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.
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of August 31, 2024:
| | | | | | | | | | | | | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | |
Common Stocks: | | | | | | | | | | | | | | | | |
Information Technology | | $ | 22,764,736 | | | $ | – 0 | – | | $ | 0 | (a) | | $ | 22,764,736 | |
Health Care | | | 13,345,146 | | | | – 0 | – | | | – 0 | – | | | 13,345,146 | |
Industrials | | | 9,662,326 | | | | – 0 | – | | | – 0 | – | | | 9,662,326 | |
Financials | | | 5,595,439 | | | | – 0 | – | | | – 0 | – | | | 5,595,439 | |
Consumer Staples | | | 3,471,306 | | | | – 0 | – | | | – 0 | – | | | 3,471,306 | |
Consumer Discretionary | | | 3,075,948 | | | | – 0 | – | | | – 0 | – | | | 3,075,948 | |
Utilities | | | 1,950,677 | | | | – 0 | – | | | – 0 | – | | | 1,950,677 | |
Governments – Treasuries | | | – 0 | – | | | 32,926,615 | | | | – 0 | – | | | 32,926,615 | |
Agencies | | | – 0 | – | | | 2,689,259 | | | | – 0 | – | | | 2,689,259 | |
Short-Term Investments: | | | | | | | | | | | | | | | | |
Investment Companies | | | 3,037,135 | | | | – 0 | – | | | – 0 | – | | | 3,037,135 | |
U.S. Treasury Bills | | | – 0 | – | | | 1,674,130 | | | | – 0 | – | | | 1,674,130 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 62,902,713 | | | | 37,290,004 | | | | 0 | (a) | | | 100,192,717 | |
Other Financial Instruments(b) | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | | | | | | | | | | | | | |
Total | | $ | 62,902,713 | | | $ | 37,290,004 | | | $ | 0 | (a) | | $ | 100,192,717 | |
| | | | | | | | | | | | | | | | |
| (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. |
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,
| | |
| |
12 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
NOTES TO 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. The Fund files withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Fund may record a reclaim receivable based on, among other things, a jurisdiction’s legal obligation to pay reclaims as well as payment history and market convention.
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 real estate investment trust (“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,
| | |
| |
| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 13 |
NOTES TO FINANCIAL STATEMENTS (continued)
except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each series or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.
7. Dividends and Distributions
Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.
8. Cash and Short-Term Investments
Cash and short-term investments include cash on hand and short-term investments with maturities of less than one year when purchased.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the terms of the investment advisory agreement (the “Advisory Agreement”), the Fund pays the Adviser an advisory fee at an annual rate of .50% 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 contractually agreed to waive its management fees and/or bear certain expenses of the Fund until December 31, 2024 to the extent necessary to prevent total Fund 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 and extraordinary expenses), on an annualized basis, from exceeding 1.00%, 1.75%, .75%, 1.25%, 1.00%, .75%, and .75% of average daily net assets, for Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively. The Expense Caps may not be terminated by the Adviser before December 31, 2024. For the year ended August 31, 2024, such reimbursements/waivers amounted to $220,691.
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 $36,638 for the year ended August 31, 2024.
| | |
| |
14 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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 $1,193 from the sale of Class A shares and received $204 and $17 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended August 31, 2024.
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 had 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. Effective September 1, 2023, the Adviser has contractually agreed to waive .05% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .15%) until August 31, 2024. 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 August 31, 2024, such waiver amounted to $1,942.
A summary of the Fund’s transactions in AB mutual funds for the year ended August 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | |
Fund | | Market Value
8/31/23
(000) | | | Purchases
at Cost
(000) | | | Sales
Proceeds
(000) | | | Market Value
8/31/24
(000) | | | Dividend
Income
(000) | |
Government Money Market Portfolio | | $ | 2,048 | | | $ | 24,025 | | | $ | 23,036 | | | $ | 3,037 | | | $ | 91 | |
Government Money Market Portfolio* | | | 131 | | | | 7,553 | | | | 7,684 | | | | – 0 | – | | | 1 | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | $ | 3,037 | | | $ | 92 | |
| | | | | | | | | | | | | | | | | | | | |
| * | Investments of cash collateral for securities lending transactions (see Note E). |
NOTE C
Distribution Plan
The Fund has adopted a Plan for each class of shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .50% of the Fund’s average daily net assets attributable to Class A shares,
| | |
| |
| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 15 |
NOTES TO FINANCIAL STATEMENTS (continued)
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. The fees are accrued daily and paid monthly. 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 Plan provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. The Fund is not obligated under the Plan to pay any distribution services fee in excess of the amounts set forth above. The purpose of the payments to the Distributor under the Plan is to compensate the Distributor for its distribution services with respect to the sale of the Fund’s shares. Since the Distributor’s compensation is not directly tied to its expenses, the amount of compensation received by it under the Plan during any year may be more or less than its actual expenses. For this reason, the Plan is characterized by the staff of the Securities and Exchange Commission as being of the “compensation” plan.
In the event that the Plan is terminated or not continued, no distribution services fees (other than current amounts accrued but not yet paid) would be owed by the Fund to the Distributor with respect to the relevant class. The Plan 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 August 31, 2024 were as follows:
| | | | | | | | |
| | | Purchases | | | Sales | |
Investment securities (excluding U.S. government securities) | | $ | 19,690,835 | | | $ | 29,059,393 | |
U.S. government securities | | | 32,538,703 | | | | 41,118,602 | |
The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:
| | | | |
Cost | | $ | 84,829,041 | |
| | | | |
Gross unrealized appreciation | | $ | 16,800,727 | |
Gross unrealized depreciation | | | (1,437,051 | ) |
| | | | |
Net unrealized appreciation | | $ | 15,363,676 | |
| | | | |
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.
| | |
| |
16 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
The Fund did not engage in derivatives transactions for the year ended August 31, 2024.
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. If the Fund cannot sell or repledge any non-cash collateral, such collateral will not be reflected in the portfolio of investments. If a loan is collateralized by cash, the Fund will be compensated for the loan from a portion of the net return from the income earned on cash collateral after a rebate is paid to the borrower (in some cases, this rebate may be a “negative rebate” or fee paid by the borrower to the Fund in connection with the loan), and payments are made for fees of the securities lending agent and for certain other administrative expenses. If the Fund receives non-cash collateral, the Fund will receive a fee from the borrower generally equal to a negotiated percentage of the market value of the loaned securities. The Fund will have the right to call a loan and obtain the securities loaned at any time on notice to the borrower within the normal and customary settlement time for the securities. While the securities are on loan, the borrower is obligated to pay the Fund amounts equal to any dividend income or other distributions from the securities; however, these distributions will not be afforded the same preferential tax treatment as qualified dividends. The Fund will not be able to exercise voting rights with respect to any securities during the existence of a loan, but will have the right to regain ownership of loaned securities in order to exercise voting or other ownership rights. Collateral received and securities loaned are
| | |
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| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 17 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 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 statement of operations. When the Fund earns net securities lending income from Government Money Market Portfolio, the income is inclusive of a rebate expense paid to the borrower. In connection with the cash collateral investment by the Fund in Government Money Market Portfolio, the Adviser has agreed to waive a portion of the Fund’s share of the advisory fees of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. When the Fund lends securities, its investment performance will continue to reflect changes in the value of the securities loaned. A principal risk of lending portfolio securities is that the borrower may fail to return the loaned securities upon termination of the loan and that the collateral will not be sufficient to replace the loaned securities. The lending agent has agreed to indemnify the Fund in the case of default of any securities borrower.
A summary of the Fund’s transactions surrounding securities lending for the year ended August 31, 2024 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 | |
| $ | 937,298 | | | $ | – 0 | – | | $ | 961,534 | | | $ | 5,550 | | | $ | 677 | | | $ | 148 | |
| | |
| |
18 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE F
Shares of Beneficial Interest
Transactions in shares of beneficial interest for each class were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | | | | | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | | | | |
| | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 77,519 | | | | 133,400 | | | | | | | $ | 892,489 | | | $ | 1,464,631 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends and distributions | | | 62,825 | | | | 350,037 | | | | | | | | 723,749 | | | | 3,584,382 | | | | | |
| | | | | |
Shares converted from Class C | | | 75,730 | | | | 46,612 | | | | | | | | 840,527 | | | | 497,280 | | | | | |
| | | | | |
Shares redeemed | | | (1,060,363 | ) | | | (1,553,588 | ) | | | | | | | (12,355,220 | ) | | | (16,594,911 | ) | | | | |
| | | | | |
Net decrease | | | (844,289 | ) | | | (1,023,539 | ) | | | | | | $ | (9,898,455 | ) | | $ | (11,048,618 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 17,674 | | | | 6,497 | | | | | | | $ | 205,866 | | | $ | 70,697 | | | | | |
| | | | | |
Shares issued in reinvestment of distributions | | | – 0 | – | | | 12,308 | | | | | | | | – 0 | – | | | 125,418 | | | | | |
| | | | | |
Shares converted to Class A | | | (76,416 | ) | | | (46,828 | ) | | | | | | | (840,527 | ) | | | (497,280 | ) | | | | |
| | | | | |
Shares redeemed | | | (37,757 | ) | | | (89,893 | ) | | | | | | | (446,120 | ) | | | (948,515 | ) | | | | |
| | | | | |
Net decrease | | | (96,499 | ) | | | (117,916 | ) | | | | | | $ | (1,080,781 | ) | | $ | (1,249,680 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 126,850 | | | | 59,613 | | | | | | | $ | 1,556,905 | | | $ | 650,196 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends and distributions | | | 2,991 | | | | 14,160 | | | | | | | | 34,727 | | | | 146,128 | | | | | |
| | | | | |
Shares redeemed | | | (72,982 | ) | | | (141,322 | ) | | | | | | | (833,496 | ) | | | (1,521,368 | ) | | | | |
| | | | | |
Net increase (decrease) | | | 56,859 | | | | (67,549 | ) | | | | | | $ | 758,136 | | | $ | (725,044 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class R | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 49,117 | | | | 82,157 | | | | | | | $ | 557,427 | | | $ | 879,203 | | | | | |
| | | | | |
Shares issued in reinvestment of distributions | | | 2,089 | | | | 16,580 | | | | | | | | 24,021 | | | | 169,445 | | | | | |
| | | | | |
Shares redeemed | | | (382,360 | ) | | | (166,481 | ) | | | | | | | (4,525,209 | ) | | | (1,796,612 | ) | | | | |
| | | | | |
Net decrease | | | (331,154 | ) | | | (67,744 | ) | | | | | | $ | (3,943,761 | ) | | $ | (747,964 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
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| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 19 |
NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | | | | | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | | | | |
| | | | | | | | |
| Class K | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 4,412 | | | | 3,956 | | | | | | | $ | 62,858 | | | $ | 42,796 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends and distributions | | | 362 | | | | 6,366 | | | | | | | | 4,248 | | | | 65,316 | | | | | |
| | | | | |
Shares redeemed | | | (97,765 | ) | | | (60,837 | ) | | | | | | | (1,130,037 | ) | | | (665,440 | ) | | | | |
| | | | | |
Net decrease | | | (92,991 | ) | | | (50,515 | ) | | | | | | $ | (1,062,931 | ) | | $ | (557,328 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class I | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 446 | | | | 124 | | | | | | | $ | 5,145 | | | $ | 1,365 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends and distributions | | | 32 | | | | 104 | | | | | | | | 375 | | | | 1,083 | | | | | |
| | | | | |
Shares redeemed | | | (11 | ) | | | (10 | ) | | | | | | | (141 | ) | | | (109 | ) | | | | |
| | | | | |
Net increase | | | 467 | | | | 218 | | | | | | | $ | 5,379 | | | $ | 2,339 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class Z | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 1,698 | | | | 336 | | | | | | | $ | 19,132 | | | $ | 3,693 | | | | | |
| | | | | |
Share issued in reinvestment of dividends and distributions | | | 10 | | | | 0 | (a) | | | | | | | 118 | | | | 0 | (b) | | | | |
| | | | | |
Shares redeemed | | | (1,504 | ) | | | – 0 | – | | | | | | | (17,466 | ) | | | – 0 | – | | | | |
| | | | | |
Net increase | | | 204 | | | | 336 | | | | | | | $ | 1,784 | | | $ | 3,693 | | | | | |
| | | | | |
| (a) | Amount is less than one share. |
| (b) | Amount is less than $.50. |
NOTE G
Risks Involved in Investing in the Fund
Market Risk—The value of the Fund’s assets will fluctuate as the market or markets in which the Fund invests 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. It includes the risk that a particular style of investing may be underperforming the market generally.
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
| | |
| |
20 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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, ESG and “sustainability” criteria are not uniformly defined, and the Fund’s ESG and 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.
Allocation Risk—The allocation of investments among different investment styles, such as equity or debt, growth or value, U.S. or non-U.S. securities, or diversification strategies, may have a more significant effect on the Fund’s net asset value, or NAV, when one of these investments is performing more poorly than another.
Capitalization Risk—Investments in mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in mid-capitalization companies may have additional risks because these companies may have limited product lines, markets or financial resources.
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 (commonly known as “junk bonds”) are subject to 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 recent end of a period of historically low rates and the effects of potential central bank monetary policy, and government fiscal policy, initiatives and market reactions to those initiatives.
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| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 21 |
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 asset, reference rate or index, 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 Replacement Risk—The Fund may be exposed to debt securities, derivatives or other financial instruments that recently transitioned from the London Interbank Offered Rate (“LIBOR”) as a benchmark or reference rate for various interest rate calculations. The use of LIBOR was phased out in June 2023 and transitioned to the Secured Overnight Financing Rate (“SOFR”). SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market. There can be no assurance that instruments linked to SOFR will have the same volume or liquidity as did the market for LIBOR-linked financial instruments prior to LIBOR’s discontinuance or unavailability.
Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.
Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions for the Fund, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.
| | |
| |
22 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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 statement of operations. The Fund did not utilize the Facility during the year ended August 31, 2024.
NOTE I
Distributions to Shareholders
The tax character of distributions paid during the fiscal years ended August 31, 2024 and August 31, 2023 were as follows:
| | | | | | | | |
| | | 2024 | | | 2023 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 886,658 | | | $ | 812 | |
Net long-term capital gains | | | – 0 | – | | | 4,547,660 | |
| | | | | | | | |
Total taxable distributions paid | | $ | 886,658 | | | $ | 4,548,472 | |
| | | | | | | | |
As of August 31, 2024, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | |
Undistributed ordinary income | | $ | 758,988 | |
Accumulated capital and other losses | | | (11,859,935 | )(a) |
Unrealized appreciation (depreciation) | | | 15,359,618 | (b) |
| | | | |
Total accumulated earnings (deficit) | | $ | 4,258,671 | (c) |
| | | | |
| (a) | As of August 31, 2024, the Fund had a net capital loss carryforward of $11,859,935. |
| (b) | The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to 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 August 31, 2024, the Fund had a net short-term capital loss carryforward of $3,909,229 and a net long-term capital loss carryforward of $7,950,706, which may be carried forward for an indefinite period.
During the current fiscal year, there were no permanent differences that resulted in adjustments to distributable earnings or additional paid-in capital.
| | |
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| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 23 |
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE J
Recent Accounting Pronouncements
In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.
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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24 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, beginning of period | | | $ 11.26 | | | | $ 10.93 | | | | $ 13.80 | | | | $ 12.38 | | | | $ 12.58 | |
| | | | | | | | | | | | | | | | | | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income (loss)(a)(b) | | | .13 | | | | .07 | | | | (.02 | ) | | | .12 | | | | .14 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | 1.44 | | | | .71 | | | | (2.39 | ) | | | 1.74 | | | | .10 | |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) |
| | | | | |
Capital contributions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net asset value from operations | | | 1.57 | | | | .78 | | | | (2.41 | ) | | | 1.86 | | | | .24 | |
| | | | | | | | | | | | | | | | | | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.10 | ) | | | – 0 | – | | | (.36 | ) | | | (.44 | ) | | | (.40 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | (.45 | ) | | | (.10 | ) | | | – 0 | – | | | (.04 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (.10 | ) | | | (.45 | ) | | | (.46 | ) | | | (.44 | ) | | | (.44 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $ 12.73 | | | | $ 11.26 | | | | $ 10.93 | | | | $ 13.80 | | | | $ 12.38 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d) | | | 14.06 | % | | | 7.59 | % | | | (18.04 | )% | | | 15.54 | % | | | 1.77 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $94,012 | | | | $92,712 | | | | $101,192 | | | | $138,753 | | | | $132,657 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(e)‡ | | | 1.00 | % | | | 1.00 | % | | | 1.09 | % | | | 1.25 | % | | | 1.14 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)‡ | | | 1.22 | % | | | 1.22 | % | | | 1.31 | % | | | 1.36 | % | | | 1.29 | % |
| | | | | |
Net investment income (loss)(b) | | | 1.15 | % | | | .69 | % | | | (.13 | )% | | | .95 | % | | | 1.13 | % |
| | | | | |
Portfolio turnover rate | | | 53 | % | | | 46 | % | | | 174 | % | | | 120 | % | | | 96 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .00 | % | | | .00 | % | | | .04 | % | | | .14 | % | | | .17 | % |
See footnote summary on page 29.
| | |
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| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 25 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, beginning of period | | | $ 11.16 | | | | $ 10.91 | | | | $ 13.76 | | | | $ 12.32 | | | | $ 12.51 | |
| | | | | | | | | | | | | | | | | | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income (loss)(a)(b) | | | .04 | | | | (.01 | ) | | | (.11 | ) | | | .02 | | | | .05 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | 1.42 | | | | .71 | | | | (2.41 | ) | | | 1.75 | | | | .09 | |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) |
| | | | | |
Capital contributions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net asset value from operations | | | 1.46 | | | | .70 | | | | (2.52 | ) | | | 1.77 | | | | .14 | |
| | | | | | | | | | | | | | | | | | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | – 0 | – | | | – 0 | – | | | (.23 | ) | | | (.33 | ) | | | (.29 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | (.45 | ) | | | (.10 | ) | | | – 0 | – | | | (.04 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | – 0 | – | | | (.45 | ) | | | (.33 | ) | | | (.33 | ) | | | (.33 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $ 12.62 | | | | $ 11.16 | | | | $ 10.91 | | | | $ 13.76 | | | | $ 12.32 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d) | | | 13.08 | % | | | 6.86 | % | | | (18.73 | )% | | | 14.64 | % | | | .97 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period
(000’s omitted) | | | $1,515 | | | | $2,415 | | | | $3,650 | | | | $6,257 | | | | $10,667 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(e)‡ | | | 1.75 | % | | | 1.75 | % | | | 1.90 | % | | | 1.98 | % | | | 1.89 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)‡ | | | 2.00 | % | | | 1.98 | % | | | 2.06 | % | | | 2.09 | % | | | 2.04 | % |
| | | | | |
Net investment income (loss)(b) | | | .39 | % | | | (.07 | )% | | | (.93 | )% | | | .18 | % | | | .44 | % |
| | | | | |
Portfolio turnover rate | | | 53 | % | | | 46 | % | | | 174 | % | | | 120 | % | | | 96 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .00 | % | | | .00 | % | | | .04 | % | | | .14 | % | | | .17 | % |
See footnote summary on page 29.
| | |
| |
26 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, beginning of period | | | $ 11.37 | | | | $ 11.01 | | | | $ 13.88 | | | | $ 12.44 | | | | $ 12.64 | |
| | | | | | | | | | | | | | | | | | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .17 | | | | .10 | | | | .04 | | | | .16 | | | | .17 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | 1.44 | | | | .71 | | | | (2.43 | ) | | | 1.76 | | | | .10 | |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) |
| | | | | |
Capital contributions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net asset value from operations | | | 1.61 | | | | .81 | | | | (2.39 | ) | | | 1.92 | | | | .27 | |
| | | | | | | | | | | | | | | | | | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.13 | ) | | | – 0 | – | | | (.38 | ) | | | (.48 | ) | | | (.43 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | (.45 | ) | | | (.10 | ) | | | – 0 | – | | | (.04 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (.13 | ) | | | (.45 | ) | | | (.48 | ) | | | (.48 | ) | | | (.47 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $ 12.85 | | | | $ 11.37 | | | | $ 11.01 | | | | $ 13.88 | | | | $ 12.44 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d) | | | 14.31 | % | | | 7.82 | % | | | (17.79 | )% | | | 15.82 | % | | | 2.02 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $4,918 | | | | $3,706 | | | | $4,331 | | | | $5,790 | | | | $5,419 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements(e)‡ | | | .75 | % | | | .75 | % | | | .71 | % | | | 1.00 | % | | | .89 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)‡ | | | .92 | % | | | .97 | % | | | 1.06 | % | | | 1.11 | % | | | 1.04 | % |
| | | | | |
Net investment income(b) | | | 1.40 | % | | | .93 | % | | | .33 | % | | | 1.20 | % | | | 1.41 | % |
| | | | | |
Portfolio turnover rate | | | 53 | % | | | 46 | % | | | 174 | % | | | 120 | % | | | 96 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .00 | % | | | .00 | % | | | .04 | % | | | .14 | % | | | .17 | % |
See footnote summary on page 29.
| | |
| |
| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 27 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class I | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, beginning of period | | | $ 11.51 | | | | $ 11.13 | | | | $ 14.03 | | | | $ 12.58 | | | | $ 12.78 | |
| | | | | | | | | | | | | | | | | | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .17 | | | | .10 | | | | .02 | | | | .16 | | | | .16 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | 1.47 | | | | .73 | | | | (2.44 | ) | | | 1.77 | | | | .11 | |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) |
| | | | | |
Capital contributions | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) |
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net asset value from operations | | | 1.64 | | | | .83 | | | | (2.42 | ) | | | 1.93 | | | | .27 | |
| | | | | | | | | | | | | | | | | | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.13 | ) | | | – 0 | – | | | (.38 | ) | | | (.48 | ) | | | (.43 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | (.45 | ) | | | (.10 | ) | | | – 0 | – | | | (.04 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (.13 | ) | | | (.45 | ) | | | (.48 | ) | | | (.48 | ) | | | (.47 | ) |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | | $ 13.02 | | | | $ 11.51 | | | | $ 11.13 | | | | $ 14.03 | | | | $ 12.58 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d) | | | 14.36 | % | | | 7.92 | % | | | (17.83 | )% | | | 15.81 | % | | | 2.02 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $50 | | | | $39 | | | | $35 | | | | $41 | | | | $39 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements(e)‡ | | | .75 | % | | | .75 | % | | | .83 | % | | | 1.01 | % | | | .91 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)‡ | | | .95 | % | | | 5.21 | %(f) | | | 1.08 | % | | | 1.13 | % | | | 1.06 | % |
| | | | | |
Net investment income(b) | | | 1.40 | % | | | .95 | % | | | .14 | % | | | 1.18 | % | | | 1.33 | % |
| | | | | |
Portfolio turnover rate | | | 53 | % | | | 46 | % | | | 174 | % | | | 120 | % | | | 96 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .00 | % | | | .00 | % | | | .04 | % | | | .14 | % | | | .17 | % |
See footnote summary on page 29.
| | |
| |
28 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | |
| | | Class Z | |
| | | Year Ended August 31, | | | December 15, 2021(g) to
August 31, 2022 | |
| | | 2024 | | | 2023 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | |
Net asset value, beginning of period | | | $ 11.28 | | | | $ 10.93 | | | | $ 13.54 | |
| | | | | | | | | | | | |
Income From Investment Operations | | | | | | | | | | | | |
| | | |
Net investment income(a)(b) | | | .16 | | | | .10 | | | | .02 | |
| | | |
Net realized and unrealized gain (loss) on investment transactions | | | 1.44 | | | | .70 | | | | (2.14 | ) |
| | | | | | | | | | | | |
Net increase (decrease) in net asset value from operations | | | 1.60 | | | | .80 | | | | (2.12 | ) |
| | | | | | | | | | | | |
Less: Dividends and Distributions | | | | | | | | | | | | |
| | | |
Dividends from net investment income | | | (.12 | ) | | | – 0 | – | | | (.39 | ) |
| | | |
Distributions from net realized gain on investment transactions | | | – 0 | – | | | (.45 | ) | | | (.10 | ) |
| | | | | | | | | | | | |
Total distributions | | | (.12 | ) | | | (.45 | ) | | | (.49 | ) |
| | | | | | | | | | | | |
Net asset value, end of period | | | $ 12.76 | | | | $ 11.28 | | | | $ 10.93 | |
| | | | |
Total Return | | | | | | | | | | | | |
| | | |
Total investment return based on net asset value(d) | | | 14.38 | % | | | 7.79 | % | | | (16.27 | )% |
Ratios/Supplemental Data | | | | | | | | | | | | |
| | | |
Net assets, end of period (000’s omitted) | | | $16 | | | | $12 | | | | $8 | |
|
Ratio to average net assets of: | |
| | | |
Expenses, net of waivers/reimbursements‡ | | | .75 | % | | | .75 | % | | | .75 | %^ |
| | | |
Expenses, before waivers/reimbursements‡ | | | .91 | % | | | .84 | % | | | .96 | %^ |
| | | |
Net investment income(b) | | | 1.40 | % | | | .96 | % | | | .21 | %^ |
| | | |
Portfolio turnover rate | | | 53 | % | | | 46 | % | | | 174 | % |
| | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .00 | % | | | .00 | % | | | .00 | %^ |
| (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 August 31, 2022, August 31, 2021 and August 31, 2020, such waiver amounted to .03%, .11% and .15%, respectively. |
| (f) | Reflects a onetime non-recurring accrual adjustment. |
| (g) | Commencement of distributions. |
See notes to financial statements.
| | |
| |
| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 29 |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Trustees of
AB Sustainable Thematic Balanced Portfolio
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of AB Sustainable Thematic Balanced Portfolio (the “Fund”) (one of the series constituting The AB Portfolios (the “Company”)), including the portfolio of investments, as of August 31, 2024, 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 series constituting The AB Portfolios) at August 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
| | |
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30 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | 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 August 31, 2024, 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
October 28, 2024
| | |
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| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 31 |
2024 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 August 31, 2024. For individual shareholders, the Fund designates 78.26% of dividends paid as qualified dividend income. For corporate shareholders, 73.34% of dividends paid qualify for the dividends received deduction. For foreign shareholders, 86.89% of ordinary 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 2025.
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32 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
The disinterested trustees (the “directors”) of The AB Portfolios (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Sustainable Thematic Balanced Portfolio (formerly AB Conservative Wealth Strategy) (the “Fund”) at a meeting held by video conference on May 7-9, 2024 (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 of 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:
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| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 33 |
Nature, Extent and Quality of Services Provided
The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.
Costs of Services Provided and Profitability
The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2022 and 2023 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 noted that the Fund was not profitable to the Adviser in the periods reviewed.
Fall-Out Benefits
The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to soft dollar arrangements (whereby investment advisers receive brokerage and research services from brokers that execute agency 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
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34 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
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 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 periods ended February 29, 2024 and (in the case of comparisons with the broad-based securities market index) for the period from inception. The directors discussed with the Adviser the reasons for the Fund’s underperformance in the periods reviewed and determined to continue to monitor the Fund’s performance closely.
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 lower than 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 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 and the schedule of fees charged 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.
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| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 35 |
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 Advisor Class shares of the Fund in comparison to the medians for 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 reflected the impact of 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 equal to the median of a peer group and lower than the median of a peer universe. 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
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36 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.
| | |
| |
| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 37 |
NOTES
| | |
| |
38 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
NOTES
| | |
| |
| abfunds.com | | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | 39 |
NOTES
| | |
| |
40 | AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO | | abfunds.com |
AB SUSTAINABLE THEMATIC BALANCED PORTFOLIO
1345 Avenue of the Americas
New York, NY 10105
800 221 5672
STB-0151-0824 
AUG 08.31.24
ANNUAL REPORT
AB TAX-MANAGED WEALTH APPRECIATION 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.
PORTFOLIO OF INVESTMENTS
August 31, 2024
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
COMMON STOCKS – 58.1% | | | | | | | | |
Information Technology – 17.6% | | | | | | | | |
Communications Equipment – 0.1% | | | | | | | | |
Cisco Systems, Inc. | | | 14,232 | | | $ | 719,285 | |
| | | | | | | | |
| | |
Electronic Equipment, Instruments & Components – 0.5% | | | | | | | | |
CDW Corp./DE | | | 20,234 | | | | 4,565,600 | |
| | | | | | | | |
| | |
Semiconductors & Semiconductor
Equipment – 6.3% | | | | | | | | |
Advanced Micro Devices, Inc.(a) | | | 4,089 | | | | 607,462 | |
Broadcom, Inc. | | | 46,711 | | | | 7,605,485 | |
KLA Corp. | | | 2,785 | | | | 2,282,113 | |
NVIDIA Corp. | | | 282,479 | | | | 33,719,518 | |
NXP Semiconductors NV | | | 18,298 | | | | 4,690,875 | |
QUALCOMM, Inc. | | | 20,478 | | | | 3,589,794 | |
Texas Instruments, Inc. | | | 8,454 | | | | 1,812,030 | |
| | | | | | | | |
| | | | | | | 54,307,277 | |
| | | | | |
Software – 7.3% | | | | | | | | |
Adobe, Inc.(a) | | | 9,978 | | | | 5,731,463 | |
Gen Digital, Inc. | | | 50,849 | | | | 1,345,464 | |
Microsoft Corp. | | | 104,186 | | | | 43,460,148 | |
Oracle Corp. | | | 68,606 | | | | 9,693,342 | |
ServiceNow, Inc.(a) | | | 2,375 | | | | 2,030,625 | |
| | | | | | | | |
| | | | 62,261,042 | |
| | | | | |
Technology Hardware, Storage
& Peripherals – 3.4% | | | | | | | | |
Apple, Inc. | | | 113,581 | | | | 26,010,049 | |
Western Digital Corp.(a) | | | 47,674 | | | | 3,126,938 | |
| | | | | | | | |
| | | | 29,136,987 | |
| | | | | |
| | | | 150,990,191 | |
| | | | | | | | |
Health Care – 9.1% | | | | | | | | |
Biotechnology – 1.6% | | | | | | | | |
Gilead Sciences, Inc. | | | 412 | | | | 32,548 | |
Regeneron Pharmaceuticals, Inc.(a) | | | 4,918 | | | | 5,826,305 | |
Vertex Pharmaceuticals, Inc.(a) | | | 16,331 | | | | 8,098,380 | |
| | | | | | | | |
| | | | 13,957,233 | |
| | | | | | | | |
Health Care Equipment & Supplies – 1.0% | |
Edwards Lifesciences Corp.(a) | | | 36,521 | | | | 2,555,009 | |
Intuitive Surgical, Inc.(a) | | | 2,352 | | | | 1,158,666 | |
Medtronic PLC | | | 56,368 | | | | 4,993,077 | |
| | | | | | | | |
| | | | 8,706,752 | |
| | | | | | | | |
Health Care Providers & Services – 3.2% | | | | | | | | |
Elevance Health, Inc. | | | 12,386 | | | | 6,897,640 | |
HCA Healthcare, Inc. | | | 9,916 | | | | 3,922,670 | |
UnitedHealth Group, Inc. | | | 28,653 | | | | 16,911,001 | |
| | | | | | | | |
| | | | | | | 27,731,311 | |
| | | | | | | | |
| | |
| |
| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 1 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Life Sciences Tools & Services – 1.9% | | | | | | | | |
Danaher Corp. | | | 2,462 | | | $ | 663,041 | |
Illumina, Inc.(a) | | | 13,399 | | | | 1,760,629 | |
IQVIA Holdings, Inc.(a) | | | 26,418 | | | | 6,645,448 | |
Thermo Fisher Scientific, Inc. | | | 5,106 | | | | 3,140,547 | |
Waters Corp.(a) | | | 10,443 | | | | 3,616,933 | |
| | | | | | | | |
| | | | 15,826,598 | |
| | | | | | | | |
Pharmaceuticals – 1.4% | | | | | | | | |
Johnson & Johnson | | | 9,589 | | | | 1,590,431 | |
Merck & Co., Inc. | | | 21,171 | | | | 2,507,705 | |
Pfizer, Inc. | | | 8,730 | | | | 253,257 | |
Roche Holding AG (Sponsored ADR) | | | 84,899 | | | | 3,593,775 | |
Zoetis, Inc. | | | 22,108 | | | | 4,056,597 | |
| | | | | | | | |
| | | | 12,001,765 | |
| | | | | | | | |
| | | | 78,223,659 | |
| | | | | | | | |
Financials – 7.7% | | | | | | | | |
Banks – 2.3% | | | | | | | | |
Bank of America Corp. | | | 220,137 | | | | 8,970,583 | |
JPMorgan Chase & Co. | | | 7,890 | | | | 1,773,672 | |
PNC Financial Services Group, Inc. (The) | | | 1,949 | | | | 360,740 | |
Wells Fargo & Co. | | | 139,617 | | | | 8,163,406 | |
| | | | | | | | |
| | | | | | | 19,268,401 | |
| | | | | | | | |
Capital Markets – 1.9% | |
Charles Schwab Corp. (The) | | | 86,352 | | | | 5,621,515 | |
Goldman Sachs Group, Inc. (The) | | | 16,342 | | | | 8,338,505 | |
LPL Financial Holdings, Inc. | | | 9,320 | | | | 2,090,849 | |
S&P Global, Inc. | | | 957 | | | | 491,171 | |
| | | | | | | | |
| | | | | | | 16,542,040 | |
| | | | | | | | |
Financial Services – 1.9% | |
PayPal Holdings, Inc.(a) | | | 12,940 | | | | 937,244 | |
Visa, Inc. – Class A | | | 54,512 | | | | 15,065,482 | |
| | | | | | | | |
| | | | | | | 16,002,726 | |
| | | | | | | | |
Insurance – 1.6% | |
Progressive Corp. (The) | | | 45,687 | | | | 11,522,261 | |
Willis Towers Watson PLC | | | 8,660 | | | | 2,529,673 | |
| | | | | | | | |
| | | | | | | 14,051,934 | |
| | | | | | | | |
| | | | | | | 65,865,101 | |
| | | | | | | | |
Communication Services – 6.4% | |
Diversified Telecommunication Services – 0.6% | |
Comcast Corp. – Class A | | | 120,151 | | | | 4,754,375 | |
| | | | | | | | |
|
Entertainment – 0.3% | |
Walt Disney Co. (The) | | | 30,205 | | | | 2,729,928 | |
| | | | | | | | |
|
Interactive Media & Services – 4.8% | |
Alphabet, Inc. – Class A | | | 12,280 | | | | 2,006,306 | |
Alphabet, Inc. – Class C | | | 131,015 | | | | 21,631,887 | |
| | |
| |
2 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Meta Platforms, Inc. – Class A | | | 33,725 | | | $ | 17,581,180 | |
| | | | | | | | |
| | | | | | | 41,219,373 | |
| | | | | | | | |
Wireless Telecommunication Services – 0.7% | |
T-Mobile US, Inc. | | | 29,971 | | | | 5,955,837 | |
| | | | | | | | |
| | | | | | | 54,659,513 | |
| | | | | | | | |
Consumer Discretionary – 4.8% | |
Automobile Components – 0.0% | |
Magna International, Inc. | | | 4,191 | | | | 176,148 | |
| | | | | | | | |
|
Automobiles – 0.1% | |
Stellantis NV | | | 62,538 | | | | 1,049,388 | |
| | | | | | | | |
|
Broadline Retail – 1.9% | |
Amazon.com, Inc.(a) | | | 89,436 | | | | 15,964,326 | |
| | | | | | | | |
|
Hotels, Restaurants & Leisure – 0.7% | |
Booking Holdings, Inc. | | | 236 | | | | 922,578 | |
Hyatt Hotels Corp. – Class A | | | 14,469 | | | | 2,198,131 | |
Restaurant Brands International, Inc. | | | 28,278 | | | | 1,964,755 | |
Starbucks Corp. | | | 8,298 | | | | 784,742 | |
| | | | | | | | |
| | | | | | | 5,870,206 | |
| | | | | | | | |
Specialty Retail – 1.7% | |
AutoZone, Inc.(a) | | | 1,837 | | | | 5,844,379 | |
Home Depot, Inc. (The) | | | 24,189 | | | | 8,913,646 | |
| | | | | | | | |
| | | | | | | 14,758,025 | |
| | | | | | | | |
Textiles, Apparel & Luxury Goods – 0.4% | |
NIKE, Inc. – Class B | | | 45,064 | | | | 3,754,732 | |
| | | | | | | | |
| | | | | | | 41,572,825 | |
| | | | | | | | |
Industrials – 3.8% | |
Building Products – 0.2% | |
Otis Worldwide Corp. | | | 17,442 | | | | 1,651,583 | |
| | | | | | | | |
|
Construction & Engineering – 0.4% | |
AECOM | | | 23,139 | | | | 2,317,139 | |
MasTec, Inc.(a) | | | 11,414 | | | | 1,291,266 | |
| | | | | | | | |
| | | | | | | 3,608,405 | |
| | | | | | | | |
Electrical Equipment – 1.5% | |
Eaton Corp. PLC | | | 30,167 | | | | 9,259,157 | |
GE Vernova, Inc.(a) | | | 12,170 | | | | 2,446,170 | |
Regal Rexnord Corp. | | | 6,110 | | | | 1,025,319 | |
| | | | | | | | |
| | | | | | | 12,730,646 | |
| | | | | | | | |
Ground Transportation – 0.6% | |
CSX Corp. | | | 131,818 | | | | 4,517,403 | |
Norfolk Southern Corp. | | | 3,002 | | | | 768,992 | |
| | | | | | | | |
| | | | | | | 5,286,395 | |
| | | | | | | | |
Machinery – 0.9% | |
Ingersoll Rand, Inc. | | | 10,221 | | | | 934,711 | |
PACCAR, Inc. | | | 54,361 | | | | 5,228,441 | |
Pentair PLC | | | 13,464 | | | | 1,194,122 | |
| | | | | | | | |
| | | | | | | 7,357,274 | |
| | | | | | | | |
| | |
| |
| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 3 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Professional Services – 0.2% | |
Booz Allen Hamilton Holding Corp. | | | 11,833 | | | $ | 1,878,844 | |
| | | | | | | | |
| | | | | | | 32,513,147 | |
| | | | | | | | |
Consumer Staples – 3.5% | |
Beverages – 0.7% | |
Coca-Cola Co. (The) | | | 50,566 | | | | 3,664,518 | |
Constellation Brands, Inc. – Class A | | | 11,671 | | | | 2,809,327 | |
| | | | | | | | |
| | | | | | | 6,473,845 | |
| | | | | | | | |
Consumer Staples Distribution & Retail – 2.1% | |
Costco Wholesale Corp. | | | 7,999 | | | | 7,138,148 | |
Walmart, Inc. | | | 138,819 | | | | 10,720,991 | |
| | | | | | | | |
| | | | | | | 17,859,139 | |
| | | | | | | | |
Household Products – 0.7% | |
Procter & Gamble Co. (The) | | | 34,119 | | | | 5,852,773 | |
| | | | | | | | |
| | | | | | | 30,185,757 | |
| | | | | | | | |
Energy – 1.9% | |
Energy Equipment & Services – 0.6% | |
Baker Hughes Co. | | | 130,430 | | | | 4,587,223 | |
| | | | | | | | |
|
Oil, Gas & Consumable Fuels – 1.3% | |
Cameco Corp. | | | 46,342 | | | | 1,892,607 | |
Chevron Corp. | | | 26,222 | | | | 3,879,545 | |
EOG Resources, Inc. | | | 43,115 | | | | 5,554,075 | |
| | | | | | | | |
| | | | | | | 11,326,227 | |
| | | | | | | | |
| | | | | | | 15,913,450 | |
| | | | | | | | |
Materials – 1.6% | |
Chemicals – 1.5% | |
Corteva, Inc. | | | 64,179 | | | | 3,677,457 | |
Linde PLC | | | 10,590 | | | | 5,064,667 | |
LyondellBasell Industries NV – Class A | | | 38,124 | | | | 3,762,839 | |
Westlake Corp. | | | 1,866 | | | | 271,391 | |
| | | | | | | | |
| | | | | | | 12,776,354 | |
| | | | | | | | |
Metals & Mining – 0.1% | |
ATI, Inc.(a) | | | 13,478 | | | | 860,975 | |
| | | | | | | | |
| | | | | | | 13,637,329 | |
| | | | | | | | |
Utilities – 1.0% | |
Electric Utilities – 1.0% | |
American Electric Power Co., Inc. | | | 40,805 | | | | 4,091,925 | |
NextEra Energy, Inc. | | | 53,394 | | | | 4,298,751 | |
| | | | | | | | |
| | | | | | | 8,390,676 | |
| | | | | | | | |
Real Estate – 0.7% | |
Industrial REITs – 0.4% | |
Prologis, Inc. | | | 27,160 | | | | 3,471,591 | |
| | | | | | | | |
|
Real Estate Management & Development – 0.0% | |
CBRE Group, Inc. – Class A(a) | | | 450 | | | | 51,813 | |
| | | | | | | | |
| | |
| |
4 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Specialized REITs – 0.3% | |
American Tower Corp. | | | 10,272 | | | $ | 2,301,544 | |
| | | | | | | | |
| | | | | | | 5,824,948 | |
| | | | | | | | |
Total Common Stocks
(cost $185,976,653) | | | | | | | 497,776,596 | |
| | | | | | | | |
INVESTMENT COMPANIES – 41.8% | |
Funds and Investment Trusts – 41.8%(b)(c) | |
AB Discovery Growth Fund, Inc. – Class Z | | | 1,603,547 | | | | 20,220,721 | |
AB Trust – AB Discovery Value Fund – Class Z | | | 1,187,343 | | | | 27,605,722 | |
Bernstein Fund, Inc. – International Small Cap Portfolio – Class Z | | | 3,595,967 | | | | 45,668,782 | |
Bernstein Fund, Inc. – International Strategic Equities Portfolio – Class Z | | | 16,557,441 | | | | 224,850,045 | |
Bernstein Fund, Inc. – Small Cap Core Portfolio – Class Z | | | 1,322,923 | | | | 18,269,566 | |
Sanford C Bernstein Fund, Inc. – Emerging Markets Portfolio – Class Z | | | 760,189 | | | | 21,368,908 | |
| | | | | | | | |
| | |
Total Investment Companies
(cost $317,503,248) | | | | | | | 357,983,744 | |
| | | | | | | | |
|
SHORT-TERM INVESTMENTS – 0.1% | |
Investment Companies – 0.1% | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB,
5.16%(b)(c)(d)
(cost $843,391) | | | 843,391 | | | | 843,391 | |
| | | | | | | | |
| | |
Total Investments – 100.0%
(cost $504,323,292) | | | | | | | 856,603,731 | |
Other assets less liabilities – 0.0% | | | | | | | 351,850 | |
| | | | | | | | |
Net Assets – 100.0% | | | | | | $ | 856,955,581 | |
| | | | | | | | |
| (a) | Non-income producing security. |
| (b) | 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. |
| (c) | Affiliated investments. |
| (d) | The rate shown represents the 7-day yield as of period end. |
Glossary:
ADR – American Depositary Receipt
REIT – Real Estate Investment Trust
See notes to financial statements.
| | |
| |
| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 5 |
STATEMENT OF ASSETS & LIABILITIES
August 31, 2024
| | | | | | | | | | | | |
| Assets | |
Investments in securities, at value | | | | | | | | | | | | |
Unaffiliated issuers (cost $185,976,653) | | | $ | 497,776,596 | |
Affiliated issuers (cost $318,346,639) | | | | 358,827,135 | |
Cash | | | | 2,101 | |
Foreign currencies, at value (cost $108,198) | | | | 117,014 | |
Unaffiliated dividends receivable | | | | 624,790 | |
Receivable for investment securities sold | | | | 316,310 | |
Receivable due from Adviser | | | | 217,836 | |
Receivable for shares of beneficial interest sold | | | | 64,627 | |
Affiliated dividends receivable | | | | 5,421 | |
| | | | | |
Total assets | | | | 857,951,830 | |
| | | | | |
| Liabilities | |
Advisory fee payable | | | | 457,952 | |
Custody and accounting fees payable | | | | 193,289 | |
Payable for shares of beneficial interest redeemed | | | | 161,313 | |
Audit and tax fee payable | | | | 60,030 | |
Administrative fee payable | | | | 36,610 | |
Distribution fee payable | | | | 10,070 | |
Trustees’ fees payable | | | | 7,928 | |
Transfer Agent fee payable | | | | 5,616 | |
Accrued expenses | | | | 63,441 | |
| | | | | |
Total liabilities | | | | 996,249 | |
| | | | | |
Net Assets | | | $ | 856,955,581 | |
| | | | | |
| Composition of Net Assets | |
Shares of beneficial interest, at par | | | $ | 380 | |
Additional paid-in capital | | | | 495,529,732 | |
Distributable earnings | | | | 361,425,469 | |
| | | | | |
Net Assets | | | $ | 856,955,581 | |
| | | | | |
Net Asset Value Per Share—unlimited shares authorized, $.00001 par value
| | | | | | | | | | | | |
| Class | | Net Assets | | | Shares
Outstanding | | | Net Asset
Value | |
| |
| A | | $ | 46,757,042 | | | | 2,087,850 | | | $ | 22.39 | * |
| |
| C | | $ | 570,852 | | | | 25,672 | | | $ | 22.24 | |
| |
| Advisor | | $ | 809,627,687 | | | | 35,934,866 | | | $ | 22.53 | |
| |
| * | The maximum offering price per share for Class A shares was $23.38 which reflects a sales charge of 4.25%. |
See notes to financial statements.
| | |
| |
6 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
STATEMENT OF OPERATIONS
Year Ended August 31, 2024
| | | | | | | | |
| Investment Income | | | | | | | | |
Dividends | | | | | | | | |
Affiliated issuers | | $ | 8,387,242 | | | | | |
Unaffiliated issuers (net of foreign taxes withheld of $21,853) | | | 5,723,384 | | | | | |
Interest | | | 2,653 | | | | | |
Other income | | | 2,295 | | | $ | 14,115,574 | |
| | | | | | | | |
| Expenses | | | | | | | | |
Advisory fee (see Note B) | | | 5,059,148 | | | | | |
Distribution fee—Class A | | | 107,986 | | | | | |
Distribution fee—Class C | | | 4,910 | | | | | |
Transfer agency—Class A | | | 6,561 | | | | | |
Transfer agency—Class C | | | 110 | | | | | |
Transfer agency—Advisor Class | | | 111,468 | | | | | |
Administrative | | | 85,028 | | | | | |
Custody and accounting | | | 71,158 | | | | | |
Audit and tax | | | 69,209 | | | | | |
Legal | | | 45,055 | | | | | |
Registration fees | | | 44,338 | | | | | |
Printing | | | 32,233 | | | | | |
Trustees’ fees | | | 29,875 | | | | | |
Miscellaneous | | | 39,969 | | | | | |
| | | | | | | | |
Total expenses | | | 5,707,048 | | | | | |
Less: expenses waived and reimbursed by the Adviser (see Note B) | | | (2,447,844 | ) | | | | |
| | | | | | | | |
Net expenses | | | | | | | 3,259,204 | |
| | | | | | | | |
Net investment income | | | | | | | 10,856,370 | |
| | | | | | | | |
| Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | |
Affiliated Underlying Portfolios | | | | | | | (1,937,505 | ) |
Investment transactions | | | | | | | 8,217,323 | |
Foreign currency transactions | | | | | | | (13 | ) |
Net realized gain distributions from Affiliated Underlying Portfolios | | | | | | | 2,625,265 | |
Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
Affiliated Underlying Portfolios | | | | | | | 58,147,716 | |
Investments | | | | | | | 99,286,634 | |
Foreign currency denominated assets and liabilities | | | | | | | 3,794 | |
| | | | | | | | |
Net gain on investment and foreign currency transactions | | | | | | | 166,343,214 | |
| | | | | | | | |
Net Increase in Net Assets from Operations | | | | | | $ | 177,199,584 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 7 |
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | |
| | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | |
| Increase in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 10,856,370 | | | $ | 9,142,553 | |
Net realized gain on investment and foreign currency transactions | | | 6,279,805 | | | | 3,084,947 | |
Net realized gain distributions from Affiliated Underlying Portfolios | | | 2,625,265 | | | | 2,434,007 | |
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities | | | 157,438,144 | | | | 67,189,484 | |
| | | | | | | | |
Net increase in net assets from operations | | | 177,199,584 | | | | 81,850,991 | |
Distributions to Shareholders | | | | | | | | |
Class A | | | (682,354 | ) | | | (2,028,745 | ) |
Class C | | | (2,225 | ) | | | (24,027 | ) |
Advisor Class | | | (12,862,874 | ) | | | (35,161,016 | ) |
| Transactions in Shares of Beneficial Interest | | | | | | | | |
Net decrease | | | (34,659,864 | ) | | | (8,453,411 | ) |
| | | | | | | | |
Total increase | | | 128,992,267 | | | | 36,183,792 | |
| Net Assets | | | | | | | | |
Beginning of period | | | 727,963,314 | | | | 691,779,522 | |
| | | | | | | | |
End of period | | $ | 856,955,581 | | | $ | 727,963,314 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
8 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS
August 31, 2024
NOTE A
Significant Accounting Policies
The AB Portfolios (the “Company”) is registered under the Investment Company Act of 1940 (the “1940 Act”) as a diversified, open-end management investment company. The Company, which is a Massachusetts Business Trust, operates as a series company currently comprised of five series. Each series is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Tax-Managed Wealth Appreciation Strategy (the “Fund”). The Fund offers Class A, Class C and Advisor Class shares. Class T and Class Z 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. Class C shares automatically convert to Class A shares eight 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 five 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 Trustees (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.
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| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 9 |
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
| | |
| |
10 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | 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) |
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
| | |
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| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 11 |
NOTES TO FINANCIAL STATEMENTS (continued)
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.
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of August 31, 2024:
| | | | | | | | | | | | | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Common Stocks(a) | | $ | 497,776,596 | | | $ | – 0 | – | | $ | – 0 | – | | $ | 497,776,596 | |
Investment Companies | | | 357,983,744 | | | | – 0 | – | | | – 0 | – | | | 357,983,744 | |
Short-Term Investments | | | 843,391 | | | | – 0 | – | | | – 0 | – | | | 843,391 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 856,603,731 | | | | – 0 | – | | | – 0 | – | | | 856,603,731 | |
Other Financial Instruments(b) | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | | | | | | | | | | | | | |
Total | | $ | 856,603,731 | | | $ | – 0 | – | | $ | – 0 | – | | $ | 856,603,731 | |
| | | | | | | | | | | | | | | | |
| (a) | | See Portfolio of Investments for sector classifications. |
| (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. |
3. Currency Translation
Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.
Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.
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12 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
4. Taxes
It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.
In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.
5. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. 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. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. The Fund accounts for distributions received from real estate investment trust (“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 series 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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| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 13 |
NOTES TO FINANCIAL STATEMENTS (continued)
those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.
8. Cash and Short-Term Investments
Cash and short-term investments include cash on hand and short-term investments with maturities of less than one year when purchased.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the terms of the investment advisory agreement (the “Advisory Agreement”), the Fund pays the Adviser an advisory fee at an annual rate of .65% of the first $2.5 billion, .55% of the next $2.5 billion and .50% in excess of $5 billion of the Fund’s average daily net assets. The fee is accrued daily and paid monthly.
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 August 31, 2024, the reimbursement for such services amounted to $85,028.
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 $69,464 for the year ended August 31, 2024.
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 $377 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 August 31, 2024.
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 had 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. Effective September 1, 2023, the Adviser has contractually agreed to waive .05% of the advisory
| | |
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14 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
fee of Government Money Market Portfolio (resulting in a net advisory fee of .15%) until August 31, 2024. 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 August 31, 2024, such waiver amounted to $4,895.
In connection with the Fund’s investments in other AB mutual funds, the Adviser has contractually agreed to waive fees and/or reimburse the expenses payable to the Adviser by the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fees of AB mutual funds, as paid by the Fund as an acquired fund fee and expense. These fee waivers and/or expense reimbursements will remain in effect until December 31, 2024. For the year ended August 31, 2024, such waivers and/or reimbursements amounted to $2,442,949.
A summary of the Fund’s transactions in AB mutual funds for the year ended August 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Distributions | |
| Fund | | Market
Value
8/31/23
(000) | | | Purchases
at Cost
(000) | | | Sales
Proceeds
(000) | | | Realized
Gain
(Loss)
(000) | | | Change in
Unrealized
Appr./
(Depr.)
(000) | | | Market
Value
8/31/24
(000) | | | Dividend
Income
(000) | | | Realized
Gains
(000) | |
Government Money Market Portfolio | | $ | 2,676 | | | $ | 72,083 | | | $ | 73,916 | | | $ | – 0 | – | | $ | – 0 | – | | $ | 843 | | | $ | 175 | | | $ | – 0 | – |
AB Discovery Growth Fund, Inc. | | | 17,900 | | | | – 0 | – | | | 693 | | | | (217 | ) | | | 3,231 | | | | 20,221 | | | | – 0 | – | | | – 0 | – |
AB Trust – AB Discovery Value Fund | | | 25,046 | | | | 1,640 | | | | 1,779 | | | | (359 | ) | | | 3,058 | | | | 27,606 | | | | 269 | | | | 1,371 | |
Bernstein Fund, Inc.: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
International Small Cap Portfolio | | | 38,559 | | | | 8,779 | | | | 7,858 | | | | (520 | ) | | | 6,709 | | | | 45,669 | | | | 1,150 | | | | – 0 | – |
International Strategic Equities Portfolio | | | 200,868 | | | | 6,328 | | | | 22,604 | | | | (675 | ) | | | 40,933 | | | | 224,850 | | | | 6,327 | | | | – 0 | – |
Small Cap Core Portfolio | | | 16,928 | | | | 1,374 | | | | 1,544 | | | | (167 | ) | | | 1,678 | | | | 18,269 | | | | 119 | | | | 1,254 | |
Sanford C. Bernstein Fund, Inc. – Emerging Markets Portfolio | | | 17,966 | | | | 865 | | | | – 0 | – | | | – 0 | – | | | 2,538 | | | | 21,369 | | | | 347 | | | | – 0 | – |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | $ | (1,938 | ) | | $ | 58,148 | | | $ | 358,827 | | | $ | 8,387 | | | $ | 2,625 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 15 |
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE C
Distribution Plan
The Fund has adopted a Plan for each class of shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .50% of the Fund’s average daily net assets attributable to Class A shares and 1% of the Fund’s average daily net assets attributable to Class C shares. There are no distribution and servicing fees on the Advisor Class shares. The fees are accrued daily and paid monthly. 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 Plan provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. The Fund is not obligated under the Plan to pay any distribution services fee in excess of the amounts set forth above. The purpose of the payments to the Distributor under the Plan is to compensate the Distributor for its distribution services with respect to the sale of the Fund’s shares. Since the Distributor’s compensation is not directly tied to its expenses, the amount of compensation received by it under the Plan during any year may be more or less than its actual expenses. For this reason, the Plan is characterized by the staff of the Securities and Exchange Commission as being of the “compensation” plan.
In the event that the Plan is terminated or not continued, no distribution services fees (other than current amounts accrued but not yet paid) would be owed by the Fund to the Distributor with respect to the relevant class. The Plan 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 August 31, 2024 were as follows:
| | | | | | | | |
| | | Purchases | | | Sales | |
Investment securities (excluding U.S. government securities) | | $ | 76,793,708 | | | $ | 109,150,821 | |
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 | | $ | 505,896,370 | |
| | | | |
Gross unrealized appreciation | | $ | 352,905,856 | |
Gross unrealized depreciation | | | (2,198,495 | ) |
| | | | |
Net unrealized appreciation | | $ | 350,707,361 | |
| | | | |
| | |
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16 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES TO 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 Fund did not engage in derivatives transactions for the year ended August 31, 2024.
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
Shares of Beneficial Interest
Transactions in shares of beneficial interest for each class were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
August 31,
2024 | | | Year Ended
August 31, 2023 | | | | | | Year Ended
August 31, 2024 | | | Year Ended
August 31, 2023 | | | | |
| | | | | | | | |
| Class A | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 9,080 | | | | 40,235 | | | | | | | $ | 178,525 | | | $ | 693,058 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends and distributions | | | 32,177 | | | | 108,041 | | | | | | | | 589,807 | | | | 1,780,516 | | | | | |
| | | | | |
Shares converted from Class C | | | 6,294 | | | | 855 | | | | | | | | 115,409 | | | | 14,580 | | | | | |
| | | | | |
Shares redeemed | | | (207,254 | ) | | | (212,524 | ) | | | | | | | (4,176,237 | ) | | | (3,646,325 | ) | | | | |
| | | | | |
Net decrease | | | (159,703 | ) | | | (63,393 | ) | | | | | | $ | (3,292,496 | ) | | $ | (1,158,171 | ) | | | | |
| | | | | |
| | |
| |
| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 17 |
NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
August 31,
2024 | | | Year Ended
August 31, 2023 | | | | | | Year Ended
August 31, 2024 | | | Year Ended
August 31, 2023 | | | | |
| | | | | | | | |
| Class C | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 8,487 | | | | 4,129 | | | | | | | $ | 160,795 | | | $ | 67,656 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends and distributions | | | 122 | | | | 1,459 | | | | | | | | 2,224 | | | | 23,957 | | | | | |
| | | | | |
Shares converted to Class A | | | (6,355 | ) | | | (862 | ) | | | | | | | (115,409 | ) | | | (14,580 | ) | | | | |
| | | | | |
Shares redeemed | | | (1,656 | ) | | | (10,862 | ) | | | | | | | (28,840 | ) | | | (185,741 | ) | | | | |
| | | | | |
Net increase (decrease) | | | 598 | | | | (6,136 | ) | | | | | | $ | 18,770 | | | $ | (108,708 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Advisor Class | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 1,941,152 | | | | 3,675,472 | | | | | | | $ | 38,438,153 | | | $ | 62,151,963 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends and distributions | | | 636,134 | | | | 1,892,520 | | | | | | | | 11,711,228 | | | | 31,321,212 | | | | | |
| | | | | |
Shares redeemed | | | (4,118,017 | ) | | | (5,857,883 | ) | | | | | | | (81,535,519 | ) | | | (100,659,707 | ) | | | | |
| | | | | |
Net decrease | | | (1,540,731 | ) | | | (289,891 | ) | | | | | | $ | (31,386,138 | ) | | $ | (7,186,532 | ) | | | | |
| | | | | |
NOTE F
Risks Involved in Investing in the Fund
Market Risk—The value of the Fund’s assets will fluctuate as the market or markets in which the Fund invests 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. It includes the risk that a particular style of investing may be underperforming the market generally.
Foreign (Non-U.S.) Risk—The Fund’s 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.
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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18 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
Capitalization Risk—Investments in small- and mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in small- and mid-capitalization companies may have additional risks because these companies have limited product lines, markets, or financial resources.
Investment in Other Investment Companies Risk—As with other investments, investments in other investment companies are subject to market and selection risk. In addition, shareholders of the Fund bear both their proportionate share of expenses in the Fund (including management fees) and, indirectly, the expenses of the investment companies in which the Fund invests (to the extent these expenses are not waived or reimbursed by the Adviser).
Sector Risk—The Fund may have more risk because it may invest to a significant extent in one or more particular market sectors, such as the information technology sector. To the extent it does so, market or economic factors affecting the relevant sector(s) could have a major effect on the value of the Fund’s investments.
LIBOR Replacement Risk—The Fund may be exposed to debt securities, derivatives or other financial instruments that recently transitioned from the London Interbank Offered Rate (“LIBOR”) as a benchmark or reference rate for various interest rate calculations. The use of LIBOR was phased out in June 2023 and transitioned to the Secured Overnight Financing Rate (“SOFR”). SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market. There can be no assurance that instruments linked to SOFR will have the same volume or liquidity as did the market for LIBOR-linked financial instruments prior to LIBOR’s discontinuance or unavailability.
Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.
Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions for the Fund, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon,
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| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 19 |
NOTES TO FINANCIAL STATEMENTS (continued)
quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected. The Fund’s tax-management strategies may result in it forgoing performance in favor of tax benefits that may not materialize, or may result in pre-tax performance that is lower than that of funds that do not use tax-management strategies.
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 August 31, 2024.
NOTE H
Distributions to Shareholders
The tax character of distributions paid during the fiscal years ended August 31, 2024 and August 31, 2023 were as follows:
| | | | | | | | |
| | | 2024 | | | 2023 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 8,824,834 | | | $ | 9,980,705 | |
Net long-term capital gains | | | 4,722,619 | | | | 27,233,083 | |
| | | | | | | | |
Total taxable distributions paid | | $ | 13,547,453 | | | $ | 37,213,788 | |
| | | | | | | | |
As of August 31, 2024, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | |
Undistributed ordinary income | | $ | 1,784,959 | |
Undistributed capital gains | | | 8,924,334 | |
Unrealized appreciation (depreciation) | | | 350,716,176 | (a) |
| | | | |
Total accumulated earnings (deficit) | | $ | 361,425,469 | |
| | | | |
| (a) | | The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to 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 August 31, 2024, the Fund did not have any capital loss carryforwards.
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20 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
During the current fiscal year, permanent differences primarily due to the utilization of earnings and profits distributed to shareholders on redemption of shares resulted in a net decrease in distributable earnings and a net increase in additional paid-in capital. These reclassifications had no effect on net assets.
NOTE I
Recent Accounting Pronouncements
In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.
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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| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 21 |
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 18.21 | | | | $ 17.15 | | | | $ 21.60 | | | | $ 16.81 | | | | $ 15.66 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .24 | | | | .19 | | | | .28 | | | | .11 | | | | .18 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 4.25 | | | | 1.77 | | | | (3.56 | ) | | | 4.87 | | | | 1.75 | |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) | | | – 0 | – |
| | | | |
| | | | | |
Net increase (decrease) in net asset value from operations | | | 4.49 | | | | 1.96 | | | | (3.28 | ) | | | 4.98 | | | | 1.93 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.19 | ) | | | (.21 | ) | | | (.24 | ) | | | (.15 | ) | | | (.33 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | (.12 | ) | | | (.69 | ) | | | (.93 | ) | | | (.04 | ) | | | (.45 | ) |
| | | | |
Total dividends and distributions | | | (.31 | ) | | | (.90 | ) | | | (1.17 | ) | | | (.19 | ) | | | (.78 | ) |
| | | | |
Net asset value, end of period | | | $ 22.39 | | | | $ 18.21 | | | | $ 17.15 | | | | $ 21.60 | | | | $ 16.81 | |
| | | | |
| | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d)* | | | 25.01 | % | | | 11.99 | % | | | (16.08 | )% | | | 29.83 | % | | | 12.44 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $46,757 | | | | $40,936 | | | | $39,643 | | | | $48,742 | | | | $38,983 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(e)‡ | | | .65 | % | | | .67 | % | | | .63 | % | | | .63 | % | | | .63 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)‡ | | | .97 | % | | | .99 | % | | | .97 | % | | | .98 | % | | | .99 | % |
| | | | | |
Net investment income(b) | | | 1.19 | % | | | 1.09 | % | | | 1.44 | % | | | .57 | % | | | 1.15 | % |
| | | | | |
Portfolio turnover rate | | | 10 | % | | | 13 | % | | | 23 | % | | | 15 | % | | | 21 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .33 | % | | | .34 | % | | | .36 | % | | | .38 | % | | | .39 | % |
See footnote summary on page 25.
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22 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 18.04 | | | | $ 16.99 | | | | $ 21.33 | | | | $ 16.59 | | | | $ 15.44 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income (loss)(a)(b) | | | .02 | | | | .09 | | | | .10 | | | | (.01 | ) | | | .09 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 4.30 | | | | 1.72 | | | | (3.51 | ) | | | 4.79 | | | | 1.69 | |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) | | | – 0 | – |
| | | | |
| | | | | |
Net increase (decrease) in net asset value from operations | | | 4.32 | | | | 1.81 | | | | (3.41 | ) | | | 4.78 | | | | 1.78 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | – 0 | – | | | (.07 | ) | | | – 0 | – | | | – 0 | – | | | (.18 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | (.12 | ) | | | (.69 | ) | | | (.93 | ) | | | (.04 | ) | | | (.45 | ) |
| | | | |
Total dividends and distributions | | | (.12 | ) | | | (.76 | ) | | | (.93 | ) | | | (.04 | ) | | | (.63 | ) |
| | | | |
Net asset value, end of period | | | $ 22.24 | | | | $ 18.04 | | | | $ 16.99 | | | | $ 21.33 | | | | $ 16.59 | |
| | | | |
| | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d)* | | | 24.10 | % | | | 11.12 | % | | | (16.73 | )% | | | 28.85 | % | | | 11.63 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $571 | | | | $452 | | | | $530 | | | | $1,378 | | | | $2,413 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(e)‡ | | | 1.41 | % | | | 1.43 | % | | | 1.39 | % | | | 1.38 | % | | | 1.38 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)‡ | | | 1.73 | % | | | 1.75 | % | | | 1.72 | % | | | 1.74 | % | | | 1.74 | % |
| | | | | |
Net investment income (loss)(b) | | | .11 | % | | | .51 | % | | | .50 | % | | | (.05 | )% | | | .58 | % |
| | | | | |
Portfolio turnover rate | | | 10 | % | | | 13 | % | | | 23 | % | | | 15 | % | | | 21 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .33 | % | | | .34 | % | | | .36 | % | | | .38 | % | | | .39 | % |
See footnote summary on page 25.
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| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 23 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 18.32 | | | | $ 17.25 | | | | $ 21.72 | | | | $ 16.90 | | | | $ 15.73 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .28 | | | | .23 | | | | .33 | | | | .16 | | | | .22 | |
| | | | | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 4.28 | | | | 1.79 | | | | (3.58 | ) | | | 4.89 | | | | 1.77 | |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) | | | – 0 | – |
| | | | |
| | | | | |
Net increase (decrease) in net asset value from operations | | | 4.56 | | | | 2.02 | | | | (3.25 | ) | | | 5.05 | | | | 1.99 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.23 | ) | | | (.26 | ) | | | (.29 | ) | | | (.19 | ) | | | (.37 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | (.12 | ) | | | (.69 | ) | | | (.93 | ) | | | (.04 | ) | | | (.45 | ) |
| | | | |
Total dividends and distributions | | | (.35 | ) | | | (.95 | ) | | | (1.22 | ) | | | (.23 | ) | | | (.82 | ) |
| | | | |
Net asset value, end of period | | | $ 22.53 | | | | $ 18.32 | | | | $ 17.25 | | | | $ 21.72 | | | | $ 16.90 | |
| | | | |
| | | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d)* | | | 25.33 | % | | | 12.29 | % | | | (15.87 | )% | | | 30.14 | % | | | 12.78 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $809,628 | | | | $686,575 | | | | $651,607 | | | | $803,319 | | | | $657,294 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(e)‡ | | | .40 | % | | | .42 | % | | | .38 | % | | | .38 | % | | | .38 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)‡ | | | .72 | % | | | .74 | % | | | .72 | % | | | .73 | % | | | .74 | % |
| | | | | |
Net investment income(b) | | | 1.41 | % | | | 1.32 | % | | | 1.68 | % | | | .82 | % | | | 1.41 | % |
| | | | | |
Portfolio turnover rate | | | 10 | % | | | 13 | % | | | 23 | % | | | 15 | % | | | 21 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .33 | % | | | .34 | % | | | .36 | % | | | .38 | % | | | .39 | % |
See footnote summary on page 25.
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24 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest 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 August 31, 2024, August 31, 2023, August 31, 2022, August 31, 2021 and August 31, 2020, such waiver amounted to .31%, .32%, .33%, .35% and .36%, respectively. |
| * | 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 August 31, 2024 and August 31, 2022 by .04% and .02%, respectively. |
See notes to financial statements.
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| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 25 |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Trustees of
AB Tax-Managed Wealth Appreciation Strategy
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of AB Tax-Managed Wealth Appreciation Strategy (the “Fund”) (one of the series constituting The AB Portfolios (the “Company”)), including the portfolio of investments, as of August 31, 2024, 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 series constituting The AB Portfolios) at August 31, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures
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26 | AB TAX-MANAGED WEALTH APPRECIATION 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 August 31, 2024, 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
October 28, 2024
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| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 27 |
2024 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 August 31, 2024. For individual shareholders, the Fund designates 52.38% of dividends paid as qualified dividend income. For corporate shareholders, 42.99% of dividends paid qualify for the dividends received deduction. For foreign shareholders, 1.26% of ordinary dividends paid may be considered to be qualifying to be taxed as interest-related dividends. The Fund designates $4,722,619 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 2025.
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28 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
The disinterested trustees (the “directors”) of The AB Portfolios (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Tax-Managed Wealth Appreciation Strategy (the “Fund”) at a meeting held by video conference on May 7-9, 2024 (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 of 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 underlying funds advised by the Adviser in which the Fund invests.
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:
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| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 29 |
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 2022 and 2023 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.
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30 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
Fall-Out Benefits
The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the underlying funds 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 agency 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 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 periods ended February 29, 2024 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 paid by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and noted that it was lower than the median. They also noted that the Adviser’s total rate of compensation, taking into account the impact the administrative expense reimbursement paid to the Adviser in the latest fiscal year, was lower than the median.
| | |
| |
| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 31 |
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 Advisor Class shares of the Fund in comparison to the medians for 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. 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 lower than the medians and that the Adviser had agreed to reimburse the Fund for the fees and expenses of any AB Funds in which it invests. The expense ratio of the Fund reflected this reimbursement. The directors also reviewed information about the amount of such reimbursement. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.
| | |
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32 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
Economies of Scale
The directors noted that the advisory fee schedules 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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| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 33 |
NOTES
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34 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES
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| abfunds.com | | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | 35 |
NOTES
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36 | AB TAX-MANAGED WEALTH APPRECIATION STRATEGY | | abfunds.com |
AB TAX-MANAGED WEALTH APPRECIATION STRATEGY
1345 Avenue of the Americas
New York, NY 10105
800 221 5672
TWA-0151-0824 
AUG 08.31.24
ANNUAL REPORT
AB WEALTH APPRECIATION 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.
PORTFOLIO OF INVESTMENTS
August 31, 2024
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
COMMON STOCKS – 58.2% | |
Information Technology – 17.4% | |
Electronic Equipment, Instruments & Components – 0.3% | | | | | | | | |
CDW Corp./DE | | | 17,937 | | | $ | 4,047,305 | |
| | | | | | | | |
| | |
Semiconductors & Semiconductor Equipment – 7.0% | | | | | | | | |
Broadcom, Inc. | | | 94,864 | | | | 15,445,757 | |
KLA Corp. | | | 8,028 | | | | 6,578,384 | |
NVIDIA Corp. | | | 403,064 | | | | 48,113,750 | |
NXP Semiconductors NV | | | 40,618 | | | | 10,412,830 | |
QUALCOMM, Inc. | | | 22,796 | | | | 3,996,139 | |
Taiwan Semiconductor Manufacturing Co., Ltd. (Sponsored ADR) | | | 15,519 | | | | 2,664,612 | |
| | | | | | | | |
| | | | 87,211,472 | |
| | | | | |
Software – 7.1% | |
Adobe, Inc.(a) | | | 16,436 | | | | 9,441,003 | |
Gen Digital, Inc. | | | 136,762 | | | | 3,618,722 | |
Microsoft Corp. | | | 139,599 | | | | 58,232,327 | |
Oracle Corp. | | | 102,042 | | | | 14,417,514 | |
ServiceNow, Inc.(a) | | | 4,077 | | | | 3,485,835 | |
| | | | | | | | |
| | | | 89,195,401 | |
| | | | | |
Technology Hardware, Storage & Peripherals – 3.0% | | | | | | | | |
Apple, Inc. | | | 151,031 | | | | 34,586,099 | |
Western Digital Corp.(a) | | | 44,515 | | | | 2,919,739 | |
| | | | | | | | |
| | | | 37,505,838 | |
| | | | | |
| | | | 217,960,016 | |
| | | | | |
Health Care – 9.3% | |
Biotechnology – 1.3% | |
Regeneron Pharmaceuticals, Inc.(a) | | | 5,255 | | | | 6,225,546 | |
Vertex Pharmaceuticals, Inc.(a) | | | 20,733 | | | | 10,281,287 | |
| | | | | | | | |
| | | | 16,506,833 | |
| | | | | |
Health Care Equipment & Supplies – 1.1% | | | | | | | | |
Edwards Lifesciences Corp.(a) | | | 58,919 | | | | 4,121,973 | |
Medtronic PLC | | | 110,665 | | | | 9,802,706 | |
| | | | | | | | |
| | | | 13,924,679 | |
| | | | | |
Health Care Providers & Services – 3.2% | | | | | | | | |
Elevance Health, Inc. | | | 18,066 | | | | 10,060,775 | |
HCA Healthcare, Inc. | | | 18,020 | | | | 7,128,532 | |
UnitedHealth Group, Inc. | | | 38,972 | | | | 23,001,274 | |
| | | | | | | | |
| | | | 40,190,581 | |
| | | | | |
Life Sciences Tools & Services – 2.3% | | | | | | | | |
Illumina, Inc.(a) | | | 22,848 | | | | 3,002,227 | |
| | |
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| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 1 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
IQVIA Holdings, Inc.(a) | | | 45,059 | | | $ | 11,334,591 | |
Thermo Fisher Scientific, Inc. | | | 11,451 | | | | 7,043,167 | |
Waters Corp.(a) | | | 19,893 | | | | 6,889,941 | |
| | | | | | | | |
| | | | 28,269,926 | |
| | | | | |
Pharmaceuticals – 1.4% | |
Merck & Co., Inc. | | | 58,003 | | | | 6,870,455 | |
Roche Holding AG (Sponsored ADR)(b) | | | 135,838 | | | | 5,750,023 | |
Zoetis, Inc. | | | 29,537 | | | | 5,419,744 | |
| | | | | | | | |
| | | | | | | 18,040,222 | |
| | | | | | | | |
| | | | | | | 116,932,241 | |
| | | | | | | | |
Financials – 7.3% | |
Banks – 1.7% | |
Bank of America Corp. | | | 224,894 | | | | 9,164,430 | |
Wells Fargo & Co. | | | 195,925 | | | | 11,455,735 | |
| | | | | | | | |
| | | | | | | 20,620,165 | |
| | | | | | | | |
Capital Markets – 1.7% | |
Charles Schwab Corp. (The) | | | 147,386 | | | | 9,594,829 | |
Goldman Sachs Group, Inc. (The) | | | 23,886 | | | | 12,187,831 | |
| | | | | | | | |
| | | | | | | 21,782,660 | |
| | | | | | | | |
Financial Services – 2.3% | |
PayPal Holdings, Inc.(a) | | | 48,174 | | | | 3,489,243 | |
Visa, Inc. – Class A | | | 90,485 | | | | 25,007,339 | |
| | | | | | | | |
| | | | | | | 28,496,582 | |
| | | | | | | | |
Insurance – 1.6% | |
Progressive Corp. (The) | | | 61,518 | | | | 15,514,840 | |
Willis Towers Watson PLC | | | 16,144 | | | | 4,715,824 | |
| | | | | | | | |
| | | | | | | 20,230,664 | |
| | | | | | | | |
| | | | | | | 91,130,071 | |
| | | | | | | | |
Communication Services – 6.6% | |
Diversified Telecommunication Services – 0.5% | | | | | | | | |
Comcast Corp. – Class A | | | 173,528 | | | | 6,866,503 | |
| | | | | | | | |
|
Entertainment – 0.6% | |
Walt Disney Co. (The) | | | 80,233 | | | | 7,251,458 | |
| | | | | | | | |
| | |
Interactive Media & Services – 4.8% | | | | | | | | |
Alphabet, Inc. – Class C | | | 212,186 | | | | 35,034,031 | |
Meta Platforms, Inc. – Class A | | | 47,610 | | | | 24,819,569 | |
| | | | | | | | |
| | | | | | | 59,853,600 | |
| | | | | | | | |
Wireless Telecommunication Services – 0.7% | | | | | | | | |
T-Mobile US, Inc. | | | 44,653 | | | | 8,873,444 | |
| | | | | | | | |
| | | | | | | 82,845,005 | |
| | | | | | | | |
| | |
| |
2 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Consumer Discretionary – 4.4% | |
Broadline Retail – 2.2% | |
Amazon.com, Inc.(a) | | | 155,965 | | | $ | 27,839,752 | |
| | | | | | | | |
|
Hotels, Restaurants & Leisure – 0.6% | |
Hyatt Hotels Corp. – Class A(b) | | | 18,250 | | | | 2,772,540 | |
Restaurant Brands International, Inc.(b) | | | 55,002 | | | | 3,821,539 | |
| | | | | | | | |
| | | | | | | 6,594,079 | |
| | | | | | | | |
Specialty Retail – 1.2% | |
AutoZone, Inc.(a) | | | 1,671 | | | | 5,316,253 | |
Home Depot, Inc. (The) | | | 26,953 | | | | 9,932,181 | |
| | | | | | | | |
| | | | | | | 15,248,434 | |
| | | | | | | | |
Textiles, Apparel & Luxury Goods – 0.4% | | | | | | | | |
NIKE, Inc. – Class B | | | 63,674 | | | | 5,305,318 | |
| | | | | | | | |
| | | | | | | 54,987,583 | |
| | | | | | | | |
Industrials – 4.0% | |
Building Products – 0.5% | |
Otis Worldwide Corp. | | | 67,483 | | | | 6,389,965 | |
| | | | | | | | |
|
Construction & Engineering – 0.2% | |
MasTec, Inc.(a) | | | 17,174 | | | | 1,942,894 | |
| | | | | | | | |
|
Electrical Equipment – 1.3% | |
Eaton Corp. PLC | | | 36,602 | | | | 11,234,252 | |
GE Vernova, Inc.(a) | | | 27,822 | | | | 5,592,222 | |
| | | | | | | | |
| | | | | | | 16,826,474 | |
| | | | | | | | |
Ground Transportation – 0.8% | |
CSX Corp. | | | 273,910 | | | | 9,386,896 | |
| | | | | | | | |
|
Industrial Conglomerates – 0.3% | |
Honeywell International, Inc. | | | 20,357 | | | | 4,232,424 | |
| | | | | | | | |
|
Machinery – 0.7% | |
PACCAR, Inc. | | | 60,090 | | | | 5,779,456 | |
Pentair PLC | | | 30,232 | | | | 2,681,276 | |
| | | | | | | | |
| | | | | | | 8,460,732 | |
| | | | | | | | |
Professional Services – 0.2% | |
Booz Allen Hamilton Holding Corp. | | | 16,197 | | | | 2,571,760 | |
| | | | | | | | |
| | | | | | | 49,811,145 | |
| | | | | | | | |
Consumer Staples – 3.4% | |
Beverages – 1.1% | |
Coca-Cola Co. (The) | | | 113,995 | | | | 8,261,218 | |
Constellation Brands, Inc. – Class A | | | 23,231 | | | | 5,591,934 | |
| | | | | | | | |
| | | | | | | 13,853,152 | |
| | | | | | | | |
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 3 |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Consumer Staples Distribution & Retail – 1.8% | | | | | | | | |
Costco Wholesale Corp. | | | 6,506 | | | $ | 5,805,824 | |
Walmart, Inc. | | | 215,269 | | | | 16,625,225 | |
| | | | | | | | |
| | | | | | | 22,431,049 | |
| | | | | | | | |
Household Products – 0.5% | |
Procter & Gamble Co. (The) | | | 38,946 | | | | 6,680,797 | |
| | | | | | | | |
| | | | | | | 42,964,998 | |
| | | | | | | | |
Energy – 1.9% | |
Energy Equipment & Services – 0.6% | |
Baker Hughes Co. | | | 223,764 | | | | 7,869,780 | |
| | | | | | | | |
|
Oil, Gas & Consumable Fuels – 1.3% | |
Cameco Corp. | | | 90,142 | | | | 3,681,399 | |
Chevron Corp. | | | 31,414 | | | | 4,647,701 | |
EOG Resources, Inc. | | | 56,455 | | | | 7,272,533 | |
| | | | | | | | |
| | | | | | | 15,601,633 | |
| | | | | | | | |
| | | | | | | 23,471,413 | |
| | | | | | | | |
Materials – 1.7% | | | | | | | | |
Chemicals – 1.7% | | | | | | | | |
Corteva, Inc. | | | 129,437 | | | | 7,416,740 | |
Linde PLC | | | 15,792 | | | | 7,552,524 | |
LyondellBasell Industries NV – Class A | | | 66,284 | | | | 6,542,231 | |
| | | | | | | | |
| | | | | | | 21,511,495 | |
| | | | | | | | |
Utilities – 1.1% | | | | | | | | |
Electric Utilities – 1.1% | | | | | | | | |
American Electric Power Co., Inc. | | | 58,372 | | | | 5,853,544 | |
NextEra Energy, Inc. | | | 99,686 | | | | 8,025,720 | |
| | | | | | | | |
| | | | | | | 13,879,264 | |
| | | | | | | | |
Real Estate – 1.1% | | | | | | | | |
Industrial REITs – 0.7% | | | | | | | | |
Prologis, Inc. | | | 66,225 | | | | 8,464,879 | |
| | | | | | | | |
| | |
Specialized REITs – 0.4% | | | | | | | | |
American Tower Corp. | | | 21,543 | | | | 4,826,925 | |
| | | | | | | | |
| | | | | | | 13,291,804 | |
| | | | | | | | |
Total Common Stocks
(cost $380,088,598) | | | | | | | 728,785,035 | |
| | | | | | | | |
| | |
INVESTMENT COMPANIES – 41.4% | | | | | | | | |
Funds and Investment Trusts – 41.4%(c)(d) | | | | | | | | |
AB Discovery Growth Fund, Inc. – Class Z | | | 2,303,985 | | | | 29,053,248 | |
AB Trust – AB Discovery Value Fund – Class Z | | | 1,797,306 | | | | 41,787,376 | |
Bernstein Fund, Inc. – International Small Cap Portfolio – Class Z | | | 4,785,147 | | | | 60,771,365 | |
| | |
| |
4 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
| | | | | | | | |
| Company | | Shares | | | U.S. $ Value | |
| |
Bernstein Fund, Inc. – International Strategic Equities Portfolio – Class Z | | | 23,993,185 | | | $ | 325,827,447 | |
Bernstein Fund, Inc. – Small Cap Core Portfolio – Class Z | | | 2,082,796 | | | | 28,763,414 | |
Sanford C Bernstein Fund, Inc. – Emerging Markets Portfolio – Class Z | | | 1,144,371 | | | | 32,168,280 | |
| | | | | | | | |
| | |
Total Investment Companies
(cost $456,388,829) | | | | | | | 518,371,130 | |
| | | | | | | | |
| | |
SHORT-TERM INVESTMENTS – 0.2% | | | | | | | | |
Investment Companies – 0.2% | | | | | | | | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 5.16%(c)(d)(e)
(cost $1,907,135) | | | 1,907,135 | | | | 1,907,135 | |
| | | | | | | | |
Total Investments Before Security Lending Collateral for Securities Loaned – 99.8%
(cost $838,384,562) | | | | | | | 1,249,063,300 | |
| | | | | |
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED – 0.3% | | | | | | | | |
Investment Companies – 0.3% | |
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 5.16%(c)(d)(e)
(cost $3,446,118) | | | 3,446,118 | | | | 3,446,118 | |
| | | | | | | | |
| | |
Total Investments – 100.1%
(cost $841,830,680) | | | | | | | 1,252,509,418 | |
Other assets less liabilities – (0.1)% | | | | | | | (685,053 | ) |
| | | | | | | | |
| | |
Net Assets – 100.0% | | | | | | $ | 1,251,824,365 | |
| | | | | | | | |
| (a) | Non-income producing security. |
| (b) | Represents entire or partial securities out on loan. See Note E for securities lending information. |
| (c) | To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov, or call AB at (800) 227-4618. |
| (d) | Affiliated investments. |
| (e) | The rate shown represents the 7-day yield as of period end. |
Glossary:
ADR – American Depositary Receipt
REIT – Real Estate Investment Trust
See notes to financial statements.
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 5 |
STATEMENT OF ASSETS & LIABILITIES
August 31, 2024
| | | | |
| Assets | | | | |
Investments in securities, at value | | | | |
Unaffiliated issuers (cost $380,088,598) | | $ | 728,785,035 | (a) |
Affiliated issuers (cost $461,742,082—including investment of cash collateral for securities loaned of $3,446,118) | | | 523,724,383 | |
Foreign currencies, at value (cost $2,030,404) | | | 2,175,435 | |
Receivable for investment securities sold | | | 1,265,675 | |
Unaffiliated dividends and interest receivable | | | 1,143,500 | |
| Receivable due from Adviser | | | 315,909 | |
| Receivable for shares of beneficial interest sold | | | 167,462 | |
Affiliated dividends receivable | | | 17,426 | |
| | | | |
Total assets | | | 1,257,594,825 | |
| | | | |
| Liabilities | | | | |
Payable for collateral received on securities loaned | | | 3,446,118 | |
Payable for shares of beneficial interest redeemed | | | 1,104,564 | |
Advisory fee payable | | | 670,703 | |
Distribution fee payable | | | 78,176 | |
Administrative fee payable | | | 34,128 | |
Transfer Agent fee payable | | | 19,383 | |
Trustees’ fees payable | | | 9,293 | |
Accrued expenses | | | 408,095 | |
| | | | |
Total liabilities | | | 5,770,460 | |
| | | | |
Net Assets | | $ | 1,251,824,365 | |
| | | | |
| Composition of Net Assets | | | | |
Shares of beneficial interest, at par | | $ | 573 | |
Additional paid-in capital | | | 805,640,923 | |
Distributable earnings | | | 446,182,869 | |
| | | | |
Net Assets | | $ | 1,251,824,365 | |
| | | | |
Net Asset Value Per Share—unlimited shares authorized, $.00001 par value
| | | | | | | | | | | | |
| Class | | Net Assets | | | Shares
Outstanding | | | Net Asset
Value | |
| |
| A | | $ | 365,971,631 | | | | 16,722,088 | | | $ | 21.89 | * |
| |
| C | | $ | 3,308,804 | | | | 149,070 | | | $ | 22.20 | |
| |
| Advisor | | $ | 882,543,930 | | | | 40,443,962 | | | $ | 21.82 | |
| |
| (a) | Includes securities on loan with a value of $5,177,289 (see Note E). |
| * | The maximum offering price per share for Class A shares was $22.86 which reflects a sales charge of 4.25%. |
See notes to financial statements.
| | |
| |
6 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
STATEMENT OF OPERATIONS
Year Ended August 31, 2024
| | | | | | | | |
| Investment Income | | | | | | | | |
Dividends | | | | | | | | |
Affiliated issuers | | $ | 12,751,275 | | | | | |
Unaffiliated issuers | | | 8,900,075 | | | | | |
Interest | | | 28,858 | | | | | |
Securities lending income | | | 27,342 | | | | | |
Other income | | | 2,631 | | | $ | 21,710,181 | |
| | | | | | | | |
| Expenses | | | | | | | | |
Advisory fee (see Note B) | | | 7,615,519 | | | | | |
Distribution fee—Class A | | | 857,333 | | | | | |
Distribution fee—Class C | | | 32,194 | | | | | |
Distribution fee—Class R | | | 7,060 | | | | | |
Distribution fee—Class K | | | 10,844 | | | | | |
Transfer agency—Class A | | | 144,081 | | | | | |
Transfer agency—Class C | | | 1,745 | | | | | |
Transfer agency—Advisor Class | | | 344,479 | | | | | |
Transfer agency—Class R | | | 3,638 | | | | | |
Transfer agency—Class K | | | 8,675 | | | | | |
Custody and accounting | | | 86,878 | | | | | |
Registration fees | | | 86,589 | | | | | |
Administrative | | | 82,068 | | | | | |
Audit and tax | | | 66,543 | | | | | |
Printing | | | 53,356 | | | | | |
Legal | | | 50,313 | | | | | |
Trustees’ fees | | | 35,133 | | | | | |
Miscellaneous | | | 64,273 | | | | | |
| | | | | | | | |
Total expenses | | | 9,550,721 | | | | | |
Less: expenses waived and reimbursed by the Adviser (see Notes B & E) | | | (3,669,092 | ) | | | | |
| | | | | | | | |
Net expenses | | | | | | | 5,881,629 | |
| | | | | | | | |
Net investment income | | | | | | | 15,828,552 | |
| | | | | | | | |
| Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions | | | | | | | | |
Net realized gain (loss) on: | | | | | | | | |
Affiliated Underlying Portfolios | | | | | | | (3,925,914 | ) |
Investment transactions | | | | | | | 42,641,235 | |
Foreign currency transactions | | | | | | | (303 | ) |
Net realized gain distributions from Affiliated Underlying Portfolios | | | | | | | 3,956,725 | |
Net change in unrealized appreciation (depreciation) of: | | | | | | | | |
Affiliated Underlying Portfolios | | | | | | | 87,408,734 | |
Investments | | | | | | | 123,034,967 | |
Foreign currency denominated assets and liabilities | | | | | | | 46,651 | |
| | | | | | | | |
Net gain on investment and foreign currency transactions | | | | | | | 253,162,095 | |
| | | | | | | | |
Net Increase in Net Assets from Operations | | | | | | $ | 268,990,647 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 7 |
STATEMENT OF CHANGES IN NET ASSETS
| | | | | | | | |
| | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | |
| Increase in Net Assets from Operations | | | | | | | | |
Net investment income | | $ | 15,828,552 | | | $ | 18,623,314 | |
Net realized gain on investment and foreign currency transactions | | | 38,715,018 | | | | 10,903,491 | |
Net realized gain distributions from Affiliated Underlying Portfolios | | | 3,956,725 | | | | 3,868,761 | |
Net change in unrealized appreciation (depreciation) of investments and foreign currency denominated assets and liabilities | | | 210,490,352 | | | | 95,119,646 | |
| | | | | | | | |
Net increase in net assets from operations | | | 268,990,647 | | | | 128,515,212 | |
Distributions to Shareholders | | | | | | | | |
Class A | | | (7,529,257 | ) | | | (21,767,117 | ) |
Class C | | | (41,264 | ) | | | (257,785 | ) |
Advisor Class | | | (20,064,680 | ) | | | (53,772,416 | ) |
Class R | | | (38,405 | ) | | | (129,200 | ) |
Class K | | | (135,322 | ) | | | (354,979 | ) |
| Transactions in Shares of Beneficial Interest | | | | | | | | |
Net decrease | | | (123,792,908 | ) | | | (1,858,623 | ) |
| | | | | | | | |
Total increase | | | 117,388,811 | | | | 50,375,092 | |
| Net Assets | | | | | | | | |
Beginning of period | | | 1,134,435,554 | | | | 1,084,060,462 | |
| | | | | | | | |
End of period | | $ | 1,251,824,365 | | | $ | 1,134,435,554 | |
| | | | | | | | |
See notes to financial statements.
| | |
| |
8 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS
August 31, 2024
NOTE A
Significant Accounting Policies
The AB Portfolios (the “Company”) is registered under the Investment Company Act of 1940 (the “1940 Act”) as a diversified, open end management investment company. The Company, which is a Massachusetts Business Trust, operates as a series company currently comprised of five series. Each series is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Wealth Appreciation Strategy (the “Fund”). The Fund offers Class A, Class C and Advisor Class shares. Class I, Class R, Class K, Class T and Class Z shares have been authorized but currently are not offered. Effective May 20, 2024, Class R and Class K were liquidated. 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. Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Advisor Class shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eight 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 of the Company’s Board of Trustees (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.
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 9 |
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
| | |
| |
10 | AB WEALTH APPRECIATION STRATEGY | | 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) |
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
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 11 |
NOTES TO FINANCIAL STATEMENTS (continued)
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.
The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of August 31, 2024:
| | | | | | | | | | | | | | | | |
Investments in
Securities: | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | |
Common Stocks(a) | | $ | 728,785,035 | | | $ | – 0 | – | | $ | – 0 | – | | $ | 728,785,035 | |
Investment Companies | | | 518,371,130 | | | | – 0 | – | | | – 0 | – | | | 518,371,130 | |
Short-Term Investments | | | 1,907,135 | | | | – 0 | – | | | – 0 | – | | | 1,907,135 | |
Investments of Cash Collateral for Securities Loaned in Affiliated Money Market Fund | | | 3,446,118 | | | | – 0 | – | | | – 0 | – | | | 3,446,118 | |
| | | | | | | | | | | | | | | | |
Total Investments in Securities | | | 1,252,509,418 | | | | – 0 | – | | | – 0 | – | | | 1,252,509,418 | |
Other Financial Instruments(b) | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | – 0 | – |
| | | | | | | | | | | | | | | | |
Total | | $ | 1,252,509,418 | | | $ | – 0 | – | | $ | – 0 | – | | $ | 1,252,509,418 | |
| | | | | | | | | | | | | | | | |
| (a) | See Portfolio of Investments for sector classifications. |
| (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. |
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
| | |
| |
12 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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 amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from real estate investment trust (“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 series or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 13 |
NOTES TO FINANCIAL STATEMENTS (continued)
7. Dividends and Distributions
Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.
8. Cash and Short-Term Investments
Cash and short-term investments include cash on hand and short-term investments with maturities of less than one year when purchased.
NOTE B
Advisory Fee and Other Transactions with Affiliates
Under the terms of the investment advisory agreement (the “Advisory Agreement”), the Fund pays the Adviser an advisory fee at an annual rate of .65% of the first $2.5 billion, .55% of the next $2.5 billion and .50% in excess of $5 billion of the Fund’s average daily net assets. The fee is accrued daily and paid monthly.
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 August 31, 2024, the reimbursement for such services amounted to $82,068.
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 $226,499 for the year ended August 31, 2024.
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 $3,100 from the sale of Class A shares and received $1,199 and $204 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended August 31, 2024.
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
| | |
| |
14 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
bears its own expenses. The Adviser had 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. Effective September 1, 2023, the Adviser has contractually agreed to waive .05% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .15%) until August 31, 2024. 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 August 31, 2024, such waiver amounted to $2,498.
In connection with the Fund’s investments in other AB mutual funds, the Adviser has contractually agreed to waive fees and/or reimburse the expenses payable to the Adviser by the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fees of AB mutual funds, as paid by the Fund as an acquired fund fee and expense. These fee waivers and/or expense reimbursements will remain in effect until December 31, 2024. For the year ended August 31, 2024, such waivers and/or reimbursements amounted to $3,662,118.
A summary of the Fund’s transactions in AB mutual funds for the year ended August 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Distributions | |
| Fund | | Market
Value
8/31/23
(000) | | | Purchases
at Cost
(000) | | | Sales
Proceeds
(000) | | | Realized
Gain
(Loss)
(000) | | | Change in
Unrealized
Appr./
(Depr.)
(000) | | | Market
Value
8/31/24
(000) | | | Dividend
Income
(000) | | | Realized
Gains
(000) | |
Government Money Market Portfolio | | $ | 791 | | | $ | 82,077 | | | $ | 80,961 | | | $ | – 0 | – | | $ | – 0 | – | | $ | 1,907 | | | $ | 92 | | | $ | – 0 | – |
AB Discovery Growth Fund, Inc. | | | 28,007 | | | | 310 | | | | 3,754 | | | | (1,195 | ) | | | 5,685 | | | | 29,053 | | | | – 0 | – | | | – 0 | – |
AB Trust—AB Discovery Value Fund | | | 38,814 | | | | 2,404 | | | | 3,504 | | | | (500 | ) | | | 4,573 | | | | 41,787 | | | | 395 | | | | 2,010 | |
Bernstein Fund, Inc.: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
International Small Cap Portfolio | | | 61,052 | | | | 10,794 | | | | 19,665 | | | | (1,255 | ) | | | 9,845 | | | | 60,771 | | | | 1,800 | | | | – 0 | – |
International Strategic Equities Portfolio | | | 307,412 | | | | 15,227 | | | | 56,916 | | | | (1,076 | ) | | | 61,180 | | | | 325,827 | | | | 9,743 | | | | – 0 | – |
Small Cap Core Portfolio | | | 25,165 | | | | 3,474 | | | | 2,293 | | | | 100 | | | | 2,318 | | | | 28,764 | | | | 184 | | | | 1,947 | |
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 15 |
NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Distributions | |
| Fund | | Market
Value
8/31/23
(000) | | | Purchases
at Cost
(000) | | | Sales
Proceeds
(000) | | | Realized
Gain
(Loss)
(000) | | | Change in
Unrealized
Appr./
(Depr.)
(000) | | | Market
Value
8/31/24
(000) | | | Dividend
Income
(000) | | | Realized
Gains
(000) | |
Sanford C. Bernstein Fund, Inc.—Emerging Markets Portfolio | | $ | 27,824 | | | $ | 537 | | | $ | – 0 | – | | $ | – 0 | – | | $ | 3,808 | | | $ | 32,169 | | | $ | 537 | | | $ | – 0 | – |
Government Money Market Portfolio* | | | 4,272 | | | | 86,069 | | | | 86,895 | | | | – 0 | – | | | – 0 | – | | | 3,446 | | | | 11 | | | | – 0 | – |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | $ | (3,926 | ) | | $ | 87,409 | | | $ | 523,724 | | | $ | 12,762 | | | $ | 3,957 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| * | Investments of cash collateral for securities lending transactions (see Note E). |
NOTE C
Distribution Plan
The Fund has adopted a Plan for each class of shares of the Fund pursuant to Rule 12b-1 under the 1940 Act. Under the Plan, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .50% 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 shares. The fees are accrued daily and paid monthly. 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 Plan provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. The Fund is not obligated under the Plan to pay any distribution services fee in excess of the amounts set forth above. The purpose of the payments to the Distributor under the Plan is to compensate the Distributor for its distribution services with respect to the sale of the Fund’s shares. Since the Distributor’s compensation is not directly tied to its expenses, the amount of compensation received by it under the Plan during any year may be more or less than its actual expenses. For this reason, the Plan is characterized by the staff of the Securities and Exchange Commission as being of the “compensation” plan.
In the event that the Plan is terminated or not continued, no distribution services fees (other than current amounts accrued but not yet paid) would be owed by the Fund to the Distributor with respect to the relevant class. The Plan also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.
| | |
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16 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
NOTE D
Investment Transactions
Purchases and sales of investment securities (excluding short-term investments) for the year ended August 31, 2024 were as follows:
| | | | | | | | |
| | | Purchases | | | Sales | |
Investment securities (excluding U.S. government securities) | | $ | 136,554,120 | | | $ | 269,199,295 | |
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 | | $ | 850,306,881 | |
| | | | |
Gross unrealized appreciation | | $ | 416,590,018 | |
Gross unrealized depreciation | | | (14,387,481 | ) |
| | | | |
Net unrealized appreciation | | $ | 402,202,537 | |
| | | | |
1. Derivative Financial Instruments
The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.
The Fund did not engage in derivatives transactions for the year ended August 31, 2024.
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).
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 17 |
NOTES TO FINANCIAL STATEMENTS (continued)
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. If the Fund cannot sell or repledge any non-cash collateral, such collateral will not be reflected in the portfolio of investments. If a loan is collateralized by cash, the Fund will be compensated for the loan from a portion of the net return from the income earned on cash collateral after a rebate is paid to the borrower (in some cases, this rebate may be a “negative rebate” or fee paid by the borrower to the Fund in connection with the loan), and payments are made for fees of the securities lending agent and for certain other administrative expenses. If the Fund receives non-cash collateral, the Fund will receive a fee from the borrower generally equal to a negotiated percentage of the market value of the loaned securities. The Fund will have the right to call a loan and obtain the securities loaned at any time on notice to the borrower within the normal and customary settlement time for the securities. While the securities are on loan, the borrower is obligated to pay the Fund amounts equal to any dividend income or other distributions from the securities; however, these distributions will not be afforded the same preferential tax treatment as qualified dividends. The Fund will not be able to exercise voting rights with respect to any securities during the existence of a loan, but will have the right to regain ownership of loaned securities in order to exercise voting or other ownership rights. Collateral received and securities loaned are marked to market daily to ensure that the securities loaned are secured by collateral. The lending agent currently invests the cash collateral received in Government Money Market Portfolio, an eligible money market vehicle, in accordance with the investment restrictions of the Fund, and as approved by the Board. The collateral received on securities loaned is recorded as an asset as well as a corresponding liability in the 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 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
| | |
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18 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
securities upon termination of the loan and that the collateral will not be sufficient to replace the loaned securities. The lending agent has agreed to indemnify the Fund in the case of default of any securities borrower.
A summary of the Fund’s transactions surrounding securities lending for the year ended August 31, 2024 is as follows:
| | | | | | | | | | | | | | | | | | | | | | |
Market
Value of
Securities
on Loan* | | | Cash
Collateral* | | | Market
Value of
Non-Cash
Collateral* | | | Income from
Borrowers | | | Government Money
Market Portfolio | |
| | Income
Earned | | | Advisory Fee
Waived | |
| $ | 5,177,289 | | | $ | 3,446,118 | | | $ | 1,789,272 | | | $ | 16,374 | | | $ | 10,968 | | | $ | 4,476 | |
NOTE F
Shares of Beneficial Interest
Transactions in shares of beneficial interest for each class were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
August 31,
2024 | | | Year Ended
August 31, 2023 | | | | | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | | | | |
| | | | | | | | |
| Class A | | | | | |
Shares sold | | | 221,341 | | | | 254,799 | | | | | | | $ | 4,325,947 | | | $ | 4,322,204 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends and distributions | | | 391,481 | | | | 1,263,868 | | | | | | | | 7,003,593 | | | | 20,398,833 | | | | | |
| | | | | |
Shares converted from Class C | | | 57,401 | | | | 72,309 | | | | | | | | 1,088,459 | | | | 1,199,083 | | | | | |
| | | | | |
Shares redeemed | | | (2,304,648 | ) | | | (1,861,132 | ) | | | | | | | (44,953,464 | ) | | | (31,509,755 | ) | | | | |
| | | | | |
Net decrease | | | (1,634,425 | ) | | | (270,156 | ) | | | | | | $ | (32,535,465 | ) | | $ | (5,589,635 | ) | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class C | | | | | |
Shares sold | | | 23,146 | | | | 19,476 | | | | | | | $ | 485,628 | | | $ | 339,011 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends and distributions | | | 2,205 | | | | 15,257 | | | | | | | | 40,219 | | | | 250,513 | | | | | |
| | | | | |
Shares converted to Class A | | | (56,595 | ) | | | (71,547 | ) | | | | | | | (1,088,459 | ) | | | (1,199,083 | ) | | | | |
| | | | | |
Shares redeemed | | | (20,263 | ) | | | (62,482 | ) | | | | | | | (395,434 | ) | | | (1,083,372 | ) | | | | |
| | | | | |
Net decrease | | | (51,507 | ) | | | (99,296 | ) | | | | | | $ | (958,046 | ) | | $ | (1,692,931 | ) | | | | |
| | | | | |
| | |
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| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 19 |
NOTES TO FINANCIAL STATEMENTS (continued)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Shares | | | | | | Amount | | | | |
| | | Year Ended
August 31,
2024 | | | Year Ended
August 31, 2023 | | | | | | Year Ended
August 31,
2024 | | | Year Ended
August 31,
2023 | | | | |
| | | | | | | | |
| Advisor Class | | | | | |
Shares sold | | | 2,898,644 | | | | 4,073,881 | | | | | | | $ | 56,097,128 | | | $ | 68,222,660 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends and distributions | | | 1,051,789 | | | | 3,115,425 | | | | | | | | 18,721,847 | | | | 50,064,876 | | | | | |
| | | | | |
Shares redeemed | | | (8,143,709 | ) | | | (6,730,919 | ) | | | | | | | (155,955,684 | ) | | | (113,206,539 | ) | | | | |
| | | | | |
Net increase (decrease) | | | (4,193,276 | ) | | | 458,387 | | | | | | | $ | (81,136,709 | ) | | $ | 5,080,997 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class R | | | | | |
Shares sold | | | 9,099 | | | | 21,549 | | | | | | | $ | 176,757 | | | $ | 368,407 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends and distributions | | | 2,159 | | | | 8,040 | | | | | | | | 38,405 | | | | 129,198 | | | | | |
| | | | | |
Shares redeemed | | | (126,614 | ) | | | (27,673 | ) | | | | | | | (2,571,682 | ) | | | (460,641 | ) | | | | |
| | | | | |
Net increase (decrease) | | | (115,356 | ) | | | 1,916 | | | | | | | $ | (2,356,520 | ) | | $ | 36,964 | | | | | |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Class K | | | | | |
Shares sold | | | 17,279 | | | | 27,976 | | | | | | | $ | 327,359 | | | $ | 475,996 | | | | | |
| | | | | |
Shares issued in reinvestment of dividends and distributions | | | 7,619 | | | | 22,144 | | | | | | | | 135,320 | | | | 354,974 | | | | | |
| | | | | |
Shares redeemed | | | (355,570 | ) | | | (32,133 | ) | | | | | | | (7,268,847 | ) | | | (524,988 | ) | | | | |
| | | | | |
Net increase (decrease) | | | (330,672 | ) | | | 17,987 | | | | | | | $ | (6,806,168 | ) | | $ | 305,982 | | | | | |
| | | | | |
NOTE G
Risks Involved in Investing in the Fund
Market Risk—The value of the Fund’s assets will fluctuate as the market or markets in which the Fund invests 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. It includes the risk that a particular style of investing may be underperforming the market generally.
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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| |
20 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
Currency Risk—Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns.
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.
Capitalization Risk—Investments in small- and mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in small- and mid-capitalization companies may have additional risks because these companies have limited product lines, markets, or financial resources.
Investment in Other Investment Companies Risk—As with other investments, investments in other investment companies are subject to market and selection risk. In addition, shareholders of the Fund bear both their proportionate share of expenses in the Fund (including management fees) and, indirectly, the expenses of the investment companies in which the Fund invests (to the extent these expenses are not waived or reimbursed by the Adviser).
Sector Risk—The Fund may have more risk because it may invest to a significant extent in one or more particular market sectors, such as the information technology sector. To the extent it does so, market or economic factors affecting the relevant sector(s) could have a major effect on the value of the Fund’s investments.
LIBOR Replacement Risk—The Fund may be exposed to debt securities, derivatives or other financial instruments that recently transitioned from the London Interbank Offered Rate (“LIBOR”) as a benchmark or reference rate for various interest rate calculations. The use of LIBOR was phased out in June 2023 and transitioned to the Secured Overnight Financing Rate (“SOFR”). SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market. There can be no assurance that instruments linked to SOFR will have the same volume or liquidity as did the market for LIBOR-linked financial instruments prior to LIBOR’s discontinuance or unavailability.
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
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 21 |
NOTES TO FINANCIAL STATEMENTS (continued)
provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.
Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions for the Fund, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.
NOTE 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 statement of operations. The Fund did not utilize the Facility during the year ended August 31, 2024.
NOTE I
Distributions to Shareholders
The tax character of distributions paid during the fiscal years ended August 31, 2024 and August 31, 2023 were as follows:
| | | | | | | | |
| | | 2024 | | | 2023 | |
Distributions paid from: | | | | | | | | |
Ordinary income | | $ | 14,138,189 | | | $ | 16,048,640 | |
Net long-term capital gains | | | 13,670,739 | | | | 60,232,857 | |
| | | | | | | | |
Total taxable distributions | | $ | 27,808,928 | | | $ | 76,281,497 | |
| | | | | | | | |
As of August 31, 2024, the components of accumulated earnings (deficit) on a tax basis were as follows:
| | | | |
Undistributed ordinary income | | $ | 798,397 | |
Undistributed capital gains | | | 43,036,904 | |
Unrealized appreciation (depreciation) | | | 402,347,568 | (a) |
| | | | |
Total accumulated earnings (deficit) | | $ | 446,182,869 | |
| | | | |
| (a) | The differences between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to 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
| | |
| |
22 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
either short-term or long-term capital losses. As of August 31, 2024, the Fund did not have any capital loss carryforwards.
During the current fiscal year, permanent differences primarily due to the utilization of earnings and profits distributed to shareholders on redemption of shares resulted in a net decrease in distributable earnings and a net increase in additional paid-in capital. These reclassifications had no effect on net assets.
NOTE J
Recent Accounting Pronouncements
In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.
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.
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 23 |
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class A | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
Net asset value, beginning of period | | | $ 17.86 | | | | $ 17.09 | | | | $ 22.18 | | | | $ 17.50 | | | | $ 16.11 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .23 | | | | .26 | | | | .29 | | | | .11 | | | | .19 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | 4.22 | | | | 1.71 | | | | (3.57 | ) | | | 5.10 | | | | 1.86 | |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | 4.45 | | | | 1.97 | | | | (3.28 | ) | | | 5.21 | | | | 2.05 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.20 | ) | | | (.23 | ) | | | (.26 | ) | | | (.22 | ) | | | (.20 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | (.22 | ) | | | (.97 | ) | | | (1.55 | ) | | | (.31 | ) | | | (.46 | ) |
| | | | |
Total dividends and distributions | | | (.42 | ) | | | (1.20 | ) | | | (1.81 | ) | | | (.53 | ) | | | (.66 | ) |
| | | | |
Net asset value, end of period | | | $ 21.89 | | | | $ 17.86 | | | | $ 17.09 | | | | $ 22.18 | | | | $ 17.50 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d) | | | 25.46 | % | | | 12.22 | % | | | (16.10 | )% | | | 30.41 | % | | | 12.85 | % |
| | | | | |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $365,971 | | | | $327,880 | | | | $318,353 | | | | $425,623 | | | | $355,496 | |
| | | | | |
Ratio to average net assets of: | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Expenses, net of waivers/reimbursements(e)‡ | | | .67 | % | | | .68 | % | | | .65 | % | | | .64 | % | | | .64 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)‡ | | | .99 | % | | | 1.00 | % | | | .98 | % | | | .99 | % | | | 1.01 | % |
| | | | | |
Net investment income(b) | | | 1.17 | % | | | 1.55 | % | | | 1.46 | % | | | .55 | % | | | 1.20 | % |
| | | | | |
Portfolio turnover rate | | | 12 | % | | | 13 | % | | | 20 | % | | | 15 | % | | | 18 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .33 | % | | | .35 | % | | | .36 | % | | | .38 | % | | | .40 | % |
See footnote summary on page 27.
| | |
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24 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Class C | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, beginning of period | | | $ 18.07 | | | | $ 17.23 | | | | $ 22.24 | | | | $ 17.52 | | | | $ 16.10 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income (loss)(a)(b) | | | .09 | | | | .14 | | | | .14 | | | | (.02 | ) | | | .08 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | 4.28 | | | | 1.72 | | | | (3.60 | ) | | | 5.10 | | | | 1.84 | |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | 4.37 | | | | 1.86 | | | | (3.46 | ) | | | 5.08 | | | | 1.92 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.02 | ) | | | (.05 | ) | | | – 0 | – | | | (.05 | ) | | | (.04 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | (.22 | ) | | | (.97 | ) | | | (1.55 | ) | | | (.31 | ) | | | (.46 | ) |
| | | | |
Total dividends and distributions | | | (.24 | ) | | | (1.02 | ) | | | (1.55 | ) | | | (.36 | ) | | | (.50 | ) |
| | | | |
Net asset value, end of period | | | $ 22.20 | | | | $ 18.07 | | | | $ 17.23 | | | | $ 22.24 | | | | $ 17.52 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d) | | | 24.48 | % | | | 11.35 | % | | | (16.70 | )% | | | 29.39 | % | | | 11.98 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $3,309 | | | | $3,624 | | | | $5,166 | | | | $8,023 | | | | $16,621 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements(e)‡ | | | 1.44 | % | | | 1.44 | % | | | 1.41 | % | | | 1.39 | % | | | 1.39 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)‡ | | | 1.75 | % | | | 1.76 | % | | | 1.74 | % | | | 1.75 | % | | | 1.76 | % |
| | | | | |
Net investment income (loss)(b) | | | .44 | % | | | .85 | % | | | .72 | % | | | (.10 | )% | | | .50 | % |
| | | | | |
Portfolio turnover rate | | | 12 | % | | | 13 | % | | | 20 | % | | | 15 | % | | | 18 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .33 | % | | | .35 | % | | | .36 | % | | | .38 | % | | | .40 | % |
See footnote summary on page 27.
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 25 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period
| | | | | | | | | | | | | | | | | | | | |
| | | Advisor Class | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
| | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net asset value, beginning of period | | | $ 17.81 | | | | $ 17.05 | | | | $ 22.13 | | | | $ 17.46 | | | | $ 16.08 | |
| | | | |
Income From Investment Operations | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net investment income(a)(b) | | | .28 | | | | .30 | | | | .33 | | | | .16 | | | | .23 | |
| | | | | |
Net realized and unrealized gain (loss) on investment transactions | | | 4.20 | | | | 1.70 | | | | (3.55 | ) | | | 5.08 | | | | 1.85 | |
| | | | | |
Contributions from Affiliates | | | – 0 | – | | | – 0 | – | | | – 0 | – | | | .00 | (c) | | | – 0 | – |
| | | | |
Net increase (decrease) in net asset value from operations | | | 4.48 | | | | 2.00 | | | | (3.22 | ) | | | 5.24 | | | | 2.08 | |
| | | | |
Less: Dividends and Distributions | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Dividends from net investment income | | | (.25 | ) | | | (.27 | ) | | | (.31 | ) | | | (.26 | ) | | | (.24 | ) |
| | | | | |
Distributions from net realized gain on investment transactions | | | (.22 | ) | | | (.97 | ) | | | (1.55 | ) | | | (.31 | ) | | | (.46 | ) |
| | | | |
Total dividends and distributions | | | (.47 | ) | | | (1.24 | ) | | | (1.86 | ) | | | (.57 | ) | | | (.70 | ) |
| | | | |
Net asset value, end of period | | | $ 21.82 | | | | $ 17.81 | | | | $ 17.05 | | | | $ 22.13 | | | | $ 17.46 | |
| | | | |
Total Return | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total investment return based on net asset value(d) | | | 25.74 | % | | | 12.50 | % | | | (15.87 | )% | | | 30.73 | % | | | 13.08 | % |
Ratios/Supplemental Data | | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net assets, end of period (000’s omitted) | | | $882,544 | | | | $795,038 | | | | $753,314 | | | | $967,876 | | | | $864,334 | |
|
Ratio to average net assets of: | |
| | | | | |
Expenses, net of waivers/reimbursements(e)‡ | | | .42 | % | | | .43 | % | | | .40 | % | | | .39 | % | | | .39 | % |
| | | | | |
Expenses, before waivers/reimbursements(e)‡ | | | .74 | % | | | .75 | % | | | .73 | % | | | .74 | % | | | .76 | % |
| | | | | |
Net investment income(b) | | | 1.43 | % | | | 1.79 | % | | | 1.69 | % | | | .81 | % | | | 1.44 | % |
| | | | | |
Portfolio turnover rate | | | 12 | % | | | 13 | % | | | 20 | % | | | 15 | % | | | 18 | % |
| | | | | | | | | | | | | | | | | | | | |
| |
‡ Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | |
portfolios | | | .33 | % | | | .35 | % | | | .36 | % | | | .38 | % | | | .40 | % |
See footnote summary on page 27.
| | |
| |
26 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Beneficial Interest 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 August 31, 2024, August 31, 2023, August 31, 2022, August 31, 2021 and August 31, 2020, such waiver amounted to .31%, .32%, .34%, .35% and .37%, respectively. |
See notes to financial statements.
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 27 |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Trustees of
AB Wealth Appreciation Strategy
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of AB Wealth Appreciation Strategy (the “Fund”) (one of the series constituting The AB Portfolios) (the “Company”), including the portfolio of investments, as of August 31, 2024, 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 series constituting The AB Portfolios) at August 31, 2024, 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
| | |
| |
28 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM (continued)
disclosures in the financial statements. Our procedures included confirmation of securities owned as of August 31, 2024, 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
October 28, 2024
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 29 |
2024 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 August 31, 2024. For individual shareholders, the Fund designates 50.28% of dividends paid as qualified dividend income. For corporate shareholders, 41.37% of dividends paid qualify for the dividends received deduction. The Fund designates $13,670,739 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 2025.
| | |
| |
30 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
Information Regarding the Review and Approval of the Fund’s Advisory Agreement
The disinterested trustees (the “directors”) of The AB Portfolios (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Wealth Appreciation Strategy (the “Fund”) at a meeting held by video conference on May 7-9, 2024 (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 of 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 underlying funds advised by the Adviser in which the Fund invests.
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
| | |
| |
| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 31 |
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 2022 and 2023 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
| | |
| |
32 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
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 underlying funds 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 agency 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 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 periods ended February 29, 2024 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 paid by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and noted that it was lower than the median. They also noted that the Adviser’s total rate of compensation, taking into account the impact of the administrative expense reimbursement paid to the Adviser in the latest fiscal year, was lower than the median.
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| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 33 |
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 Advisor Class shares of the Fund in comparison to the medians for 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. 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 lower than the medians and that the Adviser had agreed to reimburse the Fund for the fees and expenses of any AB Funds in which it invests. The expense ratio of the Fund reflected this reimbursement. The directors also reviewed information about the amount of such reimbursement. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.
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34 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
Economies of Scale
The directors noted that the advisory fee schedules 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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| abfunds.com | | AB WEALTH APPRECIATION STRATEGY | 35 |
NOTES
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36 | AB WEALTH APPRECIATION STRATEGY | | abfunds.com |
AB WEALTH APPRECIATION STRATEGY
1345 Avenue of the Americas
New York, NY 10105
800 221 5672
WA-0151_0824 
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
There were no disagreements with accountants during the reporting period.
ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES
AB Tax-Managed Wealth Appreciation Strategy
At a Special Meeting held on July 18, 2024, shareholders of AB Tax-Managed Wealth Appreciation Strategy (the “Fund”), a series of The AB Portfolios, elected Directors in connection with the establishment of a single, unitary board (“Unitary Board”) responsible for overseeing mutual funds, exchange-traded funds and certain closed-end investment companies sponsored and advised by the Adviser. In connection with the establishment of the Unitary Board, Ms. Jacklyn and Messrs. Downey and Turner will retire as Directors effective December 31, 2024, and Mr. Erzan will resign as a Director effective December 31, 2024, but will continue to serve as President and Chief Executive Officer of the AB Funds. Shareholders of the Fund elected four individuals to serve as Directors effective January 1, 2025 (the “Directors-Elect”), who will serve on the Unitary Board with current Directors Mses. Loeb and McMullen and Messrs. Bermudez and Moody. The number of votes cast for, against and withheld, as well as the number of abstentions and broker non-votes with respect to the election of each nominee for office is included below.
| | | | | | | | | | | | | | | | |
Director: | | Voted For | | | Withheld
Authority | | | Abstained | | | Broker Non-Votes | |
Jorge A. Bermudez | | | 67,297,101.398 | | | | 2,545,582.944 | | | | 0 | | | | N/A | |
Alexander Chaloff | | | 67,430,634.054 | | | | 2,412,050.288 | | | | 0 | | | | N/A | |
R. Jay Gerken | | | 67,330,406.034 | | | | 2,512,278.308 | | | | 0 | | | | N/A | |
Jeffrey R. Holland | | | 67,505,929.816 | | | | 2,336,754.526 | | | | 0 | | | | N/A | |
Jeanette W. Loeb | | | 67,278,419.188 | | | | 2,564,265.154 | | | | 0 | | | | N/A | |
Carol C. McMullen | | | 67,651,915.907 | | | | 2,190,768.435 | | | | 0 | | | | N/A | |
Garry L. Moody | | | 67,205,167.773 | | | | 2,637,516.569 | | | | 0 | | | | N/A | |
Emilie D. Wrapp | | | 67,348,024.378 | | | | 2,494,659.964 | | | | 0 | | | | N/A | |
AB Wealth Appreciation Strategy
At a Special Meeting held on July 18, 2024, shareholders of AB Wealth Appreciation Strategy (the “Fund”), a series of The AB Portfolios, elected Directors in connection with the establishment of a single, unitary board (“Unitary Board”) responsible for overseeing mutual funds, exchange-traded funds and certain closed-end investment companies sponsored and advised by the Adviser. In connection with the establishment of the Unitary Board, Ms. Jacklyn and Messrs. Downey and Turner will retire as Directors effective December 31, 2024, and Mr. Erzan will resign as a Director effective December 31, 2024, but will continue to serve as President and Chief Executive Officer of the AB Funds. Shareholders of the Fund elected four individuals to serve as Directors effective January 1, 2025 (the “Directors-Elect”), who will serve on the Unitary Board with current Directors Mses. Loeb and McMullen and Messrs. Bermudez and Moody. The number of votes cast for, against and withheld, as well as the number of abstentions and broker non-votes with respect to the election of each nominee for office is included below.
| | | | | | | | | | | | | | | | |
Director: | | Voted For | | | Withheld
Authority | | | Abstained | | | Broker Non-Votes | |
Jorge A. Bermudez | | | 67,297,101.398 | | | | 2,545,582.944 | | | | 0 | | | | N/A | |
Alexander Chaloff | | | 67,430,634.054 | | | | 2,412,050.288 | | | | 0 | | | | N/A | |
R. Jay Gerken | | | 67,330,406.034 | | | | 2,512,278.308 | | | | 0 | | | | N/A | |
Jeffrey R. Holland | | | 67,505,929.816 | | | | 2,336,754.526 | | | | 0 | | | | N/A | |
Jeanette W. Loeb | | | 67,278,419.188 | | | | 2,564,265.154 | | | | 0 | | | | N/A | |
Carol C. McMullen | | | 67,651,915.907 | | | | 2,190,768.435 | | | | 0 | | | | N/A | |
Garry L. Moody | | | 67,205,167.773 | | | | 2,637,516.569 | | | | 0 | | | | N/A | |
Emilie D. Wrapp | | | 67,348,024.378 | | | | 2,494,659.964 | | | | 0 | | | | N/A | |
AB All Market Total Return Portfolio
At a Special Meeting held on July 18, 2024, shareholders of AB All Market Total Return Portfolio (the “Fund”), a series of The AB Portfolios, elected Directors in connection with the establishment of a single, unitary board (“Unitary Board”) responsible for overseeing mutual funds, exchange-traded funds and certain closed-end investment companies sponsored and advised by the Adviser. In connection with the establishment of the Unitary Board, Ms. Jacklyn and Messrs. Downey and Turner will retire as Directors effective December 31, 2024, and Mr. Erzan will resign as a Director effective December 31, 2024, but will continue to serve as President and Chief Executive Officer of the AB Funds. Shareholders of the Fund elected four individuals to serve as Directors effective January 1, 2025 (the “Directors-Elect”), who will serve on the Unitary Board with current Directors Mses. Loeb and McMullen and Messrs. Bermudez and Moody. The number of votes cast for, against and withheld, as well as the number of abstentions and broker non-votes with respect to the election of each nominee for office is included below.
| | | | | | | | | | | | | | | | |
Director: | | Voted For | | | Withheld
Authority | | | Abstained | | | Broker Non-Votes | |
Jorge A. Bermudez | | | 67,297,101.398 | | | | 2,545,582.944 | | | | 0 | | | | N/A | |
Alexander Chaloff | | | 67,430,634.054 | | | | 2,412,050.288 | | | | 0 | | | | N/A | |
R. Jay Gerken | | | 67,330,406.034 | | | | 2,512,278.308 | | | | 0 | | | | N/A | |
Jeffrey R. Holland | | | 67,505,929.816 | | | | 2,336,754.526 | | | | 0 | | | | N/A | |
Jeanette W. Loeb | | | 67,278,419.188 | | | | 2,564,265.154 | | | | 0 | | | | N/A | |
Carol C. McMullen | | | 67,651,915.907 | | | | 2,190,768.435 | | | | 0 | | | | N/A | |
Garry L. Moody | | | 67,205,167.773 | | | | 2,637,516.569 | | | | 0 | | | | N/A | |
Emilie D. Wrapp | | | 67,348,024.378 | | | | 2,494,659.964 | | | | 0 | | | | N/A | |
AB Sustainable Thematic Balanced Portfolio
At a Special Meeting held on July 18, 2024, shareholders of AB Sustainable Thematic Balanced Portfolio (the “Fund”), a series of The AB Portfolios, elected Directors in connection with the establishment of a single, unitary board (“Unitary Board”) responsible for overseeing mutual funds, exchange-traded funds and certain closed-end investment companies sponsored and advised by the Adviser. In connection with the establishment of the Unitary Board, Ms. Jacklyn and Messrs. Downey and Turner will retire as Directors effective December 31, 2024, and Mr. Erzan will resign as a Director effective December 31, 2024, but will continue to serve as President and Chief Executive Officer of the AB Funds. Shareholders of the Fund elected four individuals to serve as Directors effective January 1, 2025 (the “Directors-Elect”), who will serve on the Unitary Board with current Directors Mses. Loeb and McMullen and Messrs. Bermudez and Moody. The number of votes cast for, against and withheld, as well as the number of abstentions and broker non-votes with respect to the election of each nominee for office is included below.
| | | | | | | | | | | | | | | | |
Director: | | Voted For | | | Withheld
Authority | | | Abstained | | | Broker Non-Votes | |
Jorge A. Bermudez | | | 67,297,101.398 | | | | 2,545,582.944 | | | | 0 | | | | N/A | |
Alexander Chaloff | | | 67,430,634.054 | | | | 2,412,050.288 | | | | 0 | | | | N/A | |
R. Jay Gerken | | | 67,330,406.034 | | | | 2,512,278.308 | | | | 0 | | | | N/A | |
Jeffrey R. Holland | | | 67,505,929.816 | | | | 2,336,754.526 | | | | 0 | | | | N/A | |
Jeanette W. Loeb | | | 67,278,419.188 | | | | 2,564,265.154 | | | | 0 | | | | N/A | |
Carol C. McMullen | | | 67,651,915.907 | | | | 2,190,768.435 | | | | 0 | | | | N/A | |
Garry L. Moody | | | 67,205,167.773 | | | | 2,637,516.569 | | | | 0 | | | | N/A | |
Emilie D. Wrapp | | | 67,348,024.378 | | | | 2,494,659.964 | | | | 0 | | | | N/A | |
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Aggregate remuneration paid to all Directors and advisory board members are included within the Financial Statements under Item 7 of this Form N-CSR.
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.
Statement regarding basis for Approval of Investment Advisory Contract included within the Financial Statements under Item 7 of this Form N-CSR.
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY OF AND AFFILIDATED PURCHASERS.
Not applicable to the registrant.
ITEM 15. 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 16. CONTROLS AND PROCEDURES.
(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
(b) There were no changes in the registrant’s internal controls over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to the registrant.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
Not applicable to the registrant
ITEM 19. EXHIBITS.
The following exhibits are attached to this Form N-CSR:
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): The AB Portfolios
| | |
| By: | | /s/ Onur Erzan |
| | Onur Erzan |
| | President |
| |
| Date: | | October 30, 2024 |
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: | | October 30, 2024 |
| |
| By: | | /s/ Stephen M. Woetzel |
| | Stephen M. Woetzel |
| | Treasurer and Chief Financial Officer |
| |
| Date: | | October 30, 2024 |
