NPORT-EX 2 NPORT_3826630708818793.htm HTML

AB Discovery Value Fund

Portfolio of Investments

August 31, 2020 (unaudited)

 

Company    Shares        U.S. $ Value  

COMMON STOCKS – 99.3%

        

Industrials – 20.5%

        

Aerospace & Defense – 0.7%

        

AAR Corp.(a)

      772,021        $ 15,579,384  
       

 

 

  

Air Freight & Logistics – 1.4%

        

XPO Logistics, Inc.(a) (b)

      355,460          31,376,454  
       

 

 

  

Airlines – 1.9%

        

Alaska Air Group, Inc.

      462,120          17,999,574  

SkyWest, Inc.

      754,407          25,385,796  
       

 

 

  
          43,385,370  
       

 

 

  

Building Products – 1.3%

        

Masonite International Corp.(a) (b)

      328,337          29,973,885  
       

 

 

  

Construction & Engineering – 3.2%

        

AECOM(b)

      874,420          34,548,334  

Quanta Services, Inc.(a)

      723,494          37,079,068  
       

 

 

  
          71,627,402  
       

 

 

  

Electrical Equipment – 3.2%

        

EnerSys(a)

      413,044          29,730,907  

Regal Beloit Corp.(a)

      426,173          42,131,463  
       

 

 

  
          71,862,370  
       

 

 

  

Machinery – 3.7%

        

Kennametal, Inc.(a)

      933,418          27,087,790  

Middleby Corp. (The)(a) (b)

      242,100          23,701,590  

Oshkosh Corp.(a)

      440,070          33,889,791  
       

 

 

  
          84,679,171  
       

 

 

  

Professional Services – 1.1%

        

Robert Half International, Inc.

      445,265          23,688,098  
       

 

 

  

Road & Rail – 1.4%

        

Knight-Swift Transportation Holdings, Inc.(a)

      716,253          32,560,861  
       

 

 

  

Trading Companies & Distributors – 2.6%

        

GATX Corp.(a)

      296,320          19,817,882  

MRC Global, Inc.(b)

      2,946,767          16,767,104  

United Rentals, Inc.(a) (b)

      128,090          22,678,334  
       

 

 

  
          59,263,320  
       

 

 

  
              463,996,315  
       

 

 

  

Financials – 20.2%

        

Banks – 8.6%

        

Associated Banc-Corp.(a)

      1,457,100          19,583,424  

Comerica, Inc.

      563,483          22,274,483  

First Citizens BancShares, Inc./NC - Class A(a)

      58,702          23,078,691  

Sterling Bancorp/DE(a)

      1,683,288          19,643,971  

Synovus Financial Corp.

      1,366,933          29,894,825  

Texas Capital Bancshares, Inc.(a) (b)

      581,865          18,846,607  

Umpqua Holdings Corp.

      1,845,469          20,816,890  

 

1

Company    Shares        U.S. $ Value  

Webster Financial Corp.(a)

      766,279        $ 21,072,673  

Zions Bancorp NA(a)

      574,808          18,485,825  
       

 

 

  
          193,697,389  
       

 

 

  

Capital Markets – 1.4%

        

Moelis & Co.(a)

      868,337          27,708,634  

Stifel Financial Corp.

      66,264          3,360,247  
       

 

 

  
          31,068,881  
       

 

 

  

Consumer Finance – 0.7%

        

OneMain Holdings, Inc.(a)

      565,368          16,440,902  
       

 

 

  

Diversified Financial Services – 1.0%

        

Voya Financial, Inc.(a)

      463,512          24,060,908  
       

 

 

  

Insurance – 6.2%

        

American Financial Group, Inc./OH

      317,376          21,216,585  

Everest Re Group Ltd.

      150,470          33,115,437  

First American Financial Corp.

      382,212          20,092,885  

Hanover Insurance Group, Inc. (The)

      253,851          26,017,189  

Reinsurance Group of America, Inc. - Class A

      247,176          22,661,096  

Selective Insurance Group, Inc.

      283,565          16,960,023  
       

 

 

  
          140,063,215  
       

 

 

  

Thrifts & Mortgage Finance – 2.3%

        

BankUnited, Inc.

      1,267,205          29,627,253  

Essent Group Ltd.(a)

      629,951          22,489,251  
       

 

 

  
          52,116,504  
       

 

 

  
              457,447,799  
       

 

 

  

Consumer Discretionary – 18.6%

        

Auto Components – 3.4%

        

Cooper Tire & Rubber Co.

      483,297          16,707,577  

Dana, Inc.

      2,476,631          34,549,003  

Lear Corp.

      217,283          24,755,052  
       

 

 

  
          76,011,632  
       

 

 

  

Diversified Consumer Services – 0.9%

        

Hillenbrand, Inc.(a)

      547,844          17,372,133  

Houghton Mifflin Harcourt Co.(a) (b)

      1,728,465          3,906,331  
       

 

 

  
          21,278,464  
       

 

 

  

Hotels, Restaurants & Leisure – 1.6%

        

Papa John’s International, Inc.

      365,479          35,922,931  
       

 

 

  

Household Durables – 3.6%

        

KB Home

      618,070          22,102,183  

PulteGroup, Inc.

      902,760          40,254,068  

Taylor Morrison Home Corp. - Class A(a) (b)

      803,590          18,908,473  
       

 

 

  
          81,264,724  
       

 

 

  

Leisure Products – 3.0%

        

Brunswick Corp./DE

      509,235          31,516,554  

 

2

Company    Shares        U.S. $ Value  

Callaway Golf Co.(a)

      1,739,601        $ 36,288,077  
       

 

 

  
          67,804,631  
       

 

 

  

Specialty Retail – 3.5%

        

Foot Locker, Inc.(a)

      740,744          22,466,766  

Gap, Inc. (The)(a)

      1,285,690          22,358,149  

Williams-Sonoma, Inc.(a)

      385,787          33,856,667  
       

 

 

  
          78,681,582  
       

 

 

  

Textiles, Apparel & Luxury Goods – 2.6%

        

Crocs, Inc.(a) (b)

      495,700          19,783,387  

Ralph Lauren Corp.

      330,110          22,721,471  

Skechers U.S.A., Inc. - Class A(b)

      575,461          17,177,511  
       

 

 

  
          59,682,369  
       

 

 

  
              420,646,333  
       

 

 

  

Information Technology – 10.5%

        

Communications Equipment – 0.6%

        

NetScout Systems, Inc.(a) (b)

      577,716          13,368,348  
       

 

 

  

Electronic Equipment, Instruments & Components – 3.4%

        

Arrow Electronics, Inc.(a) (b)

      264,750          20,798,760  

Belden, Inc.

      634,892          21,383,162  

TTM Technologies, Inc.(a) (b)

      1,053,009          12,067,483  

Vishay Intertechnology, Inc.(a)

      1,375,226          21,989,864  
       

 

 

  
          76,239,269  
       

 

 

  

IT Services – 1.9%

        

Amdocs Ltd.

      325,700          19,942,611  

Genpact Ltd.

      521,309          21,988,814  
       

 

 

  
          41,931,425  
       

 

 

  

Semiconductors & Semiconductor Equipment – 1.6%

        

Kulicke & Soffa Industries, Inc.

      922,072          22,111,286  

MaxLinear, Inc. - Class A(b)

      549,154          13,371,900  
       

 

 

  
          35,483,186  
       

 

 

  

Software – 1.2%

        

CommVault Systems, Inc.(b)

      650,855          28,136,462  
       

 

 

  

Technology Hardware, Storage & Peripherals – 1.8%

        

Change Healthcare, Inc.(a) (b)

      1,435,336          20,310,004  

NCR Corp.(a) (b)

      1,027,531          21,002,734  
       

 

 

  
          41,312,738  
       

 

 

  
          236,471,428  
       

 

 

  

Real Estate – 9.3%

        

Equity Real Estate Investment Trusts (REITs) – 9.3%

        

American Campus Communities, Inc.(a)

      726,948          24,643,537  

Camden Property Trust(a)

      338,084          30,745,359  

Cousins Properties, Inc.(a)

      741,560          22,135,566  

CubeSmart(a)

      912,150          28,842,183  

 

3

Company    Shares        U.S. $ Value  

MGM Growth Properties LLC - Class A

      1,022,605        $ 28,704,522  

Physicians Realty Trust(a)

      1,639,851          29,763,296  

RLJ Lodging Trust

      1,648,677          15,563,511  

STAG Industrial, Inc.(a)

      945,434          30,537,518  
       

 

 

  
              210,935,492  
       

 

 

  

Materials – 6.3%

        

Chemicals – 2.7%

        

GCP Applied Technologies, Inc.(b)

      358,250          9,335,995  

Orion Engineered Carbons SA

      1,551,726          18,853,471  

Trinseo SA(a)

      688,158          17,142,016  

Westlake Chemical Corp.(a)

      269,473          15,985,138  
       

 

 

  
          61,316,620  
       

 

 

  

Containers & Packaging – 2.5%

        

Graphic Packaging Holding Co.

      1,979,871          27,678,597  

Sealed Air Corp.(a)

      703,839          27,660,873  
       

 

 

  
          55,339,470  
       

 

 

  

Metals & Mining – 1.1%

        

Carpenter Technology Corp.(a)

      620,380          13,046,591  

Reliance Steel & Aluminum Co.(a)

      115,955          12,160,201  
       

 

 

  
          25,206,792  
       

 

 

  
          141,862,882  
       

 

 

  

Consumer Staples – 4.7%

        

Beverages – 1.0%

        

Primo Water Corp.(a)

      1,662,206          22,738,978  
       

 

 

  

Food & Staples Retailing – 0.9%

        

US Foods Holding Corp.(b)

      833,674          20,299,962  
       

 

 

  

Food Products – 2.8%

        

Hain Celestial Group, Inc. (The)(a) (b)

      987,870          32,392,257  

Nomad Foods Ltd.(b)

      1,245,844          30,722,513  
       

 

 

  
          63,114,770  
       

 

 

  
          106,153,710  
       

 

 

  

Utilities – 3.8%

        

Electric Utilities – 2.1%

        

Alliant Energy Corp.

      541,479          29,321,088  

PNM Resources, Inc.(a)

      435,557          19,025,130  
       

 

 

  
          48,346,218  
       

 

 

  

Gas Utilities – 0.9%

        

Southwest Gas Holdings, Inc.

      311,961          19,612,988  
       

 

 

  

Multi-Utilities – 0.8%

        

Black Hills Corp.(a)

      324,227          18,182,650  
       

 

 

  
          86,141,856  
       

 

 

  

 

4

Company    Shares        U.S. $ Value  

Energy – 2.5%

        

Energy Equipment & Services – 1.0%

        

Dril-Quip, Inc.(a) (b)

      707,006        $ 23,423,109  
       

 

 

  

Oil, Gas & Consumable Fuels – 1.5%

        

Cimarex Energy Co.

      173,288          4,813,941  

HollyFrontier Corp.(a)

      1,163,458          27,771,742  
       

 

 

  
       32,585,683  
       

 

 

  
       56,008,792  
       

 

 

  

Health Care – 2.3%

        

Health Care Providers & Services – 0.9%

        

Molina Healthcare, Inc.(b)

      105,681          19,547,814  
       

 

 

  

Life Sciences Tools & Services – 0.9%

        

ICON PLC(b)

      110,626          20,621,793  
       

 

 

  

Pharmaceuticals – 0.5%

        

Perrigo Co. PLC

      237,509          12,421,721  
       

 

 

  
       52,591,328  
       

 

 

  

Communication Services – 0.6%

        

Media – 0.6%

        

Criteo SA (Sponsored ADR)(b)

      1,089,657          14,187,334  
       

 

 

  

Total Common Stocks
(cost $2,158,443,067)

 

        2,246,443,269  
       

 

 

  

SHORT-TERM INVESTMENTS – 1.0%

        

Investment Companies – 1.0%

        

AB Fixed Income Shares, Inc.—Government Money Market Portfolio - Class AB, 0.08%(c) (d) (e)
(cost $21,953,189)

      21,953,189          21,953,189  
       

 

 

  

Total Investments – 100.3%
(cost $2,180,396,256)(f)

 

        2,268,396,458  

Other assets less liabilities – (0.3)%

 

        (6,691,166 ) 
       

 

 

  

Net Assets – 100.0%

         $ 2,261,705,292  
       

 

 

  

 

(a)

Represents entire or partial securities out on loan.

(b)

Non-income producing security.

(c)

Affiliated investments.

(d)

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

(e)

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

(f)

As of August 31, 2020, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $349,333,796 and gross unrealized depreciation of investments was $(261,333,594), resulting in net unrealized appreciation of $88,000,202.

 

5

  

Please note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard & Poor’s. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the broad market.

Glossary:

ADR – American Depositary Receipt

REIT – Real Estate Investment Trust

 

6

AB Discovery Value Fund    

August 31, 2020 (unaudited)

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

 

  •  

Level 1 - quoted prices in active markets for identical investments

  •  

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

  •  

Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

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

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of August 31, 2020:

 

Investments in Securities:

    Level 1      Level 2      Level 3      Total  
Assets:

 

Common Stocks(a)    $ 2,246,443,269      $                 —      $                 —      $ 2,246,443,269  
Short-Term Investments      21,953,189        —        —        21,953,189  
  

 

 

     

 

 

     

 

 

     

 

 

  
Total Investments in Securities      2,268,396,458        —        —        2,268,396,458  
Other Financial Instruments(b)      —        —        —        —  
  

 

 

     

 

 

     

 

 

     

 

 

  
Total    $     2,268,396,458      $ —      $ —      $     2,268,396,458  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

See Portfolio of Investments for sector classifications.

 

(b) 

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

 

7

A summary of the Fund’s transactions in AB mutual funds for the nine months ended August 31, 2020 is as follows:

 

Fund   

Market Value

11/30/2019

(000)

     

Purchases

at Cost

(000)

     

Sales

Proceeds

(000)

     

Market Value

08/31/2020

(000)

     

Dividend

Income

(000)

  
Government Money Market Portfolio    $     22,878      $     527,141      $     528,066      $     21,953      $ 196  
Government Money Market Portfolio*      38,269        90,833        129,102        0        41  
Total    $ 61,147      $ 617,974      $ 657,168      $ 21,953      $     237  

 

*

Investments of cash collateral for securities lending transactions

 

8