0000003794 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:RetailAndRetirementSharesMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000082624Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000082625Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000082626Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:InstitutionalSharesMember abbfi1:C000085439Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:InstitutionalSharesMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:PcSharesMember abbfi1:C000085499Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:InstitutionalSharesMember rr:AfterTaxesOnDistributionsMember abbfi1:C000085439Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:InstitutionalSharesMember rr:AfterTaxesOnDistributionsAndSalesMember abbfi1:C000085439Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:PcSharesMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:InstitutionalSharesMember abbfi1:BarclaysCapitalTipsOneToTenYearIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:InstitutionalSharesMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:InstitutionalSharesMember abbfi1:C000085438Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:RetailAndRetirementSharesMember rr:AfterTaxesOnDistributionsMember abbfi1:C000082624Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:RetailAndRetirementSharesMember rr:AfterTaxesOnDistributionsAndSalesMember abbfi1:C000082624Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:RetailAndRetirementSharesMember abbfi1:BarclaysCapitalTipsOneToTenYearIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:InstitutionalSharesMember abbfi1:C000085500Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:InstitutionalSharesMember rr:AfterTaxesOnDistributionsMember abbfi1:C000085438Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:InstitutionalSharesMember rr:AfterTaxesOnDistributionsAndSalesMember abbfi1:C000085438Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:InstitutionalSharesMember abbfi1:BarclaysCapitalTipsOneToTenYearIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:RetailAndRetirementSharesMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:RetailAndRetirementSharesMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:PcSharesMember abbfi1:C000085360Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:PcSharesMember abbfi1:C000085500Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:PcSharesMember rr:AfterTaxesOnDistributionsMember abbfi1:C000085499Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:PcSharesMember rr:AfterTaxesOnDistributionsAndSalesMember abbfi1:C000085499Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:PcSharesMember abbfi1:MsciAllProducersIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:PcSharesMember abbfi1:DowJonesUbsCommodityIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:PcSharesMember abbfi1:BarclaysTenYearUsTipsIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:InstitutionalSharesMember rr:AfterTaxesOnDistributionsMember abbfi1:C000085500Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:InstitutionalSharesMember rr:AfterTaxesOnDistributionsAndSalesMember abbfi1:C000085500Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:InstitutionalSharesMember abbfi1:MsciAllProducersIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:InstitutionalSharesMember abbfi1:DowJonesUbsCommodityIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:InstitutionalSharesMember abbfi1:BarclaysTenYearUsTipsIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000085496Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000085497Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000085498Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000085501Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000085502Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000085503Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:PcSharesMember rr:AfterTaxesOnDistributionsMember abbfi1:C000085360Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:PcSharesMember rr:AfterTaxesOnDistributionsAndSalesMember abbfi1:C000085360Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:PcSharesMember abbfi1:BarclaysCapitalTipsOneToTenYearIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:InstitutionalSharesMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:RetailAndRetirementSharesMember rr:AfterTaxesOnDistributionsMember abbfi1:C000082621Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:RetailAndRetirementSharesMember rr:AfterTaxesOnDistributionsAndSalesMember abbfi1:C000082621Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000082622Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000082623Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000085435Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000085436Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000085437Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:RetailAndRetirementSharesMember abbfi1:BarclaysCapitalTipsOneToTenYearIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:RetailAndRetirementSharesMember abbfi1:C000082621Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:RetailAndRetirementSharesMember rr:AfterTaxesOnDistributionsMember abbfi1:C000085496Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:RetailAndRetirementSharesMember rr:AfterTaxesOnDistributionsAndSalesMember abbfi1:C000085496Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:RetailAndRetirementSharesMember abbfi1:MsciAllProducersIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:RetailAndRetirementSharesMember abbfi1:DowJonesUbsCommodityIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000028085Member abbfi1:RetailAndRetirementSharesMember abbfi1:BarclaysTenYearUsTipsIndexMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:PcSharesMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000027379Member abbfi1:PcSharesMember 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:PcSharesMember abbfi1:C000085359Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:PcSharesMember abbfi1:C000085500Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:PcSharesMember rr:AfterTaxesOnDistributionsMember abbfi1:C000085359Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:PcSharesMember rr:AfterTaxesOnDistributionsAndSalesMember abbfi1:C000085359Member 2012-02-01 2013-01-31 0000003794 abbfi1:S000027378Member abbfi1:PcSharesMember abbfi1:BarclaysCapitalTipsOneToTenYearIndexMember 2012-02-01 2013-01-31 pure iso4217:USD 2013-01-31 485BPOS ALLIANCEBERNSTEIN BOND FUND INC 0000003794 false 2013-01-31 2013-01-31 2012-10-31 ALLIANCEBERNSTEIN MUNICIPAL BOND INFLATION STRATEGY INVESTMENT OBJECTIVE The Strategy&#8217;s investment objective is to maximize real after-tax return for investors subject to federal income taxes, without undue risk to principal. FEES AND EXPENSES OF THE STRATEGY This table describes the fees and expenses that you may pay if you buy and hold shares of the Strategy. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AllianceBernstein Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the Strategies--Sales Charge Reduction Programs for Class A Shares on page 31 of this Prospectus and in Purchase of Shares--Sales Charge Reduction Programs for Class A Shares on page 98 of the Strategies&#8217; SAI. SHAREHOLDER FEES (fees paid directly from your investment) ANNUAL STRATEGY OPERATING EXPENSES (expenses that you pay each year as a <br/>percentage of the value of your investment) PORTFOLIO TURNOVER The Strategy pays transaction costs, such as commissions, when it buys or sells securities (or &#8220;turns over&#8221; its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Strategy shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Strategy Operating Expenses or in the Examples, affect the Strategy&#8217;s performance. During the most recent fiscal year, the Strategy&#8217;s portfolio turnover rate was 10% of the average value of its portfolio. EXAMPLES PRINCIPAL STRATEGIES The Strategy seeks real after-tax return for investors subject to federal income taxes. Real return is the rate of return after adjusting for inflation. The Strategy pursues its objective by investing principally in high-quality, predominantly investment grade, municipal securities that pay interest exempt from federal taxation. As a fundamental policy, the Strategy will invest at least 80% of its net assets in municipal securities. These securities may be subject to the federal alternative minimum tax (&#8220;AMT&#8221;) for some taxpayers. <br/><br/> The Strategy will invest at least 80% of its total assets in fixed-income securities rated A or better or the equivalent by one or more national rating agencies or deemed to be of comparable credit quality by the Adviser. In deciding whether to take direct or indirect exposure, the Strategy may invest up to 20% of its total assets in fixed-income securities rated BB or B or the equivalent by one or more national rating agencies (or deemed to be of comparable credit quality by the Adviser), which are not investment grade (&#8220;junk bonds&#8221;). If the rating of a fixed-income security falls below investment grade, the Strategy will not be obligated to sell the security and may continue to hold it if, in the Adviser&#8217;s opinion, the investment is appropriate under the circumstances.<br/><br/>The Adviser selects securities for purchase or sale based on its assessment of the securities&#8217; risk and return characteristics as well as the securities&#8217; impact on the overall risk and return characteristics of the Strategy. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Strategy&#8217;s other holdings. The Strategy may invest in fixed-income securities with any maturity and duration.<br/><br/>To provide inflation protection, the Strategy will typically enter into inflation swap agreements. The Strategy may use other inflation-protected instruments. Payments to the Strategy pursuant to swaps will result in taxable income, either ordinary income or capital gains, rather than income exempt from federal income taxation. It is expected that the Strategy&#8217;s primary use of derivatives will be for the purpose of inflation protection.<br/><br/>The Strategy may also invest in:<ul type="square"><li style="margin-left:-20px">forward commitments; </li></ul><ul type="square"><li style="margin-left:-20px">zero-coupon municipal securities and variable, floating and inverse floating rate municipal securities; </li></ul><ul type="square"><li style="margin-left:-20px">certain types of mortgage-related securities; and </li></ul><ul type="square"><li style="margin-left:-20px">derivatives, such as options, futures, forwards and swaps.</li></ul>The Strategy may utilize leverage for investment purposes through the use of tender option bond transactions (&#8220;TOBs&#8221;). The Adviser will consider the impact of TOBs, swaps and other derivatives in making its assessments of the Strategy&#8217;s risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser. PRINCIPAL RISKS <ul type="square"><li style="margin-left:-20px">MARKET RISK: The value of the Strategy&#8217;s assets will fluctuate as the bond market fluctuates. The value of the Strategy&#8217;s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.</li></ul><ul type="square"><li style="margin-left:-20px">CREDIT RISK: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.</li></ul><ul type="square"><li style="margin-left:-20px">MUNICIPAL MARKET RISK: This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Strategy&#8217;s investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Strategy invests more of its assets in a particular state&#8217;s municipal securities, the Strategy is vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters. The Strategy&#8217;s investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project&#8217;s ability to make payments of principal and interest on these securities.</li></ul><ul type="square"><li style="margin-left:-20px">INTEREST RATE RISK: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of 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.</li></ul><ul type="square"><li style="margin-left:-20px">DURATION RISK: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. For example, a fixed-income security with a duration of three years will decrease in value by approximately 3% if interest rates increase by 1%.</li></ul> <ul type="square"><li style="margin-left:-20px">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 Strategy&#8217;s assets can decline as can the value of the Strategy&#8217;s distributions. This risk is significantly greater for fixed-income securities with longer maturities.</li></ul><ul type="square"><li style="margin-left:-20px">DERIVATIVES RISK: Investments in derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Strategy, and may be subject to counterparty risk to a greater degree than more traditional investments.</li></ul><ul type="square"><li style="margin-left:-20px">LEVERAGE RISK: To the extent the Strategy uses leveraging techniques, such as TOBs, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Strategy&#8217;s investments.</li></ul><ul type="square"><li style="margin-left:-20px">LIQUIDITY RISK: Liquidity risk exists when particular investments are difficult to purchase or sell, possibly preventing the Strategy from selling out of these illiquid securities at an advantageous price. Derivatives and securities involving substantial market and credit risk tend to involve greater liquidity risk. The Strategy is subject to liquidity risk because the market for municipal securities is generally smaller than many other markets.</li></ul><ul type="square"><li style="margin-left:-20px">MANAGEMENT RISK: The Strategy is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.</li></ul>As with all investments, you may lose money by investing in the Strategy. BAR CHART AND PERFORMANCE INFORMATION BAR CHART Calendar Year End (%)<br/><br/>During the period shown in the bar chart, the Strategy's:<br/><br/> BEST QUARTER WAS UP 2.52%, 2ND QUARTER, 2011; AND WORST QUARTER WAS UP 0.02%, 2ND QUARTER, 2012. PERFORMANCE TABLE<br/>AVERAGE ANNUAL TOTAL RETURNS<br/><br/>(For the periods ended December 31, 2012) The annual returns in the bar chart are for the Strategy&#8217;s Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown. The bar chart and performance information provide an indication of the historical risk of an investment in the Strategy by showing: <ul type="square"><li style="margin-left:-20px">how the Strategy's performance changed from year to year over the life of the Strategy; and </li></ul><ul type="square"><li style="margin-left:-20px">how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index. </li></ul>You may obtain updated performance information on the Strategy's website at www.AllianceBernstein.com (click on "Individuals--U.S." then "Products &amp; Performance").<br/><br/> The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. The Examples are intended to help you compare the cost of investing in the Strategy with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Strategy for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Strategy&#8217;s operating expenses stay the same and that the fee waiver is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0.03 0 0 0 0.01 0 0 0 0 January 31, 2014 0.1 You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AllianceBernstein Mutual Funds. 100000 As with all investments, you may lose money by investing in the Strategy. www.AllianceBernstein.com The Strategy&#8217;s past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. The annual returns in the bar chart are for the Strategy&#8217;s Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown. Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns: -Are shown for Class A shares only and will vary for Class C and Advisor Class shares because these Classes have different expense ratios 0 ALLIANCEBERNSTEIN REAL ASSET STRATEGY INVESTMENT OBJECTIVE The Strategy's investment objective is to maximize real return over inflation. FEES AND EXPENSES OF THE STRATEGY This table describes the fees and expenses that you may pay if you buy and hold shares of the Strategy. SHAREHOLDER FEES (fees paid directly from your investment) ANNUAL STRATEGY OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) 379 143 51 EXAMPLES 579 560 243 796 0 994 450 0 1418 2199 1049 The Examples are intended to help you compare the cost of investing in the Strategy with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Strategy for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Strategy's operating expenses stay the same and that the fee waiver is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be: PORTFOLIO TURNOVER The Strategy pays transaction costs, such as commissions, when it buys or sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Strategy shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Strategy Operating Expenses or in the Examples, affect the Strategy's performance. During the most recent fiscal year, the Strategy's portfolio turnover rate was 118% of the average value of its portfolio. PRINCIPAL STRATEGIES The Strategy seeks to maximize real return. Real return is the rate of return after adjusting for inflation.<br/><br/> The Strategy pursues an aggressive investment strategy involving a variety of asset classes. The Strategy invests primarily in instruments that the Adviser expects to outperform broad equity indices during periods of rising inflation. Under normal circumstances, the Strategy expects to invest its assets principally in the following instruments that, in the judgment of the Adviser, are affected directly or indirectly by the level and change in rate of inflation: inflation-protected fixed-income securities, such as TIPS and similar bonds issued by governments outside of the United States, commodities, equity securities, such as commodity-related stocks, real estate securities, utility securities, infrastructure-related securities, securities and derivatives linked to the price of other assets (such as commodities, stock indices and real estate) and currencies. The Strategy expects its investments in fixed-income securities to have a broad range of maturities and quality levels.<br/><br/> The Strategy will seek inflation protection from investments around the globe, both in developed and emerging market countries. In selecting securities for purchase and sale, the Adviser will utilize its qualitative and quantitative resources to determine overall inflation sensitivity, asset allocation, and security selection. The Adviser assesses the securities' risks and inflation sensitivity as well as the securities' impact on the overall risks and inflation sensitivity of the Strategy. When its analysis indicates that changes are necessary, the Adviser intends to implement them through a combination of changes to underlying positions and the use of inflation swaps and other types of derivatives, such as interest rate swaps.<br/><br/> The Strategy anticipates that its investments, other than its investments in inflation-protected securities, will focus roughly equally on commodity-related equity securities, commodities and commodity derivatives, and real estate equity securities to provide a balance between expected return and inflation protection. Its commodities investments will include significant exposure to energy commodities, but will also include agricultural products, and industrial and precious metals, such as gold. The Strategy's investments in real estate equity securities will include real estate investment trusts ("REITs"), other real estate-related securities, and infrastructure-related securities.<br/><br/> The Strategy will invest in both U.S. and non-U.S. Dollar-denominated equity or fixed-income securities. The Strategy may invest in currencies for hedging or for investment purposes, both in the spot market and through long or short positions in currency-related derivatives. The Strategy does not ordinarily expect to hedge its foreign currency exposure because it will be balanced by investments in U.S. Dollar-denominated securities, although it may hedge the exposure under certain circumstances.<br/><br/> The Strategy may invest significantly to the extent permitted by applicable law in derivatives, such as options, futures, forwards, swaps or structured notes. The Strategy intends to use leverage for investment purposes through the use of cash made available by derivatives transactions to make other investments in accordance with its investment policies. In determining when and to what extent to employ leverage or enter into derivatives transactions, the Adviser will consider factors such as the relative risks and returns expected of potential investments and the cost of such transactions. The Adviser will consider the impact of derivatives in making its assessments of the Strategy's risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.<br/><br/> The Strategy may seek to gain exposure to physical commodities traded in the commodities markets through investments in a variety of derivative instruments, including investments in commodity index-linked notes. The Adviser expects that the Strategy will seek to gain exposure to commodities and commodities-related instruments and derivatives primarily through investments in AllianceBernstein Cayman Inflation Strategy, Ltd., a wholly-owned subsidiary of the Strategy organized under the laws of the Cayman Islands (the "Subsidiary"). The Subsidiary is advised by the Adviser and has the same investment objective and substantially similar investment policies and restrictions as the Strategy except that the Subsidiary, unlike the Strategy, may invest, without limitation, in commodities and commodities-related instruments. The Strategy will be subject to the risks associated with the commodities, derivatives and other instruments in which the Subsidiary invests, to the extent of its investment in the Subsidiary. The Strategy limits its investment in the Subsidiary to no more than 25% of its net assets. Investment in the Subsidiary is expected to provide the Strategy with commodity exposure within the limitations of federal tax requirements that apply to the Strategy.<br/><br/> The Strategy is "non-diversified", which means that it may concentrate its assets in a smaller number of issuers than a diversified fund. 0.005 0 PRINCIPAL RISKS 0.0001 0.0014 0.0064 -0.0014 0.005 51 191 343 785 0 0.0724 0.0527 0 0 0.0075 0.0025 0.0527 0.0523 0.0401 ALLIANCEBERNSTEIN REAL ASSET STRATEGY 0.0504 INVESTMENT OBJECTIVE 0.005 0.005 0.005 0.0443 0.0431 0.0394 0.0603 0.0003 0.003 0.01 0 0.0002 0.0002 0.0002 0.0013 0.0013 0.0013 0.0015 0.0015 0.0015 2010-01-26 2010-01-26 0.0095 2010-01-26 2010-01-26 0.0165 0.0065 -0.0015 -0.0015 -0.0015 0.0021 0.008 0.015 0.0121 0.005 -0.0021 ALLIANCEBERNSTEIN MUNICIPAL BOND INFLATION STRATEGY INVESTMENT OBJECTIVE 0.01 <ul type="square"><li style="margin-left:-20px">MARKET RISK: The value of the Strategy's assets will fluctuate as the stock, commodity and bond markets fluctuate. The value of the Strategy's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.</li></ul> <ul type="square"><li style="margin-left:-20px">CREDIT RISK: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.</li></ul> <ul type="square"><li style="margin-left:-20px">INTEREST RATE RISK: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of 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.</li></ul> <ul type="square"><li style="margin-left:-20px">COMMODITY RISK: Investing in commodities and commodity-linked derivative instruments, either directly or through the Subsidiary, may subject the Strategy to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.</li></ul> <ul type="square"><li style="margin-left:-20px">DERIVATIVES RISK: Investments in derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Strategy, and may be subject to counterparty risk to a greater degree than more traditional investments.</li></ul> <ul type="square"><li style="margin-left:-20px">LEVERAGE RISK: To the extent the Strategy uses leveraging techniques, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Strategy's investments.</li></ul> <ul type="square"><li style="margin-left:-20px">LIQUIDITY RISK: Liquidity risk exists when particular investments are difficult to purchase or sell, possibly preventing the Strategy from selling out of these illiquid securities at an advantageous price. The Strategy invests in derivatives and securities involving substantial market and credit risk, which tend to involve greater liquidity risk.</li></ul> <ul type="square"><li style="margin-left:-20px">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 less liquid due to adverse market, economic, political, regulatory or other factors.</li></ul> <ul type="square"><li style="margin-left:-20px">CURRENCY RISK: Fluctuations in currency exchange rates may negatively affect the value of the Strategy's investments or reduce its returns.</li></ul> <ul type="square"><li style="margin-left:-20px">SUBSIDIARY RISK: By investing in the Subsidiary, the Strategy is indirectly exposed to the risks associated with the Subsidiary's investments. The derivatives and other investments held by the Subsidiary are generally similar to those that are permitted to be held by the Strategy and are subject to the same risks that apply to similar investments if held directly by the Strategy. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (the "1940 Act"), and, unless otherwise noted in this Prospectus, is not subject to all of the investor protections of the 1940 Act. However, the Strategy wholly owns and controls the Subsidiary, and the Strategy and the Subsidiary are managed by the Adviser, making it unlikely the Subsidiary will take actions contrary to the interests of the Strategy or its shareholders.</li></ul><ul type="square"><li style="margin-left:-20px">REAL ESTATE RISK: The Strategy's investments in real estate securities have many of the same risks as direct ownership of real estate, including the risk that the value of real estate could decline due to a variety of factors that affect the real estate market generally. Investments in REITs may have additional risks. REITs are dependent on the capability of their managers, may have limited diversification, and could be significantly affected by changes in taxes.</li></ul> <ul type="square"><li style="margin-left:-20px">DIVERSIFICATION RISK: The Strategy may have more risk because it is "non-diversified", meaning that it can invest more of its assets in a smaller number of issuers and that adverse changes in the value of one security could have a more significant effect on the Strategy's NAV.</li></ul> <ul type="square"><li style="margin-left:-20px">MANAGEMENT RISK: The Strategy is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.</li></ul> As with all investments, you may lose money by investing in the Strategy. FEES AND EXPENSES OF THE STRATEGY SHAREHOLDER FEES (fees paid directly from your investment) 0 0 EXAMPLES PORTFOLIO TURNOVER <br /><br /> PRINCIPAL STRATEGIES PRINCIPAL RISKS 0.0693 0.0495 BAR CHART AND PERFORMANCE INFORMATION 0.005 0 0.0001 0.0006 0.0029 0.0036 0.0086 102 363 645 -0.0035 0.0051 1447 53 240 BAR CHART AND PERFORMANCE INFORMATION BAR CHART 443 1029 0.0182 0.0176 0.0325 0.0536 0.0162 0.0504 0.0306 0.0273 0.0295 0.0343 0.0603 0 0.0446 0 0 2010-01-26 2010-01-26 2010-01-26 2010-01-26 2010-01-26 -0.0864 0.0808 0.0675 0.0075 0 0.0003 The Strategy's investment objective is to maximize real after-tax return for investors subject to federal income taxes, without undue risk to principal. ANNUAL STRATEGY OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) 0.0931 0.0021 PERFORMANCE TABLE <br/>AVERAGE ANNUAL TOTAL RETURNS<br /><br />(For the period ended December 31, 2012) This table describes the fees and expenses that you may pay if you buy and hold shares of the Strategy. The Strategy pays transaction costs, such as commissions, when it buys or sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Strategy shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Strategy Operating Expenses or in the Examples, affect the Strategy's performance. During the most recent fiscal year, the Strategy's portfolio turnover rate was 10% of the average value of its portfolio. The Examples are intended to help you compare the cost of investing in the Strategy with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Strategy for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Strategy's operating expenses stay the same and that the fee waiver is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be: 0.0675 0.0611 0.0438 0.0504 0.0666 0.0583 0.0521 0.0603 0.0096 INVESTMENT OBJECTIVE -0.0021 FEES AND EXPENSES OF THE STRATEGY SHAREHOLDER FEES (fees paid directly from your investment) EXAMPLES PORTFOLIO TURNOVER PRINCIPAL RISKS 0.0075 BAR CHART AND PERFORMANCE INFORMATION 2010-01-26 2010-01-26 2010-01-26 2010-01-26 77 285 510 1159 ALLIANCEBERNSTEIN REAL ASSET STRATEGY INVESTMENT OBJECTIVE The Strategy's investment objective is to maximize real return over inflation. FEES AND EXPENSES OF THE STRATEGY <br /><br /> EXAMPLES PORTFOLIO TURNOVER PRINCIPAL STRATEGIES PRINCIPAL RISKS This table describes the fees and expenses that you may pay if you buy and hold shares of the Strategy. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AllianceBernstein Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the Strategies--Sales Charge Reduction Programs for Class A Shares on page 31 of this Prospectus and in Purchase of Shares--Sales Charge Reduction Programs for Class A Shares on page 98 of the Strategies' SAI. SHAREHOLDER FEES (fees paid directly from your investment) ANNUAL STRATEGY OPERATING EXPENSES (expenses that you pay each year as a<br /> percentage of the value of your investment) The Strategy pays transaction costs, such as commissions, when it buys or sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Strategy shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Strategy Operating Expenses or in the Examples, affect the Strategy's performance. During the most recent fiscal year, the Strategy's portfolio turnover rate was 118% of the average value of its portfolio. The Examples are intended to help you compare the cost of investing in the Strategy with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Strategy for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Strategy's operating expenses stay the same and that the fee waiver is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleExpenseExampleAllianceBernsteinRealAssetStrategyClass2Shares column period compact * ~</div> <ul type="square"><li><blockquote>MARKET RISK: The value of the Strategy's assets will fluctuate as the stock, commodity and bond markets fluctuate. The value of the Strategy's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.</blockquote></li></ul> <ul type="square"><li><blockquote>CREDIT RISK: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.</blockquote></li></ul> <ul type="square"><li><blockquote>INTEREST RATE RISK: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of 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.</blockquote></li></ul> <ul type="square"><li><blockquote>COMMODITY RISK: Investing in commodities and commodity-linked derivative instruments, either directly or through the Subsidiary, may subject the Strategy to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.</blockquote></li></ul> <ul type="square"><li><blockquote>DERIVATIVES RISK: Investments in derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Strategy, and may be subject to counterparty risk to a greater degree than more traditional investments.</blockquote></li></ul> <ul type="square"><li><blockquote>LEVERAGE RISK: To the extent the Strategy uses leveraging techniques, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Strategy's investments.</blockquote></li></ul> <ul type="square"><li><blockquote>LIQUIDITY RISK: Liquidity risk exists when particular investments are difficult to purchase or sell, possibly preventing the Strategy from selling out of these illiquid securities at an advantageous price. The Strategy invests in derivatives and securities involving substantial market and credit risk, which tend to involve greater liquidity risk.</blockquote></li></ul> <ul type="square"><li><blockquote>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 less liquid due to adverse market, economic, political, regulatory or other factors.</blockquote></li></ul> <ul type="square"><li><blockquote>CURRENCY RISK: Fluctuations in currency exchange rates may negatively affect the value of the Strategy's investments or reduce its returns.</blockquote></li></ul> <ul type="square"><li><blockquote>SUBSIDIARY RISK: By investing in the Subsidiary, the Strategy is indirectly exposed to the risks associated with the Subsidiary's investments. The derivatives and other investments held by the Subsidiary are generally similar to those that are permitted to be held by the Strategy and are subject to the same risks that apply to similar investments if held directly by the Strategy. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (the "1940 Act"), and, unless otherwise noted in this Prospectus, is not subject to all of the investor protections of the 1940 Act. However, the Strategy wholly owns and controls the Subsidiary, and the Strategy and the Subsidiary are managed by the Adviser, making it unlikely the Subsidiary will take actions contrary to the interests of the Strategy or its shareholders.</blockquote></li></ul> <ul type="square"><li><blockquote>REAL ESTATE RISK: The Strategy's investments in real estate securities have many of the same risks as direct ownership of real estate, including the risk that the value of real estate could decline due to a variety of factors that affect the real estate market generally. Investments in REITs may have additional risks. REITs are dependent on the capability of their managers, may have limited diversification, and could be significantly affected by changes in taxes.</blockquote></li></ul> <ul type="square"><li><blockquote>DIVERSIFICATION RISK: The Strategy may have more risk because it is "non-diversified", meaning that it can invest more of its assets in a smaller number of issuers and that adverse changes in the value of one security could have a more significant effect on the Strategy's NAV.</blockquote></li></ul> <ul type="square"><li><blockquote>MANAGEMENT RISK: The Strategy is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.</blockquote></li></ul> As with all investments, you may lose money by investing in the Strategy. January 31, 2014 0.1 As with all investments, you may lose money by investing in the Strategy. www.AllianceBernstein.com The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. BEST QUARTER 2011-06-30 0.0249 WORST QUARTER 2012-06-30 0.0009 <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleShareholderFeesAllianceBernsteinRealAssetStrategyClass2Shares column period compact * ~</div> 0 0 <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualFundOperatingExpensesAllianceBernsteinRealAssetStrategyClass2Shares column period compact * ~</div> 0.0931 0.084 0.0605 0.0196 -0.0106 0 0.1153 0 0 0 0.0641 0.0561 0.0505 0.0128 0.1606 0.0098 0.0951 0.0853 0.0618 0.0196 -0.0106 0.1153 <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualFundOperatingExpensesAllianceBernsteinMunicipalBondInflationStrategy column period compact * ~</div> 0.0667 0.0594 0.053 0.0098 0.0128 0.1606 2010-03-08 2010-03-08 2010-03-08 2010-03-08 2010-03-08 2010-03-08 0.005 0.005 0.001 0 0.0001 0.0001 0.0013 0.0013 0.0014 0.0014 0.0074 0.0064 -0.0014 -0.0014 <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualTotalReturnsAllianceBernsteinMunicipalBondInflationStrategyBarChart column period compact * ~</div> 0.006 0.005 <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAverageAnnualTotalReturnsTransposedAllianceBernsteinMunicipalBondInflationStrategy column period compact * ~</div> 0.0425 0 0 0 0 0 0 0 0 0 0 0 The annual returns in the bar chart are for the Strategy's Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown. Calendar Year End (%)<br/><br/>During the period shown in the bar chart, the Strategy's: <br/><br/>BEST QUARTER WAS UP 7.32%, 3RD QUARTER, 2012; AND WORST QUARTER WAS DOWN -16.30%, 3RD QUARTER, 2011. PERFORMANCE TABLE<br/>AVERAGE ANNUAL TOTAL RETURNS<br/><br/>(For the periods ended December 31, 2012) January 31, 2014 1.18 You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AllianceBernstein Mutual Funds. 100000 As with all investments, you may lose money by investing in the Strategy. www.AllianceBernstein.com The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. The annual returns in the bar chart are for the Strategy's Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns: -Are shown for Class A shares only and will vary for Class C and Advisor Class shares because these Classes have different expense ratios 61 51 222 191 398 343 905 785 0.0707 The bar chart and performance information provide an indication of the historical risk of an investment in the Strategy by showing: <ul type="square"><li style="margin-left:-20px"> how the Strategy's performance changed from year to year over the life of the Strategy; and</li></ul> <ul type="square"><li style="margin-left:-20px"> how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index.</li></ul> You may obtain updated performance information on the Strategy's website at www.AllianceBernstein.com (click on "Individuals--U.S." then "Products &amp; Performance").<br /><br />The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. 0.0527 BEST QUARTER 2011-06-30 0.0252 WORST QUARTER 2012-06-30 0.0002 0.0527 0.0523 0.0398 0.0527 0.0504 0.0435 0.0423 0.0387 0.0443 0.0603 2010-01-26 2010-01-26 2010-01-26 2010-01-26 2010-01-26 The Strategy seeks to maximize real return. Real return is the rate of return after adjusting for inflation.<br /><br />The Strategy pursues an aggressive investment strategy involving a variety of asset classes. The Strategy invests primarily in instruments that the Adviser expects to outperform broad equity indices during periods of rising inflation. Under normal circumstances, the Strategy expects to invest its assets principally in the following instruments that, in the judgment of the Adviser, are affected directly or indirectly by the level and change in rate of inflation: inflation-protected fixed-income securities, such as TIPS and similar bonds issued by governments outside of the United States, commodities, equity securities, such as commodity-related stocks, real estate securities, utility securities, infrastructure-related securities, securities and derivatives linked to the price of other assets (such as commodities, stock indices and real estate) and currencies. The Strategy expects its investments in fixed-income securities to have a broad range of maturities and quality levels.<br /><br />The Strategy will seek inflation protection from investments around the globe, both in developed and emerging market countries. In selecting securities for purchase and sale, the Adviser will utilize its qualitative and quantitative resources to determine overall inflation sensitivity, asset allocation, and security selection. The Adviser assesses the securities' risks and inflation sensitivity as well as the securities' impact on the overall risks and inflation sensitivity of the Strategy. When its analysis indicates that changes are necessary, the Adviser intends to implement them through a combination of changes to underlying positions and the use of inflation swaps and other types of derivatives, such as interest rate swaps. <br /><br />The Strategy anticipates that its investments, other than its investments in inflation-protected securities, will focus roughly equally on commodity-related equity securities, commodities and commodity derivatives, and real estate equity securities to provide a balance between expected return and inflation protection. Its commodities investments will include significant exposure to energy commodities, but will also include agricultural products, and industrial and precious metals, such as gold. The Strategy's investments in real estate equity securities will include real estate investment trusts ("REITs"), other real estate-related securities, and infrastructure-related securities.<br /><br />The Strategy will invest in both U.S. and non-U.S. Dollar-denominated equity or fixed-income securities. The Strategy may invest in currencies for hedging or for investment purposes, both in the spot market and through long or short positions in currency-related derivatives. The Strategy does not ordinarily expect to hedge its foreign currency exposure because it will be balanced by investments in U.S. Dollar-denominated securities, although it may hedge the exposure under certain circumstances.<br /><br />The Strategy may invest significantly to the extent permitted by applicable law in derivatives, such as options, futures, forwards, swaps or structured notes. The Strategy intends to use leverage for investment purposes through the use of cash made available by derivatives transactions to make other investments in accordance with its investment policies. In determining when and to what extent to employ leverage or enter into derivatives transactions, the Adviser will consider factors such as the relative risks and returns expected of potential investments and the cost of such transactions. The Adviser will consider the impact of derivatives in making its assessments of the Strategy's risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.<br /><br />The Strategy may seek to gain exposure to physical commodities traded in the commodities markets through investments in a variety of derivative instruments, including investments in commodity index-linked notes. The Adviser expects that the Strategy will seek to gain exposure to commodities and commodities-related instruments and derivatives primarily through investments in AllianceBernstein Cayman Inflation Strategy, Ltd., a wholly-owned subsidiary of the Strategy organized under the laws of the Cayman Islands (the "Subsidiary"). The Subsidiary is advised by the Adviser and has the same investment objective and substantially similar investment policies and restrictions as the Strategy except that the Subsidiary, unlike the Strategy, may invest, without limitation, in commodities and commodities-related instruments. The Strategy will be subject to the risks associated with the commodities, derivatives and other instruments in which the Subsidiary invests, to the extent of its investment in the Subsidiary. The Strategy limits its investment in the Subsidiary to no more than 25% of its net assets. Investment in the Subsidiary is expected to provide the Strategy with commodity exposure within the limitations of federal tax requirements that apply to the Strategy.<br /><br />The Strategy is "non-diversified", which means that it may concentrate its assets in a smaller number of issuers than a diversified fund. ANNUAL STRATEGY OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) ALLIANCEBERNSTEIN BOND INFLATION STRATEGY INVESTMENT OBJECTIVE The Examples are intended to help you compare the cost of investing in the Strategy with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Strategy for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Strategy's operating expenses stay the same and that the fee waiver is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Strategy's investment objective is to maximize real return without assuming what the Adviser considers to be undue risk. FEES AND EXPENSES OF THE STRATEGY This table describes the fees and expenses that you may pay if you buy and hold shares of the Strategy. SHAREHOLDER FEES (fees paid directly from your investment) ANNUAL STRATEGY OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) EXAMPLES The Strategy seeks to maximize real return. Real return is the rate of return after adjusting for inflation.<br/><br/> The Strategy pursues an aggressive investment strategy involving a variety of asset classes. The Strategy invests primarily in instruments that the Adviser expects to outperform broad equity indices during periods of rising inflation. Under normal circumstances, the Strategy expects to invest its assets principally in the following instruments that, in the judgment of the Adviser, are affected directly or indirectly by the level and change in rate of inflation: inflation-protected fixed-income securities, such as TIPS and similar bonds issued by governments outside of the United States, commodities, equity securities, such as commodity-related stocks, real estate securities, utility securities, infrastructure-related securities, securities and derivatives linked to the price of other assets (such as commodities, stock indices and real estate) and currencies. The Strategy expects its investments in fixed-income securities to have a broad range of maturities and quality levels.<br/><br/> The Strategy will seek inflation protection from investments around the globe, both in developed and emerging market countries. In selecting securities for purchase and sale, the Adviser will utilize its qualitative and quantitative resources to determine overall inflation sensitivity, asset allocation, and security selection. The Adviser assesses the securities' risks and inflation sensitivity as well as the securities' impact on the overall risks and inflation sensitivity of the Strategy. When its analysis indicates that changes are necessary, the Adviser intends to implement them through a combination of changes to underlying positions and the use of inflation swaps and other types of derivatives, such as interest rate swaps.<br/><br/> The Strategy anticipates that its investments, other than its investments in inflation-protected securities, will focus roughly equally on commodity-related equity securities, commodities and commodity derivatives, and real estate equity securities to provide a balance between expected return and inflation protection. Its commodities investments will include significant exposure to energy commodities, but will also include agricultural products, and industrial and precious metals, such as gold. The Strategy's investments in real estate equity securities will include real estate investment trusts ("REITs"), other real estate-related securities, and infrastructure-related securities.<br/><br/> The Strategy will invest in both U.S. and non-U.S. Dollar-denominated equity or fixed-income securities. The Strategy may invest in currencies for hedging or for investment purposes, both in the spot market and through long or short positions in currency-related derivatives. The Strategy does not ordinarily expect to hedge its foreign currency exposure because it will be balanced by investments in U.S. Dollar-denominated securities, although it may hedge the exposure under certain circumstances.<br/><br/> The Strategy may invest significantly to the extent permitted by applicable law in derivatives, such as options, futures, forwards, swaps or structured notes. The Strategy intends to use leverage for investment purposes through the use of cash made available by derivatives transactions to make other investments in accordance with its investment policies. In determining when and to what extent to employ leverage or enter into derivatives transactions, the Adviser will consider factors such as the relative risks and returns expected of potential investments and the cost of such transactions. The Adviser will consider the impact of derivatives in making its assessments of the Strategy's risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.<br/><br/> The Strategy may seek to gain exposure to physical commodities traded in the commodities markets through investments in a variety of derivative instruments, including investments in commodity index-linked notes. The Adviser expects that the Strategy will seek to gain exposure to commodities and commodities-related instruments and derivatives primarily through investments in AllianceBernstein Cayman Inflation Strategy, Ltd., a wholly-owned subsidiary of the Strategy organized under the laws of the Cayman Islands (the "Subsidiary"). The Subsidiary is advised by the Adviser and has the same investment objective and substantially similar investment policies and restrictions as the Strategy except that the Subsidiary, unlike the Strategy, may invest, without limitation, in commodities and commodities-related instruments. The Strategy will be subject to the risks associated with the commodities, derivatives and other instruments in which the Subsidiary invests, to the extent of its investment in the Subsidiary. The Strategy limits its investment in the Subsidiary to no more than 25% of its net assets. Investment in the Subsidiary is expected to provide the Strategy with commodity exposure within the limitations of federal tax requirements that apply to the Strategy.<br/><br/> The Strategy is "non-diversified", which means that it may concentrate its assets in a smaller number of issuers than a diversified fund. The Examples are intended to help you compare the cost of investing in the Strategy with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Strategy for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Strategy's operating expenses stay the same and that the fee waiver is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be: <ul type="square"><li style="margin-left:-20px">MARKET RISK: The value of the Strategy's assets will fluctuate as the stock, commodity and bond markets fluctuate. The value of the Strategy's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.</li></ul><ul type="square"><li style="margin-left:-20px">CREDIT RISK: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.</li></ul><ul type="square"><li style="margin-left:-20px">INTEREST RATE RISK: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of 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.</li></ul><ul type="square"><li style="margin-left:-20px">COMMODITY RISK: Investing in commodities and commodity-linked derivative instruments, either directly or through the Subsidiary, may subject the Strategy to greater volatility than investments in traditional securities. The value of commodity-linked derivative instruments may be affected by changes in overall market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political and regulatory developments.</li></ul><ul type="square"><li style="margin-left:-20px">DERIVATIVES RISK: Investments in derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Strategy, and may be subject to counterparty risk to a greater degree than more traditional investments.</li></ul><ul type="square"><li style="margin-left:-20px">LEVERAGE RISK: To the extent the Strategy uses leveraging techniques, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Strategy's investments.</li></ul><ul type="square"><li style="margin-left:-20px">LIQUIDITY RISK: Liquidity risk exists when particular investments are difficult to purchase or sell, possibly preventing the Strategy from selling out of these illiquid securities at an advantageous price. The Strategy invests in derivatives and securities involving substantial market and credit risk, which tend to involve greater liquidity risk.</li></ul><ul type="square"><li style="margin-left:-20px">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 less liquid due to adverse market, economic, political, regulatory or other factors.</li></ul><ul type="square"><li style="margin-left:-20px">CURRENCY RISK: Fluctuations in currency exchange rates may negatively affect the value of the Strategy's investments or reduce its returns.</li></ul><ul type="square"><li style="margin-left:-20px">SUBSIDIARY RISK: By investing in the Subsidiary, the Strategy is indirectly exposed to the risks associated with the Subsidiary's investments. The derivatives and other investments held by the Subsidiary are generally similar to those that are permitted to be held by the Strategy and are subject to the same risks that apply to similar investments if held directly by the Strategy. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (the "1940 Act"), and, unless otherwise noted in this Prospectus, is not subject to all of the investor protections of the 1940 Act. However, the Strategy wholly owns and controls the Subsidiary, and the Strategy and the Subsidiary are managed by the Adviser, making it unlikely the Subsidiary will take actions contrary to the interests of the Strategy or its shareholders.</li></ul><ul type="square"><li style="margin-left:-20px">REAL ESTATE RISK: The Strategy's investments in real estate securities have many of the same risks as direct ownership of real estate, including the risk that the value of real estate could decline due to a variety of factors that affect the real estate market generally. Investments in REITs may have additional risks. REITs are dependent on the capability of their managers, may have limited diversification, and could be significantly affected by changes in taxes.</li></ul><ul type="square"><li style="margin-left:-20px">DIVERSIFICATION RISK: The Strategy may have more risk because it is "non-diversified", meaning that it can invest more of its assets in a smaller number of issuers and that adverse changes in the value of one security could have a more significant effect on the Strategy's NAV.</li></ul><ul type="square"><li style="margin-left:-20px">MANAGEMENT RISK: The Strategy is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.</li></ul>As with all investments, you may lose money by investing in the Strategy. PORTFOLIO TURNOVER The Strategy pays transaction costs, such as commissions, when it buys or sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Strategy shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Strategy Operating Expenses or in the Examples, affect the Strategy's performance. During the most recent fiscal year, the Strategy's portfolio turnover rate was 32% of the average value of its portfolio. The bar chart and performance information provide an indication of the historical risk of an investment in the Strategy by showing: <ul type="square"><li>how the Strategy's performance changed from year to year over the life of the Strategy; and </li></ul><ul type="square"><li>how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index. </li></ul>You may obtain updated performance information on the Strategy's website at www.bernstein.com (click on "Investments" then "Stocks" then "Mutual Fund Performance at a Glance"). <br /><br />The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. PRINCIPAL STRATEGIES The Strategy seeks real return. Real return is the rate of return after adjusting for inflation. <br /><br />The Strategy pursues its objective by investing principally in Treasury Inflation-Protected Securities ("TIPS") directly or by gaining indirect exposure to TIPS through derivatives transactions, such as total return swaps linked to TIPS. In deciding whether to take direct or indirect exposure, the Adviser will consider the relative costs and efficiency of each method. In addition, in seeking to maximize real return, the Strategy may also invest in other fixed-income investments, such as U.S. and non-U.S. Government securities, corporate fixed-income securities and mortgage-related securities, as well as derivatives linked to such securities. Under normal circumstances, the Strategy invests at least 80% of its net assets in fixed-income securities. While the Strategy expects to invest principally in investment grade securities, it may invest up to 15% of its total assets in fixed-income securities rated BB or B or the equivalent by at least one national rating agency (or deemed by the Adviser to be of comparable credit quality), which are not investment grade ("junk bonds"). <br /><br />Inflation-protected securities are fixed-income securities structured to provide protection against inflation. Their principal value and/or the interest paid on them are adjusted to reflect official inflation measures. The inflation measure for TIPS is the Consumer Price Index for Urban Consumers. The Strategy may also invest in other inflation-indexed securities, issued by both U.S. and non-U.S. issuers, and in derivative instruments linked to these securities. <br /><br />The Strategy may invest to the extent permitted by applicable law in derivatives, such as options, futures, forwards, or swaps. The Strategy intends to use leverage for investment purposes. To do this, the Strategy expects to enter into (i) reverse repurchase agreement transactions and use the cash made available from these transactions to make additional investments in fixed-income securities in accordance with the Strategy's investment policies and (ii) total return swaps. In determining when and to what extent to employ leverage or enter into derivatives transactions, the Adviser will consider factors such as the relative risks and returns expected of potential investments and the cost of such transactions. The Adviser will consider the impact of reverse repurchase agreements, swaps and other derivatives in making its assessments of the Strategy's risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser. <br /><br />The Adviser selects securities for purchase or sale based on its assessment of the securities' risk and return characteristics as well as the securities' impact on the overall risk and return characteristics of the Strategy. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Strategy's other holdings. <br /><br />The Strategy may also invest in loan participations, structured securities, asset-backed securities, variable, floating, and inverse floating rate instruments, and preferred stock, and may use other investment techniques. The Strategy may invest in fixed-income securities of any maturity and duration. If the rating of a fixed-income security falls below investment grade, the Strategy will not be obligated to sell the security and may continue to hold it if, in the Adviser's opinion, the investment is appropriate under the circumstances. PRINCIPAL RISKS BAR CHART AND PERFORMANCE INFORMATION The bar chart and performance information provide an indication of the historical risk of an investment in the Strategy by showing:<ul type="square"><li style="margin-left:-20px">how the Strategy's performance changed from year to year over the life of the Strategy; and</li></ul><ul type="square"><li style="margin-left:-20px">how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index.</li></ul>You may obtain updated performance information on the Strategy's website at www.AllianceBernstein.com (click on "Individuals--U.S." then "Products &amp; Performance").<br/><br/>The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. BAR CHART Calendar Year End (%)<br/><br/>During the period shown in the bar chart, the Strategy's:<br/><br/>BEST QUARTER WAS UP 2.76%, 3RD QUARTER, 2012; AND WORST QUARTER WAS UP 0.85%, 4TH QUARTER, 2012. <ul type="square"><li style="margin-left:-20px"> how the Strategy's performance changed from year to year over the life of the Strategy; and</li></ul> <ul type="square"><li style="margin-left:-20px"> how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index.</li></ul> PERFORMANCE TABLE <br/>AVERAGE ANNUAL TOTAL RETURNS <br/><br/>(For the period ended December 31, 2012) <ul type="square"><li style="margin-left:-20px">MARKET RISK: The value of the Strategy's assets will fluctuate as the bond market fluctuates. The value of the Strategy's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.</li></ul><ul type="square"><li style="margin-left:-20px">CREDIT RISK: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.</li></ul><ul type="square"><li style="margin-left:-20px">INTEREST RATE RISK: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of 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.</li></ul><ul type="square"><li style="margin-left:-20px">DURATION RISK: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. For example, a fixed-income security with a duration of three years will decrease in value by approximately 3% if interest rates increase by 1%.</li></ul><ul type="square"><li style="margin-left:-20px">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 Strategy's assets can decline as can the value of the Strategy's distributions. This risk is significantly greater for fixed-income securities with longer maturities. Although the Strategy invests principally in inflation-protected securities, the value of its securities may be vulnerable to changes in expectations of inflation or interest rates.</li></ul><ul type="square"><li style="margin-left:-20px">DERIVATIVES RISK: Investments in derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Strategy, and may be subject to counterparty risk to a greater degree than more traditional investments.</li></ul><ul type="square"><li style="margin-left:-20px">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 less liquid due to adverse market, economic, political, regulatory or other factors.</li></ul><ul type="square"><li style="margin-left:-20px">CURRENCY RISK: Fluctuations in currency exchange rates may negatively affect the value of the Strategy's investments or reduce its returns.</li></ul><ul type="square"><li style="margin-left:-20px">LEVERAGE RISK: To the extent the Strategy uses leveraging techniques, its net asset value ("NAV") may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Strategy's investments.</li></ul><ul type="square"><li style="margin-left:-20px">LIQUIDITY RISK: Liquidity risk exists when particular investments are difficult to purchase or sell, possibly preventing the Strategy from selling out of these illiquid securities at an advantageous price. Derivatives and securities involving substantial market and credit risk tend to involve greater liquidity risk.</li></ul><ul type="square"><li style="margin-left:-20px">MANAGEMENT RISK: The Strategy is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.</li></ul> As with all investments, you may lose money by investing in the Strategy. BEST QUARTER 2012-03-31 0.0737 WORST QUARTER 2011-09-30 -0.1627 January 31, 2014 1.18 As with all investments, you may lose money by investing in the Strategy. <ul type="square"><li>how the Strategy's performance changed from year to year over the life of the Strategy; and </li></ul><ul type="square"><li>how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index. </li></ul> www.bernstein.com The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. January 31, 2014 0.32 Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleShareholderFeesAllianceBernsteinBondInflationStrategyClass2Shares column period compact * ~</div> Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. As with all investments, you may lose money by investing in the Strategy. <ul type="square"><li style="margin-left:-20px">how the Strategy's performance changed from year to year over the life of the Strategy; and</li></ul><ul type="square"><li style="margin-left:-20px">how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index.</li></ul> The Strategy pays transaction costs, such as commissions, when it buys or sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Strategy shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Strategy Operating Expenses or in the Examples, affect the Strategy's performance. During the most recent fiscal year, the Strategy's portfolio turnover rate was 118% of the average value of its portfolio. www.AllianceBernstein.com The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. The annual returns in the bar chart are for the Strategy's Class 1 shares. During the period shown in the bar chart, the Strategy's:<br/><br/>BEST QUARTER WAS UP 7.37%, 1ST QUARTER, 2012; AND WORST QUARTER WAS DOWN -16.27%, 3RD QUARTER, 2011. PERFORMANCE TABLE <br/>AVERAGE ANNUAL TOTAL RETURNS <br/><br/>(For the periods ended December 31, 2012) Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. BEST QUARTER <ul type="square"><li style="margin-left:-20px">MARKET RISK: The value of the Strategy's assets will fluctuate as the bond market fluctuates. The value of the Strategy's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.</li></ul><ul type="square"><li style="margin-left:-20px">CREDIT RISK: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.</li></ul><ul type="square"><li style="margin-left:-20px">MUNICIPAL MARKET RISK: This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Strategy's investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Strategy invests more of its assets in a particular state's municipal securities, the Strategy is vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters. The Strategy's investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project's ability to make payments of principal and interest on these securities.</li></ul><ul type="square"><li style="margin-left:-20px">INTEREST RATE RISK: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of 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.</li></ul><ul type="square"><li style="margin-left:-20px">DURATION RISK: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. For example, a fixed-income security with a duration of three years will decrease in value by approximately 3% if interest rates increase by 1%.</li></ul><ul type="square"><li style="margin-left:-20px">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 Strategy's assets can decline as can the value of the Strategy's distributions. This risk is significantly greater for fixed-income securities with longer maturities.</li></ul><ul type="square"><li style="margin-left:-20px">DERIVATIVES RISK: Investments in derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Strategy, and may be subject to counterparty risk to a greater degree than more traditional investments.</li></ul><ul type="square"><li style="margin-left:-20px">LEVERAGE RISK: To the extent the Strategy uses leveraging techniques, such as TOBs, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Strategy's investments.</li></ul><ul type="square"><li style="margin-left:-20px">LIQUIDITY RISK: Liquidity risk exists when particular investments are difficult to purchase or sell, possibly preventing the Strategy from selling out of these illiquid securities at an advantageous price. Derivatives and securities involving substantial market and credit risk tend to involve greater liquidity risk. The Strategy is subject to liquidity risk because the market for municipal securities is generally smaller than many other markets.</li></ul><ul type="square"><li style="margin-left:-20px">MANAGEMENT RISK: The Strategy is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.</li></ul>As with all investments, you may lose money by investing in the Strategy. 2012-09-30 0.0276 WORST QUARTER 2012-12-31 0.0085 <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualFundOperatingExpensesAllianceBernsteinBondInflationStrategyClass2Shares column period compact * ~</div> 2010-03-08 2010-03-08 2010-03-08 2010-03-08 2010-03-08 2010-03-08 The Strategy seeks real after-tax return for investors subject to federal income taxes. Real return is the rate of return after adjusting for inflation. The Strategy pursues its objective by investing principally in high-quality, predominantly investment grade, municipal securities that pay interest exempt from federal taxation. As a fundamental policy, the Strategy will invest at least 80% of its net assets in municipal securities. These securities may be subject to the federal alternative minimum tax ("AMT") for some taxpayers.<br /><br />The Strategy will invest at least 80% of its total assets in fixed-income securities rated A or better or the equivalent by one or more national rating agencies or deemed to be of comparable credit quality by the Adviser. In deciding whether to take direct or indirect exposure, the Strategy may invest up to 20% of its total assets in fixed-income securities rated BB or B or the equivalent by one or more national rating agencies (or deemed to be of comparable credit quality by the Adviser), which are not investment grade ("junk bonds"). If the rating of a fixed-income security falls below investment grade, the Strategy will not be obligated to sell the security and may continue to hold it if, in the Adviser's opinion, the investment is appropriate under the circumstances.<br /><br />The Adviser selects securities for purchase or sale based on its assessment of the securities' risk and return characteristics as well as the securities' impact on the overall risk and return characteristics of the Strategy. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Strategy's other holdings. The Strategy may invest in fixed-income securities with any maturity and duration.<br /><br />To provide inflation protection, the Strategy will typically enter into inflation swap agreements. The Strategy may use other inflation-protected instruments. Payments to the Strategy pursuant to swaps will result in taxable income, either ordinary income or capital gains, rather than income exempt from federal income taxation. It is expected that the Strategy's primary use of derivatives will be for the purpose of inflation protection.<br /><br />The Strategy may also invest in:<ul type="square"><li style="margin-left:-20px">forward commitments;</li></ul><ul type="square"><li style="margin-left:-20px">zero-coupon municipal securities and variable, floating and inverse floating rate municipal securities;</li></ul><ul type="square"><li style="margin-left:-20px">certain types of mortgage-related securities; and</li></ul><ul type="square"><li style="margin-left:-20px">derivatives, such as options, futures, forwards and swaps.</li></ul>The Strategy may utilize leverage for investment purposes through the use of tender option bond transactions ("TOBs"). The Adviser will consider the impact of TOBs, swaps and other derivatives in making its assessments of the Strategy's risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser. <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualTotalReturnsAllianceBernsteinBondInflationStrategyClass2SharesBarChart column period compact * ~</div> The bar chart and performance information provide an indication of the historical risk of an investment in the Strategy by showing:<ul type="square"><li style="margin-left:-20px">how the Strategy's performance changed from year to year over the life of the Strategy; and</li></ul><ul type="square"><li style="margin-left:-20px">how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index.</li></ul> You may obtain updated performance information on the Strategy's website at www.AllianceBernstein.com (click on "Individuals--U.S." then "Products &amp; Performance").<br /><br />The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. Calendar Year End(%)<br /><br />During the period shown in the bar chart, the Strategy's:<br /><br />BEST QUARTER WAS UP 2.49%, 2ND QUARTER, 2011; AND WORST QUARTER WAS UP 0.09%, 2ND QUARTER, 2012. <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAverageAnnualTotalReturnsTransposedAllianceBernsteinBondInflationStrategyClass2Shares column period compact * ~</div> <ul type="square"><li style="margin-left:-20px">how the Strategy's performance changed from year to year over the life of the Strategy; and</li></ul><ul type="square"><li style="margin-left:-20px">how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index.</li></ul> EXAMPLES PRINCIPAL STRATEGIES PORTFOLIO TURNOVER PRINCIPAL RISKS BAR CHART AND PERFORMANCE INFORMATION BAR CHART <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleShareholderFeesAllianceBernsteinMunicipalBondInflationStrategyClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualFundOperatingExpensesAllianceBernsteinMunicipalBondInflationStrategyClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAverageAnnualTotalReturnsTransposedAllianceBernsteinMunicipalBondInflationStrategyClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAverageAnnualTotalReturnsTransposedAllianceBernsteinBondInflationStrategy column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualTotalReturnsAllianceBernsteinBondInflationStrategyBarChart column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualFundOperatingExpensesAllianceBernsteinBondInflationStrategy column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleShareholderFeesAllianceBernsteinBondInflationStrategy column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualTotalReturnsAllianceBernsteinMunicipalBondInflationStrategyClass2SharesBarChart column period compact * ~</div> 2010-01-26 2010-01-26 2010-01-26 2010-01-26 2010-01-26 2010-01-26 2010-01-26 2010-01-26 2010-01-26 0.0479 0.0414 0.0371 0.0557 0.0664 0.0614 0.0639 0.0666 0.0603 0.0189 0.0142 0.0122 0.0464 0.0662 0.0623 0.065 0.0665 0.0504 <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleExpenseExampleAllianceBernsteinMunicipalBondInflationStrategyClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleExpenseExampleAllianceBernsteinBondInflationStrategyClass2Shares column period compact * ~</div> 0.0779 0.0641 504 154 53 103 78 53 763 572 259 447 353 259 1042 1016 483 815 649 483 1835 2249 1127 1850 1490 1127 0.0075 0.0075 0.0075 0.0075 0.0075 0.0075 0.003 0.01 0 0.005 0.0025 0 0.0006 0.0006 0.0006 0.005 0.0021 0.0017 0.005 0.0005 0.005 0.005 0.005 0.005 0.003 0.01 0 0.005 0.0025 0 0.0023 0.0024 0.0024 0.0039 0.0035 0.0023 0.001 0.0011 0.001 0.0025 0.0017 0.0011 0.0128 0.0199 0.0099 0.0006 0.0006 0.0007 0.0164 0.0007 0.0135 0.0098 0.0029 0.0029 0.0029 0.0029 0.0028 0.0027 -0.0023 -0.0024 -0.0024 -0.0039 -0.0035 -0.0023 0.0105 0.0175 0.0075 0.0125 0.0045 0.01 0.0046 0.0075 0.0045 0.0052 0.0045 0.006 -0.0044 -0.0045 -0.0044 -0.0059 -0.005 -0.0043 0.0081 0.0151 0.0051 0.0101 0.0077 0.0052 0.0125 0.0196 0.0095 0.016 0.0127 0.0095 528 178 77 127 102 77 601 291 792 479 393 289 1076 1051 524 855 706 519 2297 1191 1911 1593 1180 0.0425 0 0 0 0 0 1885 0 0.01 0 0 0 0 -0.086 0.0918 0.045 0.0383 0.0308 0.0756 0.0959 0.0896 0.0938 0.096 0.0196 -0.0106 0.1153 0.0479 0.0411 0.0375 0.0565 0.0668 0.0616 0.0646 0.0671 0.0098 0.0128 0.1606 2010-03-08 2010-03-08 2010-03-08 2010-03-08 2010-03-08 2010-03-08 2010-03-08 2010-03-08 2010-03-08 2010-03-08 2010-03-08 ALLIANCEBERNSTEIN BOND INFLATION STRATEGY The Strategy's investment objective is to maximize real return without assuming what the Adviser considers to be undue risk. This table describes the fees and expenses that you may pay if you buy and hold shares of the Strategy. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AllianceBernstein Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the Strategies--Sales Charge Reduction Programs for Class A Shares on page 31 of this Prospectus and in Purchase of Shares--Sales Charge Reduction Programs for Class A Shares on page 98 of the Strategies' Statement of Additional Information ("SAI"). ANNUAL STRATEGY OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) The Examples are intended to help you compare the cost of investing in the Strategy with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Strategy for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Strategy's operating expenses stay the same and that the fee waiver is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Strategy pays transaction costs, such as commissions, when it buys or sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Strategy shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Strategy Operating Expenses or in the Examples, affect the Strategy's performance. During the most recent fiscal year, the Strategy's portfolio turnover rate was 32% of the average value of its portfolio. The Strategy seeks real return. Real return is the rate of return after adjusting for inflation.<br/><br/>The Strategy pursues its objective by investing principally in Treasury Inflation-Protected Securities ("TIPS") directly or by gaining indirect exposure to TIPS through derivatives transactions, such as total return swaps linked to TIPS. In deciding whether to take direct or indirect exposure, the Adviser will consider the relative costs and efficiency of each method. In addition, in seeking to maximize real return, the Strategy may also invest in other fixed-income investments, such as U.S. and non-U.S. Government securities, corporate fixed-income securities and mortgage-related securities, as well as derivatives linked to such securities. Under normal circumstances, the Strategy invests at least 80% of its net assets in fixed-income securities. While the Strategy expects to invest principally in investment grade securities, it may invest up to 15% of its total assets in fixed-income securities rated BB or B or the equivalent by at least one national rating agency (or deemed by the Adviser to be of comparable credit quality), which are not investment grade ("junk bonds").<br/><br/>Inflation-protected securities are fixed-income securities structured to provide protection against inflation. Their principal value and/or the interest paid on them are adjusted to reflect official inflation measures. The inflation measure for TIPS is the Consumer Price Index for Urban Consumers. The Strategy may also invest in other inflation-indexed securities, issued by both U.S. and non-U.S. issuers, and in derivative instruments linked to these securities.<br/><br/>The Strategy may invest to the extent permitted by applicable law in derivatives, such as options, futures, forwards, or swaps. The Strategy intends to use leverage for investment purposes. To do this, the Strategy expects to enter into (i) reverse repurchase agreement transactions and use the cash made available from these transactions to make additional investments in fixed-income securities in accordance with the Strategy's investment policies and (ii) total return swaps. In determining when and to what extent to employ leverage or enter into derivatives transactions, the Adviser will consider factors such as the relative risks and returns expected of potential investments and the cost of such transactions. The Adviser will consider the impact of reverse repurchase agreements, swaps and other derivatives in making its assessments of the Strategy's risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.<br/><br/>The Adviser selects securities for purchase or sale based on its assessment of the securities' risk and return characteristics as well as the securities' impact on the overall risk and return characteristics of the Strategy. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Strategy's other holdings.<br/><br/>The Strategy may also invest in loan participations, structured securities, asset-backed securities, variable, floating, and inverse floating rate instruments, and preferred stock, and may use other investment techniques. The Strategy may invest in fixed-income securities of any maturity and duration. If the rating of a fixed-income security falls below investment grade, the Strategy will not be obligated to sell the security and may continue to hold it if, in the Adviser's opinion, the investment is appropriate under the circumstances. <ul type="square"><li><blockquote>MARKET RISK: The value of the Strategy's assets will fluctuate as the bond market fluctuates. The value of the Strategy's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.</blockquote></li></ul><ul type="square"><li><blockquote>CREDIT RISK: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.</blockquote></li></ul><ul type="square"><li><blockquote>INTEREST RATE RISK: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of 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.</blockquote></li></ul><ul type="square"><li><blockquote>DURATION RISK: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. For example, a fixed-income security with a duration of three years will decrease in value by approximately 3% if interest rates increase by 1%.</blockquote></li></ul><ul type="square"><li><blockquote>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 Strategy's assets can decline as can the value of the Strategy's distributions. This risk is significantly greater for fixed-income securities with longer maturities. Although the Strategy invests principally in inflation-protected securities, the value of its securities may be vulnerable to changes in expectations of inflation or interest rates.</blockquote></li></ul><ul type="square"><li><blockquote>DERIVATIVES RISK: Investments in derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Strategy, and may be subject to counterparty risk to a greater degree than more traditional investments.</blockquote></li></ul><ul type="square"><li><blockquote>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 less liquid due to adverse market, economic, political, regulatory or other factors.</blockquote></li></ul><ul type="square"><li><blockquote>CURRENCY RISK: Fluctuations in currency exchange rates may negatively affect the value of the Strategy's investments or reduce its returns.</blockquote></li></ul><ul type="square"><li><blockquote>LEVERAGE RISK: To the extent the Strategy uses leveraging techniques, its net asset value ("NAV") may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Strategy's investments.</blockquote></li></ul><ul type="square"><li><blockquote>LIQUIDITY RISK: Liquidity risk exists when particular investments are difficult to purchase or sell, possibly preventing the Strategy from selling out of these illiquid securities at an advantageous price. Derivatives and securities involving substantial market and credit risk tend to involve greater liquidity risk.</blockquote></li></ul><ul type="square"><li><blockquote>MANAGEMENT RISK: The Strategy is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.</blockquote></li></ul> As with all investments, you may lose money by investing in the Strategy. The bar chart and performance information provide an indication of the historical risk of an investment in the Strategy by showing:<ul type="square"><li><blockquote>how the Strategy's performance changed from year to year over the life of the Strategy; and</blockquote></li></ul><ul type="square"><li><blockquote>how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index.</blockquote></li></ul>You may obtain updated performance information on the Strategy's website at www.AllianceBernstein.com (click on "Individuals--U.S." then "Products &amp; Performance").<br/><br/>The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. The annual returns in the bar chart are for the Strategy's Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown. Calendar Year End (%)<br/><br/>During the period shown in the bar chart, the Strategy's:<br/><br/>BEST QUARTER WAS UP 2.68%, 2ND QUARTER, 2011; AND WORST QUARTER WAS UP 0.78%, <br/>4TH QUARTER, 2012. PERFORMANCE TABLE<br/>AVERAGE ANNUAL TOTAL RETURNS<br/><br/>(For the periods ended December 31, 2012) January 31, 2014 0.32 You may qualify for sales charge reductions if you and members of your family invest, or agree to invest in the future, at least $100,000 in AllianceBernstein Mutual Funds. 100000 As with all investments, you may lose money by investing in the Strategy. <ul type="square"><li><blockquote>how the Strategy's performance changed from year to year over the life of the Strategy; and</blockquote></li></ul><ul type="square"><li><blockquote>how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index.</blockquote></li></ul> www.AllianceBernstein.com The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. The annual returns in the bar chart are for the Strategy's Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown. Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns: -Are shown for Class A shares only and will vary for Class C and Advisor Class shares because these Classes have different expense ratios BEST QUARTER 2011-06-30 0.0268 0 0.01 0 0 0 0 WORST QUARTER 2012-12-31 0.0078 <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleExpenseExampleAllianceBernsteinMunicipalBondInflationStrategy column period compact * row dei_DocumentInformationDocumentAxis compact abbfi1_RetailAndRetirementSharesMember ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleExpenseExampleAllianceBernsteinBondInflationStrategy column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleShareholderFeesAllianceBernsteinRealAssetStrategy column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualFundOperatingExpensesAllianceBernsteinRealAssetStrategy column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleExpenseExampleAllianceBernsteinRealAssetStrategy column period compact * ~</div> <ul type="square"><li>how the Strategy's performance changed from year to year over the life of the Strategy; and </li></ul><ul type="square"><li>how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index. </li></ul> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualTotalReturnsAllianceBernsteinRealAssetStrategyBarChart column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAverageAnnualTotalReturnsTransposedAllianceBernsteinRealAssetStrategy column period compact * ~</div> BEST QUARTER 2012-09-30 <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleShareholderFeesAllianceBernsteinMunicipalBondInflationStrategy column period compact * ~</div> 0.0732 WORST QUARTER 2011-09-30 -0.163 BAR CHART BAR CHART AND PERFORMANCE INFORMATION BAR CHART -0.0838 0.0951 <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualTotalReturnsAllianceBernsteinRealAssetStrategyClass2SharesBarChart column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAverageAnnualTotalReturnsTransposedAllianceBernsteinRealAssetStrategyClass2Shares column period compact * ~</div> ALLIANCEBERNSTEIN BOND INFLATION STRATEGY INVESTMENT OBJECTIVE The Strategy's investment objective is to maximize real return without assuming what the Adviser considers to be undue risk. FEES AND EXPENSES OF THE STRATEGY This table describes the fees and expenses that you may pay if you buy and hold shares of the Strategy. SHAREHOLDER FEES (fees paid directly from your investment) ANNUAL STRATEGY OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) PORTFOLIO TURNOVER The Strategy pays transaction costs, such as commissions, when it buys or sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Strategy shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Strategy Operating Expenses or in the Examples, affect the Strategy's performance. During the most recent fiscal year, the Strategy's portfolio turnover rate was 32% of the average value of its portfolio. EXAMPLES Calendar Year End(%)<br/><br/>During the period shown in the bar chart, the Strategy's:<br/><br/>BEST QUARTER WAS UP 7.41%, 3RD QUARTER, 2012; AND WORST QUARTER WAS DOWN -16.20%, 3RD QUARTER, 2011. The Examples are intended to help you compare the cost of investing in the Strategy with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Strategy for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Strategy's operating expenses stay the same and that the fee waiver is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be: PRINCIPAL STRATEGIES The Strategy seeks real return. Real return is the rate of return after adjusting for inflation.<br/><br/> The Strategy pursues its objective by investing principally in Treasury Inflation-Protected Securities ("TIPS") directly or by gaining indirect exposure to TIPS through derivatives transactions, such as total return swaps linked to TIPS. In deciding whether to take direct or indirect exposure, the Adviser will consider the relative costs and efficiency of each method. In addition, in seeking to maximize real return, the Strategy may also invest in other fixed-income investments, such as U.S. and non-U.S. Government securities, corporate fixed-income securities and mortgage-related securities, as well as derivatives linked to such securities. Under normal circumstances, the Strategy invests at least 80% of its net assets in fixed-income securities. While the Strategy expects to invest principally in investment grade securities, it may invest up to 15% of its total assets in fixed-income securities rated BB or B or the equivalent by at least one national rating agency (or deemed by the Adviser to be of comparable credit quality), which are not investment grade ("junk bonds").<br/><br/> Inflation-protected securities are fixed-income securities structured to provide protection against inflation. Their principal value and/or the interest paid on them are adjusted to reflect official inflation measures. The inflation measure for TIPS is the Consumer Price Index for Urban Consumers. The Strategy may also invest in other inflation-indexed securities, issued by both U.S. and non-U.S. issuers, and in derivative instruments linked to these securities.<br/><br/> The Strategy may invest to the extent permitted by applicable law in derivatives, such as options, futures, forwards, or swaps. The Strategy intends to use leverage for investment purposes. To do this, the Strategy expects to enter into (i) reverse repurchase agreement transactions and use the cash made available from these transactions to make additional investments in fixed-income securities in accordance with the Strategy's investment policies and (ii) total return swaps. In determining when and to what extent to employ leverage or enter into derivatives transactions, the Adviser will consider factors such as the relative risks and returns expected of potential investments and the cost of such transactions. The Adviser will consider the impact of reverse repurchase agreements, swaps and other derivatives in making its assessments of the Strategy's risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.<br/><br/> The Adviser selects securities for purchase or sale based on its assessment of the securities' risk and return characteristics as well as the securities' impact on the overall risk and return characteristics of the Strategy. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Strategy's other holdings.<br/><br/> The Strategy may also invest in loan participations, structured securities, asset-backed securities, variable, floating, and inverse floating rate instruments, and preferred stock, and may use other investment techniques. The Strategy may invest in fixed-income securities of any maturity and duration. If the rating of a fixed-income security falls below investment grade, the Strategy will not be obligated to sell the security and may continue to hold it if, in the Adviser's opinion, the investment is appropriate under the circumstances. PRINCIPAL RISKS <ul type="square"><li style="margin-left:-20px">MARKET RISK: The value of the Strategy's assets will fluctuate as the bond market fluctuates. The value of the Strategy's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.</li></ul><ul type="square"><li style="margin-left:-20px">CREDIT RISK: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.</li></ul><ul type="square"><li style="margin-left:-20px">INTEREST RATE RISK: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of 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.</li></ul><ul type="square"><li style="margin-left:-20px">DURATION RISK: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. For example, a fixed-income security with a duration of three years will decrease in value by approximately 3% if interest rates increase by 1%.</li></ul><ul type="square"><li style="margin-left:-20px">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 Strategy's assets can decline as can the value of the Strategy's distributions. This risk is significantly greater for fixed-income securities with longer maturities. Although the Strategy invests principally in inflation-protected securities, the value of its securities may be vulnerable to changes in expectations of inflation or interest rates.</li></ul><ul type="square"><li style="margin-left:-20px">DERIVATIVES RISK: Investments in derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Strategy, and may be subject to counterparty risk to a greater degree than more traditional investments.</li></ul><ul type="square"><li style="margin-left:-20px">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 less liquid due to adverse market, economic, political, regulatory or other factors.</li></ul><ul type="square"><li style="margin-left:-20px">CURRENCY RISK: Fluctuations in currency exchange rates may negatively affect the value of the Strategy's investments or reduce its returns.</li></ul><ul type="square"><li style="margin-left:-20px">LEVERAGE RISK: To the extent the Strategy uses leveraging techniques, its net asset value ("NAV") may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Strategy's investments.</li></ul><ul type="square"><li style="margin-left:-20px">LIQUIDITY RISK: Liquidity risk exists when particular investments are difficult to purchase or sell, possibly preventing the Strategy from selling out of these illiquid securities at an advantageous price. Derivatives and securities involving substantial market and credit risk tend to involve greater liquidity risk.</li></ul><ul type="square"><li style="margin-left:-20px">MANAGEMENT RISK: The Strategy is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.</li></ul> As with all investments, you may lose money by investing in the Strategy. BAR CHART AND PERFORMANCE INFORMATION The bar chart and performance information provide an indication of the historical risk of an investment in the Strategy by showing:<ul type="square"><li style="margin-left:-20px">how the Strategy's performance changed from year to year over the life of the Strategy; and </li></ul><ul type="square"><li style="margin-left:-20px">how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index. </li></ul>You may obtain updated performance information on the Strategy's website at www.bernstein.com (click on "Investments" then "Stocks" then "Mutual Fund Performance at a Glance").<br/><br/> The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. BAR CHART The bar chart and performance information provide an indication of the historical risk of an investment in the Strategy by showing: <ul type="square"><li style="margin-left:-20px"> how the Strategy's performance changed from year to year over the life of the Strategy; and </li></ul><ul type="square"><li style="margin-left:-20px"> how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index.</li></ul> You may obtain updated performance information on the Strategy's website at www.AllianceBernstein.com (click on "Individuals--U.S." then "Products &amp; Performance"). <br /><br /> The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. January 31, 2014 1.18 The annual returns in the bar chart are for the Strategy's Class 1 shares. During the period shown in the bar chart, the Strategy's: <br/><br/>BEST QUARTER WAS UP 2.77%, 2ND QUARTER, 2011; AND WORST QUARTER WAS UP 0.81%, 4TH QUARTER, 2012. PERFORMANCE TABLE<br/>AVERAGE ANNUAL TOTAL RETURNS<br/><br/>(For the periods ended December 31, 2012) As with all investments, you may lose money by investing in the Strategy. <ul type="square"><li style="margin-left:-20px">DIVERSIFICATION RISK: The Strategy may have more risk because it is "non-diversified", meaning that it can invest more of its assets in a smaller number of issuers and that adverse changes in the value of one security could have a more significant effect on the Strategy's NAV.</li></ul> ALLIANCEBERNSTEIN MUNICIPAL BOND INFLATION STRATEGY INVESTMENT OBJECTIVE FEES AND EXPENSES OF THE STRATEGY SHAREHOLDER FEES (fees paid directly from your investment) BEST QUARTER 2012-09-30 0.0741 WORST QUARTER EXAMPLES 2011-09-30 PORTFOLIO TURNOVER -0.162 PRINCIPAL STRATEGIES PRINCIPAL RISKS BAR CHART AND PERFORMANCE INFORMATION www.AllianceBernstein.com <ul type="square"><li style="margin-left:-20px"> how the Strategy's performance changed from year to year over the life of the Strategy; and </li></ul><ul type="square"><li style="margin-left:-20px"> how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index.</li></ul> The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. 0 0 0 0 0 0 0.005 0.005 0.001 0 0.0001 0.0001 0.0036 0.0036 0.0096 0.0086 -0.0035 -0.0035 0.0061 0.0051 62 53 271 240 497 443 1146 1029 0.081 0.0665 0.0665 0.0604 0.0431 0.0675 0.0504 The Strategy's investment objective is to maximize real after-tax return for investors subject to federal income taxes, without undue risk to principal. ANNUAL STRATEGY OPERATING EXPENSES (expenses that you pay each year as a percentage of the value of your investment) This table describes the fees and expenses that you may pay if you buy and hold shares of the Strategy. PERFORMANCE TABLE <br />AVERAGE ANNUAL TOTAL RETURNS <br /><br />(For the periods ended December 31, 2012) The Strategy pays transaction costs, such as commissions, when it buys or sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Strategy shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Strategy Operating Expenses or in the Examples, affect the Strategy's performance. During the most recent fiscal year, the Strategy's portfolio turnover rate was 10% of the average value of its portfolio. The Examples are intended to help you compare the cost of investing in the Strategy with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Strategy for the time periods indicated. The Examples also assume that your investment has a 5% return each year, that the Strategy's operating expenses stay the same and that the fee waiver is in effect for only the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be: The Strategy seeks real after-tax return for investors subject to federal income taxes. Real return is the rate of return after adjusting for inflation. The Strategy pursues its objective by investing principally in high-quality, predominantly investment grade, municipal securities that pay interest exempt from federal taxation. As a fundamental policy, the Strategy will invest at least 80% of its net assets in municipal securities. These securities may be subject to the federal alternative minimum tax ("AMT") for some taxpayers.<br /><br />The Strategy will invest at least 80% of its total assets in fixed-income securities rated A or better or the equivalent by one or more national rating agencies or deemed to be of comparable credit quality by the Adviser. In deciding whether to take direct or indirect exposure, the Strategy may invest up to 20% of its total assets in fixed-income securities rated BB or B or the equivalent by one or more national rating agencies (or deemed to be of comparable credit quality by the Adviser), which are not investment grade ("junk bonds"). If the rating of a fixed-income security falls below investment grade, the Strategy will not be obligated to sell the security and may continue to hold it if, in the Adviser's opinion, the investment is appropriate under the circumstances.<br /><br />The Adviser selects securities for purchase or sale based on its assessment of the securities' risk and return characteristics as well as the securities' impact on the overall risk and return characteristics of the Strategy. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Strategy's other holdings. The Strategy may invest in fixed-income securities with any maturity and duration.<br /><br />To provide inflation protection, the Strategy will typically enter into inflation swap agreements. The Strategy may use other inflation-protected instruments. Payments to the Strategy pursuant to swaps will result in taxable income, either ordinary income or capital gains, rather than income exempt from federal income taxation. It is expected that the Strategy's primary use of derivatives will be for the purpose of inflation protection.<br /><br />The Strategy may also invest in:<ul type="square"><li style="margin-left:-20px"> forward commitments;</li></ul><ul type="square"><li style="margin-left:-20px"> zero-coupon municipal securities and variable, floating and inverse floating rate municipal securities;</li></ul> <ul type="square"><li style="margin-left:-20px"> certain types of mortgage-related securities; and</li></ul> <ul type="square"><li style="margin-left:-20px"> derivatives, such as options, futures, forwards and swaps.</li></ul> The Strategy may utilize leverage for investment purposes through the use of tender option bond transactions ("TOBs"). The Adviser will consider the impact of TOBs, swaps and other derivatives in making its assessments of the Strategy's risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser. <ul type="square"><li style="margin-left:-20px">MARKET RISK: The value of the Strategy's assets will fluctuate as the bond market fluctuates. The value of the Strategy's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.</li></ul> <ul type="square"><li style="margin-left:-20px">CREDIT RISK: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.</li></ul> <ul type="square"><li style="margin-left:-20px">MUNICIPAL MARKET RISK: This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Strategy's investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Strategy invests more of its assets in a particular state's municipal securities, the Strategy is vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters. The Strategy's investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project's ability to make payments of principal and interest on these securities.</li></ul> <ul type="square"><li style="margin-left:-20px">INTEREST RATE RISK: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of 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.</li></ul> <ul type="square"><li style="margin-left:-20px">DURATION RISK: Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed- income securities with longer durations have more risk and will decrease in price as interest rates rise. For example, a fixed-income security with a duration of three years will decrease in value by approximately 3% if interest rates increase by 1%.</li></ul> <ul type="square"><li style="margin-left:-20px">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 Strategy's assets can decline as can the value of the Strategy's distributions. This risk is significantly greater for fixed-income securities with longer maturities.</li></ul><ul type="square"><li style="margin-left:-20px">DERIVATIVES RISK: Investments in derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Strategy, and may be subject to counterparty risk to a greater degree than more traditional investments.</li></ul> <ul type="square"><li style="margin-left:-20px">LEVERAGE RISK: To the extent the Strategy uses leveraging techniques, such as TOBs, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Strategy's investments.</li></ul><ul type="square"><li style="margin-left:-20px">LIQUIDITY RISK: Liquidity risk exists when particular investments are difficult to purchase or sell, possibly preventing the Strategy from selling out of these illiquid securities at an advantageous price. Derivatives and securities involving substantial market and credit risk tend to involve greater liquidity risk. The Strategy is subject to liquidity risk because the market for municipal securities is generally smaller than many other markets.</li></ul><ul type="square"><li style="margin-left:-20px">MANAGEMENT RISK: The Strategy is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results.</li></ul> As with all investments, you may lose money by investing in the Strategy. The bar chart and performance information provide an indication of the historical risk of an investment in the Strategy by showing:<ul type="square"><li style="margin-left:-20px">how the Strategy's performance changed from year to year over the life of the Strategy; and </li></ul><ul type="square"><li style="margin-left:-20px">how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index.</li></ul>You may obtain updated performance information on the Strategy's website at www.bernstein.com (click on "Investments" then "Stocks" then "Mutual Fund Performance at a Glance").<br /><br />The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. The annual returns in the bar chart are for the Strategy's Class 1 shares. During the period shown in the bar chart, the Strategy's:<br /><br />BEST QUARTER WAS UP 2.48%, 2ND QUARTER, 2011; AND WORST QUARTER WAS UP 0.16%, 2ND QUARTER, 2012. January 31, 2014 0.1 As with all investments, you may lose money by investing in the Strategy. <ul type="square"><li style="margin-left:-20px">how the Strategy's performance changed from year to year over the life of the Strategy; and </li></ul><ul type="square"><li style="margin-left:-20px">how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index.</li></ul> The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns: -Are shown for Class 1 shares only and will vary for Class 2 because these Class 2 shares have different expense ratios www.bernstein.com 2010-01-26 BEST QUARTER 2011-06-30 0.0248 WORST QUARTER 2012-06-30 0.0016 0.066 0.0581 0.0666 0.0518 0.0603 2010-01-26 2010-01-26 2010-01-26 2010-01-26 2010-01-26 0.0018 January 31, 2014 0.32 As with all investments, you may lose money by investing in the Strategy. <ul type="square"><li style="margin-left:-20px">how the Strategy's performance changed from year to year over the life of the Strategy; and </li></ul><ul type="square"><li style="margin-left:-20px">how the Strategy's average annual returns for one year and since inception compare to those of a broad-based securities market index. </li></ul> www.bernstein.com The Strategy's past performance before and after taxes, of course, does not necessarily indicate how it will perform in the future. Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns: -Are shown for Class 1 shares only and will vary for Class 2 shares because Class 2 shares have different expense ratios BEST QUARTER 2011-06-30 0.0277 WORST QUARTER 2012-12-31 0.0081 BAR CHART Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year CDSC, which may be subject to waiver in certain circumstances. For Class C shares, the CDSC is 0% after the first year. <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleShareholderFeesAllianceBernsteinBondInflationStrategyClass1SharesClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualFundOperatingExpensesAllianceBernsteinBondInflationStrategyClass1SharesClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleExpenseExampleAllianceBernsteinBondInflationStrategyClass1SharesClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualTotalReturnsAllianceBernsteinBondInflationStrategyClass1SharesClass2SharesBarChart column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAverageAnnualTotalReturnsTransposedAllianceBernsteinBondInflationStrategyClass1SharesClass2Shares column period compact * ~</div> PRINCIPAL STRATEGIES <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleShareholderFeesAllianceBernsteinRealAssetStrategyClass1SharesClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualFundOperatingExpensesAllianceBernsteinRealAssetStrategyClass1SharesClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleExpenseExampleAllianceBernsteinRealAssetStrategyClass1SharesClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualTotalReturnsAllianceBernsteinRealAssetStrategyClass1SharesClass2SharesBarChart column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAverageAnnualTotalReturnsTransposedAllianceBernsteinRealAssetStrategyClass1SharesClass2Shares column period compact * ~</div> The Strategy's investment objective is to maximize real return over inflation. FEES AND EXPENSES OF THE STRATEGY This table describes the fees and expenses that you may pay if you buy and hold shares of the Strategy. SHAREHOLDER FEES (fees paid directly from your investment) 0.0018 0 0 0 0 0 0 0.0006 0.0006 BAR CHART PERFORMANCE TABLE<br/>AVERAGE ANNUAL TOTAL RETURNS<br/><br/>(For the period ended December 31, 2012) 0 0.0017 0.0018 0.0018 0.0018 0.0018 0.0018 0.0013 0.0029 0.0029 0.0006 0.0006 <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleShareholderFeesAllianceBernsteinMunicipalBondInflationStrategyClass1SharesClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualFundOperatingExpensesAllianceBernsteinMunicipalBondInflationStrategyClass1SharesClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleExpenseExampleAllianceBernsteinMunicipalBondInflationStrategyClass1SharesClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAverageAnnualTotalReturnsTransposedAllianceBernsteinMunicipalBondInflationStrategyClass1SharesClass2Shares column period compact * ~</div> <div style="display:none">~ http://www.AllianceBernstein.com/role/ScheduleAnnualTotalReturnsAllianceBernsteinMunicipalBondInflationStrategyClass1SharesClass2SharesBarChart column period compact * ~</div> Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge ("CDSC"), which may be subject to waiver in certain circumstances. For Class C shares, the CDSC is 0% after the first year. Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year CDSC, which may be subject to waiver in certain circumstances. For Class C shares, the CDSC is 0% after the first year. <ul type="square"><li><blockquote>DIVERSIFICATION RISK: The Strategy may have more risk because it is "non-diversified", meaning that it can invest more of its assets in a smaller number of issuers and that adverse changes in the value of one security could have a more significant effect on the Strategy's NAV.</blockquote></li></ul> <ul type="square"><li style="margin-left:-20px">DIVERSIFICATION RISK: The Strategy may have more risk because it is "non-diversified", meaning that it can invest more of its assets in a smaller number of issuers and that adverse changes in the value of one security could have a more significant effect on the Strategy's NAV.</li></ul> Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year CDSC, which may be subject to waiver in certain circumstances. For Class C shares, the CDSC is 0% after the first year. The fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2014 and will be automatically extended for one-year terms unless the Adviser provides notice of termination 60 days prior to that date. After Fee Waiver and/or Expense Reimbursement Assuming redemption at the end of the period, a 1% CDSC would increase the expenses by approximately $100. After-tax returns: -Are shown for Class A shares only and will vary for Class C and Advisor Class shares because these Classes have different expense ratios; -Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor's tax situation and are likely to differ from those shown; and -Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. Inception date for all Classes is 01/26/2010. Inception date for all Classes is 03/08/2010. Inception date is 03/08/2010. After-tax returns: -Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor's tax situation and are likely to differ from those shown; and -Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. Inception date is 01/26/2010. The fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2014 and will be automatically extended for one-year terms unless the Adviser provides notice of termination 60 days prior to that date. If interest expenses were excluded, the net expenses for Class 2 shares would be .45%. Including Interest Expense After Fee Waiver and/or Expense Reimbursement If interest expense were excluded, net expenses would be as follows: CLASS A CLASS C ADVISOR CLASS CLASS R CLASS K CLASS I ----- .75% 1.45% .45% .95% .70% .45%. If interest expenses were excluded, the net expenses for Class 1 and Class 2 shares would be .55% and .45%, respectively. Including Interest Expense Before Waiver Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge ("CDSC"), which may be subject to waiver in certain circumstances. For Class C shares, the CDSC is 0% after the first year. The fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2014 and will be automatically extended for one-year terms unless the Adviser provides notice of termination 60 days prior to that date. Assuming redemption at the end of the period, a 1% CDSC would increase the expenses by approximately $100. Inception date for all Classes is 01/26/2010. After-tax returns: -Are shown for Class A shares only and will vary for Class C and Advisor Class shares because these Classes have different expense ratios; -Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor's tax situation and are likely to differ from those shown; and -Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. Inception date is 03/08/2010. After-tax returns: -Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor's tax situation and are likely to differ from those shown; and -Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. After-tax returns: -Are shown for Class 1 shares only and will vary for Class 2 because these Class 2 shares have different expense ratios; -Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor's tax situation and are likely to differ from those shown; and -Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. Inception date for both Classes is 01/26/2010. The fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2014 and will be automatically extended for one-year terms unless the Adviser provides notice of termination 60 days prior to that date. Inception date for both Classes is 01/26/2010. After-tax returns: -Are shown for Class 1 shares only and will vary for Class 2 shares because Class 2 shares have different expense ratios; -Are an estimate, which is based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns depend on an individual investor's tax situation and are likely to differ from those shown; and -Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.