497K 1 d437579d497k.htm ALLIANCEBERNSTEIN 2010 RETIREMENT STRATEGY AllianceBernstein 2010 Retirement Strategy
LOGO    SUMMARY PROSPECTUS    December 31, 2012

AllianceBernstein 2010 Retirement Strategy

Ticker: Class A–LTDAX; Class B–LTDBX; Class C–LTDCX; Advisor Class–LTDVX; Class R–LTDRX; Class K–LTDKX; Class I–LTDIX


Before you invest, you may want to review the Strategy’s Prospectus, which contains more information about the Strategy and its risks. The Strategy’s Prospectus and Statement of Additional Information (“SAI”), both dated December 31, 2012, are incorporated by reference into this Summary Prospectus. For free paper or electronic copies of the Strategy’s Prospectus and other information about the Strategy, go to http://www.alliancebernstein.com/links/mf, email a request to prorequest@alliancebernstein.com, call (800) 227-4618, or ask any financial advisor, bank, or broker-dealer who offers shares of the Strategy. Unless otherwise noted, page number references refer to the current Prospectus for this Strategy.




The Strategy’s investment objective is to seek the highest total return (total return includes capital appreciation and income) over time consistent with its asset mix.


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 72 of the Prospectus and in Purchase of Shares—Sales Charge Reduction Programs for Class A Shares on page 109 of the Strategy’s SAI.

Shareholder Fees (fees paid directly from your investment)


     Class A

Class B Shares

(not currently offered
to new investors)

  Class C
  Advisor Class


R, K and I

Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
  4.25%   None   None   None   None
Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption proceeds, whichever is lower)
  None(a)   4.00%(b)   1.00%(c)   None   None

Exchange Fee

  None   None   None   None   None

Annual Strategy Operating Expenses (expenses that you pay each year as a percentage of the value of your investment)


     Class A     Class B     Class C     Advisor Class     Class R     Class K     Class I  
Management Fees     .55%        .55%        .55%        .55%        .55%        .55%        .55%   
Distribution and/or Service (12b-1) Fees     .30%        1.00%        1.00%        None        .50%        .25%        None   
Other Expenses              

Transfer Agent

    .12%        .18%        .14%        .14%        .25%        .19%        .09%   

Other Expenses

    .29%        .29%        .29%        .27%        .29%        .28%        .29%   





















Total Other Expenses     .41%        .47%        .43%        .41%        .54%        .47%        .38%   





















Acquired Fund Fees and Expenses (Underlying Portfolios)     .04%        .04%        .04%        .04%        .04%        .04%        .04%   





















Total Annual Strategy Operating Expenses     1.30%        2.06%        2.02%        1.00%        1.63%        1.31%        .97%   






















Fee Waiver and/or Expense Reimbursement(d)

    (.36)%        (.42)%        (.38)%        (.36)%        (.49)%        (.42)%        (.33)%   





















Total Annual Strategy Operating Expenses After Fee Waiver and/or Expense Reimbursement     .94%        1.64%        1.64%        .64%        1.14%        .89%        .64%   

























(a) 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.


(b) Class B shares automatically convert to Class A shares after eight years. The CDSC decreases over time. For Class B shares the CDSC decreases 1.00% annually to 0% after the fourth year.


(c) For Class C shares the CDSC is 0% after the first year.


(d) The fee waiver and/or expense reimbursement agreement will remain in effect until December 31, 2013 and will be automatically extended for one-year terms thereafter unless terminated by the Adviser upon 60 days’ notice to the Strategy prior to that date.




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 and then redeem all of your shares at the end of those periods. 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 only for the first year. Although your actual costs may be higher or lower, based on these assumptions your costs would be:


     Class A     Class B     Class C     Advisor Class     Class R     Class K     Class I  

After 1 Year

  $ 517      $ 567      $ 267      $ 65      $ 116      $ 91      $ 65   

After 3 Years

  $ 786      $ 805      $ 597      $ 283      $ 466      $ 374      $ 276   

After 5 Years

  $ 1,075      $ 1,070      $ 1,053      $ 517      $ 840      $ 678      $ 504   

After 10 Years

  $ 1,896      $ 2,161      $ 2,318      $ 1,192      $ 1,892      $ 1,542      $ 1,160   

For the share classes listed below, you would pay the following expenses if you did not redeem your shares at the end of the period:


      Class B      Class C  

After 1 Year

   $ 167       $ 167   

After 3 Years

   $ 605       $ 597   

After 5 Years

   $ 1,070       $ 1,053   

After 10 Years

   $ 2,161       $ 2,318   

Portfolio Turnover

The Strategy (or an Underlying Portfolio) 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 (which reflects only purchases and sales of the Underlying Portfolios) was 18% of the average value of its portfolio.


The Strategy seeks the highest total return over time consistent with its asset mix. Total return includes capital growth and income. To achieve its investment objective, the Strategy invests in a combination of portfolios of The AllianceBernstein Pooling Portfolios representing a variety of asset classes and investment styles (the “Underlying Portfolios”). The Strategy is managed to the specific year of planned retirement included in its name (the “retirement date”). The Strategy’s asset mixes will become more conservative each year until reaching the year approximately fifteen years after the retirement date (the “target year”) at which time the asset allocation mix will become static. This reflects the objective of pursuing the maximum amount of capital growth, consistent with a reasonable amount of risk, during the investor’s pre-retirement and early retirement years. After retirement the Strategy’s investment mix anticipates that an investor may take withdrawals from his or her account to provide supplemental retirement income.

After the retirement date of the Strategy, its asset mix seeks to minimize the likelihood that an investor in the Strategy experiences a significant loss of capital at a more advanced age. The asset mix for the Strategy will continue to change after the Strategy’s retirement date with an increasing exposure to investments in fixed-income securities and short-term bonds until fifteen years after the Strategy’s retirement date. Thereafter, the target asset allocation for the Strategy will generally be fixed. The static allocation of the Strategy’s asset mix will be 27.5% short-duration bonds, 37.5% other fixed-income securities, 12.5% Volatility Management Portfolio, 15.5% other equities and 7% Multi-Asset Real Return Portfolio.

The Underlying Portfolios will include a Portfolio, the Volatility Management Portfolio, that is designed to reduce the overall effect of equity market volatility on the Strategy and the effects of adverse equity market conditions on its performance. The Volatility Management Portfolio will be a component of the Strategy’s equity asset allocation. Under normal market conditions, this Underlying Portfolio will invest predominantly in equity securities. If the Adviser determines that the equity markets pose disproportionate risks, the Adviser will reduce (or eliminate) this Underlying Portfolio’s equity investments and invest in fixed-income securities or other non-equity asset classes to reduce the risks of the Strategy’s investments in equity securities.

The Adviser will allow the relative weightings of the Strategy’s asset classes to vary in response to the markets, but ordinarily only by plus/minus 5%. Beyond those ranges, the Adviser will generally rebalance the portfolio toward the target asset allocation for the Strategy. However, there may be occasions when those ranges will expand to 10% of the Strategy’s portfolio due to, among other things, appreciation of one of the asset classes.



The following chart illustrates how the asset mix of the Strategy will vary over time. In general, the asset mix of the Strategy will gradually shift from one comprised largely of Underlying Portfolios that emphasize investments in stocks to one that is comprised of a mixture of Underlying Portfolios that invest in bonds (including short-duration bonds) and stocks.




The value of your investment in the Strategy will change with changes in the values of the Strategy’s investments in the Underlying Portfolios. There is no assurance that the Strategy will provide an investor with adequate income at or through retirement. The degree to which the following risks apply varies according to the Strategy’s asset allocation.



Market Risk: The value of the Strategy’s investments will fluctuate as the stock or bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market. It includes the risk that a particular style of investing, such as growth or value, may be underperforming the stock market generally.



Interest Rate Risk: Changes in interest rates will affect the value of the Strategy’s investments in Underlying Portfolios that invest 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. Investments in fixed-income securities with lower credit ratings (“junk bonds”) tend to have a higher probability that an issuer will default or fail to meet its payment obligations.



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.



Allocation Risk: The allocation of investments among the Underlying Portfolios’ different investment styles, such as growth or value, equity or debt securities, or U.S. or non-U.S. securities, may have a more significant effect on the Strategy’s net asset value (“NAV”) when one of these investments is performing more poorly than the other.



Inflation Risk: This is the risk that the value of assets or income from the Strategy’s investments in the Underlying Portfolios will be less in the future as inflation decreases the value of money. As inflation increases, the value of each Underlying Portfolio’s assets can decline as can the value of that Underlying Portfolio’s distributions.



Foreign (Non-U.S.) Risk: The Strategy’s investments in Underlying Portfolios that invest in securities of non-U.S. issuers may experience more rapid and extreme changes in value than investments in securities 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. This risk is greater when the Strategy has a higher asset allocation of Underlying Portfolios that invest in non-U.S. issuers.



Emerging Market Risk: Investments in emerging market countries may involve more risk than investments in other foreign countries because the markets in emerging market countries are less developed and less liquid as well as subject to increased economic, political, regulatory and other uncertainties.



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




Capitalization Risk: Investments in small- and mid-capitalization companies by Underlying Portfolios tend to be more volatile than investments in large-capitalization companies. Investments in small-capitalization companies may have additional risks because these companies often have limited product lines, markets, or financial resources.



Focused Portfolio Risk: The Underlying Portfolios that invest in a limited number of companies may have more risk because changes in the value of a single security may have a more significant effect, either negative or positive, on the Strategy’s NAV.



Derivatives Risk: Investments in derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses, and may be subject to counterparty risk to a greater degree than more traditional investments.



Leverage Risk: Borrowing money or other leverage may make an Underlying Portfolio’s investments more volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of its investments. An Underlying Portfolio may create leverage through the use of certain portfolio management techniques such as reverse repurchase agreements or forward commitments, or by borrowing money.



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 for the Strategy, but there is no guarantee that its techniques will produce the intended results.

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:



how the Strategy’s performance changed from year to year over the life of the Strategy; and



how the Strategy’s average annual returns for one and five years and since inception compare to those of a broad-based securities market index.

You may obtain updated performance information on the Strategy’s website at www.AllianceBernstein.com (click on “Individuals—U.S.” then “Products & Performance”).

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 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. Through September 30, 2012, the year-to-date unannualized return for Class A shares was 7.37%.



During the period shown in the bar chart, the Strategy’s:

Best Quarter was up 15.71%, 3rd quarter, 2009; and Worst Quarter was down -17.88%, 4th quarter, 2008.



Performance Table

Average Annual Total Returns

(For the periods ended December 31, 2011)


           1 Year        5 Year       



Class A(b)   Return Before Taxes      -5.77%           -0.65%           2.17%   











    Return After Taxes on Distributions      -6.44%           -1.57%           1.31%   











    Return After Taxes on Distributions and Sale of Strategy Shares      -3.52%           -0.95%           1.47%   
Class B   Return Before Taxes      -6.05%           -0.48%           2.15%   
Class C   Return Before Taxes      -3.24%           -0.50%           2.13%   
Advisor Class   Return Before Taxes      -1.37%           0.51%           3.15%   
Class R      -1.78%           0.00%           2.65%   
Class K          -1.49%           0.26%           2.91%   
Class I      -1.34%           0.50%           3.16%   
S&P 500 Stock Index
(reflects no deduction for fees, taxes or expenses)
     16.13%           1.34%           4.24%   
Barclays Capital U.S. Aggregate Bond Index
(reflects no deduction for fees, taxes or expenses)
     5.51%           6.04%           5.59%   
Composite Benchmark(c)      10.12%           1.88%           4.84%   


(a) Inception date is 9/1/05 for Class A, Class B, Class C, Class R, Class K, Class I and Advisor Class shares.


(b) After-tax returns:


  Are shown for Class A shares only and will vary for Class B, Class C and Advisor Class shares because these Classes have different expense ratios;


  Are estimates 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 Strategy shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.


(c) The Composite Benchmark shows how the Strategy’s performance compares with the returns of an index of securities similar to those in which the Strategy invests. The Composite Benchmark is derived by applying the Strategy’s target allocations over time to the results of the following benchmarks, as applicable: for U.S. stocks, Russell 3000 Index; for non-U.S. stocks, Morgan Stanley Capital International (MSCI) Europe, Australasia, Far East (EAFE) Index; for intermediate bonds, Barclays Capital U.S. Aggregate Bond Index; for short-term bonds, BofA Merrill Lynch (ML) 1-3 Year Treasury Index; for Inflation-Protected Securities, Barclays Capital 1-10 Year TIPS Index; for high-yield bonds, Custom High Yield Composite Index. The Composite Benchmark reflects no deductions for fees, expenses or taxes.


AllianceBernstein L.P. is the investment adviser for the Strategy.


The following table lists the persons responsible for day-to-day management of the Strategy’s portfolio:


Employee    Length of Service    Title
Dokyoung Lee    Since 2008    Senior Vice President of the Adviser
Seth J. Masters    Since 2005    Senior Vice President of the Adviser
Christopher H. Nikolich    Since 2005    Senior Vice President of the Adviser
Patrick J. Rudden    Since 2009    Senior Vice President of the Adviser




Purchase Minimums


      Initial    Subsequent
Class A/Class C Shares, including traditional IRAs and Roth IRAs
(Class B Shares are not currently offered to new shareholders)
   $2,500    $50
Automatic Investment Program    None   


If initial minimum investment is
less than $2,500, then $200
monthly until account balance
reaches $2,500

Advisor Class Shares (only available to fee-based programs or through other limited arrangements)    None    None
Class A, Class R, Class K and Class I Shares are available at NAV, without an initial sales charge, to 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit-sharing and money purchase pension plans, defined benefit plans, and non-qualified deferred compensation plans where plan level or omnibus accounts are held on the books of a Strategy.    None    None

You may sell (redeem) your shares each day the New York Stock Exchange (the “Exchange”) is open. You may sell your shares through your financial intermediary or by mail (AllianceBernstein Investor Services, Inc., P.O. Box 786003, San Antonio, TX 78278-6003) or telephone (800-221-5672).


The Strategy may pay income dividends or make capital gains distributions, which may be subject to federal income taxes and taxable as ordinary income or capital gains, and may also be subject to state and local taxes.


If you purchase shares of the Strategy through a broker-dealer or other financial intermediary (such as a bank or a group retirement plan), the Strategy and its related companies may pay the intermediary for the sale of Strategy shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Strategy over another investment. Ask your salesperson or visit your financial intermediary’s website for more information.


PRO-0107-10-1212     LOGO