UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-02383

AB BOND FUND, INC.

(Exact name of registrant as specified in charter)

1345 Avenue of the Americas, New York, New York 10105

(Address of principal executive offices) (Zip code)

Joseph J. Mantineo

AllianceBernstein L.P.

1345 Avenue of the Americas

New York, New York 10105

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 221-5672

Date of fiscal year end: October 31, 2020

Date of reporting period:    October 31, 2020

ITEM 1. REPORTS TO STOCKHOLDERS.

OCT    ^10.31.20

ANNUAL REPORT

AB ALL MARKET REAL RETURN PORTFOLIO

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB All Market Real Return Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    1

ANNUAL REPORT

December 15, 2020

This report provides management’s discussion of fund performance for AB All Market Real Return Portfolio for the annual reporting period ended October 31, 2020.

The Fund’s investment objective is to maximize real return over inflation.

NAV RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	6 Months		12 Months
AB ALL MARKET REAL RETURN PORTFOLIO1
Class 1 Shares2		9.30%		-9.94%
Class 2 Shares2		9.37%		-9.70%
Class A Shares		9.27%		-10.11%
Class C Shares3		8.81%		-10.85%
Advisor Class Shares4		9.46%		-9.79%
Class R Shares4		8.96%		-10.32%
Class K Shares4		9.25%		-10.10%
Class I Shares4		9.38%		-9.76%
Class Z Shares4		9.38%		-9.75%
MSCI AC World Commodity Producers Index (net)		-4.02%		-27.45%

1 Includes the impact of proceeds received and credited to the Fund resulting from class-action settlements, which enhanced the performance of all share classes of the Fund for the six- and 12-month periods ended October 31, 2020, by 0.00% and 0.02%, respectively.

2 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to the Adviser’s institutional clients or through other limited arrangements.

3 The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the Financial Highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

4 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Morgan Stanley Capital International All Country (“MSCI AC”) World Commodity Producers Index (net), for the six- and 12-month periods ended October 31, 2020.

During both periods, all share classes of the Fund outperformed the benchmark, before sales charges. For the 12-month period, strategic allo-

2    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

cation contributed overall, relative to the benchmark, as real estate, commodity futures and inflation-sensitive equities contributed to returns. Security selection within real estate investment trusts (“REITs”) and currency selection contributed, while selection in commodity equities detracted. The Fund’s tactical allocations to commodity equities and commodity futures contributed. There were no other noteworthy detractors over the period.

For the six-month period, strategic allocation was an overall contributor, primarily due to commodity futures and inflation-sensitive equities. Security selection within REITs and currency selection contributed, while selection in commodity futures detracted. Similar to the 12-month period, tactical allocations to commodity equities and commodity futures contributed. There were no other noteworthy detractors over the period.

The Fund utilized derivatives for hedging and investment purposes in the form of futures, currency forwards, inflation swaps and total return swaps, which added to absolute returns for both periods; variance swaps and purchased options detracted for the six-month period and added for the 12-month period, while written options added for the six-month period and detracted for the 12-month period.

MARKET REVIEW AND INVESTMENT STRATEGY

US, international and emerging-market equities recorded strong returns for the six-month period ended October 31, 2020, as global economies rebounded from record GDP contractions amid early stages of economic recovery from the novel coronavirus pandemic. Investor optimism was supported by expanded monetary and fiscal stimulus, signs of encouraging economic data, and news that several potential vaccines had reached advanced trials. At the end of the period, equity markets lost ground and volatility increased as investors weighed a slew of mostly better-than-expected corporate earnings against rapidly increasing COVID-19 cases in the US and abroad, the possibility of a contested US presidential election, and the inability of congressional leaders to agree on a fiscal stimulus package. Markets were also pressured, as many mega-cap US technology companies that had led the recovery reported earnings that beat expectations but still underwhelmed investors, reflecting an increasingly negative market sentiment. In the US, small-caps outperformed large-cap stocks, and growth stocks outperformed their value-style peers.

Global fixed-income market returns were positive yet volatile over the six-month period. Government bonds advanced modestly. Emerging- and developed-market high-yield corporate bonds led gains, followed by emerging- and developed-market investment-grade corporates, as investors searched for higher yields in a period of falling interest rates. Corporate bonds in the US outperformed their European counterparts. Emerging-market local bonds also rebounded, and securitized assets provided

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    3

positive, yet muted, results. The US dollar fell against all major developed-market currencies and a majority of emerging-market currencies.

Inflation assets were mostly positive over the six-month period, with commodities, REITs and inflation breakevens all posting positive returns, while natural resource equities declined modestly, led by energy stocks. As economies globally started to ease lockdown restrictions and encouraging vaccine news emerged, the prospect of a recovery in demand, combined with a weaker US dollar, helped buoy commodity-related assets. REITs, although posting a positive return, continued to lag the broader equity market as the longer-term demand impact of COVID-19 weighed on sectors such as lodging, retail and office. Inflation breakevens also recovered meaningfully as unprecedented support from central banks and governments globally helped buoy inflation expectations.

The Fund’s Senior Investment Management Team continues to look for sources of value via asset allocation shifts, active security selection, risk overlay strategies and currency management. The Fund uses a blend of quantitative and fundamental research in order to determine overall portfolio risk, allocate risk across major real asset classes and identify idiosyncratic opportunities.

INVESTMENT POLICIES

The Fund seeks to maximize real return. Real return is the rate of return after adjusting for inflation. The Fund pursues an aggressive investment strategy involving a variety of asset classes. The Fund invests primarily in instruments that the Adviser expects to outperform broad equity indices during periods of rising inflation. Under normal circumstances, the Fund 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-indexed fixed-income securities, such as Treasury inflation-protected securities (“TIPS”) and similar bonds issued by governments outside of the United States; commodities; commodity-related equity securities; real estate equity securities; inflation-sensitive equity securities, which the Fund defines as equity securities of companies that the Adviser believes have the ability to pass along increasing costs to consumers and maintain or grow margins in rising inflation environments, including equity securities of utilities and infrastructure-related companies (“inflation-sensitive equities”); securities and derivatives linked to the price of other assets (such as commodities, stock indices and real estate); and currencies. The Fund expects its investments in fixed-income securities to have a broad range of maturities and quality levels.

(continued on next page)

4    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

The Fund seeks inflation protection from investments around the globe, both in developed- and emerging-market countries. In selecting securities for purchase and sale, the Adviser utilizes 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 Fund. 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.

The Fund anticipates that its targeted investment mix, other than its investments in inflation-indexed fixed-income securities, will focus on commodity-related equity securities, commodities and commodity derivatives, real estate equity securities and inflation-sensitive equities to provide a balance between expected return and inflation protection. The Fund may vary its investment allocations among these asset classes, at times significantly. 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 Fund’s investments in real estate equity securities will include real estate investment trusts (“REITs”) and other real estate-related securities.

The Fund invests in both US and non-US dollar-denominated equity or fixed-income securities. The Fund may invest in currencies for hedging or investment purposes, both in the spot market and through long or short positions in currency-related derivatives. The Fund does not ordinarily expect to hedge its foreign currency exposure because it will be balanced by investments in US dollar-denominated securities, although it may hedge the exposure under certain circumstances.

The Fund may invest significantly to the extent permitted by applicable law in derivatives, such as options, futures contracts, forwards, swaps or structured notes. The Fund 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 considers factors such as the relative risks and returns expected of potential investments and the cost of such transactions. The Adviser considers the impact of derivatives in making its assessments of the Fund’s risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.

(continued on next page)

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    5

The Fund 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 Fund will seek to gain exposure to commodities and commodity-related instruments and derivatives primarily through investments in AllianceBernstein Cayman Inflation Strategy, Ltd., a wholly-owned subsidiary of the Fund 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 Fund except that the Subsidiary, unlike the Fund, may invest, without limitation, in commodities and commodity-related instruments. The Fund is 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 Fund limits its investment in the Subsidiary to no more than 25% of its net assets. Investment in the Subsidiary is expected to provide the Fund with commodity exposure within the limitations of federal tax requirements that apply to the Fund.

The Fund is “non-diversified”, which means that it may concentrate its assets in a smaller number of issuers than a diversified fund.

6    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

DISCLOSURES AND RISKS

Benchmark Disclosure

The MSCI AC World Commodity Producers Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The MSCI AC World Commodity Producers Index is a free float-adjusted, market capitalization index designed to track the performance of global listed commodity producers, including emerging markets. Commodities sectors include: energy, grains, industrial metals, petroleum, precious metals and softs. MSCI makes no express or implied warranties or representations, and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices, any securities or financial products. This report is not approved, reviewed or produced by MSCI. Net returns include the reinvestment of dividends after deduction of non-US withholding tax. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the stock, commodity and bond markets fluctuate. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

Commodity Risk: Investing in commodities and commodity-linked derivative instruments, either directly or through the Subsidiary, may sub-

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    7

DISCLOSURES AND RISKS (continued)

ject the Fund 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.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk.

Leverage Risk: To the extent the Fund 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 Fund’s investments.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes and large positions. Foreign fixed-income securities may have more illiquid investments risk because secondary trading markets for these securities may be smaller and less well-developed and the securities may trade less frequently. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally go down.

Foreign (Non-US) Risk: Investments in securities of non-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

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

Subsidiary Risk: By investing in the Subsidiary, the Fund 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 Fund and are subject to the same risks that apply to similar investments if held directly by the Fund. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and, unless otherwise noted in the Fund’s prospectus, is not subject to all of the investor protections of the 1940 Act. However, the Fund wholly owns and controls the Subsidiary, and the Fund and the Subsidiary are managed by the Adviser, making it

8    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

DISCLOSURES AND RISKS (continued)

unlikely the Subsidiary will take actions contrary to the interests of the Fund or its shareholders.

Real Estate Risk: The Fund’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.

Non-Diversification Risk: The Fund may have more risk because it is “non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s NAV.

Active Trading Risk: The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com. For Class 1 shares, go to www.bernstein.com and click on “Investments”, then “Mutual Fund and Money Market Information—Mutual Fund Performance at a Glance.”

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    9

DISCLOSURES AND RISKS (continued)

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com. For Class 1 shares, go to www.bernstein.com, click on “Investments”, then “Mutual Fund and Money Market Information—Prospectuses, SAIs, and Shareholder Reports”. Please read the prospectus and/or summary prospectus carefully before investing.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

10    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

10/31/2010 TO 10/31/2020

This chart illustrates the total value of an assumed $10,000 investment in AB All Market Real Return Portfolio Class A shares (from 10/31/2010 to 10/31/2020) as compared to the performance of its benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    11

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		-9.94%		-9.94%
5 Years		0.96%		0.96%
10 Years		-1.78%		-1.78%
CLASS 2 SHARES1
1 Year		-9.70%		-9.70%
5 Years		1.20%		1.20%
10 Years		-1.53%		-1.53%
CLASS A SHARES
1 Year		-10.11%		-13.89%
5 Years		0.77%		-0.10%
10 Years		-1.89%		-2.32%
CLASS C SHARES
1 Year		-10.85%		-11.73%
5 Years		0.01%		0.01%
10 Years		-2.61%		-2.61%
ADVISOR CLASS SHARES2
1 Year		-9.79%		-9.79%
5 Years		1.03%		1.03%
10 Years		-1.62%		-1.62%
CLASS R SHARES2
1 Year		-10.32%		-10.32%
5 Years		0.50%		0.50%
10 Years		-2.13%		-2.13%
CLASS K SHARES2
1 Year		-10.10%		-10.10%
5 Years		0.78%		0.78%
10 Years		-1.87%		-1.87%
CLASS I SHARES2
1 Year		-9.76%		-9.76%
5 Years		1.19%		1.19%
10 Years		-1.55%		-1.55%
CLASS Z SHARES2
1 Year		-9.75%		-9.75%
5 Years		1.17%		1.17%
Since Inception3		-2.55%		-2.55%

(footnotes continued on next page)

12    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

HISTORICAL PERFORMANCE (continued)

The Fund’s prospectus fee table shows the Fund’s total annual operating expense ratios as 1.12%, 0.83%, 1.34%, 2.09%, 1.09%, 1.59%, 1.30%, 0.88% and 0.87% for Class 1, Class 2, Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios exclusive of extraordinary expenses, interest expense, and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, brokerage commissions and other transaction costs to 1.30%, 2.05%, 1.05%, 1.55%, 1.30%, 1.05% and 1.05% for Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2021 and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to the Adviser’s institutional clients or through other limited arrangements.

2 These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

3 Inception date: 1/31/2014.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    13

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END
SEPTEMBER 30, 2020 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		-6.29%
5 Years		2.40%
10 Years		-1.08%
CLASS 2 SHARES1
1 Year		-5.90%
5 Years		2.66%
10 Years		-0.82%
CLASS A SHARES
1 Year		-10.33%
5 Years		1.36%
10 Years		-1.62%
CLASS C SHARES
1 Year		-7.98%
5 Years		1.46%
10 Years		-1.91%
ADVISOR CLASS SHARES2
1 Year		-6.19%
5 Years		2.48%
10 Years		-0.94%
CLASS R SHARES2
1 Year		-6.58%
5 Years		1.96%
10 Years		-1.43%
CLASS K SHARES2
1 Year		-6.47%
5 Years		2.21%
10 Years		-1.17%
CLASS I SHARES2
1 Year		-5.89%
5 Years		2.65%
10 Years		-0.83%
CLASS Z SHARES2
1 Year		-5.89%
5 Years		2.66%
Since Inception3		-2.32%

(footnotes continued on next page)

14    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

HISTORICAL PERFORMANCE (continued)

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to the Adviser’s institutional clients or through other limited arrangements.

2 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

3 Inception date: 1/31/2014.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    15

EXPENSE EXAMPLE

(unaudited)

As a shareholder of a mutual fund, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

16    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

EXPENSE EXAMPLE (continued)

	Beginning Account Value May  1, 2020		Ending Account Value October 31, 2020		Expenses Paid During Period*		Annualized Expense Ratio*			Total Expenses Paid During Period+		Total Annualized Expense Ratio+
Class A
Actual	$	1,000	$	1,092.70	$	6.73		1.28	%	$	6.94		1.32	%
Hypothetical**	$	1,000	$	1,018.70	$	6.50		1.28	%	$	6.70		1.32	%
Class C
Actual	$	1,000	$	1,088.10	$	10.66		2.03	%	$	10.86		2.07	%
Hypothetical**	$	1,000	$	1,014.93	$	10.28		2.03	%	$	10.48		2.07	%
Advisor Class
Actual	$	1,000	$	1,094.60	$	5.42		1.03	%	$	5.63		1.07	%
Hypothetical**	$	1,000	$	1,019.96	$	5.23		1.03	%	$	5.43		1.07	%
Class R
Actual	$	1,000	$	1,089.60	$	8.04		1.53	%	$	8.25		1.57	%
Hypothetical**	$	1,000	$	1,017.44	$	7.76		1.53	%	$	7.96		1.57	%
Class K
Actual	$	1,000	$	1,092.50	$	6.73		1.28	%	$	6.94		1.32	%
Hypothetical**	$	1,000	$	1,018.70	$	6.50		1.28	%	$	6.70		1.32	%
Class I
Actual	$	1,000	$	1,093.80	$	4.47		0.85	%	$	4.68		0.89	%
Hypothetical**	$	1,000	$	1,020.86	$	4.32		0.85	%	$	4.52		0.89	%
Class 1
Actual	$	1,000	$	1,093.00	$	5.84		1.11	%	$	6.05		1.15	%
Hypothetical**	$	1,000	$	1,019.56	$	5.63		1.11	%	$	5.84		1.15	%
Class 2
Actual	$	1,000	$	1,093.70	$	4.32		0.82	%	$	4.53		0.86	%
Hypothetical**	$	1,000	$	1,021.01	$	4.17		0.82	%	$	4.37		0.86	%
Class Z
Actual	$	1,000	$	1,093.80	$	4.47		0.85	%	$	4.68		0.89	%
Hypothetical**	$	1,000	$	1,020.86	$	4.32		0.85	%	$	4.52		0.89	%

* Expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

+ In connection with the Fund’s investments in affiliated/unaffiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated/unaffiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses of the affiliated underlying portfolios. The Fund’s total expenses are equal to the classes’ annualized expense ratio plus the Fund’s pro rata share of the weighted average expense ratio of the affiliated/unaffiliated underlying portfolios in which it invests, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    17

PORTFOLIO SUMMARY

October 31, 2020 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $929.1

1 All data are as of October 31, 2020. The portfolio breakdown is expressed as an approximate percentage of the Fund’s net assets inclusive of derivative exposure, based on the Adviser’s internal classification guidelines.

2 The Fund’s security type breakdown is expressed as a percentage of total investments (excluding security lending collateral) and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Consolidated Portfolio of Investments” section of the report for additional details).

18    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

PORTFOLIO SUMMARY (continued)

October 31, 2020 (unaudited)

TEN LARGEST HOLDINGS²

Security	U.S. $ Value		Percent of Net Assets
Japanese Government CPI Linked Bond Series 21	$	37,979,829		4.1	%
Prologis, Inc.		15,717,347		1.7
Royal Dutch Shell PLC – Class B		13,253,580		1.4
Digital Realty Trust, Inc.		10,692,630		1.2
iShares MSCI Global Metals & Mining Producers ETF		10,174,949		1.1
Chevron Corp.		9,268,103		1.0
Welltower, Inc.		8,805,375		0.9
Vonovia SE		8,266,042		0.9
VanEck Vectors Gold Miners ETF		7,989,681		0.9
Mitsui Fudosan Co., Ltd.		7,919,516		0.9
	$	130,067,052		14.1	%

1 All data are as of October 31, 2020. The Fund’s country breakdown is expressed as a percentage of total investments (excluding security lending collateral) and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Consolidated Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.6% or less in the following: Austria, Belgium, Chile, Denmark, Finland, Greece, Ireland, Israel, Italy, Luxembourg, Mexico, Netherlands, New Zealand, Philippines, Russia, Singapore, South Korea, Spain, Switzerland, Thailand and United Arab Emirates.

2 Long-term investments.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    19

CONSOLIDATED PORTFOLIO OF INVESTMENTS

October 31, 2020

Company	Shares		U.S. $ Value
COMMON STOCKS – 62.8%
Real Estate – 34.3%
Diversified Real Estate Activities – 2.6%
City Developments Ltd.		249,700	$	1,159,574
Mitsubishi Estate Co., Ltd.		150,600		2,246,331
Mitsui Fudosan Co., Ltd.		465,100		7,919,516
New World Development Co., Ltd.		717,750		3,426,816
Sumitomo Realty & Development Co., Ltd.		50,600		1,354,022
Sun Hung Kai Properties Ltd.		486,000		6,255,701
UOL Group Ltd.		329,700		1,502,836
				23,864,796
Diversified REITs – 2.4%
Activia Properties, Inc.		390		1,409,077
Alexander & Baldwin, Inc.		139,340		1,790,519
Armada Hoffler Properties, Inc.		164,533		1,482,442
Daiwa House REIT Investment Corp.		636		1,471,234
Essential Properties Realty Trust, Inc.		171,840		2,838,797
Fibra Uno Administracion SA de CV		991,230		753,768
Gecina SA		13,730		1,704,483
Growthpoint Properties Ltd.		1,440,142		942,152
Hulic Reit, Inc.		2,033		2,672,662
NIPPON REIT Investment Corp.		277		889,395
Nomura Real Estate Master Fund, Inc.		1,297		1,548,815
Stockland		1,714,523		4,636,211
				22,139,555
Health Care REITs – 3.0%
Assura PLC		4,648,560		4,588,922
Medical Properties Trust, Inc.		328,390		5,851,910
Omega Healthcare Investors, Inc.		170,626		4,915,735
Physicians Realty Trust		210,056		3,541,544
Welltower, Inc.		163,760		8,805,375
				27,703,486
Hotel & Resort REITs – 0.2%
RLJ Lodging Trust		210,450		1,721,481
Industrial REITs – 4.2%
Americold Realty Trust		129,740		4,700,480
Dream Industrial Real Estate Investment Trust		194,124		1,723,701
GLP J-Reit(a)		1,457		2,246,181
Industrial & Infrastructure Fund Investment Corp.		1,353		2,303,194
Nippon Prologis REIT, Inc.(a)		255		839,317
Plymouth Industrial REIT, Inc.		54,286		689,975
Prologis, Inc.		158,441		15,717,347
Rexford Industrial Realty, Inc.		87,030		4,043,414

20    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Segro PLC		285,842	$	3,339,976
STAG Industrial, Inc.		109,670		3,412,930
				39,016,515
Office REITs – 3.0%
Alexandria Real Estate Equities, Inc.		43,581		6,603,393
Allied Properties Real Estate Investment Trust		77,560		1,880,930
Boston Properties, Inc.		57,910		4,193,263
Cousins Properties, Inc.		133,735		3,407,568
Daiwa Office Investment Corp.		441		2,393,141
Derwent London PLC		43,060		1,482,835
Japan Real Estate Investment Corp.		295		1,445,708
Kilroy Realty Corp.		61,240		2,883,179
Nippon Building Fund, Inc.		220		1,111,176
SL Green Realty Corp.(b)		52,130		2,231,685
True North Commercial Real Estate Investment Trust		146,620		603,076
				28,235,954
Real Estate Development – 2.9%
Broadstone Net Lease, Inc. – Class A		80,450		1,327,425
China Resources Land Ltd.		1,110,000		4,539,529
CIFI Holdings Group Co., Ltd.		6,620,000		4,586,210
CK Asset Holdings Ltd.		317,000		1,471,986
Emaar Properties PJSC(a)		2,367,470		1,696,548
Instone Real Estate Group AG(a)(c)		102,789		2,127,074
Megaworld Corp.(a)		17,716,000		1,108,310
Midea Real Estate Holding Ltd.(b)(c)		2,236,400		5,057,232
Times China Holdings Ltd.		3,822,000		5,105,865
				27,020,179
Real Estate Operating Companies – 4.5%
ADLER Group SA(a)(b)(c)		55,900		1,405,307
Azrieli Group Ltd.		31,800		1,492,562
CA Immobilien Anlagen AG		80,379		2,207,894
Central Pattana PCL		421,300		520,416
Deutsche Wohnen SE		147,900		7,464,944
Entra ASA(c)		158,208		2,068,253
Fabege AB		105,575		1,333,084
Grainger PLC		791,800		2,868,549
Kojamo Oyj		94,380		1,945,428
Kungsleden AB		170,600		1,447,677
LEG Immobilien AG		24,410		3,299,081
Samhallsbyggnadsbolaget i Norden AB(b)		810,980		2,231,931
SM Prime Holdings, Inc.		1,497,400		1,042,623
Swire Properties Ltd.		661,000		1,773,784
Vonovia SE		129,433		8,266,042
Wharf Real Estate Investment Co., Ltd.		308,000		1,185,424
Wihlborgs Fastigheter AB		79,120		1,426,093
				41,979,092

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    21

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Real Estate Services – 0.1%
Unibail-Rodamco-Westfield(b)		21,490	$	871,064
Residential REITs – 5.4%
American Campus Communities, Inc.		112,580		4,217,247
American Homes 4 Rent—Class A		188,450		5,327,481
Bluerock Residential Growth REIT, Inc.		80,910		700,681
Camden Property Trust		58,140		5,362,833
Daiwa Securities Living Investments Corp.		2,530		2,471,362
Essex Property Trust, Inc.		24,850		5,084,061
Independence Realty Trust, Inc.		399,940		4,859,271
Invitation Homes, Inc.		157,410		4,290,997
Killam Apartment Real Estate Investment Trust		296,860		3,567,311
Mid-America Apartment Communities, Inc.		53,440		6,232,707
Minto Apartment Real Estate Investment Trust		135,080		1,655,675
Sun Communities, Inc.		45,087		6,205,324
				49,974,950
Retail REITs – 3.4%
AEON REIT Investment Corp.		1,201		1,358,351
Brixmor Property Group, Inc.		427,850		4,689,236
CapitaLand Mall Trust		2,290,660		2,903,543
Eurocommercial Properties NV		143,900		1,570,822
Kenedix Retail REIT Corp.		349		667,953
Link REIT		552,901		4,219,662
National Retail Properties, Inc.		76,250		2,440,763
NETSTREIT Corp.(a)		80,766		1,416,636
Realty Income Corp.		83,270		4,818,002
Scentre Group		35,040		51,709
Simon Property Group, Inc.		21,242		1,334,210
SITE Centers Corp.		336,640		2,292,518
Vicinity Centres(b)		4,133,140		3,512,372
				31,275,777
Specialized REITs – 2.6%
American Tower Corp.		266		61,087
CubeSmart		142,530		4,836,043
Digital Realty Trust, Inc.		74,100		10,692,630
MGM Growth Properties LLC – Class A		103,196		2,729,534
National Storage Affiliates Trust		111,200		3,768,568
Safestore Holdings PLC		157,000		1,634,366
VICI Properties, Inc.		25,631		588,232
Weyerhaeuser Co.		10,735		292,958
				24,603,418
				318,406,267
Materials – 7.2%
Aluminum – 0.1%
Alcoa Corp.(a)		94,210		1,217,193

22    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Commodity Chemicals – 0.3%
Corteva, Inc.		3,247	$	107,086
Mitsubishi Chemical Holdings Corp.		95,300		536,363
Mitsui Chemicals, Inc.		22,200		568,594
Orbia Advance Corp. SAB de CV		820,137		1,457,274
				2,669,317
Construction Materials – 0.4%
Fletcher Building Ltd.(a)		741,800		2,008,886
Grupo Cementos de Chihuahua SAB de CV		258,307		1,302,769
				3,311,655
Copper – 0.6%
Antofagasta PLC		148,718		1,983,033
First Quantum Minerals Ltd.		151,735		1,743,649
Lundin Mining Corp.		153,021		924,581
OZ Minerals Ltd.		76,876		803,076
				5,454,339
Diversified Chemicals – 0.1%
LANXESS AG		8,638		438,100
Sumitomo Chemical Co., Ltd.		107,500		351,652
				789,752
Diversified Metals & Mining – 2.0%
Anglo American PLC		96,931		2,274,309
BHP Group Ltd.		4,118		98,715
Boliden AB		62,472		1,703,555
Glencore PLC(a)		2,001,723		4,037,947
Korea Zinc Co., Ltd.		3,856		1,304,127
MMC Norilsk Nickel PJSC (ADR)(b)		50,427		1,197,641
Orocobre Ltd.(a)(b)		139,226		251,032
Rio Tinto PLC		118,498		6,702,408
Sumitomo Metal Mining Co., Ltd.		33,500		1,041,305
				18,611,039
Fertilizers & Agricultural Chemicals – 0.3%
FMC Corp.		620		63,699
Yara International ASA(b)		66,920		2,341,896
				2,405,595
Gold – 1.7%
Agnico Eagle Mines Ltd.		89,051		7,049,620
AngloGold Ashanti Ltd.		140,188		3,230,696
Northern Star Resources Ltd.		128,610		1,358,624
Polyus PJSC (GDR)(c)		16,782		1,643,794
Regis Resources Ltd.		331,590		973,258
St. Barbara Ltd.		565,140		1,062,720
Wheaton Precious Metals Corp.		1,509		69,249
Yamana Gold, Inc.		81,020		450,618
				15,838,579

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    23

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Paper Packaging – 0.1%
International Paper Co.		22,591	$	988,357
Smurfit Kappa Group PLC		10,267		386,851
				1,375,208
Paper Products – 0.2%
Suzano SA(a)		217,400		1,896,299
Precious Metals & Minerals – 0.1%
Industrias Penoles SAB de CV		61,448		981,476
Pan American Silver Corp.		10,378		329,809
				1,311,285
Specialty Chemicals – 0.5%
Chr Hansen Holding A/S		3,037		306,463
Clariant AG		9,869		169,310
Evonik Industries AG		51,374		1,236,926
RPM International, Inc.		14,892		1,260,906
Sika AG		2,651		652,158
Teijin Ltd.		32,100		491,706
Umicore SA		12,360		476,494
				4,593,963
Steel – 0.8%
APERAM SA		62,500		1,677,291
ArcelorMittal SA(a)		145,738		1,976,211
Fortescue Metals Group Ltd.		6,420		78,539
Steel Dynamics, Inc.		2,118		66,675
Vale SA (Sponsored ADR) – Class B		328,285		3,469,972
				7,268,688
				66,742,912
Energy – 5.7%
Integrated Oil & Gas – 5.1%
BP PLC		1,752,598		4,470,322
Cenovus Energy, Inc.(b)		15,809		51,736
Chevron Corp.		133,354		9,268,103
Exxon Mobil Corp.		103,900		3,389,218
LUKOIL PJSC (Sponsored ADR)		20,260		1,035,083
PetroChina Co., Ltd. – Class H		10,028,000		2,816,236
Petroleo Brasileiro SA (Preference Shares)		864,400		2,853,238
Repsol SA		508,713		3,193,734
Royal Dutch Shell PLC – Class B		1,099,031		13,253,580
TOTAL SE		220,682		6,685,938
				47,017,188
Oil & Gas Equipment & Services – 0.0%
Baker Hughes Co. – Class A		5,720		84,484

24    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Oil & Gas Exploration & Production – 0.3%
Aker BP ASA(b)		72,823	$	1,134,098
EOG Resources, Inc.		63,068		2,159,448
				3,293,546
Oil & Gas Refining & Marketing – 0.2%
ENEOS Holdings, Inc.		355,200		1,198,546
HollyFrontier Corp.		2,772		51,310
Motor Oil Hellas Corinth Refineries SA		81,278		759,932
				2,009,788
Oil & Gas Storage & Transportation – 0.1%
Cheniere Energy, Inc.(a)		11,180		535,187
				52,940,193
Software & Services – 2.0%
Application Software – 0.5%
Adobe, Inc.(a)		952		425,639
Cadence Design Systems, Inc.(a)		12,126		1,326,221
Constellation Software, Inc./Canada		476		499,684
Dropbox, Inc. – Class A(a)		31,881		582,147
Fair Isaac Corp.(a)		1,129		441,948
Intuit, Inc.		4,568		1,437,458
salesforce.com, Inc.(a)		181		42,041
WiseTech Global Ltd.		2,574		52,498
Zoom Video Communications, Inc. – Class A(a)		159		73,285
				4,880,921
Data Processing & Outsourced Services – 0.1%
Afterpay Ltd.(a)		1,877		127,803
Mastercard, Inc. – Class A		2,817		813,099
Visa, Inc. – Class A		2,472		449,187
				1,390,089
Internet Services & Infrastructure – 0.3%
GDS Holdings Ltd. (ADR)(a)		17,220		1,447,169
Shopify, Inc. – Class A(a)		861		793,745
VeriSign, Inc.(a)		1,629		310,650
				2,551,564
IT Consulting & Other Services – 0.2%
Atos SE(a)		7,837		535,391
EPAM Systems, Inc.(a)		1,218		376,301
Fujitsu Ltd.		5,000		591,573
International Business Machines Corp.		2,865		319,906
				1,823,171
Systems Software – 0.9%
Fortinet, Inc.(a)		3,170		349,873
Microsoft Corp.		17,291		3,500,909
NortonLifeLock, Inc.		48,646		1,000,648

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    25

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Oracle Corp.		9,430	$	529,117
ServiceNow, Inc.(a)		3,204		1,594,214
Trend Micro, Inc./Japan		9,800		548,948
VMware, Inc. – Class A(a)		6,509		837,904
				8,361,613
				19,007,358
Capital Goods – 1.5%
Aerospace & Defense – 0.0%
BAE Systems PLC		58,296		299,664
Agricultural & Farm Machinery – 0.2%
Deere & Co.		6,180		1,396,124
Building Products – 0.3%
Carrier Global Corp.		22,716		758,487
Cie de Saint-Gobain(a)		11,773		458,600
Masco Corp.		14,079		754,634
Otis Worldwide Corp.		11,345		695,222
				2,666,943
Construction & Engineering – 0.1%
ACS Actividades de Construccion y Servicios SA		4,353		103,474
Kajima Corp.		28,200		301,329
Shimizu Corp.		60,600		420,767
				825,570
Construction & Farm Machinery & Heavy Trucks – 0.2%
Cummins, Inc.		4,281		941,349
Volvo AB – Class B(a)		20,946		407,131
				1,348,480
Electrical Components & Equipment – 0.2%
Acuity Brands, Inc.		11,373		1,013,789
Legrand SA		5,783		428,054
Prysmian SpA		22,445		610,782
				2,052,625
Heavy Electrical Equipment – 0.1%
Vestas Wind Systems A/S		4,819		826,767
Industrial Conglomerates – 0.0%
Toshiba Corp.		14,000		354,142
Industrial Machinery – 0.3%
Alfa Laval AB(a)		10,015		203,422
Atlas Copco AB – Class B		12,517		479,599
Mitsubishi Heavy Industries Ltd.		22,600		485,566

26    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Snap-on, Inc.		6,828	$	1,075,615
Techtronic Industries Co., Ltd.		31,000		417,550
				2,661,752
Trading Companies & Distributors – 0.1%
WW Grainger, Inc.		3,524		1,233,471
				13,665,538
Pharmaceuticals & Biotechnology – 1.3%
Biotechnology – 0.2%
AbbVie, Inc.		8,141		692,799
BeiGene Ltd. (Sponsored ADR)(a)		446		132,248
Gilead Sciences, Inc.		5,075		295,111
Sarepta Therapeutics, Inc.(a)		1,049		142,570
Vertex Pharmaceuticals, Inc.(a)		2,298		478,811
				1,741,539
Life Sciences Tools & Services – 0.5%
Bio-Rad Laboratories, Inc. – Class A(a)		2,309		1,354,044
Eurofins Scientific SE(a)		543		432,402
Lonza Group AG		1,275		772,535
Mettler-Toledo International, Inc.(a)		613		611,719
Sartorius Stedim Biotech		1,973		748,181
Waters Corp.(a)		1,549		345,148
				4,264,029
Pharmaceuticals – 0.6%
AstraZeneca PLC		4,970		499,015
Eli Lilly & Co.		9,188		1,198,667
Johnson & Johnson		556		76,233
Merck & Co., Inc.		13,240		995,781
Novartis AG		635		49,481
Novo Nordisk A/S – Class B		13,769		877,989
Pfizer, Inc.		14,630		519,072
Roche Holding AG		3,797		1,220,095
Takeda Pharmaceutical Co., Ltd.		7,100		219,408
Zoetis, Inc.		2,271		360,067
				6,015,808
				12,021,376
Food Beverage & Tobacco – 1.2%
Brewers – 0.0%
Heineken Holding NV		1,063		81,917
Kirin Holdings Co., Ltd.		14,500		261,411
				343,328
Packaged Foods & Meats – 0.9%
a2 Milk Co., Ltd. (The)(a)		37,297		361,153
Ajinomoto Co., Inc.		11,800		237,071
Hershey Co. (The)		7,390		1,015,829

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    27

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Kellogg Co.		11,235	$	706,569
Mowi ASA(b)		136,535		2,156,974
Nestle SA		8,623		969,897
Tyson Foods, Inc. – Class A		41,850		2,395,076
WH Group Ltd.(c)		329,500		259,523
				8,102,092
Soft Drinks – 0.0%
Monster Beverage Corp.(a)		1,553		118,913
Tobacco – 0.3%
Altria Group, Inc.		28,946		1,044,372
Philip Morris International, Inc.		17,662		1,254,355
Swedish Match AB		6,410		481,920
				2,780,647
				11,344,980
Retailing – 1.2%
Automotive Retail – 0.1%
O’Reilly Automotive, Inc.(a)		2,734		1,193,664
Computer & Electronics Retail – 0.1%
Best Buy Co., Inc.		3,621		403,923
Hikari Tsushin, Inc.		900		211,090
				615,013
Department Stores – 0.1%
Next PLC		10,362		782,606
General Merchandise Stores – 0.0%
Dollar General Corp.		1,415		295,325
Home Improvement Retail – 0.3%
Home Depot, Inc. (The)		3,729		994,562
Lowe’s Cos., Inc.		9,585		1,515,388
				2,509,950
Internet & Direct Marketing Retail – 0.6%
Amazon.com, Inc.(a)		1,140		3,461,211
Booking Holdings, Inc.(a)		76		123,310
eBay, Inc.		21,905		1,043,335
Zalando SE(a)(c)		7,743		721,062
				5,348,918
				10,745,476
Media & Entertainment – 1.0%
Advertising – 0.0%
Omnicom Group, Inc.		4,539		214,241

28    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Cable & Satellite – 0.1%
Liberty Broadband Corp.(a)		3,873	$	548,843
Interactive Home Entertainment – 0.2%
Activision Blizzard, Inc.		6,344		480,431
Electronic Arts, Inc.(a)		9,590		1,149,170
Nintendo Co., Ltd.		1,400		756,964
				2,386,565
Interactive Media & Services – 0.6%
Alphabet, Inc. – Class A(a)		607		980,979
Alphabet, Inc. – Class C(a)		478		774,843
Facebook, Inc. – Class A(a)		11,941		3,141,796
Z Holdings Corp.		98,400		686,149
				5,583,767
Movies & Entertainment – 0.1%
Netflix, Inc.(a)		2,062		980,976
				9,714,392
Technology Hardware & Equipment – 0.9%
Communications Equipment – 0.1%
Nokia Oyj(a)		93,833		316,329
Telefonaktiebolaget LM Ericsson – Class B		26,791		299,109
				615,438
Electronic Components – 0.0%
TDK Corp.		2,000		235,201
Electronic Equipment & Instruments – 0.1%
Hitachi Ltd.		18,800		633,641
Technology Distributors – 0.1%
Arrow Electronics, Inc.(a)		15,106		1,176,606
Technology Hardware, Storage & Peripherals – 0.6%
Apple, Inc.		48,752		5,307,143
				7,968,029
Utilities – 0.9%
Electric Utilities – 0.5%
Endesa SA		13,936		373,892
Enel SpA		385,780		3,067,145
Red Electrica Corp. SA		29,704		523,221
Terna Rete Elettrica Nazionale SpA		87,902		593,495
				4,557,753

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    29

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Gas Utilities – 0.2%
Snam SpA		116,903	$	570,029
UGI Corp.		37,342		1,207,640
				1,777,669
Independent Power Producers & Energy Traders – 0.1%
AES Corp. (The)		26,746		521,547
Multi-Utilities – 0.1%
Sempra Energy		8,349		1,046,631
				7,903,600
Semiconductors & Semiconductor Equipment – 0.7%
Semiconductor Equipment – 0.3%
Applied Materials, Inc.		20,622		1,221,441
ASML Holding NV		2,301		832,508
Lam Research Corp.		1,497		512,094
				2,566,043
Semiconductors – 0.4%
Intel Corp.		30,530		1,351,868
QUALCOMM, Inc.		14,035		1,731,358
STMicroelectronics NV		22,296		680,122
Texas Instruments, Inc.		1,040		150,374
				3,913,722
				6,479,765
Diversified Financials – 0.7%
Asset Management & Custody Banks – 0.1%
Ameriprise Financial, Inc.		1,908		306,864
Magellan Financial Group Ltd.		6,334		245,496
				552,360
Financial Exchanges & Data – 0.3%
FactSet Research Systems, Inc.		3,437		1,053,441
Moody’s Corp.		3,077		808,943
S&P Global, Inc.		2,644		853,298
				2,715,682
Investment Banking & Brokerage – 0.1%
Goldman Sachs Group, Inc. (The)		5,884		1,112,311
Nomura Holdings, Inc.		122,500		548,609
				1,660,920
Multi-Sector Holdings – 0.1%
Kinnevik AB – Class B(a)		18,439		755,057

30    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Other Diversified Financial Services – 0.1%
M&G PLC		406,685	$	773,582
				6,457,601
Health Care Equipment & Services – 0.7%
Health Care Distributors – 0.1%
AmerisourceBergen Corp. – Class A		11,608		1,115,181
Health Care Equipment – 0.2%
Edwards Lifesciences Corp.(a)		14,950		1,071,765
Fisher & Paykel Healthcare Corp., Ltd.		21,308		492,947
Insulet Corp.(a)		870		193,358
				1,758,070
Health Care Supplies – 0.1%
Coloplast A/S – Class B		3,896		569,763
Health Care Technology – 0.1%
Cerner Corp.		17,195		1,205,197
Managed Health Care – 0.2%
Humana, Inc.		2,079		830,103
Molina Healthcare, Inc.(a)		4,782		891,700
				1,721,803
				6,370,014
Consumer Durables & Apparel – 0.7%
Apparel, Accessories & Luxury Goods – 0.1%
Pandora A/S		7,725		612,820
Ralph Lauren Corp.		1,545		103,283
				716,103
Homebuilding – 0.5%
Construtora Tenda SA		187,200		876,305
Corp. GEO SAB de CV Series B(a)(d)(e)		1,321		– 0	–
Desarrolladora Homex SAB de CV(a)		1,590		3
MRV Engenharia e Participacoes SA		203,700		598,183
Persimmon PLC		42,440		1,284,935
PulteGroup, Inc.		40,190		1,638,144
Urbi Desarrollos Urbanos SAB de CV(a)		9		6
				4,397,576
Household Appliances – 0.1%
Electrolux AB – Class B(b)		24,486		552,119
SEB SA		687		111,647
Whirlpool Corp.		3,077		569,122
				1,232,888
				6,346,567

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    31

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Transportation – 0.6%
Air Freight & Logistics – 0.1%
United Parcel Service, Inc. – Class B		4,216	$	662,376
Yamato Holdings Co., Ltd.		18,900		500,292
				1,162,668
Highways & Railtracks – 0.4%
Transurban Group(b)		406,135		3,845,966
Railroads – 0.0%
Canadian Pacific Railway Ltd.		1,285		384,005
Trucking – 0.1%
Nippon Express Co., Ltd.		9,700		543,971
				5,936,610
Insurance – 0.5%
Life & Health Insurance – 0.4%
AIA Group Ltd.		6,400		60,910
CNP Assurances(a)		46,989		529,972
iA Financial Corp., Inc.		9,277		323,229
Japan Post Holdings Co., Ltd.		22,100		151,638
Legal & General Group PLC		53,589		128,485
Manulife Financial Corp.(b)		11,835		160,429
MetLife, Inc.		25,179		953,025
Prudential Financial, Inc.		18,388		1,177,200
Sun Life Financial, Inc.		11,728		466,638
				3,951,526
Multi-line Insurance – 0.1%
Ageas SA/NV		1,174		47,276
Aviva PLC		114,736		382,710
				429,986
				4,381,512
Consumer Services – 0.4%
Casinos & Gaming – 0.1%
Aristocrat Leisure Ltd.		22,379		450,640
La Francaise des Jeux SAEM(c)		14,741		552,967
				1,003,607
Hotels, Resorts & Cruise Lines – 0.1%
Hilton Grand Vacations, Inc.(a)		81,790		1,684,874
Leisure Facilities – 0.1%
Planet Fitness, Inc.(a)		13,700		811,999
Restaurants – 0.1%
Domino’s Pizza, Inc.		1,267		479,332
				3,979,812

32    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Banks – 0.4%
Diversified Banks – 0.2%
BNP Paribas SA(a)		11,709	$	408,348
FinecoBank Banca Fineco SpA(a)		42,915		589,217
JPMorgan Chase & Co.		4,066		398,631
Societe Generale SA(a)		20,719		281,528
				1,677,724
Regional Banks – 0.2%
Mebuki Financial Group, Inc.		228,900		459,904
Signature Bank/New York NY		5,669		457,715
SVB Financial Group(a)		3,549		1,031,694
				1,949,313
				3,627,037
Automobiles & Components – 0.2%
Auto Parts & Equipment – 0.1%
Aisin Seiki Co., Ltd.		17,200		521,127
JTEKT Corp.		44,500		354,609
Lear Corp.		1,412		170,584
Magna International, Inc. – Class A (Canada)		9,043		461,754
				1,508,074
Automobile Manufacturers – 0.1%
General Motors Co.		15,475		534,352
Tesla, Inc.(a)		385		149,395
				683,747
Tires & Rubber – 0.0%
Sumitomo Rubber Industries Ltd.		8,400		73,888
				2,265,709
Household & Personal Products – 0.2%
Household Products – 0.1%
Kimberly-Clark Corp.		2,064		273,666
Procter & Gamble Co. (The)		3,597		493,148
				766,814
Personal Products – 0.1%
Unilever NV(b)		5,438		306,561
Unilever PLC		15,639		891,248
				1,197,809
				1,964,623
Commercial & Professional Services – 0.2%
Diversified Support Services – 0.1%
Cintas Corp.		208		65,426
Copart, Inc.(a)		509		56,173

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    33

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
Ever Sunshine Lifestyle Services Group Ltd.(c)		560,120	$	968,535
				1,090,134
Environmental & Facilities Services – 0.0%
Rollins, Inc.		1,027		59,412
Human Resource & Employment Services – 0.1%
Adecco Group AG		771		37,805
Persol Holdings Co., Ltd.(b)		7,600		115,111
Randstad NV(a)		6,179		308,311
				461,227
Research & Consulting Services – 0.0%
RELX PLC (London)		17,832		352,858
				1,963,631
Food & Staples Retailing – 0.2%
Food Retail – 0.1%
Empire Co., Ltd. – Class A		10,543		287,652
J Sainsbury PLC		66,431		173,400
Koninklijke Ahold Delhaize NV		24,464		670,700
Kroger Co. (The)		2,539		81,781
				1,213,533
Hypermarkets & Super Centers – 0.1%
Aeon Co., Ltd.		2,200		56,206
Coles Group Ltd.		41,820		522,426
				578,632
				1,792,165
Telecommunication Services – 0.1%
Integrated Telecommunication Services – 0.0%
Telenor ASA		29,449		455,054
Wireless Telecommunication Services – 0.1%
SoftBank Corp.		31,100		361,925
SoftBank Group Corp.		2,500		162,835
				524,760
				979,814
Total Common Stocks (cost $636,920,170)				583,004,981

34    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Company		Principal Amount (000)		U.S. $ Value
INFLATION-LINKED SECURITIES – 4.1%
Japan – 4.1%
Japanese Government CPI Linked Bond Series 21 0.10%, 03/10/2026 (cost $36,641,624)	JPY		3,996,280	$	37,979,829
		Shares
INVESTMENT COMPANIES – 3.3%
Funds and Investment Trusts – 3.3%(f)
iShares MSCI Global Metals & Mining Producers ETF(b)			381,656		10,174,949
VanEck Vectors Agribusiness ETF(b)			54,379		3,609,678
VanEck Vectors Gold Miners ETF			213,115		7,989,681
Vanguard Global ex-U.S. Real Estate ETF			138,350		6,499,683
Vanguard Real Estate ETF			36,480		2,794,003
Total Investment Companies (cost $27,171,745)					31,067,994
SHORT-TERM INVESTMENTS – 24.7%
Investment Companies – 24.7%
AB Fixed Income Shares, Inc. – AB Government Money Market Portfolio – Class AB, 0.03%(f)(g)(h) cost $229,369,414)			229,369,414		229,369,414
Total Investments Before Security Lending Collateral for Securities Loaned – 94.9% (cost $930,102,953)					881,422,218
INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED – 0.7%
Investment Companies – 0.7%
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.03%(f)(g)(h) (cost $6,911,120)			6,911,120		6,911,120
Total Investments – 95.6% (cost $937,014,073)					888,333,338
Other assets less liabilities – 4.4%					40,795,193
Net Assets – 100.0%				$	929,128,531

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    35

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
Brent Crude Futures		212		April 2021	$	8,488,480	$	270,631
Brent Crude Futures		159		October 2021		6,593,730		192,487
Brent Crude Futures		108		April 2022		4,602,960		53,553
Brent Crude Futures		104		October 2022		4,534,400		3,354
Cattle Feeder Futures		21		January 2021		1,408,312		83,315
Cocoa Futures		33		March 2021		760,650		(23,771	)
Copper Futures		32		December 2020		2,438,000		116,574
Cotton No.2 Futures		44		December 2020		1,516,240		21,870
Gold 100 OZ Futures		34		December 2020		6,391,660		(121,718	)
LME Nickel Futures		63		December 2020		5,723,298		724,594
LME Nickel Futures		10		January 2021		909,330		(54,003	)
LME Primary Aluminum Futures		59		December 2020		2,733,175		96,726
LME Zinc Futures		44		November 2020		2,766,775		269,790
LME Zinc Futures		16		January 2021		1,009,000		(22,512	)
MSCI EAFE Futures		79		December 2020		7,046,405		(475,446	)
Natural Gas Futures		1,040		November 2020		34,881,600		6,892,221
S&P 500 E-Mini Futures		227		December 2020		37,054,345		(1,420,643	)
S&P/TSX 60 Index Futures		7		December 2020		972,424		(52,147	)
Soybean Meal Futures		272		December 2020		10,297,920		2,116,132
Soybean Oil Futures		443		December 2020		8,933,538		1,008,969
WTI Crude Futures		220		May 2021		8,375,400		615,802
WTI Crude Futures		175		November 2021		6,872,250		469,210
WTI Crude Futures		119		May 2022		4,752,860		216,178
WTI Crude Futures		115		November 2022		4,671,300		137,375
Sold Contracts
Brent Crude Futures		39		November 2020		1,479,660		114,583
Coffee ‘C’ Futures		19		December 2020		743,850		33,756
Corn Futures		116		December 2020		2,311,300		18,182
Japan 10 Yr Bond (OSE) Futures		10		December 2020		14,506,901		(11,047	)
LME Nickel Futures		63		December 2020		5,723,298		(965,344	)
LME Primary Aluminum Futures		59		December 2020		2,733,175		(121,235	)
LME Zinc Futures		44		November 2020		2,766,775		(111,638	)
MSCI Emerging Markets Futures		131		December 2020		7,217,445		(73,939	)
Silver Futures		20		December 2020		2,364,600		(97,945	)
WTI Crude Futures		39		November 2020		1,395,810		174,453
							$	10,078,367

36    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Australia and New Zealand Banking Group Ltd.	USD	2,344	SGD	3,184		01/07/2021	$	(12,442	)
Australia and New Zealand Banking Group Ltd.	USD	4,843	THB	152,033		01/07/2021		33,348
Bank of America, NA	KRW	2,835,017	USD	2,382		11/10/2020		(111,258	)
Bank of America, NA	USD	4,233	KRW	5,022,793		11/10/2020		183,389
Bank of America, NA	USD	2,329	CAD	3,055		12/10/2020		(35,985	)
Barclays Bank PLC	KRW	2,281,959	USD	1,925		11/10/2020		(81,663	)
Barclays Bank PLC	PHP	407,786	USD	8,419		11/10/2020		13,526
Barclays Bank PLC	PHP	113,846	USD	2,319		11/10/2020		(27,426	)
Barclays Bank PLC	USD	5,932	PHP	288,706		11/10/2020		18,981
Barclays Bank PLC	USD	11,453	PHP	554,833		11/10/2020		(16,599	)
Barclays Bank PLC	CNY	99,181	USD	14,716		11/18/2020		(69,809	)
Barclays Bank PLC	TWD	43,553	USD	1,511		11/18/2020		(19,625	)
Barclays Bank PLC	USD	14,958	AUD	21,260		11/18/2020		(12,967	)
Barclays Bank PLC	USD	3,099	CHF	2,825		11/18/2020		(16,474	)
Barclays Bank PLC	USD	25,808	CNY	176,377		11/18/2020		485,344
Barclays Bank PLC	USD	2,659	EUR	2,269		11/18/2020		(15,406	)
Barclays Bank PLC	USD	1,332	GBP	1,027		11/18/2020		(1,869	)
Barclays Bank PLC	USD	941	TWD	26,812		11/18/2020		1,172
Barclays Bank PLC	USD	625	RUB	49,704		11/19/2020		(103	)
Barclays Bank PLC	USD	8,213	ZAR	138,077		11/27/2020		247,486
Barclays Bank PLC	ZAR	130,396	USD	7,905		11/27/2020		(85,517	)
Barclays Bank PLC	CAD	15,128	USD	11,393		12/10/2020		36,135
Barclays Bank PLC	USD	549	CAD	729		12/10/2020		(1,741	)
Barclays Bank PLC	JPY	131,904	USD	1,263		12/11/2020		2,324
Barclays Bank PLC	CNY	30,910	USD	4,619		12/17/2020		19,651
Barclays Bank PLC	HKD	257,719	USD	33,243		12/17/2020		1,238
Barclays Bank PLC	IDR	34,931,470	USD	2,340		01/15/2021		(5,016	)
Barclays Bank PLC	USD	5,228	INR	385,822		01/15/2021		(89,134	)
Barclays Bank PLC	MYR	9,812	USD	2,339		03/25/2021		(7,001	)
Barclays Bank PLC	USD	2,359	MYR	9,812		03/25/2021		(12,398	)
BNP Paribas SA	BRL	16,763	USD	3,025		11/04/2020		103,160
BNP Paribas SA	USD	2,904	BRL	16,763		11/04/2020		17,134
BNP Paribas SA	USD	4,276	ILS	14,726		11/12/2020		40,466
BNP Paribas SA	NOK	46,814	USD	5,036		11/18/2020		132,636
BNP Paribas SA	CAD	2,954	USD	2,224		12/10/2020		6,232
BNP Paribas SA	HUF	223,581	USD	722		12/23/2020		12,388
Citibank, NA	ILS	2,300	USD	675		11/12/2020		629
Citibank, NA	CLP	2,952,357	USD	3,862		11/13/2020		44,593
Citibank, NA	CLP	2,562,443	USD	3,251		11/13/2020		(62,505	)
Citibank, NA	COP	15,652,143	USD	4,134		11/13/2020		91,246
Citibank, NA	GBP	1,373	EUR	1,502		11/19/2020		(28,545	)
Citibank, NA	USD	1,177	CHF	1,069		11/19/2020		(10,466	)
Citibank, NA	USD	2,298	GBP	1,778		11/19/2020		4,662
Citibank, NA	USD	1,462	GBP	1,126		11/19/2020		(3,245	)
Citibank, NA	USD	2,357	RUB	181,657		11/19/2020		(74,362	)
Citibank, NA	JPY	143,766	USD	1,362		12/11/2020		(12,171	)
Citibank, NA	USD	4,682	JPY	494,270		12/11/2020		41,843
Citibank, NA	USD	13,739	CNY	92,339		12/17/2020		(294	)
Citibank, NA	EUR	19,381	USD	22,792		12/18/2020		195,866
Citibank, NA	CZK	285,390	USD	12,376		12/23/2020		166,360

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    37

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Credit Suisse International	KRW	2,277,854	USD	1,986		11/10/2020	$	(16,627	)
Credit Suisse International	CAD	5,218	USD	3,909		11/18/2020		(8,251	)
Credit Suisse International	JPY	156,853	USD	1,505		11/18/2020		6,954
Credit Suisse International	NOK	36,124	USD	3,803		11/18/2020		19,577
Credit Suisse International	NZD	2,961	USD	1,963		11/18/2020		5,025
Credit Suisse International	SEK	96,005	USD	10,802		11/18/2020		11,293
Credit Suisse International	USD	1,999	CHF	1,818		11/19/2020		(15,575	)
Credit Suisse International	ZAR	46,839	USD	2,763		11/27/2020		(107,165	)
Credit Suisse International	USD	2,322	CAD	3,051		12/10/2020		(31,490	)
Credit Suisse International	MXN	48,628	USD	2,306		12/11/2020		22,909
Credit Suisse International	MXN	35,397	USD	1,647		12/11/2020		(15,127	)
Credit Suisse International	USD	3,936	MXN	84,906		12/11/2020		50,469
Credit Suisse International	SEK	50,895	EUR	4,908		12/18/2020		(182	)
Credit Suisse International	USD	3,194	CZK	74,702		12/23/2020		2,190
Deutsche Bank AG	USD	8,620	PHP	419,669		11/10/2020		29,628
Deutsche Bank AG	CLP	1,388,408	USD	1,728		11/13/2020		(67,620	)
Deutsche Bank AG	PEN	45,093	USD	12,685		11/13/2020		212,647
Deutsche Bank AG	USD	2,636	CLP	2,036,343		11/13/2020		(2,743	)
Deutsche Bank AG	USD	1,731	PEN	6,248		11/13/2020		(2,419	)
Deutsche Bank AG	USD	1,786	GBP	1,376		11/19/2020		(3,657	)
Deutsche Bank AG	USD	2,434	ZAR	41,052		11/27/2020		81,571
Deutsche Bank AG	USD	11,609	INR	860,774		01/15/2021		(143,593	)
Goldman Sachs Bank USA	BRL	2,496	USD	442		11/04/2020		7,005
Goldman Sachs Bank USA	BRL	19,259	USD	3,337		11/04/2020		(19,685	)
Goldman Sachs Bank USA	USD	432	BRL	2,496		11/04/2020		2,551
Goldman Sachs Bank USA	USD	3,412	BRL	19,259		11/04/2020		(55,569	)
Goldman Sachs Bank USA	KRW	1,318,474	USD	1,164		11/10/2020		4,184
Goldman Sachs Bank USA	PHP	741,577	USD	15,160		11/10/2020		(125,168	)
Goldman Sachs Bank USA	USD	2,341	KRW	2,650,208		11/10/2020		(10,435	)
Goldman Sachs Bank USA	CLP	7,272,140	USD	9,495		11/13/2020		91,830
Goldman Sachs Bank USA	CLP	1,026,294	USD	1,289		11/13/2020		(37,549	)
Goldman Sachs Bank USA	COP	6,381,605	USD	1,659		11/13/2020		11,066
Goldman Sachs Bank USA	COP	1,923,742	USD	492		11/13/2020		(4,952	)
Goldman Sachs Bank USA	USD	928	CLP	731,897		11/13/2020		18,712
Goldman Sachs Bank USA	USD	3,855	CLP	2,952,357		11/13/2020		(37,281	)
Goldman Sachs Bank USA	TWD	161,900	USD	5,596		11/18/2020		(94,895	)
Goldman Sachs Bank USA	RUB	105,908	USD	1,347		11/19/2020		15,883
Goldman Sachs Bank USA	USD	9,207	RUB	708,281		11/19/2020		(307,749	)
Goldman Sachs Bank USA	BRL	2,496	USD	433		12/02/2020		(1,715	)
Goldman Sachs Bank USA	USD	442	BRL	2,496		12/02/2020		(7,252	)
Goldman Sachs Bank USA	MXN	35,809	USD	1,677		12/11/2020		(4,071	)
Goldman Sachs Bank USA	USD	12,561	JPY	1,310,360		12/11/2020		(39,433	)
Goldman Sachs Bank USA	CNY	12,333	USD	1,825		12/17/2020		(10,291	)
Goldman Sachs Bank USA	USD	5,490	SGD	7,463		01/07/2021		(26,541	)
Goldman Sachs Bank USA	USD	8,191	IDR	122,772,598		01/15/2021		51,651
HSBC Bank USA	GBP	7,659	USD	9,951		11/18/2020		28,017
HSBC Bank USA	USD	15,536	CAD	20,439		11/18/2020		(194,636	)
HSBC Bank USA	USD	20,446	SEK	179,836		11/18/2020		(233,136	)
HSBC Bank USA	MXN	49,577	USD	2,273		12/11/2020		(54,291	)
HSBC Bank USA	PLN	8,839	USD	2,279		12/23/2020		45,446
JPMorgan Chase Bank, NA	USD	3,482	KRW	4,030,344		11/10/2020		62,117
JPMorgan Chase Bank, NA	USD	2,340	ILS	7,995		11/12/2020		3,007
JPMorgan Chase Bank, NA	COP	17,180,990	USD	4,621		11/13/2020		183,652
JPMorgan Chase Bank, NA	COP	5,700,534	USD	1,459		11/13/2020		(13,650	)

38    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
JPMorgan Chase Bank, NA	TRY	7,415	EUR	764		12/01/2020	$	17,953
JPMorgan Chase Bank, NA	USD	4,170	MXN	89,465		12/11/2020		30,542
JPMorgan Chase Bank, NA	DKK	13,651	USD	2,160		01/15/2021		20,660
Morgan Stanley & Co., Inc.	USD	2,292	KRW	2,669,431		11/10/2020		54,708
Morgan Stanley & Co., Inc.	ILS	38,657	USD	11,366		11/12/2020		35,466
Morgan Stanley & Co., Inc.	CHF	652	USD	720		11/19/2020		8,154
Morgan Stanley & Co., Inc.	EUR	1,502	GBP	1,367		11/19/2020		21,051
Morgan Stanley & Co., Inc.	GBP	451	USD	582		11/19/2020		(2,114	)
Morgan Stanley & Co., Inc.	USD	930	CHF	853		11/19/2020		175
Morgan Stanley & Co., Inc.	USD	719	CHF	652		11/19/2020		(7,845	)
Morgan Stanley & Co., Inc.	USD	1,808	GBP	1,373		11/19/2020		(29,665	)
Morgan Stanley & Co., Inc.	USD	3,531	ZAR	58,761		11/27/2020		69,850
Morgan Stanley & Co., Inc.	ZAR	21,676	USD	1,259		11/27/2020		(69,229	)
Morgan Stanley & Co., Inc.	EUR	3,870	USD	4,572		12/18/2020		59,859
Morgan Stanley & Co., Inc.	USD	9,505	EUR	8,045		12/18/2020		(125,229	)
Morgan Stanley & Co., Inc.	NZD	2,855	USD	1,901		12/22/2020		13,212
Morgan Stanley & Co., Inc.	AUD	2,262	USD	1,613		01/12/2021		22,855
Natwest Markets PLC	USD	2,391	KRW	2,835,017		11/10/2020		102,290
Natwest Markets PLC	USD	4,334	TWD	127,440		11/10/2020		137,651
Natwest Markets PLC	CHF	17,814	USD	19,602		11/18/2020		166,302
Natwest Markets PLC	USD	2,300	TWD	66,196		11/18/2020		26,851
Natwest Markets PLC	USD	5,829	MXN	125,320		12/11/2020		54,911
Societe Generale	GBP	587	USD	761		11/19/2020		515
Standard Chartered Bank	KRW	2,740,834	USD	2,317		11/10/2020		(93,121	)
Standard Chartered Bank	USD	12,388	NZD	18,696		11/18/2020		(26,608	)
Standard Chartered Bank	INR	84,323	USD	1,130		01/15/2021		6,600
Standard Chartered Bank	NOK	15,859	USD	1,718		01/15/2021		56,946
Standard Chartered Bank	USD	3,605	TWD	99,809		07/07/2021		42,082
State Street Bank & Trust Co.	CHF	691	USD	762		11/19/2020		7,995
State Street Bank & Trust Co.	GBP	1,483	USD	1,916		11/19/2020		(6,004	)
State Street Bank & Trust Co.	USD	988	CHF	905		11/19/2020		138
State Street Bank & Trust Co.	USD	580	CHF	527		11/19/2020		(4,741	)
State Street Bank & Trust Co.	TRY	3,721	EUR	379		12/01/2020		3,959
State Street Bank & Trust Co.	JPY	114,921	USD	1,085		12/11/2020		(12,990	)
State Street Bank & Trust Co.	USD	952	HKD	7,381		12/17/2020		(52	)
State Street Bank & Trust Co.	EUR	556	USD	654		12/18/2020		5,836
State Street Bank & Trust Co.	USD	1,175	THB	36,774		01/07/2021		4,510
State Street Bank & Trust Co.	USD	1,699	AUD	2,381		01/12/2021		(25,144	)
State Street Bank & Trust Co.	SEK	13,707	USD	1,556		01/15/2021		13,821
UBS AG	KRW	2,574,894	USD	2,266		11/10/2020		2,311
UBS AG	TWD	127,440	USD	4,340		11/10/2020		(132,224	)
UBS AG	AUD	38,674	USD	27,429		11/18/2020		242,637
UBS AG	EUR	8,952	USD	10,555		11/18/2020		125,467
UBS AG	USD	12,589	JPY	1,326,807		11/18/2020		86,124
UBS AG	GBP	3,145	USD	4,090		11/19/2020		16,289
UBS AG	ZAR	38,979	USD	2,352		11/27/2020		(36,785	)
UBS AG	USD	2,312	TRY	18,608		12/01/2020		(123,935	)
UBS AG	JPY	9,481,529	USD	90,018		12/11/2020		(589,176	)
UBS AG	USD	38,293	JPY	4,166,878		12/11/2020		1,526,291
UBS AG	USD	710	HUF	223,581		12/23/2020		(744	)
							$	2,058,829

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    39

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

INFLATION (CPI) SWAPS (see Note D)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund			Payments received by the Fund			Payment Frequency Paid Received		Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
Goldman Sachs International		USD	246,010		04/26/2027		1.705	%		CPI	#		Maturity	$	3,524,811		$	—	$	3,524,811
Goldman Sachs International		USD	69,760		04/26/2027		2.175	%		CPI	#		Maturity		(726,802	)		—		(726,802	)
Goldman Sachs International		USD	110,190		04/25/2030		1.900	%		CPI	#		Maturity		1,481,442			—		1,481,442
JPMorgan Chase Bank, NA		USD	34,880		04/26/2027		2.183	%		CPI	#		Maturity		(377,304	)		—		(377,304	)
														$	3,902,147		$	—	$	3,902,147

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

TOTAL RETURN SWAPS (see Note D)

Counterparty & Referenced Obligation

Rate Paid/ Received

Payment Frequency

Current Notional (000)

Maturity Date

Unrealized Appreciation/ (Depreciation)

Receive Total Return on Reference Obligation

JPMorgan Chase Bank, NA

Bloomberg Industrial Metals Subindex 3 Month Forward

0.12%

Annual

USD

45,989

12/15/2020

$

146,736

Bloomberg Industrial Metals Subindex 3 Month Forward

0.12%

Annual

USD

3,314

12/15/2020

10,482

Bloomberg Precious Metals Subindex

0.08%

Annual

USD

61,962

12/15/2020

(4,497,807

)

Bloomberg Softs Subindex 3 Month Forward

0.18%

Annual

USD

2,159

12/15/2020

16,433

JPMorgan JMABRF34 Index(1)

0.60%

Annual

USD

26,199

12/15/2020

(1,412,947

)

Merrill Lynch International

Bloomberg Grains Subindex 3 Month Forward

0.13%

Annual

USD

46,552

12/15/2020

3,294,104

Bloomberg Livestock Subindex 3 Month Forward

0.15%

Maturity

USD

7,146

12/15/2020

– 0

–

Bloomberg Livestock Subindex 3 Month Forward

0.19%

Annual

USD

7,179

12/15/2020

(324,340

)

Bloomberg Softs Subindex 3 Month Forward

0.18%

Annual

USD

20,138

12/15/2020

153,249

Pay Total Return on Reference Obligation

UBS AG

FTSE EPRA/NAREIT Developed Real Estate Index

3 Month LIBOR Plus 0.18%

Quarterly

USD

27,797

12/15/2020

2,105,054

FTSE EPRA/NAREIT Developed Real Estate Index

3 Month LIBOR Minus 0.12%

Quarterly

USD

29,013

04/15/2021

1,707,273

FTSE EPRA/NAREIT Developed Real Estate Index

3 Month LIBOR Plus 0.14%

Quarterly

USD

9,289

08/16/2021

428,959

FTSE EPRA/NAREIT Developed Real Estate Index

3 Month LIBOR Plus 0.20%

Quarterly

USD

10,774

09/15/2021

646,094

$

2,273,290

40    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

VARIANCE SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Volatility Strike Rate			Payment Frequency		Notional Amount (000)		Market Value		Upfront Premiums (Paid) Received		Unrealized Appreciation/ (Depreciation)
Buy Contracts
UBS AG
USD/JPY 09/30/2021*		7.85	%		Maturity		1,342	$	(103,168)	$	—	$	(103,168)

* Termination date

(a) Non-income producing security.

(b) Represents entire or partial securities out on loan. See Note E for securities lending information.

(c) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2020, the aggregate market value of these securities amounted to $14,803,747 or 1.6% of net assets.

(d) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(e) Fair valued by the Adviser.

(f) To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov. Additionally, shareholder reports for AB funds can be obtained by calling AB at (800) 227-4618.

(g) Affiliated investments.

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

Currency Abbreviations:

AUD – Australian Dollar

BRL – Brazilian Real

CAD – Canadian Dollar

CHF – Swiss Franc

CLP – Chilean Peso

CNY – Chinese Yuan Renminbi

COP – Colombian Peso

CZK – Czech Koruna

DKK – Danish Krone

EUR – Euro

GBP – Great British Pound

HKD – Hong Kong Dollar

HUF – Hungarian Forint

IDR – Indonesian Rupiah

ILS – Israeli Shekel

INR – Indian Rupee

JPY – Japanese Yen

KRW – South Korean Won

MXN – Mexican Peso

MYR – Malaysian Ringgit

NOK – Norwegian Krone

NZD – New Zealand Dollar

PEN – Peruvian Sol

PHP – Philippine Peso

PLN – Polish Zloty

RUB – Russian Ruble

SEK – Swedish Krona

SGD – Singapore Dollar

THB – Thailand Baht

TRY – Turkish Lira

TWD – New Taiwan Dollar

USD – United States Dollar

ZAR – South African Rand

Glossary:

ADR – American Depositary Receipt

CBT – Chicago Board of Trade

CPI – Consumer Price Index

EAFE – Europe, Australia, and Far East

EPRA – European Public Real Estate Association

ETF – Exchange Traded Fund

FTSE – Financial Times Stock Exchange

GDR – Global Depositary Receipt

KC HRW – Kansas City Hard Red Winter

LIBOR – London Interbank Offered Rate

LME – London Metal Exchange

MSCI – Morgan Stanley Capital International

NAREIT – National Association of Real Estate Investment Trusts

OSE – Osaka Securities Exchange

PJSC – Public Joint Stock Company

RBOB – Reformulated Gasoline Blend-Stock for Oxygen Blending (Unleaded Gas)

REIT – Real Estate Investment Trust

TSX – Toronto Stock Exchange

ULSD – Ultra-Low Sulfur Diesel

WTI – West Texas Intermediate

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    41

CONSOLIDATED PORTFOLIO OF INVESTMENTS (continued)

(1) The following table represents the (long/(short)) commodity basket holdings underlying the total return swap with JPMorgan JMABRF34 Index as of October 31, 2020.

Security Description	Current Notional			Percent of Basket’s Value
Natural Gas Futures 01/2021	$	(5,928,703	)		(22.7	)%
LME Zinc Futures 01/2021		(5,723,100	)		(21.9	)%
LME Zinc Futures 05/2021		5,720,640			21.9	%
Natural Gas Futures 03/2021		5,694,944			21.8	%
Soybean Meal Futures 01/2021		(5,688,311	)		(21.8	)%
LME Primary Aluminum Futures 01/2021		(5,658,150	)		(21.7	)%
KC HRW Wheat Futures 12/2020		(5,650,173	)		(21.6	)%
Copper Futures 05/2021		5,624,399			21.5	%
Copper Futures 12/2020		(5,623,242	)		(21.5	)%
KC HRW Wheat Futures 05/2021		5,622,421			21.5	%
Sugar #11 (World) Futures 03/2021		(5,591,109	)		(21.4	)%
LME Nickel Futures 01/2021		(5,581,943	)		(21.4	)%
LME Nickel Futures 05/2021		5,580,137			21.4	%
LME Primary Aluminum Futures 05/2021		5,575,303			21.3	%
Cotton No. 2 Futures 05/2021		5,549,616			21.2	%
Wheat (CBT) Futures 12/2020		(5,549,354	)		(21.2	)%
Cotton No. 2 Futures 12/2020		(5,528,884	)		(21.2	)%
Soybean Meal Futures 05/2021		5,528,667			21.2	%
Wheat (CBT) Futures 05/2021		5,517,073			21.1	%
Lean Hogs Futures 12/2020		(5,516,663	)		(21.1	)%
Corn Futures 12/2020		(5,504,990	)		(21.1	)%
Sugar #11 (World) Futures 05/2021		5,472,734			20.9	%
Corn Futures 05/2021		5,454,558			20.9	%
Soybean Oil Futures 01/2021		(5,453,104	)		(20.9	)%
Soybean Futures 01/2021		(5,451,617	)		(20.9	)%
Soybean Futures 05/2021		5,433,556			20.8	%
Soybean Oil Futures 05/2021		5,375,171			20.6	%
Coffee ‘C’ Futures 05/2021		5,179,937			19.8	%
Coffee ‘C’ Futures 12/2020		(5,156,525	)		(19.7	)%
Live Cattle Futures 12/2020		(5,120,739	)		(19.6	)%
Live Cattle Futures 04/2021		5,093,573			19.5	%
NY Harbor ULSD Futures 01/2021		(5,046,029	)		(19.3	)%
Lean Hogs Futures 04/2021		5,012,596			19.2	%
NY Harbor ULSD Futures 05/2021		4,990,010			19.1	%
WTI Crude Futures 05/2021		4,921,226			18.8	%
Brent Crude Futures 05/2021		4,884,945			18.7	%
WTI Crude Futures 01/2021		(4,857,796	)		(18.6	)%
Gasoline RBOB Futures 05/2021		4,856,865			18.6	%
Gasoline RBOB Futures 01/2021		(4,849,745	)		(18.6	)%
Brent Crude Futures 01/2021		(4,840,847	)		(18.5	)%

See notes to consolidated financial statements.

42    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED STATEMENT OF ASSETS & LIABILITIES

October 31, 2020

Assets
Investments in securities, at value
Unaffiliated issuers (cost $700,733,539)	$	652,052,804	(a)
Affiliated issuers (cost $236,280,534—including investment of cash collateral for securities loaned of $6,911,120)		236,280,534
Cash		314,488
Cash collateral due from broker		43,598,933
Foreign currencies, at value (cost $9,339,784)		9,297,047
Unrealized appreciation on total return swaps		8,508,384
Unrealized appreciation on forward currency exchange contracts		5,851,204
Unrealized appreciation on inflation swaps		5,006,253
Unaffiliated dividends and interest receivable		1,247,701
Receivable for variation margin on futures		594,853
Receivable for capital stock sold		272,148
Receivable for terminated total return swaps		31,349
Affiliated dividends receivable		5,058
Total assets		963,060,756
Liabilities
Cash collateral due to broker		11,658,000
Payable for collateral received on securities loaned		6,911,120
Unrealized depreciation on total return swaps		6,235,094
Unrealized depreciation on forward currency exchange contracts		3,792,375
Payable for capital stock redeemed		2,312,364
Unrealized depreciation on inflation swaps		1,104,106
Payable for investment securities purchased and foreign currency transactions		772,864
Advisory fee payable		584,828
Distribution fee payable		105,996
Unrealized depreciation on variance swaps		103,168
Payable for terminated total return swaps		89,479
Administrative fee payable		25,585
Transfer Agent fee payable		12,756
Directors’ fees payable		2,696
Accrued expenses and other liabilities		221,794
Total liabilities		33,932,225
Net Assets	$	929,128,531
Composition of Net Assets
Capital stock, at par	$	123,072
Additional paid-in capital		1,088,321,352
Accumulated loss		(159,315,893	)
	$	929,128,531

(a) Includes securities on loan with a value of $14,231,622 (see Note E).

See notes to consolidated financial statements.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    43

CONSOLIDATED STATEMENT OF ASSETS & LIABILITIES (continued)

Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	6,926,298		904,954	$	7.65	*
C	$	507,642		66,282	$	7.66
Advisor	$	11,761,390		1,540,807	$	7.63
R	$	53,650		7,124	$	7.53
K	$	1,453,042		192,346	$	7.55
I	$	21,817,128		2,878,534	$	7.58
1	$	470,634,792		62,617,299	$	7.52
2	$	7,698		1,000	$	7.70
Z	$	415,966,891		54,863,555	$	7.58

* The maximum offering price per share for Class A shares was $7.99 which reflects a sales charge of 4.25%.

See notes to consolidated financial statements.

44    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED STATEMENT OF OPERATIONS

Year Ended October 31, 2020

Investment Income
Dividends
Unaffiliated issuers (net of foreign taxes withheld of $940,602)	$	23,174,781
Affiliated issuers		748,044
Interest(a)		(290,668	)
Securities lending income		257,827		$	23,889,984
Expenses
Advisory fee (see Note B)		7,596,973
Distribution fee—Class A		19,699
Distribution fee—Class C		6,036
Distribution fee—Class R		1,154
Distribution fee—Class K		4,237
Distribution fee—Class 1		1,315,581
Transfer agency—Class A		24,090
Transfer agency—Class C		1,889
Transfer agency—Advisor Class		42,364
Transfer agency—Class R		603
Transfer agency—Class K		3,409
Transfer agency—Class I		7,075
Transfer agency—Class 1		122,932
Transfer agency—Class 2		1
Transfer agency—Class Z		93,216
Custody and accounting		374,215
Audit and tax		134,786
Registration fees		127,715
Administrative		77,346
Printing		46,949
Legal		42,452
Directors’ fees		29,604
Miscellaneous		96,546
Total expenses		10,168,872
Less: expenses waived and reimbursed by the Adviser (see Notes B & E)		(170,499	)
Net expenses					9,998,373
Net investment income					13,891,611

(a) The negative interest income reflects coupon income adjusted for fluctuations in the inflation index related to inflation-indexed bonds and the amortization of premiums.

See notes to consolidated financial statements.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    45

CONSOLIDATED STATEMENT OF OPERATIONS (continued)

Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions	$	(43,876,984	)
Forward currency exchange contracts		5,816,771
Futures		(5,633,601	)
Options written		(11,499,114	)
Swaps		(10,831,291	)
Foreign currency transactions		(446,651	)
Net change in unrealized appreciation/depreciation of:
Investments		(93,047,299	)
Forward currency exchange contracts		1,840,477
Futures		8,923,950
Options written		(537,591	)
Swaps		19,424,636
Foreign currency denominated assets and liabilities		(60,371	)
Net loss on investment and foreign currency transactions		(129,927,068	)
Contributions from Affiliates (see Note B)		9,171
Net Decrease in Net Assets from Operations	$	(116,026,286	)

See notes to consolidated financial statements.

46    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2020			Year Ended October 31, 2019
Increase (Decrease) in Net Assets from Operations
Net investment income	$	13,891,611		$	22,137,750
Net realized loss on investment and foreign currency transactions		(66,470,870	)		(59,892,278	)
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		(63,456,198	)		74,481,928
Contributions from Affiliates (see Note B)		9,171			– 0	–
Net increase (decrease) in net assets from operations		(116,026,286	)		36,727,400
Distributions to Shareholders
Class A		(167,388	)		(155,536	)
Class C		(4,157	)		(4,520	)
Advisor Class		(343,095	)		(407,794	)
Class R		(3,960	)		(2,749	)
Class K		(34,127	)		(33,957	)
Class I		(500,083	)		(296,068	)
Class 1		(11,399,122	)		(10,161,406	)
Class 2		(184	)		(157	)
Class Z		(10,352,467	)		(13,581,524	)
Capital Stock Transactions
Net decrease		(83,740,442	)		(569,837,468	)
Total decrease		(222,571,311	)		(557,753,779	)
Net Assets
Beginning of period		1,151,699,842			1,709,453,621
End of period	$	929,128,531		$	1,151,699,842

See notes to consolidated financial statements.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    47

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

October 31, 2020

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB All Market Real Return Portfolio (the “Fund”), a non-diversified portfolio. As part of the Fund’s investment strategy, the Fund seeks to gain exposure to commodities and commodities-related instruments and derivatives primarily through investments in AllianceBernstein Cayman Inflation Strategy, Ltd., a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the “Subsidiary”). The Fund is the sole shareholder of the Subsidiary and it is intended that the Fund will remain the sole shareholder and will continue to control the Subsidiary. Under the Articles of Association of the Subsidiary, shares issued by the Subsidiary confer upon a shareholder the right to receive notice of, to attend and to vote at general meetings of the Subsidiary and shall confer upon the shareholder rights in a winding-up or repayment of capital and the right to participate in the profits or assets of the Subsidiary. As of October 31, 2020, consolidated net assets of the Fund were $929,128,531, of which $194,340,965, or 21%, represented the Fund’s ownership of all issued shares and voting rights of the Subsidiary. This report presents the consolidated financial statements of the Fund and the Subsidiary. All intercompany transactions and balances have been eliminated in consolidation. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class 1, Class 2, Class Z, and Class T shares. Class B and Class T shares have not been issued. Class 1 shares are sold only to the private clients of Sanford C. Bernstein & Co. LLC by its registered representatives. As of October 31, 2020, AllianceBernstein L.P. (the “Adviser”), was the sole shareholder of Class 2 shares. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Class R, Class K, Class 1, and Class Z shares are sold without an initial or contingent deferred sales charge. Advisor Class, Class I, and Class 2 shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eleven classes of shares have identical voting, divi-

48    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

dend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the consolidated financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    49

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the

50    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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)

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

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

Options are valued using market-based inputs to models, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency, where such inputs and models are available. Alternatively, the values may be obtained through unobservable management determined inputs and/or management’s proprietary models. Where models are used, the selection of a particular model to value an option depends upon the contractual terms of, and specific risks inherent in, the

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    51

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

option as well as the availability of pricing information in the market. Valuation models require a variety of inputs, including contractual terms, market prices, measures of volatility and correlations of such inputs. Exchange traded options generally will be classified as Level 2. For options that do not trade on exchange but trade in liquid markets, inputs can generally be verified and model selection does not involve significant management judgment. Options are classified within Level 2 on the fair value hierarchy when all of the significant inputs can be corroborated to market evidence. Otherwise such instruments are classified as Level 3.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

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

Investments in Securities:	Level 1		Level 2		Level 3			Total
Assets:
Common Stocks:
Real Estate	$	177,450,478	$	140,955,789	$	– 0	–	$	318,406,267
Materials		26,220,667		40,522,245		– 0	–		66,742,912
Energy		19,427,807		33,512,386		– 0	–		52,940,193
Software & Services		17,151,145		1,856,213		– 0	–		19,007,358
Capital Goods		7,868,691		5,796,847		– 0	–		13,665,538
Pharmaceuticals & Biotechnology		7,950,451		4,070,925		– 0	–		12,021,376
Food Beverage & Tobacco		6,535,114		4,809,866		– 0	–		11,344,980
Retailing		9,030,718		1,714,758		– 0	–		10,745,476
Media & Entertainment		8,271,279		1,443,113		– 0	–		9,714,392
Technology Hardware & Equipment		6,483,749		1,484,280		– 0	–		7,968,029
Utilities		2,775,818		5,127,782		– 0	–		7,903,600
Semiconductors & Semiconductor Equipment		4,967,135		1,512,630		– 0	–		6,479,765
Diversified Financials		4,134,857		2,322,744		– 0	–		6,457,601
Health Care Equipment & Services		5,307,304		1,062,710		– 0	–		6,370,014
Consumer Durables & Apparel		3,785,046		2,561,521		0	(a)		6,346,567
Transportation		1,046,381		4,890,229		– 0	–		5,936,610
Insurance		3,080,521		1,300,991		– 0	–		4,381,512
Consumer Services		2,976,205		1,003,607		– 0	–		3,979,812

52    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Investments in Securities:

Level 1

Level 2

Level 3

Total

Banks

$

1,888,040

$

1,738,997

$

– 0

–

$

3,627,037

Automobiles & Components

1,316,085

949,624

– 0

–

2,265,709

Household & Personal Products

766,814

1,197,809

– 0

–

1,964,623

Commercial & Professional Services

181,011

1,782,620

– 0

–

1,963,631

Food & Staples Retailing

369,433

1,422,732

– 0

–

1,792,165

Telecommunication Services

– 0

–

979,814

– 0

–

979,814

Inflation-Linked Securities

– 0

–

37,979,829

– 0

–

37,979,829

Investment Companies

31,067,994

– 0

–

– 0

–

31,067,994

Short-Term Investments

229,369,414

– 0

–

– 0

–

229,369,414

Investments of Cash Collateral for Securities Loaned in Affiliated Money Market Fund

6,911,120

– 0

–

– 0

–

6,911,120

Total Investments in Securities

586,333,277

302,000,061

– 0

–

888,333,338

Other Financial Instruments(b):

Assets:

Futures

13,629,755

– 0

–

– 0

–

13,629,755

(c)

Forward Currency Exchange Contracts

– 0

–

5,851,204

– 0

–

5,851,204

Inflation (CPI) Swaps

– 0

–

5,006,253

– 0

–

5,006,253

Total Return Swaps

– 0

–

8,508,384

– 0

–

8,508,384

Liabilities:

Futures

(3,551,388

)

– 0

–

– 0

–

(3,551,388

)(c)

Forward Currency Exchange Contracts

– 0

–

(3,792,375

)

– 0

–

(3,792,375

)

Inflation (CPI) Swaps

– 0

–

(1,104,106

)

– 0

–

(1,104,106

)

Total Return Swaps

– 0

–

(6,235,094

)

– 0

–

(6,235,094

)

Variance Swaps

– 0

–

(103,168

)

– 0

–

(103,168

)

Total

$

596,411,644

$

310,131,159

$

– 0

–

$

906,542,803

(a) The Fund held securities with zero market value at period end.

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

(c) Only variation margin receivable/(payable) at period end is reported within the consolidated statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the consolidated portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    53

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

If, during a taxable year, the Subsidiary’s taxable losses (and other deductible items) exceed its income and gains, the net loss will not pass through to the Fund as a deductible amount for Federal income tax purposes. Note that the loss from the Subsidiary’s contemplated activities also cannot be carried forward to reduce future Subsidiary’s income in subsequent years. However, if the Subsidiary’s taxable gains exceed its losses and other deductible items during a taxable year, the net gain will pass through to the Fund as income for Federal income tax purposes.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s consolidated financial statements.

5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes

54    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .75% of the Fund’s average daily net assets. The Adviser agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses on an annual basis (the “Expense Caps”) to 1.30%, 2.05%, 1.05%, 1.55%, 1.30%, 1.05%, 1.30%, 1.05% and 1.05% of daily average net assets for Class A, Class C, Advisor Class, Class R, Class K, Class I, Class 1, Class 2 and Class Z shares, respectively. This fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2021. For the year ended October 31, 2020, such reimbursement amounted to $20,577.

The Subsidiary has entered into a separate agreement with the Adviser for the management of the Subsidiary’s portfolio. The Adviser receives no compensation from the Subsidiary for its services under the agreement.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2020, the reimbursement for such services amounted to $77,346.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    55

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $223,989 for the year ended October 31, 2020.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $141 from the sale of Class A shares and received $1 and $0 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2020.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2021. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2020, such waiver amounted to $147,605.

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

Fund	Market Value 10/31/19 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/20 (000)		Dividend Income (000)
Government Money Market Portfolio	$	22,320	$	1,368,659	$	1,161,609	$	229,370	$	748
Government Money Market Portfolio*		9,974		271,801		274,864		6,911		27
Total							$	236,281	$	775

* Investments of cash collateral for securities lending transactions (see Note E).

During the year ended October 31, 2020, the Adviser reimbursed the Fund $9,171 for trading losses incurred due to a trade entry error.

56    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (now named Equitable Holdings, Inc.)(“Equitable”), through an initial public offering. Equitable is the holding company for a diverse group of financial services companies, including an approximate 65% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns less than 10% of the outstanding shares of common stock of Equitable, and no longer owns a controlling interest in Equitable. AXA previously announced its intention to sell its entire interest in Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of Equitable common stock.

Sales under the Plan that were completed on November 13, 2019 resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and may have been deemed to have been an “assignment” causing a termination of the Fund’s investment advisory and administration agreements. In order to ensure that investment advisory and administration services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved new investment advisory and administration agreements with the Adviser, and shareholders of the Fund subsequently approved the new investment advisory agreement. These agreements became effective on November 13, 2019.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to AllianceBernstein Investments, Inc. (the “Distributor”) at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares, .25% of the Fund’s average daily net assets attributable to Class K shares and .25% of the Fund’s average daily net assets attributable to Class 1 shares. There are no distribution and servicing fees on the Advisor Class, Class I, Class 2 and Class Z shares. Payments under the Plan in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    57

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $159,813, $16,669, $19,770 and $1,949,570 for Class C, Class R, Class K and Class 1 shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2020 were as follows:

	Purchases			Sales
Investment securities (excluding U.S. government securities)	$	683,963,068		$	865,081,497
U.S. government securities		– 0	–		– 0	–

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	1,183,887,781
Gross unrealized appreciation	$	93,107,752
Gross unrealized depreciation		(348,659,169	)
Net unrealized depreciation	$	(255,551,417	)

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Futures

The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises

58    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon for non-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the consolidated statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the consolidated statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

During the year ended October 31, 2020, the Fund held futures for hedging and non-hedging purposes.

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    59

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2020, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.

• Option Transactions

For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities, including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges and over-the-counter markets. Among other things, the Fund may use options transactions for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.

The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. The Fund’s maximum payment for written put options equates to the number of shares multiplied by the strike price. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are

60    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

During the year ended October 31, 2020, the Fund held purchased options for hedging and non-hedging purposes. During the year ended October 31, 2020, the Fund held written options for hedging and non-hedging purposes.

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk, equity markets or currencies. The Fund may also enter into swaps for non-hedging purposes as a means of gaining market exposures, making direct investments in foreign currencies, as described below under “Currency Transactions” or in order to take a “long” or “short” position with respect to an underlying referenced asset described below under “Total Return Swaps”. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    61

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the consolidated statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the consolidated statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the consolidated statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the consolidated statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the consolidated statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the consolidated statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the

62    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

difference between the value of the contract at the time it was opened and the time it was closed.

Inflation (CPI) Swaps:

Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.

During the year ended October 31, 2020, the Fund held inflation (CPI) swaps for hedging and non-hedging purposes.

Total Return Swaps:

The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the year ended October 31, 2020, the Fund held total return swaps for hedging and non-hedging purposes.

Variance Swaps:

The Fund may enter into variance swaps to hedge equity market risk or adjust exposure to the equity markets. Variance swaps are contracts in which two parties agree to exchange cash payments based on the difference between the stated level of variance and the actual variance realized on underlying asset(s) or index(es). Actual “variance” as used here is defined as the sum of the square of the returns on the reference asset(s) or index(es) (which in effect is a measure of its “volatility”) over the length of the contract term. So the parties to a variance swap can be said to exchange actual volatility for a contractually stated rate of volatility.

During the year ended October 31, 2020, the Fund held variance swaps for hedging and non-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    63

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended October 31, 2020, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Consolidated Statement of Assets and Liabilities Location	Fair Value			Consolidated Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts					Receivable/Payable for variation margin on futures	$	11,047	*
Equity contracts					Receivable/Payable for variation margin on futures		2,022,175	*
Commodity contracts	Receivable/Payable for variation margin on futures	$	13,629,755	*	Receivable/Payable for variation margin on futures		1,518,166	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		5,851,204		Unrealized depreciation on forward currency exchange contracts		3,792,375
Interest rate contracts	Unrealized appreciation on inflation swaps		5,006,253		Unrealized depreciation on inflation swaps		1,104,106

64    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

	Asset Derivatives			Liability Derivatives
Derivative Type	Consolidated Statement of Assets and Liabilities Location	Fair Value		Consolidated Statement of Assets and Liabilities Location	Fair Value
Commodity contracts	Unrealized appreciation on total return swaps	$	3,621,004	Unrealized depreciation on total return swaps	$	6,235,094
Equity contracts	Unrealized appreciation on total return swaps		4,887,380
Foreign currency contracts				Unrealized depreciation on variance swaps		103,168
Total		$	32,995,596		$	14,786,131

* Only variation margin receivable/payable at period end is reported within the consolidated statement of assets and liabilities.

This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the consolidated portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Consolidated Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures	$	972,546		$	(407,050	)
Equity contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures		(1,748,567	)		(1,776,622	)
Commodity contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures		(4,857,580	)		11,107,622
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		5,816,771			1,840,477

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    65

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Derivative Type	Location of Gain or (Loss) on Derivatives Within Consolidated Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Foreign exchange contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments	$	932,442		$	– 0	–
Equity contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments		12,400,884			– 0	–
Foreign exchange contracts	Net realized gain (loss) on options written; Net change in unrealized appreciation/depreciation of options written		(846,745	)		(537,591	)
Equity contracts	Net realized gain (loss) on options written; Net change in unrealized appreciation/depreciation of options written		(10,652,369	)		– 0	–
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(6,911,734	)		9,603,439
Commodity contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(16,504,258	)		2,413,640
Foreign exchange contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		936,296			(103,168	)
Equity contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		11,648,405			7,510,725
Total		$	(8,813,909	)	$	29,651,472

66    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2020:

Futures:
Average notional amount of buy contracts	$	190,633,339
Average notional amount of sale contracts	$	69,126,974
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	644,237,387
Average principal amount of sale contracts	$	775,431,240
Purchased Options:
Average notional amount	$	43,782,730	(a)
Options Written:
Average notional amount	$	115,153,327	(b)
Inflation Swaps:
Average notional amount	$	481,468,308
Total Return Swaps:
Average notional amount	$	349,117,986
Variance Swaps:
Average notional amount	$	1,511,964	(c)

(a) Positions were open for seven months during the year.

(b) Positions were open for eight months during the year.

(c) Positions were open for ten months during the year.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the consolidated statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2020. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

AB All Market Real Return Portfolio

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Australia and New Zealand Banking Group Ltd.	$	33,348	$	(12,442	)	$	– 0	–	$	– 0	–	$	20,906
Bank of America, NA		183,389		(147,243	)		– 0	–		– 0	–		36,146
Barclays Bank PLC		825,857		(462,748	)		(280,000	)		– 0	–		83,109
BNP Paribas SA		312,016		– 0	–		– 0	–		– 0	–		312,016
Citibank, NA		545,199		(191,588	)		– 0	–		– 0	–		353,611
Credit Suisse International		118,417		(118,417	)		– 0	–		– 0	–		– 0	–

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    67

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Deutsche Bank AG	$	323,846	$	(220,032	)	$	– 0	–	$	– 0	–	$	103,814
Goldman Sachs Bank USA/Goldman Sachs International		5,209,135		(1,509,388	)		(3,699,747	)		– 0	–		– 0	–
HSBC Bank USA		73,463		(73,463	)		– 0	–		– 0	–		– 0	–
JPMorgan Chase Bank, NA		317,931		(317,931	)		– 0	–		– 0	–		– 0	–
Morgan Stanley & Co., Inc.		285,330		(234,082	)		– 0	–		– 0	–		51,248
Natwest Markets PLC		488,005		– 0	–		(258,000	)		– 0	–		230,005
Societe Generale		515		– 0	–		– 0	–		– 0	–		515
Standard Chartered Bank		105,628		(105,628	)		– 0	–		– 0	–		– 0	–
State Street Bank & Trust Co.		36,259		(36,259	)		– 0	–		– 0	–		– 0	–
UBS AG		6,886,499		(986,032	)		(4,330,000	)		– 0	–		1,570,467
Total	$	15,744,837	$	(4,415,253	)	$	(8,567,747	)	$	– 0	–	$	2,761,837	^

Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Australia and New Zealand Banking Group Ltd.	$	12,442	$	(12,442	)	$	– 0	–	$	– 0	–	$	– 0	–
Bank of America, NA		147,243		(147,243	)		– 0	–		– 0	–		– 0	–
Barclays Bank PLC		462,748		(462,748	)		– 0	–		– 0	–		– 0	–
Citibank, NA		191,588		(191,588	)		– 0	–		– 0	–		– 0	–
Credit Suisse International		194,417		(118,417	)		– 0	–		– 0	–		76,000
Deutsche Bank AG		220,032		(220,032	)		– 0	–		– 0	–		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		1,509,388		(1,509,388	)		– 0	–		– 0	–		– 0	–
HSBC Bank USA		482,063		(73,463	)		– 0	–		– 0	–		408,600
JPMorgan Chase Bank, NA		390,954		(317,931	)		(73,023	)		– 0	–		– 0	–
Morgan Stanley & Co., Inc.		234,082		(234,082	)		– 0	–		– 0	–		– 0	–
Standard Chartered Bank		119,729		(105,628	)		– 0	–		– 0	–		14,101
State Street Bank & Trust Co.		48,931		(36,259	)		– 0	–		– 0	–		12,672
UBS AG		986,032		(986,032	)		– 0	–		– 0	–		– 0	–
Total	$	4,999,649	$	(4,415,253	)	$	(73,023	)	$	– 0	–	$	511,373	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

68    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

AllianceBernstein Cayman Inflation Strategy, Ltd.

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
JPMorgan Chase Bank, NA	$	173,651	$	(173,651	)	$	– 0	–	$	– 0	–	$	– 0	–
Merrill Lynch International		3,447,353		(324,340	)		(2,570,000	)		– 0	–		553,013
Total	$	3,621,004	$	(497,991	)	$	(2,570,000	)	$	– 0	–	$	553,013	^
Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
JPMorgan Chase Bank, NA	$	5,910,754	$	(173,651	)	$	(5,737,103	)	$	–0	–	$	– 0	–
Merrill Lynch International		324,340		(324,340	)		– 0	–		– 0	–		– 0	–
Total	$	6,235,094	$	(497,991	)	$	(5,737,103	)	$	–0	–	$	– 0	– ^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

2. Currency Transactions

The Fund may invest in non-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund may seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives, including forward currency exchange contracts, futures and options on futures, swaps, and other options. The Fund may enter into transactions for investment opportunities when it anticipates that a foreign currency will appreciate or depreciate in value but securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).

NOTE E

Securities Lending

The Fund may enter into securities lending transactions. Under the Fund’s securities lending program, all loans of securities will be collateralized continually by cash collateral and/or non-cash collateral. Non-cash collateral

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    69

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

will include only securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. The Fund cannot sell or repledge any non-cash collateral, such collateral will not be reflected in the portfolio of investments. If a loan is collateralized by cash, the Fund will be compensated for the loan from a portion of the net return from the income earned on cash collateral after a rebate is paid to the borrower (in some cases, this rebate may be a “negative rebate” or fee paid by the borrower to the Fund in connection with the loan), and payments are made for fees of the securities lending agent and for certain other administrative expenses. If the Fund receives non-cash collateral, the Fund will receive a fee from the borrower generally equal to a negotiated percentage of the market value of the loaned securities. The Fund will have the right to call a loan and obtain the securities loaned at any time on notice to the borrower within the normal and customary settlement time for the securities. While the securities are on loan, the borrower is obligated to pay the Fund amounts equal to any income or other distributions from the securities. The Fund will not be able to exercise voting rights with respect to any securities during the existence of a loan, but will have the right to regain ownership of loaned securities in order to exercise voting or other ownership rights. Collateral received and securities loaned are marked to market daily to ensure that the securities loaned are secured by collateral. The lending agent currently invests the cash collateral received in Government Money Market Portfolio, an eligible money market vehicle, in accordance with the investment restrictions of the Fund, and as approved by the Board. The collateral received on securities loaned is recorded as an asset as well as a corresponding liability in the consolidated statement of assets and liabilities. The collateral will be adjusted the next business day to maintain the required collateral amount. The amounts of securities lending income from the borrowers and Government Money Market Portfolio are reflected in the consolidated statement of operations. When the Fund earns net securities lending income from Government Money Market Portfolio, the income is inclusive of a rebate expense paid to the borrower. In connection with the cash collateral investment by the Fund in Government Money Market Portfolio, the Adviser has agreed to waive a portion of the Fund’s share of the advisory fees of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. When the Fund lends securities, its investment performance will continue to reflect changes in the value of the securities loaned. A principal risk of lending portfolio securities is that the borrower may fail to return the loaned securities upon termination of the loan and that the collateral will not be sufficient to replace the loaned securities. The lending agent has agreed to indemnify the Fund in the case of default of any securities borrower.

70    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

A summary of the Fund’s transactions surrounding securities lending for the year ended October 31, 2020 is as follows:

							Government Money Market Portfolio
Market Value of Securities on Loan*	Cash Collateral*		Market Value of Non-Cash Collateral*		Income from Borrowers		Income Earned		Advisory Fee Waived
$    14,231,622	$	6,911,120	$	7,982,118	$	230,574	$	27,253	$	2,317

* As of October 31, 2020.

NOTE F

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2020			Year Ended October 31, 2019			Year Ended October 31, 2020			Year Ended October 31, 2019
Class A
Shares sold		106,944			88,868		$	878,328		$	747,515
Shares issued in reinvestment of dividends		18,577			18,167			159,388			148,059
Shares converted from Class C		5,054			11,207			40,141			93,211
Shares redeemed		(454,169	)		(235,310	)		(3,812,340	)		(1,954,142	)
Net decrease		(323,594	)		(117,068	)	$	(2,734,483	)	$	(965,357	)
Class C
Shares sold		5,106			167		$	41,696		$	1,393
Shares issued in reinvestment of dividends		428			478			3,697			3,914
Shares converted to Class A		(5,044	)		(11,204	)		(40,141	)		(93,211	)
Shares redeemed		(21,492	)		(46,500	)		(175,527	)		(390,586	)
Net decrease		(21,002	)		(57,059	)	$	(170,275	)	$	(478,490	)
Advisor Class
Shares sold		266,300			440,752		$	2,062,690		$	3,703,318
Shares issued in reinvestment of dividends		30,646			41,667			261,410			337,917
Shares redeemed		(911,996	)		(1,385,151	)		(6,219,619	)		(11,502,566	)
Net decrease		(615,050	)		(902,732	)	$	(3,895,519	)	$	(7,461,331	)

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    71

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Year Ended October 31, 2020			Year Ended October 31, 2019			Year Ended October 31, 2020			Year Ended October 31, 2019
Class R
Shares sold		5,559			6,000		$	43,032		$	49,723
Shares issued in reinvestment of dividends		467			341			3,960			2,749
Shares redeemed		(30,671	)		(6,884	)		(234,057	)		(57,094	)
Net decrease		(24,645	)		(543	)	$	(187,065	)	$	(4,622	)
Class K
Shares sold		111,348			42,717		$	803,021		$	354,929
Shares issued in reinvestment of dividends		4,034			4,218			34,127			33,957
Shares redeemed		(165,165	)		(113,920	)		(1,162,309	)		(944,442	)
Net decrease		(49,783	)		(66,985	)	$	(325,161	)	$	(555,556	)
Class I
Shares sold		275,947			1,387,415		$	1,888,924		$	11,593,309
Shares issued in reinvestment of dividends		59,111			36,824			500,083			296,068
Shares redeemed		(200,636	)		(124,079	)		(1,540,739	)		(1,046,283	)
Net increase		134,422			1,300,160		$	848,268		$	10,843,094
Class 1
Shares sold		7,351,843			8,874,111		$	57,260,027		$	73,005,826
Shares issued in reinvestment of dividends		1,079,630			1,016,698			9,079,689			8,123,413
Shares redeemed		(17,336,540	)		(14,897,881	)		(130,350,693	)		(122,185,527	)
Net decrease		(8,905,067	)		(5,007,072	)	$	(64,010,977	)	$	(41,056,288	)
Class Z
Shares sold		669,090			315,577		$	4,754,066		$	2,604,947
Shares issued in reinvestment of dividends		1,223,696			1,687,146			10,352,467			13,581,524
Shares redeemed		(3,826,335	)		(65,030,200	)		(28,371,763	)		(546,345,389	)
Net decrease		(1,933,549	)		(63,027,477	)	$	(13,265,230	)	$	(530,158,918	)

There were no transactions in capital shares for Class 2 for the year ended October 31, 2020 and the year ended October 31, 2019.

At October 31, 2020, certain AB mutual funds owned approximately 39% of the Fund’s outstanding shares. Significant transactions by such shareholder, if any, may impact the Fund’s performance.

72    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTE G

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the stock, bond or commodities market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

Commodity Risk—Investing in commodities and commodity-linked derivative instruments, either directly or through the Subsidiary, may subject the Fund 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.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the consolidated statement of assets and liabilities.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    73

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

Foreign (Non-U.S.) Risk—Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

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

Subsidiary Risk—By investing in the Subsidiary, the Fund 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 Fund and are subject to the same risks that apply to similar investments if held directly by the Fund. The Subsidiary is not registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and, unless otherwise noted in the Fund’s Prospectus, is not subject to all of the investor protections of the 1940 Act. However, the Fund wholly owns and controls the Subsidiary, and the Fund and the Subsidiary are managed by the Adviser, making it unlikely the Subsidiary will take actions contrary to the interests of the Fund or its shareholders.

Real Estate Risk—The Fund’s investments in the 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 real estate investment trusts, or “REITs”, may have additional risks. REITs are

74    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

dependent on the capability of their managers, may have limited diversification, and could be significantly affected by changes in taxes.

Non-Diversification Risk—The Fund may have more risk because it is “non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s net asset value, or NAV.

Active Trading Risk—The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR is underway but remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    75

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE H

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the consolidated statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2020.

NOTE I

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2020 and October 31, 2019 were as follows:

	2020		2019
Distributions paid from:
Ordinary income…	$	22,804,583	$	24,643,711
Total distributions paid	$	22,804,583	$	24,643,711

As of October 31, 2020, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed ordinary income	$	31,120,422
Accumulated capital and other losses		(131,023,017	)(a)
Unrealized appreciation/(depreciation)		(255,580,416	)(b)
Total accumulated earnings/(deficit)	$	(355,483,011	)(c)

(a) As of October 31, 2020, the Fund had a net capital loss carryforward of $131,023,017.

76    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the recognition for tax purposes of unrealized gains/losses on certain derivative instruments, the tax treatment of passive foreign investment companies (PFICs), the tax treatment of Treasury inflation-protected securities, the tax treatment of earnings from the Subsidiary, the tax treatment of swaps, the tax deferral of losses on wash sales, and the tax treatment of partnership investments.

(c) The difference between book-basis and tax-basis components of accumulated earnings/(deficit) is attributable primarily to the accrual of foreign capital gains tax.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2020, the Fund had a net short-term capital loss carryforward of $90,232,566 and a net long-term capital loss carryforward of $40,790,451, which may be carried forward for an indefinite period.

During the current fiscal year, permanent differences primarily due to book/tax differences associated with the treatment of earnings from the Subsidiary and contributions from the Adviser resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE J

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Fund has adopted ASU 2017-08, which did not have a material impact on the Fund’s financial position or the results of its operations, and had no impact on the Fund’s consolidated net assets.

NOTE K

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the consolidated financial statements through the date the consolidated financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s consolidated financial statements through this date.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    77

CONSOLIDATED FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  8.66			$  8.53			$  8.90			$  8.24			$  8.13
Income From Investment Operations
Net investment income(a)(b)		.09			.12			.14			.09			.10
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.96	)		.13			(.23	)		.76			.11
Contributions from Affiliates		.00	(c)		– 0	–		– 0	–		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		(.87	)		.25			(.09	)		.85			.21
Less: Dividends
Dividends from net investment income		(.14	)		(.12	)		(.28	)		(.19	)		(.10	)
Net asset value, end of period		$  7.65			$  8.66			$  8.53			$  8.90			$  8.24
Total Return
Total investment return based on net asset value(d)*		(10.11	)%		2.97	%		(1.11	)%		10.45	%		2.75	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$6,926			$10,634			$11,478			$11,819			$13,682
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.29	%		1.30	%		1.26	%		1.27	%		1.30	%
Expenses, before waivers/reimbursements(e)(f)‡		1.40	%		1.32	%		1.27	%		1.28	%		1.36	%
Net investment income(b)		1.10	%		1.42	%		1.52	%		1.05	%		1.23	%
Portfolio turnover rate		88	%		100	%		141	%		123	%		119	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.04	%		.02	%		.03	%		.04	%		.02	%

See footnote summary on page 86-87.

78    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  8.63			$  8.49			$  8.83			$  8.17			$  8.03
Income From Investment Operations
Net investment income(a)(b)		.03			.06			.07			.02			.04
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.95	)		.11			(.23	)		.76			.12
Contributions from Affiliates		.00	(c)		– 0	–		– 0	–		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		(.92	)		.17			(.16	)		.78			.16
Less: Dividends
Dividends from net investment income		(.05	)		(.03	)		(.18	)		(.12	)		(.02	)
Net asset value, end of period		$  7.66			$  8.63			$  8.49			$  8.83			$  8.17
Total Return
Total investment return based on net asset value(d)*		(10.74	)%(g)		2.05	%(g)		(1.82	)%		9.73	%		2.07	%(g)
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$508			$754			$1,225			$1,801			$2,814
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		2.04	%		2.05	%		2.01	%		2.02	%		2.03	%
Expenses, before waivers/reimbursements(e)(f)‡		2.15	%		2.07	%		2.02	%		2.03	%		2.11	%
Net investment income(b)		.34	%		.66	%		.78	%		.27	%		.51	%
Portfolio turnover rate		88	%		100	%		141	%		123	%		119	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.04	%		.02	%		.03	%		.04	%		.02	%

See footnote summary on page 86-87.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    79

CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  8.63			$  8.51			$  8.89			$  8.22			$  8.13
Income From Investment Operations
Net investment income(a)(b)		.11			.14			.16			.11			.12
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.95	)		.12			(.24	)		.77			.11
Contributions from Affiliates		.00	(c)		– 0	–		– 0	–		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		(.84	)		.26			(.08	)		.88			.23
Less: Dividends
Dividends from net investment income		(.16	)		(.14	)		(.30	)		(.21	)		(.14	)
Net asset value, end of period		$  7.63			$  8.63			$  8.51			$  8.89			$  8.22
Total Return
Total investment return based on net asset value(d)*		(9.79	)%		3.15	%		(.96	)%		10.87	%		3.00	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$11,761			$18,611			$26,030			$27,670			$25,307
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.04	%		1.05	%		1.01	%		1.02	%		1.04	%
Expenses, before waivers/reimbursements(e)(f)‡		1.14	%		1.07	%		1.02	%		1.02	%		1.10	%
Net investment income(b)		1.33	%		1.66	%		1.77	%		1.31	%		1.51	%
Portfolio turnover rate		88	%		100	%		141	%		123	%		119	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.04	%		.02	%		.03	%		.04	%		.02	%

See footnote summary on page 86-87.

80    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class R
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  8.53			$  8.40			$  8.79			$  8.14			$  8.06
Income From Investment Operations
Net investment income(a)(b)		.07			.10			.11			.07			.07
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.95	)		.11			(.23	)		.76			.11
Contributions from Affiliates		.00	(c)		– 0	–		– 0	–		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		(.88	)		.21			(.12	)		.83			.18
Less: Dividends
Dividends from net investment income		(.12	)		(.08	)		(.27	)		(.18	)		(.10	)
Net asset value, end of period		$  7.53			$  8.53			$  8.40			$  8.79			$  8.14
Total Return
Total investment return based on net asset value(d)*		(10.32	)%		2.62	%		(1.47	)%		10.29	%		2.41	%(g)
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$54			$271			$271			$239			$201
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.54	%		1.55	%		1.55	%		1.54	%		1.54	%
Expenses, before waivers/reimbursements(e)(f)‡		1.60	%		1.57	%		1.58	%		1.60	%		1.66	%
Net investment income(b)		.92	%		1.16	%		1.24	%		.81	%		.91	%
Portfolio turnover rate		88	%		100	%		141	%		123	%		119	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.04	%		.02	%		.03	%		.04	%		.02	%

See footnote summary on page 86-87.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    81

CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class K
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  8.55			$  8.42			$  8.80			$  8.15			$  8.07
Income From Investment Operations
Net investment income(a)(b)		.08			.12			.13			.09			.10
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.94	)		.13			(.23	)		.75			.11
Contributions from Affiliates		.00	(c)		– 0	–		– 0	–		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		(.86	)		.25			(.10	)		.84			.21
Less: Dividends
Dividends from net investment income		(.14	)		(.12	)		(.28	)		(.19	)		(.13	)
Net asset value, end of period		$  7.55			$  8.55			$  8.42			$  8.80			$  8.15
Total Return
Total investment return based on net asset value(d)*		(10.10	)%		3.03	%		(1.20	)%		10.48	%		2.81	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$1,453			$2,069			$2,604			$2,265			$1,888
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.28	%		1.27	%		1.26	%		1.28	%		1.29	%
Expenses, before waivers/reimbursements(e)(f)‡		1.29	%		1.28	%		1.27	%		1.29	%		1.35	%
Net investment income(b)		1.08	%		1.44	%		1.52	%		1.05	%		1.23	%
Portfolio turnover rate		88	%		100	%		141	%		123	%		119	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.04	%		.02	%		.03	%		.04	%		.02	%

See footnote summary on page 86-87.

82    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class I
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  8.58			$  8.46			$  8.83			$  8.17			$  8.11
Income From Investment Operations
Net investment income(a)(b)		.12			.15			.17			.12			.12
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.94	)		.13			(.22	)		.77			.11
Contributions from Affiliates		.00	(c)		– 0	–		– 0	–		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		(.82	)		.28			(.05	)		.89			.23
Less: Dividends
Dividends from net investment income		(.18	)		(.16	)		(.32	)		(.23	)		(.17	)
Net asset value, end of period		$  7.58			$  8.58			$  8.46			$  8.83			$  8.17
Total Return
Total investment return based on net asset value(d)*		(9.76	)%		3.39	%		(.69	)%		10.98	%		3.03	%(g)
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$21,817			$23,541			$12,213			$16,753			$15,646
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.86	%		.85	%		.83	%		.85	%		.91	%
Expenses, before waivers/reimbursements(e)(f)‡		.87	%		.86	%		.84	%		.86	%		.92	%
Net investment income(b)		1.49	%		1.79	%		1.96	%		1.48	%		1.61	%
Portfolio turnover rate		88	%		100	%		141	%		123	%		119	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.04	%		.02	%		.03	%		.04	%		.02	%

See footnote summary on page 86-87.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    83

CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 1
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  8.51			$  8.39			$  8.76			$  8.11			$  8.05
Income From Investment Operations
Net investment income(a)(b)		.10			.13			.15			.10			.11
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.93	)		.12			(.22	)		.76			.10
Contributions from Affiliates		.00	(c)		– 0	–		– 0	–		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		(.83	)		.25			(.07	)		.86			.21
Less: Dividends
Dividends from net investment income		(.16	)		(.13	)		(.30	)		(.21	)		(.15	)
Net asset value, end of period		$  7.52			$  8.51			$  8.39			$  8.76			$  8.11
Total Return
Total investment return based on net asset value(d)*		(9.94	)%		3.14	%		(.92	)%		10.69	%		2.82	%(g)
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$470,635			$608,485			$641,891			$649,421			$505,143
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		1.10	%		1.09	%		1.08	%		1.09	%		1.15	%
Expenses, before waivers/reimbursements(e)(f)‡		1.11	%		1.10	%		1.08	%		1.10	%		1.16	%
Net investment income(b)		1.26	%		1.62	%		1.71	%		1.24	%		1.38	%
Portfolio turnover rate		88	%		100	%		141	%		123	%		119	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.04	%		.02	%		.03	%		.04	%		.02	%

See footnote summary on page 86-87.

84    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 2
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  8.71			$  8.58			$  8.96			$  8.29			$  8.22
Income From Investment Operations
Net investment income(a)(b)		.12			.16			.18			.13			.13
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.95	)		.13			(.24	)		.77			.11
Contributions from Affiliates		.00	(c)		– 0	–		– 0	–		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		(.83	)		.29			(.06	)		.90			.24
Less: Dividends
Dividends from net investment income		(.18	)		(.16	)		(.32	)		(.23	)		(.17	)
Net asset value, end of period		$  7.70			$  8.71			$  8.58			$  8.96			$  8.29
Total Return
Total investment return based on net asset value(d)*		(9.70	)%		3.46	%		(.77	)%		10.96	%		3.17	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$8			$9			$9			$9			$8
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.82	%		.81	%		.82	%		.82	%		.90	%
Expenses, before waivers/reimbursements(e)(f)‡		.84	%		.81	%		.82	%		.83	%		.90	%
Net investment income(b)		1.53	%		1.90	%		1.95	%		1.50	%		1.60	%
Portfolio turnover rate		88	%		100	%		141	%		123	%		119	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.04	%		.02	%		.03	%		.04	%		.02	%

See footnote summary on page 86-87.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    85

CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class Z
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  8.58			$  8.46			$  8.83			$  8.17			$  8.11
Income From Investment Operations
Net investment income(a)(b)		.12			.16			.17			.13			.12
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.94	)		.12			(.22	)		.76			.11
Contributions from Affiliates		.00	(c)		– 0	–		– 0	–		.00	(c)		.00	(c)
Net increase (decrease) in net asset value from operations		(.82	)		.28			(.05	)		.89			.23
Less: Dividends
Dividends from net investment income		(.18	)		(.16	)		(.32	)		(.23	)		(.17	)
Net asset value, end of period		$  7.58			$  8.58			$  8.46			$  8.83			$  8.17
Total Return
Total investment return based on net asset value(d)*		(9.75	)%		3.37	%		(.68	)%		10.98	%		3.09	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$415,967			$487,326			$1,013,733			$692,895			$8,634
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)‡		.85	%		.84	%		.83	%		.82	%		.92	%
Expenses, before waivers/reimbursements(e)(f)‡		.86	%		.85	%		.84	%		.83	%		.92	%
Net investment income(b)		1.51	%		1.89	%		1.86	%		1.60	%		1.56	%
Portfolio turnover rate		88	%		100	%		141	%		123	%		119	%
‡  Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying
portfolios		.04	%		.02	%		.03	%		.04	%		.02	%

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Amount is less than $.005.

86    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

CONSOLIDATED FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

(e) In connection with the Fund’s investments in affiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses, and for the years ended October 31, 2020, October 31, 2019, October 31, 2018 and October 31, 2017, such waiver amounted to .01%, .01%, .01% and .01%, respectively.

(f) The expense ratios presented below exclude interest/bank overdraft expense:

	Year Ended October 31,
	2020	2019			2018	2017	2016
Class A
Net of waivers/reimbursements	N/A		1.29	%	N/A	N/A	N/A
Before waivers/reimbursements	N/A		1.32	%	N/A	N/A	N/A
Class C
Net of waivers/reimbursements	N/A		2.04	%	N/A	N/A	N/A
Before waivers/reimbursements	N/A		2.07	%	N/A	N/A	N/A
Advisor Class
Net of waivers/reimbursements	N/A		1.04	%	N/A	N/A	N/A
Before waivers/reimbursements	N/A		1.06	%	N/A	N/A	N/A
Class R
Net of waivers/reimbursements	N/A		1.54	%	N/A	N/A	N/A
Before waivers/reimbursements	N/A		1.57	%	N/A	N/A	N/A
Class K
Net of waivers/reimbursements	N/A		1.27	%	N/A	N/A	N/A
Before waivers/reimbursements	N/A		1.28	%	N/A	N/A	N/A
Class I
Net of waivers/reimbursements	N/A		.84	%	N/A	N/A	N/A
Before waivers/reimbursements	N/A		.85	%	N/A	N/A	N/A
Class 1
Net of waivers/reimbursements	N/A		1.09	%	N/A	N/A	N/A
Before waivers/reimbursements	N/A		1.09	%	N/A	N/A	N/A
Class 2
Net of waivers/reimbursements	N/A		.81	%	N/A	N/A	N/A
Before waivers/reimbursements	N/A		.81	%	N/A	N/A	N/A
Class Z
Net of waivers/reimbursements	N/A		.83	%	N/A	N/A	N/A
Before waivers/reimbursements	N/A		.84	%	N/A	N/A	N/A

(g) The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements.

* Includes the impact of proceeds received and credited to the Fund resulting from class action settlements, which enhanced the Fund’s performance for the years ended October 31, 2020 and October 31, 2019 by .02% and .07%, respectively.

See notes to consolidated financial statements.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    87

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB All Market Real Return Portfolio

Opinion on the Financial Statements

We have audited the accompanying consolidated statement of assets and liabilities of AB All Market Real Return Portfolio (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the consolidated portfolio of investments, as of October 31, 2020, and the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2020, the consolidated results of its operations for the year then ended, the consolidated changes in its net assets for each of the two years in the period then ended and its consolidated financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures

88    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 28, 2020

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    89

2020 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2020. For individual shareholders, the Fund designates 56.68% of dividends paid as qualified dividend income. For corporate shareholders, 16.06% of dividends paid qualify for the dividends received deduction. For foreign shareholders, 4.38% of ordinary dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2021.

90    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

BOARD OF DIRECTORS

Marshall C. Turner, Jr⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith, President and Chief Executive Officer Jeanette Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Vinod Chathlani⁽²⁾, Vice President Daniel J. Loewy⁽²⁾, Vice President Leon Zhu⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Analyst Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Vincent S. Noto, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210 Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105 Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036 Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s All Market Real Return Portfolio Team. Messrs. Chathlani, Loewy and Zhu are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    91

MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Portfolio are managed under the direction of the Board of Directors. Certain information concerning the Portfolio’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,# 1345 Avenue of the Americas New York, NY 10105 60 (2010)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and the head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business, with which he had been associated since prior to 2004.		77	None

92    ^|    AB ALL MARKET REAL RETURN PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 79 (2005)	Private Investor since prior to 2015. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		77	None

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    93

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
Jorge A. Bermudez,## 69 (2020)	Private Investor since prior to 2015. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		77	Moody’s Corporation since April 2011
Michael J. Downey,## 76 (2005)	Private Investor since prior to 2015. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2015 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		77	None

94    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Nancy P. Jacklin,## 72 (2006)	Private Investor since prior to 2015. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		77	None
Jeanette Loeb,## 68 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		77	Apollo Investment Corp. (business development company) since August 2011

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    95

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Carol C. McMullen,## 65 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		77	None

96    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Garry L. Moody,## 68 (2008)	Private Investor since prior to 2015. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		77	None

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    97

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Earl D. Weiner,## 81 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		77	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Keith is an “interested person” of the Fund as defined in the “40 Act”, due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

98    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Robert M. Keith 60	President and Chief Executive Officer	See biography above.
Vinod Chathlani 38	Vice President	Senior Vice President of the Adviser**, with which he has been associated since December 2015.
Daniel J. Loewy 46	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also Chief Investment Officer and Head of Multi-Asset Solutions and Chief Investment Officer of Dynamic Asset Allocation.
Leon Zhu 53	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015.
Emilie D. Wrapp 65	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2015.
Michael B. Reyes 44	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2015.
Joseph J. Mantineo 61	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc, (“ABIS”)**, with which he has been associated since prior to 2015.
Phyllis J. Clarke 59	Controller	Vice President of ABIS**, with which she has been associated since prior to 2015.
Vincent S. Noto 56	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2015.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Strategy.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    99

Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”). Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2020, which covered the period December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner. Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, taking into account any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP. The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended, and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP, and there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

100    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB All Market Real Return Portfolio (the “Fund”) at a meeting held by video conference on August 4-5, 2020 (the “Meeting”).

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the money market fund advised by the Adviser in which the Fund invests.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    101

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2018 and 2019 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency, distribution and brokerage services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

102    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to soft dollar arrangements (whereby investment advisers receive brokerage and research services from brokers that execute transactions for their clients); 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; brokerage commissions paid by the Fund to brokers affiliated with the Adviser; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3-, 5-, and 10-year periods ended May 31, 2020 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, and their discussion with the Adviser of the reasons for the Fund’s underperformance in the periods reviewed, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual advisory fee rate with a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    103

The directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of the Fund. For this purpose, they reviewed the relevant advisory fee information from the Adviser’s Form ADV and in a report from the Fund’s Senior Analyst and noted the differences between the Fund’s fee schedule, on the one hand, and the Adviser’s institutional fee schedule, on the other. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The directors previously discussed these matters with an independent fee consultant.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional clients. In this regard, the Adviser noted, among other things, that, compared to institutional accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional clients as compared to the Fund, and the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

The directors noted that the Fund invests in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the Investment Company Act of 1940 as these may be varied as a result of exemptive orders issued by the SEC. The directors also noted that ETFs pay advisory fees pursuant to their advisory contracts, and that the Adviser had provided, and they had reviewed, information about the expense ratios of the relevant ETFs. The directors concluded, based on the Adviser’s explanation of how it uses ETFs when they are the most cost-effective way to obtain desired exposures, in some cases pending purchases of underlying securities, that the advisory fee for the Fund is for services that are in addition to, rather than duplicative of, the services provided under the advisory contracts of the ETFs.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund

104    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. The directors noted that the Fund’s expense ratio was above the medians. After reviewing and discussing the Adviser’s explanations of the reasons for this, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund does not contain breakpoints and that they had discussed their strong preference for breakpoints in advisory contracts with the Adviser. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also previously discussed economies of scale with an independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. The directors informed the Adviser that they would monitor the Fund’s asset level (which was well below the level at which they would anticipate adding an initial breakpoint) and its profitability to the Adviser and anticipated revisiting the question of breakpoints in the future if circumstances warranted doing so.

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    105

This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL EQUITY (continued)

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio¹

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

FIXED INCOME (continued)

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to February 5, 2020, Tax-Aware Fixed Income Opportunities Portfolio was named Tax-Aware Fixed Income Portfolio.

106    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

NOTES

abfunds.com AB ALL MARKET REAL RETURN PORTFOLIO    ^|    107

NOTES

108    ^|    AB ALL  MARKET REAL RETURN PORTFOLIO abfunds.com

AB ALL MARKET REAL RETURN PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

AMRR-0151-1020                

OCT    ^10.31.20

ANNUAL REPORT

AB BOND INFLATION STRATEGY

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Bond Inflation Strategy (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB BOND INFLATION STRATEGY    ^|    1

ANNUAL REPORT

December 10, 2020

This report provides management’s discussion of fund performance for AB Bond Inflation Strategy for the annual reporting period ended October 31, 2020.

The Fund’s investment objective is to maximize real return without assuming what the Adviser considers to be undue risk.

NAV RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	6 Months		12 Months
AB BOND INFLATION STRATEGY
Class 1 Shares1		8.71%		7.84%
Class 2 Shares1		8.78%		7.96%
Class A Shares		8.66%		7.64%
Class C Shares		8.27%		6.92%
Advisor Class Shares2		8.81%		7.93%
Class R Shares2,3		8.54%		7.43%
Class K Shares2		8.66%		7.74%
Class I Shares2		8.83%		7.97%
Class Z Shares2		8.84%		7.92%
Bloomberg Barclays 1-10 Year TIPS Index		3.81%		7.00%

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

2 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

3 The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the Financial Highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays 1-10 Year Treasury Inflation-Protected Securities (“TIPS”) Index, for the six- and 12-month periods ended October 31, 2020.

During the 12-month period, all share classes except Class C outperformed the benchmark, before sales charges. Off-benchmark sector allocation was the primary contributor, relative to the benchmark, as gains from allocations to investment-grade corporate bonds, high-yield credit

2    ^|    AB BOND INFLATION STRATEGY abfunds.com

default swaps and collateralized mortgage obligations more than offset a loss in commercial mortgage-backed securities (“CMBS”). Currency decisions also added to returns. The Fund’s long exposure to inflation breakevens detracted from performance.

During the six-month period, all share classes outperformed the benchmark, before sales charges. Off-benchmark sector allocation was the primary contributor to performance, mostly from allocations to investment-grade corporate bonds and credit default swaps, as well as CMBS, emerging-market treasuries and asset-backed securities. Currency selection was a minor contributor to returns. The Fund’s long exposure to inflation breakevens detracted.

During both periods, the Fund utilized currency forwards to hedge currency risk and actively manage currency positions. Credit default swaps were utilized in the corporate and commercial mortgage-backed securities sectors for hedging and investment purposes. Treasury futures and interest rate swaps were utilized to manage duration, country exposure and yield-curve positioning. Consumer Price Index (“CPI”) swaps were used to hedge inflation and for investment purposes, which added slightly for the six-month period, and detracted slightly for the 12-month period. Total return swaps and written options were used in the corporate sector for hedging and investment purposes. Purchased and written swaptions were used for duration management.

MARKET REVIEW AND INVESTMENT STRATEGY

Global fixed-income market returns were positive over the 12-month period ended October 31, 2020. Central banks and governments enacted an unprecedented amount of monetary and fiscal stimulus to combat market illiquidity and cushion the negative economic impact of COVID-19, which set the stage for a rebound in risk assets following the sell-off that started in March. Government bonds rallied as interest rates were slashed. Emerging- and developed-market investment-grade corporate bonds led gains, followed by developed-market high-yield corporate bonds, as investors searched for higher yields in a period of falling interest rates. Corporate bonds in the US outperformed their European counterparts. Securitized assets also advanced, while emerging-market sovereign bonds were slightly positive and emerging-market local bonds fell during the period. The US dollar declined against most major developed-market currencies and gained against a majority of emerging-market currencies. Brent crude oil prices fell almost 34% as demand slowed sharply and the oil industry outlook was uncertain.

abfunds.com AB BOND INFLATION STRATEGY    ^|    3

INVESTMENT POLICIES

The Fund seeks real return. Real return is the rate of return after adjusting for inflation. The Fund pursues its objective by investing principally

in inflation-indexed securities (such as TIPS or inflation-indexed securities from issuers other than the US Treasury) or by gaining inflation protection through derivatives transactions, such as inflation (CPI) swaps or total return swaps linked to TIPS. In deciding whether to purchase inflation-indexed securities or use inflation-linked derivatives transactions, the Adviser considers the relative costs and efficiency of each method. In addition, in seeking to maximize real return, the Fund may also invest in other fixed-income investments, such as US and non-US government securities, corporate fixed-income securities and mortgage-related securities, as well as derivatives linked to such securities.

Under normal circumstances, the Fund invests at least 80% of its net assets in fixed-income securities. While the Fund 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”).

Inflation-indexed 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 CPI for Urban Consumers. The Fund may also invest in other inflation-indexed securities, issued by both US and non-US issuers, and in derivative instruments linked to these securities.

The Fund may invest in derivatives, such as options, futures contracts, forwards or swaps. The Fund intends to use leverage for investment purposes. To do this, the Fund 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 Fund’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 considers factors such as the relative risks and returns expected of potential investments and the costs of such transactions. The Adviser considers the impact of reverse repurchase agreements, swaps and other derivatives in making its assessments of the Fund’s risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.

(continued on next page)

4    ^|    AB BOND INFLATION STRATEGY abfunds.com

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 Fund. 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 Fund’s other holdings.

The Fund may also invest in loan participations and assignments, structured securities, asset-backed securities, variable, floating, and inverse floating-rate instruments, and preferred stock, and may use other investment techniques. The Fund may invest in fixed-income securities of any maturity and duration. If the rating of a fixed-income security falls below investment-grade, the Fund 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.

abfunds.com AB BOND INFLATION STRATEGY    ^|    5

DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays 1-10 Year TIPS Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Barclays 1-10 Year TIPS Index represents the performance of inflation-protected securities issued by the US Treasury. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

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.

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. Although the Fund

6    ^|    AB BOND INFLATION STRATEGY abfunds.com

DISCLOSURES AND RISKS (continued)

invests principally in inflation-indexed securities, the value of its securities may be vulnerable to changes in expectations of inflation or interest rates.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk.

Foreign (Non-US) Risk: Investments in securities of non-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

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

Mortgage-Related and/or Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Leverage Risk: To the extent the Fund 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 Fund’s investments.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally go down.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment

abfunds.com AB BOND INFLATION STRATEGY    ^|    7

DISCLOSURES AND RISKS (continued)

techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com. For Class 1 shares, go to www.bernstein.com and click on “Investments”, then “Mutual Fund and Money Market Information—Mutual Fund Performance at a Glance.”

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Class 1 and Class 2 shares do not carry sales charges. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

8    ^|    AB BOND INFLATION STRATEGY abfunds.com

HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

10/31/2010 TO 10/31/2020

This chart illustrates the total value of an assumed $10,000 investment in AB Bond Inflation Strategy Class A shares (from 10/31/2010 to 10/31/2020) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

abfunds.com AB BOND INFLATION STRATEGY    ^|    9

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS 1 SHARES2						0.58%
1 Year		7.84%		7.84%
5 Years		4.35%		4.35%
10 Years		2.91%		2.91%
CLASS 2 SHARES2						0.68%
1 Year		7.96%		7.96%
5 Years		4.44%		4.44%
10 Years		3.00%		3.00%
CLASS A SHARES						0.41%
1 Year		7.64%		3.03%
5 Years		4.18%		3.28%
10 Years		2.72%		2.28%
CLASS C SHARES						-0.31%
1 Year		6.92%		5.92%
5 Years		3.41%		3.41%
10 Years		1.98%		1.98%
ADVISOR CLASS SHARES3						0.68%
1 Year		7.93%		7.93%
5 Years		4.43%		4.43%
10 Years		2.99%		2.99%
CLASS R SHARES3						-0.07%
1 Year		7.43%		7.43%
5 Years		3.94%		3.94%
10 Years		2.50%		2.50%
CLASS K SHARES3						0.24%
1 Year		7.74%		7.74%
5 Years		4.19%		4.19%
10 Years		2.75%		2.75%
CLASS I SHARES3						0.57%
1 Year		7.97%		7.97%
5 Years		4.45%		4.45%
10 Years		3.01%		3.01%
CLASS Z SHARES3						0.66%
1 Year		7.92%		7.92%
5 Years		4.44%		4.44%
Since Inception4		3.60%		3.60%

(footnotes continued on next page)

10    ^|    AB BOND INFLATION STRATEGY abfunds.com

HISTORICAL PERFORMANCE (continued)

The Fund’s prospectus fee table shows the Fund’s total annual operating expense ratios as 1.20%, 1.09%, 1.51%, 2.26%, 1.24%, 1.83%, 1.57%, 1.18% and 1.10% for Class 1, Class 2, Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expenses (exclusive of extraordinary expenses, interest expense and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest) to 0.60%, 0.50%, 0.75%, 1.50%, 0.50%, 1.00%, 0.75%, 0.50% and 0.50% for Class 1, Class 2, Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2021, and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2020.

2 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements. These share classes do not carry front-end sales charges; therefore their respective NAV and SEC returns are the same.

3 These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

4 Inception date: 12/11/2014.

abfunds.com AB BOND INFLATION STRATEGY    ^|    11

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2020 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		7.98%
5 Years		4.35%
10 Years		3.07%
CLASS 2 SHARES1
1 Year		8.10%
5 Years		4.44%
10 Years		3.16%
CLASS A SHARES
1 Year		3.24%
5 Years		3.31%
10 Years		2.43%
CLASS C SHARES
1 Year		5.95%
5 Years		3.40%
10 Years		2.13%
ADVISOR CLASS SHARES2
1 Year		8.04%
5 Years		4.46%
10 Years		3.15%
CLASS R SHARES2
1 Year		7.57%
5 Years		3.97%
10 Years		2.66%
CLASS K SHARES2
1 Year		7.79%
5 Years		4.18%
10 Years		2.89%
CLASS I SHARES2
1 Year		8.01%
5 Years		4.44%
10 Years		3.17%
CLASS Z SHARES2
1 Year		8.06%
5 Years		4.46%
Since Inception3		3.62%

(footnotes continued on next page)

12    ^|    AB BOND INFLATION STRATEGY abfunds.com

HISTORICAL PERFORMANCE (continued)

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

2 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

3 Inception date: 12/11/2014.

abfunds.com AB BOND INFLATION STRATEGY    ^|    13

EXPENSE EXAMPLE

(unaudited)

As a shareholder of a mutual fund, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

14    ^|    AB BOND INFLATION STRATEGY abfunds.com

EXPENSE EXAMPLE (continued)

	Beginning Account Value May 1, 2020		Ending Account Value October 31, 2020		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,086.60	$	4.25		0.81	%
Hypothetical**	$	1,000	$	1,021.06	$	4.12		0.81	%
Class C
Actual	$	1,000	$	1,082.70	$	8.17		1.56	%
Hypothetical**	$	1,000	$	1,017.29	$	7.91		1.56	%
Advisor Class
Actual	$	1,000	$	1,088.10	$	2.94		0.56	%
Hypothetical**	$	1,000	$	1,022.32	$	2.85		0.56	%
Class R
Actual	$	1,000	$	1,085.40	$	5.56		1.06	%
Hypothetical**	$	1,000	$	1,019.81	$	5.38		1.06	%
Class K
Actual	$	1,000	$	1,086.60	$	4.25		0.81	%
Hypothetical**	$	1,000	$	1,021.06	$	4.12		0.81	%
Class I
Actual	$	1,000	$	1,088.30	$	2.94		0.56	%
Hypothetical**	$	1,000	$	1,022.32	$	2.85		0.56	%
Class 1
Actual	$	1,000	$	1,087.10	$	3.46		0.66	%
Hypothetical**	$	1,000	$	1,021.82	$	3.35		0.66	%
Class 2
Actual	$	1,000	$	1,087.80	$	2.94		0.56	%
Hypothetical**	$	1,000	$	1,022.32	$	2.85		0.56	%
Class Z
Actual	$	1,000	$	1,088.40	$	2.83		0.54	%
Hypothetical**	$	1,000	$	1,022.42	$	2.75		0.54	%

* Expenses are equal to each classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

abfunds.com AB BOND INFLATION STRATEGY    ^|    15

PORTFOLIO SUMMARY

October 31, 2020 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $572.6

Total Investments ($mil): $796.5

INFLATION PROTECTION BREAKDOWN¹

U.S. Inflation-Protected Exposure	85.2	%
Non-U.S. Inflation-Protected Exposure	1.5
Non-Inflation Exposure	13.3
	100.0	%

SECTOR BREAKDOWN OF NET PORTFOLIO ASSETS, EXCLUDING TREASURY SECURITIES, TIPS, INTEREST RATE DERIVATIVES AND NET CASH EQUIVALENTS¹

Commercial Mortgage-Backed Securities	10.3	%
Collateralized Mortgage Obligations	6.8	%
Asset-Backed Securities	2.8	%
Corporates–Non-Investment Grade	2.5	%
Collateralized Loan Obligations	1.2	%
Governments–Sovereign Bonds	1.0	%
Mortgage Pass-Throughs	1.0	%
Quasi-Sovereigns	1.0	%
Emerging Markets–Corporate Bonds	0.5	%
Local Governments–US Municipal Bonds	0.4	%
Emerging Markets–Sovereigns	(4.8)	%
Corporates–Investment Grade	(6.5)	%

SECTOR BREAKDOWN OF TOTAL PORTFOLIO INVESTMENTS, EXCLUDING DERIVATIVES²

Inflation-Linked Securities	62.4%
Corporates–Investment Grade	16.9%
Commercial Mortgage-Backed Securities	6.8%
Collateralized Mortgage Obligations	4.8%
Asset-Backed Securities	2.0%
Corporates–Non-Investment Grade	1.9%
Collateralized Loan Obligations	0.9%
Governments–Sovereign Bonds	0.7%
Mortgage Pass-Throughs	0.7%
Emerging Markets–Treasuries	0.7%
Quasi-Sovereigns	0.7%
Emerging Markets–Corporate Bonds	0.4%
Local Governments–US Municipal Bonds	0.3%
Other	0.5%
Short-Term	0.3%

1 All data are as of October 31, 2020. The Fund’s sector and inflation protection exposure breakdowns are expressed as an approximate percentage of the Fund’s total net assets (and may vary over time) inclusive of derivative exposure except as noted, based on the Adviser’s internal classification.

2 The Fund’s sector breakdown is expressed, based on the Adviser’s internal classification, as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions (not reflected in the table), which may be used for hedging or investment purposes or to adjust the risk profile or exposures of the Fund (see “Portfolio of Investments” section of the report for additional details). “Other” sector breakdown weightings represent 0.3% or less in the following sectors: Emerging Markets–Sovereigns and Government–Treasuries. Derivative transactions may result in a form of leverage for the Fund. The Fund uses leverage for investment purposes by entering into reverse repurchase agreements. As a result, the Fund’s total investments will generally exceed its net assets.

16    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS

October 31, 2020

		Principal Amount (000)		U.S. $ Value
INFLATION-LINKED SECURITIES – 86.8%
Canada – 0.7%
Canadian Government Real Return Bond 0.50%, 12/01/2050	CAD		4,312	$	3,945,156
Japan – 0.8%
Japanese Government CPI Linked Bond Series 22 0.10%, 03/10/2027	JPY		486,664		4,626,550
United States – 85.3%
U.S. Treasury Inflation Index 0.125%, 01/15/2022-01/15/2030 (TIPS)	U.S.$		34,590		36,484,357
0.125%, 07/15/2022 (TIPS)(a)			14,558		14,856,127
0.125%, 07/15/2024-07/15/2026 (TIPS)(b)			84,973		90,506,227
0.25%, 07/15/2029 (TIPS)			23,018		25,459,992
0.375%, 07/15/2023 (TIPS)(a)			17,846		18,618,381
0.375%, 07/15/2025 (TIPS)			6,371		6,860,321
0.375%, 07/15/2027 (TIPS)(b)			63,771		70,237,363
0.50%, 01/15/2028 (TIPS)(b)			27,125		30,130,438
0.625%, 07/15/2021 (TIPS)(a)			44,585		44,989,050
0.625%, 01/15/2024 (TIPS)(b)			24,352		25,729,056
0.625%, 01/15/2026 (TIPS)			20,403		22,315,984
0.75%, 07/15/2028 (TIPS)(b)			42,895		48,893,557
0.875%, 01/15/2029 (TIPS)			1,791		2,063,187
1.75%, 01/15/2028 (TIPS)			10,730		12,929,068
2.00%, 01/15/2026 (TIPS)			12,717		14,844,867
2.375%, 01/15/2027 (TIPS)			3,837		4,685,985
2.50%, 01/15/2029 (TIPS)(b)			11,179		14,427,736
3.875%, 04/15/2029 (TIPS)			3,233		4,589,289
					488,620,985
Total Inflation-Linked Securities (cost $463,486,924)					497,192,691
CORPORATES – INVESTMENT GRADE – 23.5%
Industrial – 13.9%
Basic – 1.4%
Alpek SAB de CV 4.25%, 09/18/2029(c)			232		237,287
Celulosa Arauco y Constitucion SA 4.20%, 01/29/2030(c)			489		521,091
DuPont de Nemours, Inc. 4.205%, 11/15/2023			915		1,005,942
4.493%, 11/15/2025			915		1,055,370
Eastman Chemical Co. 3.80%, 03/15/2025			227		249,330

abfunds.com AB BOND INFLATION STRATEGY    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Fresnillo PLC 4.25%, 10/02/2050(c)	U.S.$		1,730	$	1,758,112
GUSAP III LP 4.25%, 01/21/2030(c)			1,000		1,048,813
Industrias Penoles SAB de CV 4.75%, 08/06/2050(c)			343		358,864
Inversiones CMPC SA 4.375%, 04/04/2027(c)			845		940,591
Inversiones CMPC SA/Cayman Islands Branch 4.375%, 05/15/2023(c)			270		286,486
Nutrition & Biosciences, Inc. 1.832%, 10/15/2027(c)			300		300,882
Suzano Austria GmbH 3.75%, 01/15/2031			222		226,906
					7,989,674
Capital Goods – 0.0%
Westinghouse Air Brake Technologies Corp. 3.20%, 06/15/2025			180		191,086
Communications - Media – 0.9%
Cox Communications, Inc. 2.95%, 06/30/2023(c)			163		171,153
Interpublic Group of Cos., Inc. (The) 4.75%, 03/30/2030			580		697,183
Prosus NV 4.027%, 08/03/2050(c)			487		505,262
Tencent Holdings Ltd. 1.81%, 01/26/2026(c)			874		889,470
3.24%, 06/03/2050(c)			655		657,784
Time Warner Cable LLC 4.50%, 09/15/2042			235		257,398
ViacomCBS, Inc. 4.20%, 05/19/2032			175		201,610
4.95%, 01/15/2031			287		347,899
Weibo Corp. 3.375%, 07/08/2030			1,254		1,257,919
					4,985,678
Communications - Telecommunications – 1.0%
AT&T, Inc. 2.75%, 06/01/2031			129		133,680
3.50%, 09/15/2053(c)			450		428,233
3.65%, 09/15/2059(c)			827		788,735
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC 4.738%, 03/20/2025(c)			1,150		1,250,004

18    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Verizon Communications, Inc. 3.00%, 03/22/2027	U.S.$		309	$	340,858
4.862%, 08/21/2046			574		762,565
Vodafone Group PLC 3.75%, 01/16/2024			2,003		2,185,673
					5,889,748
Consumer Cyclical - Automotive – 1.2%
General Motors Co. 6.125%, 10/01/2025			194		227,168
6.80%, 10/01/2027			272		334,459
General Motors Financial Co., Inc. 2.70%, 08/20/2027			665		672,415
5.10%, 01/17/2024			1,166		1,280,676
Harley-Davidson Financial Services, Inc. 3.35%, 06/08/2025(c)			1,732		1,826,117
Lear Corp. 3.50%, 05/30/2030			400		416,536
3.80%, 09/15/2027			122		130,395
Nissan Motor Co., Ltd. 4.345%, 09/17/2027(c)			1,378		1,381,982
Volkswagen Group of America Finance LLC 2.90%, 05/13/2022(c)			676		697,862
					6,967,610
Consumer Cyclical - Other – 0.2%
Las Vegas Sands Corp. 2.90%, 06/25/2025			765		758,222
3.20%, 08/08/2024			446		451,138
Marriott International, Inc./MD Series EE 5.75%, 05/01/2025			92		102,435
					1,311,795
Consumer Cyclical - Retailers – 0.8%
Advance Auto Parts, Inc. 1.75%, 10/01/2027			332		329,789
3.90%, 04/15/2030			383		432,131
AutoNation, Inc. 4.75%, 06/01/2030			355		416,497
Ralph Lauren Corp. 2.95%, 06/15/2030			1,687		1,749,537
Ross Stores, Inc. 4.70%, 04/15/2027			1,083		1,272,850
					4,200,804
Consumer Non-Cyclical – 2.9%
AbbVie, Inc. 4.875%, 11/14/2048			337		427,410

abfunds.com AB BOND INFLATION STRATEGY    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Altria Group, Inc. 3.40%, 05/06/2030	U.S.$		950	$	1,031,092
4.80%, 02/14/2029			226		265,150
Anheuser-Busch InBev Worldwide, Inc. 4.60%, 06/01/2060			607		726,591
5.55%, 01/23/2049			1,080		1,453,658
Banner Health 1.897%, 01/01/2031			325		322,732
Baptist Healthcare System Obligated Group Series 20B 3.54%, 08/15/2050			800		798,720
BAT Capital Corp. 2.259%, 03/25/2028			1,727		1,725,549
2.726%, 03/25/2031			671		664,465
4.70%, 04/02/2027			605		693,318
Baxalta, Inc. 3.60%, 06/23/2022			209		218,079
Cigna Corp. 3.75%, 07/15/2023			212		229,482
4.125%, 11/15/2025			374		428,525
4.375%, 10/15/2028			501		592,868
Coca-Cola Femsa SAB de CV 1.85%, 09/01/2032			384		380,938
2.75%, 01/22/2030			458		489,396
CommonSpirit Health 1.547%, 10/01/2025			518		519,704
CVS Health Corp. 4.30%, 03/25/2028			126		146,129
5.05%, 03/25/2048			662		840,191
Kimberly-Clark de Mexico SAB de CV 2.431%, 07/01/2031(c)			350		351,203
Mylan NV 3.95%, 06/15/2026			623		702,208
Royalty Pharma PLC 1.75%, 09/02/2027(c)			194		192,985
Sigma Alimentos SA de CV 4.125%, 05/02/2026(c)			209		226,438
Sutter Health Series 20A 1.321%, 08/15/2025			810		813,783
Takeda Pharmaceutical Co., Ltd. 4.40%, 11/26/2023			1,151		1,278,140
Tyson Foods, Inc. 3.95%, 08/15/2024			650		723,470
					16,242,224

20    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Energy – 2.9%
Baker Hughes a GE Co. LLC/Baker Hughes Co-Obligor, Inc. 3.337%, 12/15/2027	U.S.$		728	$	777,948
Boardwalk Pipelines LP 3.40%, 02/15/2031			604		580,861
BP Capital Markets America, Inc. 3.194%, 04/06/2025			761		831,415
Cenovus Energy, Inc. 4.25%, 04/15/2027			33		33,489
Energy Transfer Operating LP 3.75%, 05/15/2030			2,118		2,081,253
5.20%, 02/01/2022			510		527,554
Eni SpA 4.25%, 05/09/2029(c)			954		1,079,728
Exxon Mobil Corp. 1.571%, 04/15/2023			1,180		1,213,158
2.992%, 03/19/2025			835		909,423
Husky Energy, Inc. 4.40%, 04/15/2029			2,161		2,197,672
Kinder Morgan Energy Partners LP 4.15%, 03/01/2022			104		108,602
5.00%, 10/01/2021			1,200		1,234,944
Marathon Petroleum Corp. 5.125%, 03/01/2021-12/15/2026			569		614,809
Oleoducto Central SA 4.00%, 07/14/2027(c)			453		472,343
ONEOK, Inc. 6.35%, 01/15/2031			184		213,615
Sabine Pass Liquefaction LLC 5.00%, 03/15/2027			418		469,201
Tengizchevroil Finance Co. International Ltd. 3.25%, 08/15/2030(c)			306		310,685
TransCanada PipeLines Ltd. 9.875%, 01/01/2021			930		943,355
Valero Energy Corp. 2.70%, 04/15/2023			672		691,542
Williams Cos., Inc. (The) 3.90%, 01/15/2025			1,250		1,362,650
					16,654,247
Other Industrial – 0.1%
Alfa SAB de CV 5.25%, 03/25/2024(c)			600		638,625

abfunds.com AB BOND INFLATION STRATEGY    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Services – 0.3%
Booking Holdings, Inc. 4.625%, 04/13/2030	U.S.$		1,433	$	1,697,231
Expedia Group, Inc. 6.25%, 05/01/2025(c)			76		83,569
					1,780,800
Technology – 1.4%
Analog Devices, Inc. 2.95%, 04/01/2025			96		104,251
Baidu, Inc. 3.425%, 04/07/2030			201		220,389
Broadcom Corp./Broadcom Cayman Finance Ltd. 3.50%, 01/15/2028			186		200,019
Broadcom, Inc. 4.11%, 09/15/2028			840		936,020
4.15%, 11/15/2030			1,160		1,299,884
5.00%, 04/15/2030			312		367,383
Dell International LLC/EMC Corp. 5.45%, 06/15/2023(c)			111		122,057
6.02%, 06/15/2026(c)			974		1,154,307
Infor, Inc. 1.75%, 07/15/2025(c)			450		462,501
Micron Technology, Inc. 4.185%, 02/15/2027			1,523		1,721,356
NXP BV/NXP Funding LLC/NXP USA, Inc. 2.70%, 05/01/2025(c)			143		151,942
Oracle Corp. 2.50%, 04/01/2025			1,140		1,221,191
Seagate HDD Cayman 4.091%, 06/01/2029(c)			200		216,882
					8,178,182
Transportation - Airlines – 0.4%
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.50%, 10/20/2025(c)			528		536,199
4.75%, 10/20/2028(c)			614		628,012
Southwest Airlines Co. 5.25%, 05/04/2025			693		768,904
					1,933,115
Transportation - Railroads – 0.1%
Lima Metro Line 2 Finance Ltd. 4.35%, 04/05/2036(c)			241		264,799
5.875%, 07/05/2034(c)			316		378,735
					643,534

22    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Transportation - Services – 0.3%
Aviation Capital Group LLC 2.875%, 01/20/2022(c)	U.S.$		101	$	100,841
3.50%, 11/01/2027(c)			140		123,679
3.875%, 05/01/2023(c)			524		524,073
4.125%, 08/01/2025(c)			7		6,738
4.375%, 01/30/2024(c)			194		195,376
4.875%, 10/01/2025(c)			246		242,819
5.50%, 12/15/2024(c)			550		572,737
					1,766,263
					79,373,385
Financial Institutions – 8.9%
Banking – 6.8%
ABN AMRO Bank NV 4.75%, 07/28/2025(c)			200		227,024
AIB Group PLC 4.263%, 04/10/2025(c)			364		391,708
4.75%, 10/12/2023(c)			425		461,712
American Express Co. Series C 3.535% (LIBOR 3 Month + 3.29%), 12/15/2020(d)(e)			485		453,475
Australia & New Zealand Banking Group Ltd. 4.40%, 05/19/2026(c)			600		679,062
Banco de Credito del Peru 3.125%, 07/01/2030(c)			958		967,580
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand 5.375%, 04/17/2025(c)			487		544,831
Banco Santander SA 5.179%, 11/19/2025			1,400		1,595,020
Bank of America Corp. 4.45%, 03/03/2026			1,750		2,016,332
Series DD 6.30%, 03/10/2026(d)			295		334,064
Series L 3.95%, 04/21/2025			2,182		2,432,254
Series Z 6.50%, 10/23/2024(d)			458		509,099
Bank of New York Mellon Corp. (The) Series G 4.70%, 09/20/2025(d)			273		292,227
Bank of Nova Scotia (The) 2.50%, 01/08/2021			344		345,410
Barclays Bank PLC 6.86%, 06/15/2032(c)(d)			137		184,236

abfunds.com AB BOND INFLATION STRATEGY    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Barclays PLC 3.684%, 01/10/2023	U.S.$		700	$	722,491
BNP Paribas SA 4.375%, 05/12/2026(c)			600		674,850
BPCE SA 5.70%, 10/22/2023(c)			213		239,210
Capital One Financial Corp. 2.60%, 05/11/2023			564		591,010
CIT Group, Inc. 5.25%, 03/07/2025			579		647,108
Citigroup, Inc. 3.875%, 03/26/2025			483		533,710
4.45%, 09/29/2027			1,103		1,273,402
5.95%, 01/30/2023(d)			257		265,216
Series Q 4.375% (LIBOR 3 Month + 4.10%), 02/15/2021(d)(e)			409		401,119
Series R 6.125%, 02/15/2021(d)			528		524,832
Commonwealth Bank of Australia 4.50%, 12/09/2025(c)			404		455,664
Cooperatieve Rabobank UA 4.375%, 08/04/2025			396		447,761
Danske Bank A/S 3.244%, 12/20/2025(c)			663		703,032
Deutsche Bank AG/New York NY 2.222%, 09/18/2024			150		151,676
3.961%, 11/26/2025			405		432,807
Discover Bank 4.682%, 08/09/2028			327		342,928
Fifth Third Bancorp Series L 4.50%, 09/30/2025(d)			334		337,196
Goldman Sachs Group, Inc. (The) 1.856% (LIBOR 3 Month + 1.60%), 11/29/2023(e)			406		417,961
2.905%, 07/24/2023			922		957,506
HSBC Holdings PLC 4.041%, 03/13/2028			787		877,505
4.25%, 03/14/2024			266		288,129
4.292%, 09/12/2026			377		422,696
JPMorgan Chase & Co. 2.083%, 04/22/2026			834		871,789
Mastercard, Inc. 3.30%, 03/26/2027			449		509,108
3.85%, 03/26/2050			674		841,725

24    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Morgan Stanley 3.591%, 07/22/2028	U.S.$		429	$	483,234
3.737%, 04/24/2024			1,196		1,286,202
5.00%, 11/24/2025			187		220,699
Series G 4.35%, 09/08/2026			499		578,880
5.50%, 07/28/2021			456		473,200
Series J 4.047% (LIBOR 3 Month + 3.81%), 01/15/2021(d)(e)			195		191,913
Nationwide Building Society 4.00%, 09/14/2026(c)			820		889,618
Natwest Group PLC 8.625%, 08/15/2021(d)			480		496,013
Series U 2.54% (LIBOR 3 Month + 2.32%), 09/30/2027(d)(e)			600		576,540
PNC Bank NA 3.80%, 07/25/2023			940		1,021,479
Santander Holdings USA, Inc. 4.40%, 07/13/2027			424		472,052
Standard Chartered PLC 1.724% (LIBOR 3 Month + 1.51%), 01/30/2027(c)(d)(e)			400		355,520
7.50%, 04/02/2022(c)(d)			380		392,453
State Street Corp. 2.901%, 03/30/2026			85		92,340
Truist Financial Corp. Series Q 5.10%, 03/01/2030(d)			1,060		1,158,251
UBS AG/Stamford CT 7.625%, 08/17/2022			465		517,192
UBS Group AG 7.125%, 08/10/2021(c)(d)			1,030		1,055,740
UniCredit SpA 2.569%, 09/22/2026(c)			1,725		1,713,563
US Bancorp Series J 5.30%, 04/15/2027(d)			427		465,656
Wells Fargo & Co. 2.188%, 04/30/2026			589		612,996
Series G 4.30%, 07/22/2027			444		509,383
					38,927,389
Brokerage – 0.1%
Charles Schwab Corp. (The) Series G 5.375%, 06/01/2025(d)			554		606,940

abfunds.com AB BOND INFLATION STRATEGY    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Finance – 1.3%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 2.875%, 08/14/2024	U.S.$		176	$	173,978
3.30%, 01/23/2023			176		177,786
3.65%, 07/21/2027			176		166,332
4.125%, 07/03/2023			176		180,856
4.50%, 09/15/2023			488		506,964
6.50%, 07/15/2025			209		230,023
Air Lease Corp. 3.875%, 07/03/2023			101		105,458
4.25%, 02/01/2024			411		431,254
Aircastle Ltd. 4.125%, 05/01/2024			232		228,367
4.40%, 09/25/2023			531		534,250
5.00%, 04/01/2023			49		49,962
5.25%, 08/11/2025(c)			409		405,855
GE Capital European Funding Unlimited Co. 4.625%, 02/22/2027	EUR		200		275,791
GE Capital Funding LLC 4.40%, 05/15/2030(c)	U.S.$		1,570		1,715,853
Synchrony Financial 4.50%, 07/23/2025			1,875		2,085,338
					7,268,067
Insurance – 0.6%
Alleghany Corp. 3.625%, 05/15/2030			1,257		1,406,948
Centene Corp. 4.25%, 12/15/2027			208		218,878
4.625%, 12/15/2029			237		258,029
Guardian Life Insurance Co. of America (The) 4.85%, 01/24/2077(c)			183		232,405
MetLife, Inc. 5.70%, 06/15/2035			90		129,962
Nationwide Financial Services, Inc. 5.375%, 03/25/2021(c)			360		366,145
Nationwide Mutual Insurance Co. 9.375%, 08/15/2039(c)			125		212,045
Voya Financial, Inc. 5.65%, 05/15/2053			335		345,167
					3,169,579
Other Finance – 0.0%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 4.45%, 04/03/2026			233		234,803

26    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
REITS – 0.1%
Welltower, Inc. 2.75%, 01/15/2031	U.S.$		212	$	217,033
3.10%, 01/15/2030			168		177,064
3.625%, 03/15/2024			101		109,531
4.00%, 06/01/2025			232		261,056
					764,684
					50,971,462
Utility – 0.7%
Electric – 0.7%
AES Panama Generation Holdings SRL 4.375%, 05/31/2030(c)			358		377,747
CMS Energy Corp. 5.05%, 03/15/2022			144		150,899
Colbun SA 3.15%, 03/06/2030(c)			400		417,010
Enel Chile SA 4.875%, 06/12/2028			821		959,544
Israel Electric Corp., Ltd. Series 6 5.00%, 11/12/2024(c)			620		700,600
Kentucky Utilities Co. 3.30%, 06/01/2050			513		552,126
NextEra Energy Capital Holdings, Inc. 2.75%, 05/01/2025			231		249,265
Star Energy Geothermal Darajat II/Star Energy Geothermal Salak 4.85%, 10/14/2038(c)			614		632,420
					4,039,611
Total Corporates – Investment Grade (cost $127,751,798)					134,384,458
COMMERCIAL MORTGAGE-BACKED SECURITIES – 9.4%
Non-Agency Fixed Rate CMBS – 6.7%
BAMLL Commercial Mortgage Securities Trust Series 2013-WBRK, Class D 3.534%, 03/10/2037(c)			520		459,895
CCUBS Commercial Mortgage Trust Series 2017-C1, Class A4 3.544%, 11/15/2050			1,210		1,358,628
CFCRE Commercial Mortgage Trust Series 2016-C4, Class A4 3.283%, 05/10/2058			730		785,608

abfunds.com AB BOND INFLATION STRATEGY    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CGRBS Commercial Mortgage Trust Series 2013-VN05, Class A 3.369%, 03/13/2035(c)	U.S.$		885	$	929,694
Citigroup Commercial Mortgage Trust Series 2013-GC11, Class B 3.732%, 04/10/2046			915		953,667
Series 2013-GC11, Class D 4.418%, 04/10/2046(c)			191		181,364
Series 2015-GC27, Class A5 3.137%, 02/10/2048			1,382		1,486,340
Series 2015-GC35, Class A4 3.818%, 11/10/2048			450		500,093
Series 2016-C1, Class A4 3.209%, 05/10/2049			775		846,445
Series 2016-GC36, Class A5 3.616%, 02/10/2049			565		624,146
Series 2017-P8, Class AS 3.789%, 09/15/2050			526		590,729
Commercial Mortgage Trust Series 2013-SFS, Class A1 1.873%, 04/12/2035(c)			130		128,601
Series 2015-3BP, Class A 3.178%, 02/10/2035(c)			250		266,364
Series 2015-CR24, Class A5 3.696%, 08/10/2048			590		653,662
Series 2015-CR25, Class A4 3.759%, 08/10/2048			1,155		1,283,240
Series 2015-DC1, Class A5 3.35%, 02/10/2048			1,220		1,317,910
Series 2015-PC1, Class A5 3.902%, 07/10/2050			745		823,281
CSAIL Commercial Mortgage Trust Series 2015-C2, Class A4 3.504%, 06/15/2057			475		520,268
Series 2015-C3, Class A4 3.718%, 08/15/2048			395		432,923
Series 2015-C4, Class A4 3.808%, 11/15/2048			1,853		2,052,110
GS Mortgage Securities Trust Series 2011-GC5, Class D 5.388%, 08/10/2044(c)			110		89,395
Series 2013-G1, Class A1 2.059%, 04/10/2031(c)			207		208,838
Series 2014-GC18, Class D 4.989%, 01/10/2047(c)			393		107,276
Series 2014-GC22, Class A5 3.862%, 06/10/2047			1,072		1,165,288

28    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2015-GC28, Class A5 3.396%, 02/10/2048	U.S.$		1,300	$	1,402,945
Series 2018-GS9, Class A4 3.992%, 03/10/2051			1,150		1,324,807
JP Morgan Chase Commercial Mortgage Securities Trust Series 2011-C5, Class D 5.424%, 08/15/2046(c)			129		103,128
JPMBB Commercial Mortgage Securities Trust Series 2014-C21, Class A5 3.775%, 08/15/2047			1,220		1,328,240
Series 2014-C21, Class B 4.341%, 08/15/2047			314		328,051
Series 2014-C22, Class XA 0.831%, 09/15/2047(f)			19,902		527,630
Series 2015-C30, Class A5 3.822%, 07/15/2048			585		648,443
Series 2015-C31, Class A3 3.801%, 08/15/2048			990		1,097,708
Series 2015-C33, Class A4 3.77%, 12/15/2048			1,150		1,285,918
JPMCC Commercial Mortgage Securities Trust Series 2017-JP7, Class XA 1.058%, 09/15/2050(f)			8,881		451,353
LB-UBS Commercial Mortgage Trust Series 2006-C6, Class AJ 5.452%, 09/15/2039			132		76,540
Morgan Stanley Bank of America Merrill Lynch Trust Series 2015-C25, Class XA 1.054%, 10/15/2048(f)			10,423		417,348
Morgan Stanley Capital I Trust Series 2011-C1, Class D 5.516%, 09/15/2047(c)			100		100,101
Series 2016-UB12, Class A4 3.596%, 12/15/2049			870		965,393
UBS Commercial Mortgage Trust Series 2018-C8, Class A4 3.983%, 02/15/2051			990		1,139,095
Series 2018-C9, Class A4 4.117%, 03/15/2051			1,800		2,064,476
Series 2018-C10, Class A4 4.313%, 05/15/2051			1,200		1,394,546
UBS-Barclays Commercial Mortgage Trust Series 2012-C4, Class A5 2.85%, 12/10/2045			2,309		2,387,875

abfunds.com AB BOND INFLATION STRATEGY    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Wells Fargo Commercial Mortgage Trust Series 2015-C27, Class A5 3.451%, 02/15/2048	U.S.$		1,160	$	1,262,268
Series 2015-SG1, Class C 4.463%, 09/15/2048			537		505,139
Series 2016-LC25, Class C 4.417%, 12/15/2059			330		317,726
Series 2016-NXS6, Class A4 2.918%, 11/15/2049			900		966,986
Series 2016-NXS6, Class C 4.315%, 11/15/2049			525		505,487
Series 2018-C48, Class A5 4.302%, 01/15/2052			145		169,802
					38,536,770
Non-Agency Floating Rate CMBS – 2.7%
Ashford Hospitality Trust Series 2018-ASHF, Class A 1.048% (LIBOR 1 Month + 0.90%), 04/15/2035(c)(e)			891		839,919
Series 2018-KEYS, Class A 1.148% (LIBOR 1 Month + 1.00%), 06/15/2035(c)(e)			1,250		1,178,370
BAMLL Commercial Mortgage Securities Trust Series 2017-SCH, Class AF 1.148% (LIBOR 1 Month + 1.00%), 11/15/2033(c)(e)			1,755		1,658,445
BBCMS Mortgage Trust Series 2020-BID, Class A 2.285% (LIBOR 1 Month + 2.14%), 10/15/2037(c)(e)			963		960,726
BHMS Series 2018-ATLS, Class A 1.398% (LIBOR 1 Month + 1.25%), 07/15/2035(c)(e)			1,001		954,710
Braemar Hotels & Resorts Trust Series 2018-PRME, Class A 0.968% (LIBOR 1 Month + 0.82%), 06/15/2035(c)(e)			1,000		946,232
BX Commercial Mortgage Trust Series 2019-IMC, Class A 1.148% (LIBOR 1 Month + 1.00%), 04/15/2034(c)(e)			766		736,354
BX Trust Series 2018-EXCL, Class A 1.236% (LIBOR 1 Month + 1.09%), 09/15/2037(c)(e)			1,130		1,028,803

30    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CLNY Trust Series 2019-IKPR, Class D 2.173% (LIBOR 1 Month + 2.03%), 11/15/2038(c)(e)	U.S.$		1,000	$	906,049
DBWF Mortgage Trust Series 2018-GLKS, Class A 1.177% (LIBOR 1 Month + 1.03%), 12/19/2030(c)(e)			1,042		1,013,478
GS Mortgage Securities Corp. Trust Series 2019-BOCA, Class A 1.348% (LIBOR 1 Month + 1.20%), 06/15/2038(c)(e)			1,368		1,337,018
Series 2019-SMP, Class A 1.298% (LIBOR 1 Month + 1.15%), 08/15/2032(c)(e)			1,125		1,091,241
JP Morgan Chase Commercial Mortgage Securities Trust Series 2020-NNN, Class EFL 1.996% (LIBOR 1 Month + 1.85%), 01/16/2037(c)(e)			149		136,347
Morgan Stanley Capital I Trust Series 2015-XLF2, Class SNMA 2.098% (LIBOR 1 Month + 1.95%), 11/15/2026(e)(g)			182		146,572
Natixis Commercial Mortgage Securities Trust Series 2018-850T, Class A 0.932% (LIBOR 1 Month + 0.78%), 07/15/2033(c)(e)			1,200		1,187,377
Series 2019-MILE, Class A 1.648% (LIBOR 1 Month + 1.50%), 07/15/2036(c)(e)			461		456,554
Starwood Retail Property Trust Series 2014-STAR, Class A 1.618% (LIBOR 1 Month + 1.47%), 11/15/2027(c)(e)			961		711,444
					15,289,639
Total Commercial Mortgage-Backed Securities (cost $52,813,651)					53,826,409
COLLATERALIZED MORTGAGE OBLIGATIONS – 6.8%
Risk Share Floating Rate – 5.1%
Bellemeade Re Ltd. Series 2018-3A, Class M1B 1.999% (LIBOR 1 Month + 1.85%), 10/25/2028(c)(e)			412		409,111

abfunds.com AB BOND INFLATION STRATEGY    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-1A, Class M1B 1.899% (LIBOR 1 Month + 1.75%), 03/25/2029(c)(e)	U.S.$		945	$	943,892
Series 2019-2A, Class M1C 2.149% (LIBOR 1 Month + 2.00%), 04/25/2029(c)(e)			707		698,294
Series 2019-3A, Class M1B 1.749% (LIBOR 1 Month + 1.60%), 07/25/2029(c)(e)			660		646,479
Series 2019-3A, Class M1C 2.099% (LIBOR 1 Month + 1.95%), 07/25/2029(c)(e)			480		456,492
Series 2019-4A, Class M1B 2.149% (LIBOR 1 Month + 2.00%), 10/25/2029(c)(e)			965		954,538
Series 2020-2A, Class M1B 3.349% (LIBOR 1 Month + 3.20%), 08/26/2030(c)(e)			518		522,012
Series 2020-3A, Class M1B 2.998% (LIBOR 1 Month + 2.85%), 10/25/2030(c)(e)			330		329,974
Connecticut Avenue Securities Trust Series 2018-R07, Class 1M2 2.549% (LIBOR 1 Month + 2.40%), 04/25/2031(c)(e)			372		370,205
Series 2019-R02, Class 1M2 2.449% (LIBOR 1 Month + 2.30%), 08/25/2031(c)(e)			257		255,866
Series 2019-R03, Class 1M2 2.299% (LIBOR 1 Month + 2.15%), 09/25/2031(c)(e)			135		134,036
Series 2019-R04, Class 2M2 2.249% (LIBOR 1 Month + 2.10%), 06/25/2039(c)(e)			488		483,572
Series 2019-R05, Class 1M2 2.149% (LIBOR 1 Month + 2.00%), 07/25/2039(c)(e)			287		285,600
Series 2019-R06, Class 2M2 2.249% (LIBOR 1 Month + 2.10%), 09/25/2039(c)(e)			606		600,035
Series 2019-R07, Class 1M2 2.249% (LIBOR 1 Month + 2.10%), 10/25/2039(c)(e)			1,065		1,055,507
Series 2020-R01, Class 1M2 2.199% (LIBOR 1 Month + 2.05%), 01/25/2040(c)(e)			1,270		1,243,999

32    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Eagle Re Ltd. Series 2020-1, Class M1A 1.049% (LIBOR 1 Month + 0.90%), 01/25/2030(c)(e)	U.S.$		1,100	$	1,091,631
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2015-HQA2, Class M3 4.949% (LIBOR 1 Month + 4.80%), 05/25/2028(e)			218		223,725
Series 2017-DNA3, Class M2 2.649% (LIBOR 1 Month + 2.50%), 03/25/2030(e)			900		909,563
Series 2017-HQA3, Class M2 2.499% (LIBOR 1 Month + 2.35%), 04/25/2030(e)			893		900,961
Series 2019-DNA3, Class M2 2.199% (LIBOR 1 Month + 2.05%), 07/25/2049(c)(e)			71		69,673
Series 2019-DNA4, Class M2 2.099% (LIBOR 1 Month + 1.95%), 10/25/2049(c)(e)			802		795,239
Series 2019-FTR2, Class M2 2.299% (LIBOR 1 Month + 2.15%), 11/25/2048(c)(e)			515		483,602
Series 2019-HQA3, Class M2 1.999% (LIBOR 1 Month + 1.85%), 09/25/2049(c)(e)			454		444,633
Series 2020-DNA1, Class M2 1.849% (LIBOR 1 Month + 1.70%), 01/25/2050(c)(e)			950		928,844
Series 2020-DNA5, Class M2 2.887% (SOFR + 2.80%), 10/25/2050(c)(e)			960		959,399
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C04, Class 1M2 5.049% (LIBOR 1 Month + 4.90%), 11/25/2024(e)			268		278,160
Series 2015-C01, Class 1M2 4.449% (LIBOR 1 Month + 4.30%), 02/25/2025(e)			581		590,072
Series 2015-C01, Class 2M2 4.699% (LIBOR 1 Month + 4.55%), 02/25/2025(e)			71		71,732
Series 2015-C02, Class 1M2 4.149% (LIBOR 1 Month + 4.00%), 05/25/2025(e)			286		287,483

abfunds.com AB BOND INFLATION STRATEGY    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2015-C02, Class 2M2 4.149% (LIBOR 1 Month + 4.00%), 05/25/2025(e)	U.S.$		102	$	103,112
Series 2015-C03, Class 1M2 5.149% (LIBOR 1 Month + 5.00%), 07/25/2025(e)			278		282,732
Series 2015-C03, Class 2M2 5.149% (LIBOR 1 Month + 5.00%), 07/25/2025(e)			177		181,476
Series 2015-C04, Class 1M2 5.849% (LIBOR 1 Month + 5.70%), 04/25/2028(e)			559		591,835
Series 2016-C05, Class 2M2 4.599% (LIBOR 1 Month + 4.45%), 01/25/2029(e)			580		601,814
Series 2016-C06, Class 1M2 4.399% (LIBOR 1 Month + 4.25%), 04/25/2029(e)			259		267,548
Series 2016-C07, Class 2M2 4.499% (LIBOR 1 Month + 4.35%), 05/25/2029(e)			857		890,851
Series 2017-C03, Class 1M2 3.149% (LIBOR 1 Month + 3.00%), 10/25/2029(e)			531		534,906
Home Re Ltd. Series 2020-1, Class M1B 3.394% (LIBOR 1 Month + 3.25%), 10/25/2030(c)(e)			790		790,008
Mortgage Insurance-Linked Notes Series 2019-1, Class M1 2.049% (LIBOR 1 Month + 1.90%), 11/26/2029(c)(e)			805		798,474
Oaktown Re V Ltd. Series 2020-2A, Class M1B 3.743% (LIBOR 1 Month + 3.60%), 10/25/2030(c)(e)			1,427		1,425,542
PMT Credit Risk Transfer Trust Series 2019-1R, Class A 2.152% (LIBOR 1 Month + 2.00%), 03/27/2024(e)(g)			277		247,311
Series 2019-2R, Class A 2.902% (LIBOR 1 Month + 2.75%), 05/27/2023(e)(g)			516		462,951
Series 2019-3R, Class A 2.852% (LIBOR 1 Month + 2.70%), 10/27/2022(e)(g)			175		156,873

34    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2020-1R, Class A 2.502% (LIBOR 1 Month + 2.35%), 02/27/2023(e)(g)	U.S.$		624	$	558,640
Radnor Re Ltd. Series 2019-1, Class M1B 2.099% (LIBOR 1 Month + 1.95%), 02/25/2029(c)(e)			586		585,971
Series 2019-2, Class M1B 1.899% (LIBOR 1 Month + 1.75%), 06/25/2029(c)(e)			723		717,232
Series 2020-1, Class M1A 1.099% (LIBOR 1 Month + 0.95%), 02/25/2030(c)(e)			391		389,733
Series 2020-2, Class M1C 4.746% (LIBOR 1 Month + 4.60%), 10/25/2030(c)(e)			578		579,070
Traingle Re Ltd. Series 2020-1, Class M1B 4.047% (LIBOR 1 Month + 3.90%), 10/25/2030(c)(e)			1,640		1,638,967
					29,229,375
Agency Floating Rate – 1.3%
Federal Home Loan Mortgage Corp. REMICs Series 3955, Class SD 6.452% (6.60% – LIBOR 1 Month), 11/15/2041(e)(h)			3,268		651,337
Series 4693, Class SL 6.002% (6.15% – LIBOR 1 Month), 06/15/2047(e)(h)			2,000		456,015
Series 4727, Class SA 6.052% (6.20% – LIBOR 1 Month), 11/15/2047(e)(h)			2,212		446,896
Series 4954, Class SL 5.902% (6.05% – LIBOR 1 Month), 02/25/2050(e)(h)			3,003		541,198
Series 4981, Class HS 5.952% (6.10% – LIBOR 1 Month), 06/25/2050(e)(h)			6,644		1,221,744
Federal National Mortgage Association REMICs Series 2011-131, Class ST 6.391% (6.54% – LIBOR 1 Month), 12/25/2041(e)(h)			991		233,482
Series 2014-17, Class SA 5.901% (6.05% – LIBOR 1 Month), 04/25/2044(e)(h)			2,486		629,898

abfunds.com AB BOND INFLATION STRATEGY    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2014-78, Class SE 5.951% (6.10% – LIBOR 1 Month), 12/25/2044(e)(h)	U.S.$		1,578	$	312,907
Series 2016-77, Class DS 5.851% (6.00% – LIBOR 1 Month), 10/25/2046(e)(h)			1,751		351,435
Series 2017-62, Class AS 6.001% (6.15% – LIBOR 1 Month), 08/25/2047(e)(h)			1,966		367,085
Series 2017-81, Class SA 6.051% (6.20% – LIBOR 1 Month), 10/25/2047(e)(h)			2,123		473,547
Series 2017-97, Class LS 6.051% (6.20% – LIBOR 1 Month), 12/25/2047(e)(h)			2,248		583,349
Series 2020-26, Class GS 5.851% (6.00% – LIBOR 1 Month), 05/25/2050(e)(h)			3,217		572,504
Government National Mortgage Association Series 2017-122, Class SA 6.049% (6.20% – LIBOR 1 Month), 08/20/2047(e)(h)			1,467		305,432
Series 2017-134, Class MS 6.049% (6.20% – LIBOR 1 Month), 09/20/2047(e)(h)			1,474		318,821
					7,465,650
Agency Fixed Rate – 0.3%
Federal Home Loan Mortgage Corp. REMICs Series 4976, Class MI 4.50%, 05/25/2050(f)			4,715		762,129
Series 5015, Class BI 4.00%, 09/25/2050(f)			3,526		573,922
Series 5018, Class EI 4.00%, 10/25/2050(f)			2,991		424,359
					1,760,410
Non-Agency Floating Rate – 0.1%
Chase Mortgage Reference Notes Series 2019-CL1, Class M3 2.249% (LIBOR 1 Month + 2.10%), 04/25/2047(c)(e)			283		282,775
Total Collateralized Mortgage Obligations (cost $38,780,406)					38,738,210

36    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
ASSET-BACKED SECURITIES – 2.8%
Autos - Fixed Rate – 1.5%
Avis Budget Rental Car Funding AESOP LLC Series 2018-1A, Class A 3.70%, 09/20/2024(c)	U.S.$		1,760	$	1,849,886
Series 2018-2A, Class A 4.00%, 03/20/2025(c)			1,425		1,524,937
First Investors Auto Owner Trust Series 2019-1A, Class B 3.02%, 03/17/2025(c)			1,200		1,238,190
Series 2020-1A, Class A 1.49%, 01/15/2025(c)			610		615,377
Flagship Credit Auto Trust Series 2016-2, Class D 8.56%, 11/15/2023(c)			325		334,129
Series 2016-4, Class D 3.89%, 11/15/2022(c)			330		335,994
Series 2018-3, Class B 3.59%, 12/16/2024(c)			1,200		1,224,825
Hertz Vehicle Financing II LP Series 2015-3A, Class A 2.67%, 09/25/2021(c)			300		301,492
Series 2017-1A, Class A 2.96%, 10/25/2021(c)			468		468,953
Series 2019-1A, Class A 3.71%, 03/25/2023(c)			370		369,819
Series 2019-2A, Class A 3.42%, 05/25/2025(c)			310		311,691
					8,575,293
Credit Cards - Fixed Rate – 0.8%
World Financial Network Credit Card Master Trust Series 2018-A, Class A 3.07%, 12/16/2024			1,675		1,688,267
Series 2018-B, Class A 3.46%, 07/15/2025			850		871,416
Series 2018-B, Class M 3.81%, 07/15/2025			935		945,032
Series 2019-B, Class M 3.04%, 04/15/2026			1,070		1,103,126
					4,607,841
Other ABS - Fixed Rate – 0.5%
Affirm Asset Securitization Trust Series 2020-A, Class A 2.10%, 02/18/2025(c)			711		712,522

abfunds.com AB BOND INFLATION STRATEGY    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Marlette Funding Trust Series 2018-4A, Class A 3.71%, 12/15/2028(c)	U.S.$		161	$	161,888
Prosper Marketplace Issuance Trust Series 2019-3A, Class A 3.19%, 07/15/2025(c)			121		121,542
SoFi Consumer Loan Program LLC Series 2017-2, Class A 3.28%, 02/25/2026(c)			33		33,232
Series 2017-5, Class A2 2.78%, 09/25/2026(c)			269		271,301
Series 2017-6, Class A2 2.82%, 11/25/2026(c)			223		223,686
SoFi Consumer Loan Program Trust Series 2018-3, Class A2 3.67%, 08/25/2027(c)			507		512,006
Upstart Securitization Trust Series 2020-3, Class A 1.702%, 11/20/2030(c)			641		641,315
					2,677,492
Total Asset-Backed Securities (cost $15,491,390)					15,860,626
CORPORATES – NON-INVESTMENT GRADE – 2.6%
Industrial – 1.6%
Basic – 0.1%
Ingevity Corp. 3.875%, 11/01/2028(c)			683		693,716
Capital Goods – 0.1%
TransDigm, Inc. 6.25%, 03/15/2026(c)			512		533,919
Communications - Media – 0.4%
Cable One, Inc. 4.00%, 11/15/2030(c)			499		506,520
CCO Holdings LLC/CCO Holdings Capital Corp. 4.00%, 03/01/2023(c)			656		662,566
5.00%, 02/01/2028(c)			702		737,100
CSC Holdings LLC 6.75%, 11/15/2021			145		151,628
					2,057,814

38    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Automotive – 0.0%
Clarios Global LP/Clarios US Finance Co. 4.375%, 05/15/2026(c)	EUR		191	$	223,220
Consumer Cyclical - Entertainment – 0.2%
Royal Caribbean Cruises Ltd. 10.875%, 06/01/2023(c)	U.S.$		394		429,767
11.50%, 06/01/2025(c)			708		809,896
					1,239,663
Consumer Cyclical - Other – 0.1%
International Game Technology PLC 6.25%, 02/15/2022(c)			207		212,044
6.50%, 02/15/2025(c)			460		490,558
					702,602
Consumer Cyclical - Restaurants – 0.2%
1011778 BC ULC/New Red Finance, Inc. 3.50%, 02/15/2029(c)			1,046		1,039,996
Consumer Non-Cyclical – 0.2%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 3.50%, 02/15/2023(c)			1,160		1,178,560
Energy – 0.3%
Sunoco LP/Sunoco Finance Corp. 4.875%, 01/15/2023			618		620,744
5.875%, 03/15/2028			640		664,083
Transocean Poseidon Ltd. 6.875%, 02/01/2027(c)			388		292,308
					1,577,135
					9,246,625
Financial Institutions – 1.0%
Banking – 0.6%
Credit Suisse Group AG 6.375%, 08/21/2026(c)(d)			320		345,991
7.50%, 07/17/2023-12/11/2023(c)(d)			1,356		1,441,167
Discover Financial Services Series D 6.125%, 06/23/2025(d)			1,667		1,784,890
					3,572,048
Finance – 0.4%
Navient Corp. 6.125%, 03/25/2024			722		729,552
6.625%, 07/26/2021			415		423,263
7.25%, 01/25/2022			54		55,709

abfunds.com AB BOND INFLATION STRATEGY    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
SLM Corp. 4.20%, 10/29/2025	U.S.$		900	$	913,059
					2,121,583
					5,693,631
Total Corporates - Non-Investment Grade (cost $14,499,147)					14,940,256
COLLATERALIZED LOAN OBLIGATIONS – 1.2%
CLO - Floating Rate – 1.2%
Dryden CLO Ltd. Series 2020-77A, Class A 2.374% (LIBOR 3 Month + 2.00%), 05/20/2031(c)(e)			700		702,216
Series 2020-78A, Class C 2.168% (LIBOR 3 Month + 1.95%), 04/17/2033(c)(e)			880		857,761
Series 2020-78A, Class D 3.218% (LIBOR 3 Month + 3.00%), 04/17/2033(c)(e)			460		429,565
Elevation CLO Ltd. Series 2020-11A, Class C 2.437% (LIBOR 3 Month + 2.20%), 04/15/2033(c)(e)			780		744,018
Goldentree Loan Management US CLO Ltd. Series 2020-7A, Class A 2.118% (LIBOR 3 Month + 1.90%), 04/20/2031(c)(e)			1,024		1,026,783
Kayne CLO Ltd. Series 2020-7A, Class C 2.218% (LIBOR 3 Month + 2.00%), 04/17/2033(c)(e)			400		392,804
Magnetite XXVI Ltd. Series 2020-26A, Class A 1.987% (LIBOR 3 Month + 1.75%), 07/15/2030(c)(e)			1,485		1,488,703
OCP CLO Ltd. Series 2020-18A, Class A 2.018% (LIBOR 3 Month + 1.80%), 04/20/2030(c)(e)			1,022		1,023,393
Voya CLO Ltd. Series 2019-1A, Class DR 3.087% (LIBOR 3 Month + 2.85%), 04/15/2031(c)(e)			340		295,921
Total Collateralized Loan Obligations (cost $7,091,289)					6,961,164

40    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS – SOVEREIGN BONDS – 1.0%
Colombia – 0.0%
Colombia Government International Bond 3.125%, 04/15/2031	U.S.$		248	$	254,448
Israel – 0.1%
Israel Government International Bond 3.875%, 07/03/2050			656		760,550
Mexico – 0.1%
Mexico Government International Bond 3.90%, 04/27/2025			723		789,742
Qatar – 0.1%
Qatar Government International Bond 3.40%, 04/16/2025(c)			398		437,178
Saudi Arabia – 0.2%
Saudi Government International Bond 2.90%, 10/22/2025(c)			1,112		1,187,060
United Arab Emirates – 0.4%
Abu Dhabi Government International Bond 1.70%, 03/02/2031(c)			786		772,245
2.50%, 04/16/2025(c)			643		680,937
3.875%, 04/16/2050(c)			550		652,781
					2,105,963
Uruguay – 0.1%
Uruguay Government International Bond 4.375%, 01/23/2031			238		287,903
Total Governments – Sovereign Bonds (cost $5,352,643)					5,822,844
MORTGAGE PASS-THROUGHS – 1.0%
Agency Fixed Rate 30-Year – 1.0%
Uniform Mortgage-Backed Security Series 2020 1.50%, 11/01/2050, TBA (cost $5,748,094)			5,700		5,738,297
EMERGING MARKETS – TREASURIES – 1.0%
South Africa – 1.0%
Republic of South Africa Government Bond Series 2030 8.00%, 01/31/2030 (cost $4,782,839)	ZAR		97,953		5,535,451

abfunds.com AB BOND INFLATION STRATEGY    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
QUASI-SOVEREIGNS – 0.9%
Quasi-Sovereign Bonds – 0.9%
Chile – 0.2%
Corp. Nacional del Cobre de Chile
3.15%, 01/14/2030(c)	U.S.$		655	$	696,551
3.75%, 01/15/2031(c)			202		223,210
Empresa de Transporte de Pasajeros Metro SA 3.65%, 05/07/2030(c)			200		217,600
					1,137,361
Indonesia – 0.3%
Indonesia Asahan Aluminium Persero PT 4.75%, 05/15/2025(c)			435		472,519
Pertamina Persero PT 6.45%, 05/30/2044(c)			575		746,425
Perusahaan Perseroan Persero PT Perusahaan Listrik Negara 6.15%, 05/21/2048(c)			305		387,826
					1,606,770
Malaysia – 0.1%
Petronas Capital Ltd. 4.55%, 04/21/2050(c)			705		879,604
Mexico – 0.1%
Petroleos Mexicanos
6.75%, 09/21/2047			529		409,711
6.84%, 01/23/2030			258		230,676
					640,387
Peru – 0.2%
Corp. Financiera de Desarrollo SA 2.40%, 09/28/2027(c)			1,185		1,203,960
Total Quasi-Sovereigns (cost $5,057,706)					5,468,082
EMERGING MARKETS – CORPORATE BONDS – 0.5%
Industrial – 0.5%
Basic – 0.1%
Braskem Netherlands Finance BV 4.50%, 01/31/2030(c)			600		555,894
Capital Goods – 0.1%
Embraer Netherlands Finance BV
5.40%, 02/01/2027			590		558,668
6.95%, 01/17/2028(c)			384		383,791

42    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Odebrecht Finance Ltd. 5.25%, 06/27/2029(c)(i)(j)	U.S.$		426	$	14,910
					957,369
Communications - Media – 0.1%
Globo Comunicacao e Participacoes SA 4.875%, 01/22/2030(c)			427		423,664
Consumer Non-Cyclical – 0.1%
BRF GmbH 4.35%, 09/29/2026(c)			327		330,577
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(g)(j)(k)			655		5,744
					336,321
Transportation - Services – 0.1%
Rumo Luxembourg SARL 5.875%, 01/18/2025(c)			458		479,183
					2,752,431
Utility – 0.0%
Electric – 0.0%
Terraform Global Operating LLC 6.125%, 03/01/2026(g)			89		90,240
Total Emerging Markets – Corporate Bonds (cost $3,658,664)					2,842,671
LOCAL GOVERNMENTS – US MUNICIPAL BONDS – 0.4%
United States – 0.4%
Port Authority of New York & New Jersey Series 2020A 1.086%, 07/01/2023			660		667,484
State of California 5.70%, 11/01/2021			825		869,938
Tobacco Settlement Finance Authority/WV 3.00%, 06/01/2035			770		769,392
Total Local Governments – US Municipal Bonds (cost $2,297,272)					2,306,814
EMERGING MARKETS – SOVEREIGNS – 0.4%
Brazil – 0.1%
Brazilian Government International Bond 2.875%, 06/06/2025			781		789,835

abfunds.com AB BOND INFLATION STRATEGY    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

Company		Principal Amount (000)		U.S. $ Value
Dominican Republic – 0.2%
Dominican Republic International Bond 4.875%, 09/23/2032(c)	U.S.$		1,213	$	1,236,123
Egypt – 0.1%
Egypt Government International Bond 6.125%, 01/31/2022(c)			255		262,012
Total Emerging Markets – Sovereigns (cost $2,244,840)					2,287,970
GOVERNMENTS – TREASURIES – 0.3%
Malaysia – 0.3%
Malaysia Government Bond Series 117 3.882%, 03/10/2022 (cost $1,600,174)	MYR		6,633		1,644,595
		Shares
COMMON STOCKS – 0.0%
Financials – 0.0%
Insurance – 0.0%
Mt Logan Re Ltd. (Preference Shares)(j)(l)(m)(n) (cost $260,000)			260		270,501
SHORT-TERM INVESTMENTS – 0.5%
Investment Companies – 0.5%
AB Fixed Income Shares, Inc. – AB Government Money Market Portfolio – Class AB, 0.03%(o)(p)(q) (cost $2,643,692)			2,643,692		2,643,692
Total Investments – 139.1% (cost $753,560,529)					796,464,731
Other assets less liabilities – (39.1)%					(223,878,096	)
Net Assets – 100.0%				$	572,586,635

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
U.S. T-Note 5 Yr (CBT) Futures		503		December 2020	$	63,177,586	$	(134,233	)

44    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Sold Contracts
10 Yr Canadian Bond Futures		123		December 2020	$	13,944,247	$	79,198
Japan 10 Yr Bond (OSE) Futures		4		December 2020		5,802,760		(4,418	)
Long Gilt Futures		151		December 2020		26,541,780		74,162
U.S. 10 Yr Ultra Futures		98		December 2020		15,413,563		167,025
U.S. T-Note 10 Yr (CBT) Futures		369		December 2020		51,002,719		413,474
U.S. T-Note 2 Yr (CBT) Futures		63		December 2020		13,913,156		2,558
U.S. Ultra Bond (CBT) Futures		48		December 2020		10,320,000		409,634
							$	1,007,400

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Bank of America, NA	ZAR	175,291	USD	10,483		11/27/2020	$	(258,315	)
BNP Paribas SA	CAD	40,951	USD	30,829		12/10/2020		86,391
Citibank, NA	CNY	79,149	USD	11,777		12/17/2020		252
Citibank, NA	NZD	17,407	USD	11,539		12/22/2020		29,077
Citibank, NA	USD	679	GBP	525		11/19/2020		1,305
Citibank, NA	USD	869	ZAR	14,692		11/27/2020		31,218
Citibank, NA	USD	21,190	JPY	2,233,969		12/11/2020		158,135
Goldman Sachs Bank USA	KRW	5,075,860	USD	4,291		11/16/2020		(172,390	)
Goldman Sachs Bank USA	USD	11,324	AUD	16,066		01/12/2021		(26,297	)
Goldman Sachs Bank USA	USD	4,262	CNY	29,721		11/16/2020		169,435
HSBC Bank USA	USD	2,875	ZAR	47,731		11/27/2020		49,498
JPMorgan Chase Bank, NA	SEK	126,478	USD	14,355		01/15/2021		126,711
Morgan Stanley Capital Services, Inc.	AUD	32,455	USD	23,168		01/12/2021		347,325
Morgan Stanley Capital Services, Inc.	MYR	7,213	USD	1,731		03/25/2021		5,994
Natwest Markets PLC	USD	1,714	ZAR	28,711		11/27/2020		44,968
Standard Chartered Bank	KRW	8,501,874	USD	7,190		11/16/2020		(285,806	)
Standard Chartered Bank	USD	7,146	CNY	49,737		11/16/2020		269,488
Standard Chartered Bank	USD	11,590	KRW	13,480,973		11/10/2020		263,393
State Street Bank & Trust Co.	GBP	525	USD	677		11/19/2020		(3,444	)
State Street Bank & Trust Co.	EUR	76	USD	89		12/18/2020		935
State Street Bank & Trust Co.	USD	21,530	EUR	18,273		12/18/2020		(225,452	)
							$	612,421

abfunds.com AB BOND INFLATION STRATEGY    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

CALL OPTIONS WRITTEN (see Note D)

Description	Counterparty		Contracts		Exercise Price			Expiration Month		Notional (000)			Premiums Received		U.S. $ Value
iShares 7-10 Year Treasury Bond ETF(n)		Citibank, NA		380,900		USD	121.00		November 2020		USD	46,089	$	344,715	$	(163,845	)
iShares TIPS Bond ETF(n)		UBS AG		312,610		USD	127.00		December 2020		USD	39,701		507,616		(178,183	)
													$	852,331	$	(342,028	)

CREDIT DEFAULT SWAPTIONS WRITTEN (see Note D)

Description	Counterparty	Buy/Sell Protection		Strike Rate			Expiration Month		Notional Amount (000)		Premiums Received		Market Value
Put
CDX-NAHY Series 34, 5 Year Index RTP	Bank of America, NA		Sell		103.00	%		December 2020	$	28,500	$	636,120	$	(584,499	)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020				Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
CDX-NAIG Series 34, 5 Year Index, 06/20/2025*		(1.00	)%		Quarterly		0.91	%	USD		119,190	$	(631,751	)	$	(622,212	)	$	(9,539	)
Malaysia, 12/20/2025*		(1.00	)		Quarterly		0.48		USD		50,370		(1,399,663	)		(1,288,578	)		(111,085	)
People’s Republic of China, 7.500%, 10/28/2027, 06/20/2025*		(1.00	)		Quarterly		0.34		USD		29,050		(901,844	)		(637,902	)		(263,942	)
												$	(2,933,258	)	$	(2,548,692	)	$	(384,566	)

* Termination date

CENTRALLY CLEARED INFLATION (CPI) SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	64,600		02/26/2022	CPI#	1.440%	Maturity	$	441,423		$	—	$	441,423
USD	38,550		02/28/2022	CPI#	1.352%	Maturity		192,213			—		192,213
USD	4,500		07/15/2022	1.484%	CPI#	Maturity		(15,413	)		—		(15,413	)
USD	11,250		07/15/2022	1.575%	CPI#	Maturity		(70,157	)		—		(70,157	)
USD	9,450		07/15/2022	1.758%	CPI#	Maturity		(100,007	)		—		(100,007	)
USD	12,000		07/15/2022	1.850%	CPI#	Maturity		(173,788	)		—		(173,788	)

46    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	21,500		07/15/2022	1.851%	CPI#	Maturity	$	(312,505	)	$	—	$	(312,505	)
USD	9,000		07/15/2023	1.902%	CPI#	Maturity		(162,415	)		—		(162,415	)
USD	3,000		01/15/2024	1.599%	CPI#	Maturity		(6,638	)		—		(6,638	)
USD	64,600		02/26/2025	1.589%	CPI#	Maturity		(85,178	)		—		(85,178	)
USD	38,550		02/28/2025	1.527%	CPI#	Maturity		73,716			—		73,716
							$	(218,749	)	$	—	$	(218,749	)

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CAD	49,600		08/27/2021	3 Month CDOR	1.623%	Semi-Annual/ Semi-Annual	$	426,413		$	140		$	426,273
SEK	217,650		08/30/2024	3 Month STIBOR	(0.165)%	Quarterly/Annual		(154,303	)		143			(154,446	)
CAD	34,186		03/24/2025	3 Month CDOR	0.958%	Semi-Annual/ Semi-Annual		263,573			340			263,233
USD	117,740		06/09/2025	0.512%	3 Month LIBOR	Semi-Annual/ Quarterly		(726,903	)		—			(726,903	)
USD	1,160		06/09/2025	2.488%	3 Month LIBOR	Semi-Annual/ Quarterly		(121,388	)		—			(121,388	)
USD	2,106		08/04/2025	2.293%	3 Month LIBOR	Semi-Annual/ Quarterly		(196,867	)		—			(196,867	)
CAD	64,890		08/07/2025	3 Month CDOR	0.698%	Semi-Annual/ Semi-Annual		(136,200	)		(638	)		(135,562	)
USD	5,400		10/04/2026	1.487%	3 Month LIBOR	Semi-Annual/ Quarterly		(305,563	)		—			(305,563	)
USD	1,080		11/08/2026	1.657%	3 Month LIBOR	Semi-Annual/ Quarterly		(79,813	)		—			(79,813	)
USD	1,080		11/09/2026	1.672%	3 Month LIBOR	Semi-Annual/ Quarterly		(80,677	)		—			(80,677	)
USD	7,030		04/04/2027	2.436%	3 Month LIBOR	Semi-Annual/ Quarterly		(839,005	)		—			(839,005	)
USD	20,920		06/05/2027	0.558%	3 Month LIBOR	Semi-Annual/ Quarterly		30,887			—			30,887
USD	715		07/12/2027	2.355%	3 Month LIBOR	Semi-Annual/ Quarterly		(87,489	)		—			(87,489	)
USD	5,395		06/04/2029	2.150%	3 Month LIBOR	Semi-Annual/ Quarterly		(666,804	)		—			(666,804	)
USD	3,170		09/27/2029	1.593%	3 Month LIBOR	Semi-Annual/ Quarterly		(220,945	)		—			(220,945	)
USD	1,490		11/10/2035	2.631%	3 Month LIBOR	Semi-Annual/ Quarterly		(339,927	)		—			(339,927	)
							$	(3,235,011	)	$	(15	)	$	(3,234,996	)

abfunds.com AB BOND INFLATION STRATEGY    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value		Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
Buy Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)%		Monthly		9.62	%		USD	683	$	176,760	$	53,364	$	123,396
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	1,367		353,780		100,563		253,217
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	1,367		353,779		97,138		256,641
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	1,683		435,560		115,556		320,004
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	346		89,545		23,115		66,430
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	328		84,887		22,404		62,483
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	346		89,545		23,115		66,430
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	708		183,289		144,052		39,237
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	707		183,031		143,738		39,293
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	2,682		694,326		549,266		145,060
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	1,341		347,274		269,548		77,726
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	536		138,806		106,769		32,037
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	541		139,965		111,496		28,469
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	664		171,898		116,441		55,457
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	288		74,511		58,743		15,768

48    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	) %		Monthly		9.62	%		USD	708	$	183,289		$	146,114		$	37,175
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	354		91,645			69,442			22,203
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	723		(233,902	)		(87,707	)		(146,195	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	547		(176,963	)		(82,313	)		(94,650	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	67		(21,676	)		(10,579	)		(11,097	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	209		(67,615	)		(30,532	)		(37,083	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	475		(153,710	)		(53,304	)		(100,406	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	683		(221,019	)		(76,646	)		(144,373	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	950		(307,420	)		(104,253	)		(203,167	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	1,367		(442,361	)		(150,015	)		(292,346	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	953		(308,391	)		(102,529	)		(205,862	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	376		(121,673	)		(39,657	)		(82,016	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	653		(211,365	)		(77,187	)		(134,178	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	195		(63,118	)		(23,050	)		(40,068	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	100		(32,352	)		(9,970	)		(22,382	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	248		(80,232	)		(32,240	)		(47,992	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	210		(67,939	)		(27,949	)		(39,990	)

abfunds.com AB BOND INFLATION STRATEGY    ^|    49

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		25.00	%		USD	335	$	(108,406	)	$	(43,035	)	$	(65,371	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	340		(110,024	)		(42,285	)		(67,739	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	292		(94,492	)		(36,316	)		(58,176	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	475		(153,710	)		(59,075	)		(94,635	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	69		(22,328	)		(8,710	)		(13,618	)
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	130		(42,057	)		(10,334	)		(31,723	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	169		(54,674	)		(13,719	)		(40,955	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	326		(105,467	)		(30,489	)		(74,978	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	122		(39,469	)		(14,576	)		(24,893	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	471		(152,376	)		(29,867	)		(122,509	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	138		(44,646	)		(9,353	)		(35,293	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	226		(73,115	)		(32,865	)		(40,250	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	139		(44,980	)		(16,904	)		(28,076	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	5		(1,618	)		(612	)		(1,006	)
CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		9.67			USD	1,145		(142,909	)		(24,961	)		(117,948	)
Deutsche Bank AG
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	436		(141,053	)		(30,661	)		(110,392	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	130		(42,057	)		(16,057	)		(26,000	)

50    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		25.00	%		USD	662	$	(214,168	)	$	(45,479	)	$	(168,689	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	714		(230,991	)		(40,173	)		(190,818	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	464		(150,112	)		(37,411	)		(112,701	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	30		(9,705	)		(3,447	)		(6,258	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	150		(48,528	)		(18,528	)		(30,000	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	217		(70,203	)		(24,331	)		(45,872	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	218		(70,526	)		(24,433	)		(46,093	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	247		(79,908	)		(26,083	)		(53,825	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	1,000		(323,600	)		(129,773	)		(193,827	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	710		(229,696	)		(80,135	)		(149,561	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	1,300		(420,572	)		(150,517	)		(270,055	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	598		(193,463	)		(90,107	)		(103,356	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	371		(120,025	)		(59,439	)		(60,586	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	517		(167,258	)		(84,022	)		(83,236	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	15		(4,853	)		(2,233	)		(2,620	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	178		(57,586	)		(15,077	)		(42,509	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.005			USD	15		(4,853	)		(1,318	)		(3,535	)

abfunds.com AB BOND INFLATION STRATEGY    ^|    51

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		25.00	%		USD	30	$	(9,705	)	$	(2,684	)	$	(7,021	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	30		(9,706	)		(2,905	)		(6,801	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	59		(19,088	)		(6,244	)		(12,844	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	322		(104,172	)		(42,956	)		(61,216	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	166		(53,704	)		(17,336	)		(36,368	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	27		(8,737	)		(3,394	)		(5,343	)
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	122		(39,469	)		(11,635	)		(27,834	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	28		(9,059	)		(2,678	)		(6,381	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	691		(223,550	)		(83,067	)		(140,483	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	241		(77,968	)		(29,227	)		(48,741	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	30		(9,706	)		(2,870	)		(6,836	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	118		(38,175	)		(14,760	)		(23,415	)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	1,100		(355,868	)		(159,352	)		(196,516	)
Morgan Stanley Capital Services LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	191		(61,791	)		(13,202	)		(48,589	)
												$	(3,507,972	)	$	(401,702	)	$	(3,106,270	)

* Termination date

52    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

INFLATION (CPI) SWAPS (see Note D)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund			Payments received by the Fund			Payment Frequency Paid Received		Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
JPMorgan Chase Bank, NA		USD	23,800		07/15/2023		1.848	%		CPI	#		Maturity	$	(360,438	)	$	—	$	(360,438	)

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

INTEREST RATE SWAPS (see Note D)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund			Payments received by the Fund		Payment Frequency Paid Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
Morgan Stanley Capital Services LLC		USD	595		03/06/2042		2.804	%		3 Month LIBOR	Semi-Annual/ Quarterly	$	(184,314	)	$	—	$	(184,314	)

TOTAL RETURN SWAPS (see Note D)

Counterparty & Referenced Obligation	Rate Paid/ Received	Payment Frequency	Current Notional (000)		Maturity Date		Unrealized Appreciation/ (Depreciation)
Pay Total Return on Reference Obligation
Barclays Bank PLC iBoxx $ Liquid High Yield Index	3 Month LIBOR	Maturity		USD  21,258		12/20/2020	$	(392,553	)

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Interest Rate			Maturity		U.S. $ Value at October 31, 2020
HSBC Bank USA†		0.14	%		—	$	5,611,745
HSBC Bank USA†		0.14	%		—		43,054,512
HSBC Bank USA†		0.14	%		—		14,105,080
HSBC Bank USA†		0.14	%		—		30,959,075
JPMorgan Chase Bank†		0.19	%		—		4,744,890
JPMorgan Chase Bank†		0.19	%		—		26,758,026
JPMorgan Chase Bank†		0.19	%		—		36,118,666
JPMorgan Chase Bank†		0.19	%		—		61,615,180
JPMorgan Chase Bank†		0.19	%		—		7,728,034
						$	230,695,208

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on October 31, 2020.

The type of underlying collateral and the remaining maturity of open reverse repurchase agreements on the statements of assets and liabilities is as follows:

abfunds.com AB BOND INFLATION STRATEGY    ^|    53

PORTFOLIO OF INVESTMENTS (continued)

	Overnight and Continuous		Up to 30 Days		31-90 Days		Greater than 90 Days		Total
Inflation-Linked Securities	$	230,695,208	$	– 0 –	$	– 0 –	$	– 0 –	$	230,695,208

(a) Position, or a portion thereof, has been segregated to collateralize OTC derivatives outstanding.

(b) Position, or a portion thereof, has been segregated to collateralize reverse repurchase agreements.

(c) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2020, the aggregate market value of these securities amounted to $117,225,339 or 20.5% of net assets.

(d) Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date.

(e) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2020.

(f) IO – Interest Only.

(g) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.30% of net assets as of October 31, 2020, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Morgan Stanley Capital I Trust Series 2015-XLF2, Class SNMA 2.098%, 11/15/2026		11/16/2015	$	181,926	$	146,572		0.03	%
PMT Credit Risk Transfer Trust Series 2019-1R, Class A 2.152%, 03/27/2024		03/21/2019		277,233		247,311		0.04	%
PMT Credit Risk Transfer Trust Series 2019-2R, Class A 2.902%, 05/27/2023		06/07/2019		516,385		462,951		0.08	%
PMT Credit Risk Transfer Trust Series 2019-3R, Class A 2.852%, 10/27/2022		10/11/2019		175,139		156,873		0.03	%
PMT Credit Risk Transfer Trust Series 2020-1R, Class A 2.502%, 02/27/2023		02/11/2000		624,119		558,640		0.10	%
Terraform Global Operating LLC 6.125%, 03/01/2026		02/08/2018		89,000		90,240		0.02	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		01/24/2014		363,153		5,744		0.00	%

(h) Inverse interest only security.

(i) Defaulted.

(j) Non-income producing security.

(k) Defaulted matured security.

(l) Restricted and illiquid security.

54    ^|    AB BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Mt Logan Re Ltd. (Preference Shares)		12/30/2014	$	260,000	$	270,501		0.05	%

(m) Fair valued by the Adviser.

(n) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(o) Affiliated investments.

(p) 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.

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

(r) One contract relates to 1 share.

Currency Abbreviations: AUD – Australian Dollar CAD – Canadian Dollar CNY – Chinese Yuan Renminbi EUR – Euro GBP – Great British Pound JPY – Japanese Yen KRW – South Korean Won MYR – Malaysian Ringgit NZD – New Zealand Dollar SEK – Swedish Krona USD – United States Dollar ZAR – South African Rand Glossary: ABS – Asset-Backed Securities CBT – Chicago Board of Trade CDOR – Canadian Dealer Offered Rate CDX-CMBX.NA – North American Commercial Mortgage-Backed Index CDX-NAHY – North American High Yield Credit Default Swap Index CDX-NAIG – North American Investment Grade Credit Default Swap Index CLO – Collateralized Loan Obligations CMBS – Commercial Mortgage-Backed Securities CPI – Consumer Price Index ETF – Exchange Traded Fund LIBOR – London Interbank Offered Rate OSE – Osaka Securities Exchange REIT – Real Estate Investment Trust REMICs – Real Estate Mortgage Investment Conduits RTP – Right To Pay SOFR – Secured Overnight Financing Rate STIBOR – Stockholm Interbank Offered Rate TBA – To Be Announced TIPS – Treasury Inflation Protected Security

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    55

STATEMENT OF ASSETS & LIABILITIES

October 31, 2020

Assets
Investments in securities, at value
Unaffiliated issuers (cost $750,916,837)	$	793,821,039
Affiliated issuers (cost $2,643,692)		2,643,692
Cash collateral due from broker		14,227,671
Foreign currencies, at value (cost $93,117)		93,803
Receivable for investment securities sold		6,882,061
Market value on credit default swaps (net premiums paid $2,150,864)		3,791,890
Interest receivable		2,698,503
Receivable for capital stock sold		1,873,723
Unrealized appreciation on forward currency exchange contracts		1,584,125
Receivable for variation margin on centrally cleared swaps		343,700
Receivable for variation margin on futures		225,026
Affiliated dividends receivable		95
Total assets		828,185,328
Liabilities
Swaptions written, at value (premiums received $636,120)		584,499
Options written, at value (premiums received $852,331)		342,028
Payable for reverse repurchase agreements		230,695,208
Payable for investment securities purchased		13,585,748
Market value on credit default swaps (net premiums received $2,552,566)		7,299,862
Unrealized depreciation on forward currency exchange contracts		971,704
Unrealized depreciation on total return swaps		392,553
Payable for capital stock redeemed		365,329
Unrealized depreciation on inflation swaps		360,438
Cash collateral due to broker		343,000
Unrealized depreciation on interest rate swaps		184,314
Advisory fee payable		171,421
Distribution fee payable		38,704
Administrative fee payable		27,300
Transfer Agent fee payable		12,274
Directors’ fees payable		2,172
Accrued expenses and other liabilities		222,139
Total liabilities		255,598,693
Net Assets	$	572,586,635
Composition of Net Assets
Capital stock, at par	$	50,152
Additional paid-in capital		545,637,981
Distributable earnings		26,898,502
	$	572,586,635

See notes to financial statements.

56    ^|    AB BOND INFLATION STRATEGY abfunds.com

STATEMENT OF ASSETS & LIABILITIES (continued)

Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	31,247,611		2,702,462	$	11.56	*
C	$	3,822,801		339,863	$	11.25
Advisor	$	135,677,322		11,724,465	$	11.57
R	$	3,065,808		265,088	$	11.57
K	$	6,789,631		588,508	$	11.54
I	$	8,296,628		725,380	$	11.44
1	$	312,381,888		27,523,291	$	11.35
2	$	60,289,022		5,315,263	$	11.34
Z	$	11,015,924		968,082	$	11.38

* The maximum offering price per share for Class A shares was $12.07 which reflects a sales charge of 4.25%.

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    57

STATEMENT OF OPERATIONS

Year Ended October 31, 2020

Investment Income
Interest	$	18,764,546
Dividends—Affiliated issuers		28,311		$	18,792,857
Expenses
Advisory fee (see Note B)		2,996,853
Distribution fee—Class A		83,290
Distribution fee—Class C		29,985
Distribution fee—Class R		17,725
Distribution fee—Class K		14,728
Distribution fee—Class 1		310,724
Transfer agency—Class A		49,036
Transfer agency—Class C		4,463
Transfer agency—Advisor Class		221,520
Transfer agency—Class R		9,190
Transfer agency—Class K		11,783
Transfer agency—Class I		11,054
Transfer agency—Class 1		37,378
Transfer agency—Class 2		7,097
Transfer agency—Class Z		4,905
Custody and accounting		186,761
Registration fees		129,629
Audit and tax		118,303
Printing		96,722
Administrative		89,571
Legal		37,102
Directors’ fees		24,436
Miscellaneous		24,723
Total expenses before interest expense		4,516,978
Interest expense		916,186
Total expenses		5,433,164
Less: expenses waived and reimbursed by the Adviser (see Note B)		(1,068,255	)
Net expenses					4,364,909
Net investment income					14,427,948

See notes to financial statements.

58    ^|    AB BOND INFLATION STRATEGY abfunds.com

STATEMENT OF OPERATIONS (continued)

Year Ended October 31, 2020

Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)	$	11,633,122
Forward currency exchange contracts		2,296,118
Futures		(4,659,435	)
Options written		941,234
Swaps		(1,104,759	)
Swaptions written		1,331,546
Foreign currency transactions		(2,916,531	)
Net change in unrealized appreciation/depreciation of:
Investments(b)		24,129,748
Forward currency exchange contracts		660,695
Futures		562,399
Options written		510,303
Swaps		(5,279,135	)
Swaptions written		51,621
Foreign currency denominated assets and liabilities		18,793
Net gain on investment and foreign currency transactions		28,175,719
Net Increase in Net Assets from Operations	$	42,603,667

(a) Net of foreign capital gains taxes of $4,850.

(b) Net of decrease in accrued foreign capital gains taxes of $20,257.

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    59

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2020			Year Ended October 31, 2019
Increase (Decrease) in Net Assets from Operations
Net investment income	$	14,427,948		$	14,513,091
Net realized gain (loss) on investment and foreign currency transactions		7,521,295			(6,508,444	)
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		20,654,424			34,328,281
Contributions from Affiliates (see Note B)		– 0	–		5,918
Net increase in net assets from operations		42,603,667			42,338,846
Distributions to Shareholders
Class A		(649,771	)		(872,187	)
Class C		(50,256	)		(51,492	)
Advisor Class		(3,332,209	)		(4,083,274	)
Class R		(62,687	)		(132,330	)
Class K		(127,416	)		(152,387	)
Class I		(224,256	)		(225,817	)
Class 1		(7,448,238	)		(8,206,740	)
Class 2		(1,473,613	)		(1,472,842	)
Class Z		(502,262	)		(817,986	)
Return of capital
Class A		– 0	–		(20,252	)
Class C		– 0	–		(1,196	)
Advisor Class		– 0	–		(94,813	)
Class R		– 0	–		(3,073	)
Class K		– 0	–		(3,538	)
Class I		– 0	–		(5,243	)
Class 1		– 0	–		(190,560	)
Class 2		– 0	–		(34,199	)
Class Z		– 0	–		(18,994	)
Capital Stock Transactions
Net increase (decrease)		(98,268,014	)		3,088,080
Total increase (decrease)		(69,535,055	)		29,040,003
Net Assets
Beginning of period		642,121,690			613,081,687
End of period	$	572,586,635		$	642,121,690

See notes to financial statements.

60    ^|    AB BOND INFLATION STRATEGY abfunds.com

STATEMENT OF CASH FLOWS

For the Year Ended October 31, 2020

Cash flows from operating activities
Net increase in net assets from operations				$	42,603,667
Reconciliation of net increase in net assets from operations to net decrease in cash from operating activities
Purchases of long-term investments	$	(409,807,237	)
Purchases of short-term investments		(383,965,928	)
Proceeds from disposition of long-term investments		392,612,074
Proceeds from disposition of short-term investments		381,448,961
Net realized gain on investment transactions and foreign currency transactions		(7,521,295	)
Net realized gain on forward currency exchange contracts		2,296,118
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		(20,654,424	)
Net accretion of bond discount and amortization of bond premium		1,849,137
Inflation index adjustment		(5,748,699	)
Increase in receivable for investments sold		(6,763,574	)
Increase in interest receivable		(188,413	)
Decrease in affiliated dividends receivable		5,562
Increase in cash collateral due from broker		(9,298,397	)
Increase in payable for investments purchased		10,264,645
Increase in cash collateral due to broker		258,000
Increase in advisory fee payable		29,454
Increase in administrative fee payable		2,717
Decrease in Transfer Agent fee payable		(2,130	)
Decrease in distribution fee payable		(2,888	)
Increase in Directors’ fee payable		236
Decrease in accrued expenses		(47,729	)
Proceeds from options written, net		1,793,565
Proceeds from swaptions written, net		1,973,360
Payments on swaps, net		(4,758,445	)
Payments for exchange-traded derivatives settlements, net		(5,231,461	)
Total adjustments					(61,456,791	)
Net cash provided by (used in) operating activities					(18,853,124	)
Cash flows from financing activities
Redemptions of capital stock, net		(109,775,306	)
Cash dividends paid (net of dividend reinvestments)†		(2,575,656	)
Increase in reverse repurchase agreements		134,155,036
Net cash provided by (used in) financing activities					21,804,074
Effect of exchange rate on cash					(2,897,738	)
Net increase in cash					53,212
Cash at beginning of year					40,591
Cash at end of year				$	93,803
Supplemental disclosure of cash flow information
† Reinvestment of dividends	$	11,295,052
Interest expense paid during the year	$	1,104,837

In accordance with U.S. GAAP, the Fund has included a Statement of Cash Flows as a result of its significant investments in reverse repurchase agreements throughout the year.

See notes to financial statements.

abfunds.com AB BOND INFLATION STRATEGY    ^|    61

NOTES TO FINANCIAL STATEMENTS

October 31, 2020

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Bond Inflation Strategy (the “Fund”), a diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2. Class B and Class T shares have not been issued. Class 1 shares are sold only to the private clients of Sanford C. Bernstein & Co. LLC by its registered representatives. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Class R, Class K, and Class 1 shares are sold without an initial or contingent deferred sales charge. Advisor Class, Class I, Class 2 and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eleven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

62    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (the “Adviser”) will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this

abfunds.com AB BOND INFLATION STRATEGY    ^|    63

NOTES TO FINANCIAL STATEMENTS (continued)

determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

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

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

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates,

64    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

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

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

abfunds.com AB BOND INFLATION STRATEGY    ^|    65

NOTES TO FINANCIAL STATEMENTS (continued)

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

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Inflation-Linked Securities

$

– 0

–

$

497,192,691

$

– 0

–

$

497,192,691

Corporates – Investment Grade

– 0

–

134,384,458

– 0

–

134,384,458

Commercial Mortgage-Backed Securities

– 0

–

53,826,409

– 0

–

53,826,409

Collateralized Mortgage Obligations

– 0

–

38,738,210

– 0

–

38,738,210

Asset-Backed Securities

– 0

–

15,860,626

– 0

–

15,860,626

Corporates – Non-Investment Grade

– 0

–

14,940,256

– 0

–

14,940,256

Collateralized Loan Obligations

– 0

–

6,961,164

– 0

–

6,961,164

Governments – Sovereign Bonds

– 0

–

5,822,844

– 0

–

5,822,844

Mortgage Pass-Throughs

– 0

–

5,738,297

– 0

–

5,738,297

Emerging Markets – Treasuries

– 0

–

5,535,451

– 0

–

5,535,451

Quasi-Sovereigns

– 0

–

5,468,082

– 0

–

5,468,082

Emerging Markets – Corporate Bonds

– 0

–

2,842,671

– 0

–

2,842,671

Local Governments – US Municipal Bonds

– 0

–

2,306,814

– 0

–

2,306,814

Emerging Markets – Sovereigns

– 0

–

2,287,970

– 0

–

2,287,970

Governments – Treasuries

– 0

–

1,644,595

– 0

–

1,644,595

Common Stocks

– 0

–

– 0

–

270,501

270,501

Short-Term Investments

2,643,692

– 0

–

– 0

–

2,643,692

Total Investments in Securities

2,643,692

793,550,538

270,501

796,464,731

Other Financial Instruments(a):

Assets:

Futures

1,146,051

– 0

–

– 0

–

1,146,051

(b)

Forward Currency Exchange Contracts

– 0

–

1,584,125

– 0

–

1,584,125

Centrally Cleared Inflation (CPI) Swaps

– 0

–

707,352

– 0

–

707,352

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

720,873

– 0

–

720,873

(b)

Credit Default Swaps

– 0

–

3,791,890

– 0

–

3,791,890

66    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities:	Level 1			Level 2			Level 3			Total
Liabilities:
Futures	$	(138,651	)	$	– 0	–	$	– 0	–	$	(138,651	)(b)
Forward Currency Exchange Contracts		– 0	–		(971,704	)		– 0	–		(971,704	)
Call Options Written		– 0	–		(342,028	)		– 0	–		(342,028	)
Credit Default Swaptions Written		– 0	–		(584,499	)		– 0	–		(584,499	)
Centrally Cleared Credit Default Swaps		– 0	–		(2,933,258	)		– 0	–		(2,933,258	)(b)
Centrally Cleared Inflation (CPI) Swaps		– 0	–		(926,101	)		– 0	–		(926,101	)(b)
Centrally Cleared Interest Rate Swaps		– 0	–		(3,955,884	)		– 0	–		(3,955,884	)(b)
Credit Default Swaps		– 0	–		(7,299,862	)		– 0	–		(7,299,862	)
Inflation (CPI) Swaps		– 0	–		(360,438	)		– 0	–		(360,438	)
Interest Rate Swaps		– 0	–		(184,314	)		– 0	–		(184,314	)
Total Return Swaps		– 0	–		(392,553	)		– 0	–		(392,553	)
Reverse Repurchase Agreements		(230,695,208	)		– 0	–		– 0	–		(230,695,208	)
Total	$	(227,044,116	)	$	782,404,137		$	270,501		$	555,630,522

(a) 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.

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated

abfunds.com AB BOND INFLATION STRATEGY    ^|    67

NOTES TO FINANCIAL STATEMENTS (continued)

assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are

68    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .50% of the first $2.5 billion, .45% of the next $2.5 billion and .40% in excess of $5 billion, of the Fund’s average daily net assets. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding extraordinary expenses, interest expense, and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest), on an annual basis (“Expense Caps”) to .75%, 1.50%, .50%, 1.00%, .75%, .50%, .60%, .50% and .50% of the daily average net assets for the Class A, Class C, Advisor Class, Class R, Class K, Class I, Class 1, Class 2, and Class Z shares, respectively. This fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2021 and then may be extended for additional one-year terms. For the year ended October 31, 2020, such reimbursement amounted to $1,063,673.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2020, the reimbursement for such services amounted to $89,571.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $147,692 for the year ended October 31, 2020.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $2,458 from the sale of Class A shares and received $0 and $504 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2020.

abfunds.com AB BOND INFLATION STRATEGY    ^|    69

NOTES TO FINANCIAL STATEMENTS (continued)

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2021. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2020, such waiver amounted to $4,582.

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

Fund	Market Value 10/31/19 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/20 (000)		Dividend Income (000)
Government Money Market Portfolio	$	3,423	$	369,337	$	370,116	$	2,644	$	28

During the year ended October 31, 2019, the Adviser reimbursed the Fund $5,918 for trading losses incurred due to a trade entry error.

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (now named Equitable Holdings, Inc.)(“Equitable”), through an initial public offering. Equitable is the holding company for a diverse group of financial services companies, including an approximate 65% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns less than 10% of the outstanding shares of common stock of Equitable, and no longer owns a controlling interest in Equitable. AXA previously announced its intention to sell its entire interest in Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of Equitable common stock.

Sales under the Plan that were completed on November 13, 2019 resulted in the indirect transfer of a “controlling block” of voting securities of the

70    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Adviser (a “Change of Control Event”) and may have been deemed to have been an “assignment” causing a termination of the Fund’s investment advisory and administration agreements. In order to ensure that investment advisory and administration services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved new investment advisory and administration agreements with the Adviser, and shareholders of the Fund subsequently approved the new investment advisory agreement. These agreements became effective on November 13, 2019.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares, .25% of the Fund’s average daily net assets attributable to Class K shares and .10% of the Fund’s average daily net assets attributable to Class 1 shares. There are no distribution and servicing fees on the Advisor Class, Class I, Class 2 and Class Z shares. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $253,807, $52,558, $55,888 and $1,583,117 for Class C, Class R, Class K and Class 1 shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

abfunds.com AB BOND INFLATION STRATEGY    ^|    71

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2020 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	181,496,703	$	116,776,202
U.S. government securities		228,398,069		256,701,309

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	754,210,428
Gross unrealized appreciation	$	56,343,341
Gross unrealized depreciation		(17,562,694	)
Net unrealized appreciation	$	38,780,647

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Futures

The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon for non-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are

72    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

During the year ended October 31, 2020, the Fund held futures for hedging and non-hedging purposes.

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2020, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.

• Option Transactions

For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities,

abfunds.com AB BOND INFLATION STRATEGY    ^|    73

NOTES TO FINANCIAL STATEMENTS (continued)

including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges and over-the-counter markets. Among other things, the Fund may use options transactions for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.

The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. The Fund’s maximum payment for written put options equates to the number of shares multiplied by the strike price. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

74    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

The Fund may also invest in options on swap agreements, also called “swaptions”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium”. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return on a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. The Fund’s maximum payment for written put swaptions equates to the notional amount of the underlying swap. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract.

During the year ended October 31, 2020, the Fund held written options for hedging and non-hedging purposes.

During the year ended October 31, 2020, the Fund held purchased swaptions for hedging and non-hedging purposes. During the year ended October 31, 2020, the Fund held written swaptions for hedging and non-hedging purposes.

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk or currencies. The Fund may also enter into swaps for non-hedging purposes as a means of gaining market exposures, making direct investments in foreign currencies, as described below under “Currency Transactions.” A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the

abfunds.com AB BOND INFLATION STRATEGY    ^|    75

NOTES TO FINANCIAL STATEMENTS (continued)

Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

76    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended October 31, 2020, the Fund held interest rate swaps for hedging and non-hedging purposes.

Inflation (CPI) Swaps:

Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.

During the year ended October 31, 2020, the Fund held inflation (CPI) swaps for hedging and non-hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments

abfunds.com AB BOND INFLATION STRATEGY    ^|    77

NOTES TO FINANCIAL STATEMENTS (continued)

from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

During the year ended October 31, 2020, the Fund held credit default swaps for hedging and non-hedging purposes.

Total Return Swaps:

The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The

78    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the year ended October 31, 2020, the Fund held total return swaps for hedging and non-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended October 31, 2020, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/Payable for variation margin on futures	$	1,146,051	*	Receivable/Payable for variation margin on futures	$	138,651	*
Credit contracts					Receivable/Payable for variation margin on centrally cleared swaps		384,566	*

abfunds.com AB BOND INFLATION STRATEGY    ^|    79

NOTES TO FINANCIAL STATEMENTS (continued)

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps	$	1,427,745	*	Receivable/Payable for variation margin on centrally cleared swaps	$	4,881,490	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		1,584,125		Unrealized depreciation on forward currency exchange contracts		971,704
Credit contracts					Swaptions written, at value		584,499
Equity contracts					Options written, at value		342,028
Interest rate contracts					Unrealized depreciation on interest rate swaps		184,314
Interest rate contracts					Unrealized depreciation on inflation swaps		360,438
Credit contracts	Market value on credit default swaps		3,791,890		Market value on credit default swaps		7,299,862
Credit contracts					Unrealized depreciation on total return swaps		392,553
Total		$	7,949,811			$	15,540,105

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures	$	(4,659,435	)	$	562,399
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		2,296,118			660,695

80    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments	$	(721,790	)	$	– 0	–
Interest rate contracts	Net realized gain (loss) on options written; Net change in unrealized appreciation/depreciation of options written		– 0	–		510,303
Equity contracts	Net realized gain (loss) on options written; Net change in unrealized appreciation/depreciation of options written		941,234			– 0	–
Interest rate contracts	Net realized gain (loss) on swaptions written; Net change in unrealized appreciation/depreciation of swaptions written		1,153,676			– 0	–
Credit contracts	Net realized gain (loss) on swaptions written; Net change in unrealized appreciation/depreciation of swaptions written		177,870			51,621
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(1,926,614	)		(1,194,432	)
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		821,855			(4,084,703	)
Total		$	(1,917,086	)	$	(3,494,117	)

abfunds.com AB BOND INFLATION STRATEGY    ^|    81

NOTES TO FINANCIAL STATEMENTS (continued)

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2020:

Futures:
Average notional amount of buy contracts	$	55,221,083
Average notional amount of sale contracts	$	111,028,836
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	20,906,458	(a)
Average principal amount of sale contracts	$	41,407,978
Purchased Swaptions:
Average notional amount	$	26,377,143	(b)
Options Written:
Average notional amount	$	87,302,277	(c)
Swaptions Written:
Average notional amount	$	40,350,122	(d)
Interest Rate Swaps:
Average notional amount	$	595,000
Inflation Swaps:
Average notional amount	$	35,253,846
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	218,217,075
Centrally Cleared Inflation Swaps:
Average notional amount	$	246,446,154
Credit Default Swaps:
Average notional amount of buy contracts	$	10,300,308
Average notional amount of sale contracts	$	27,249,692
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	132,249,702
Average notional amount of sale contracts	$	24,982,727	(e)
Total Return Swaps:
Average notional amount	$	31,290,000	(e)

(a) Positions were open for eleven months during the year.

(b) Positions were open for seven months during the year.

(c) Positions were open for three months during the year.

(d) Positions were open for eight months during the year.

(e) Positions were open for four months during the year.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2020. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

82    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
BNP Paribas SA	$	86,391	$	– 0	–	$	– 0	–	$	– 0	–	$	86,391
Citibank, NA/Citigroup Global Markets, Inc.		3,490,534		(3,162,541	)		(263,000	)		– 0	–		64,993
Goldman Sachs Bank USA/Goldman Sachs International		341,333		(341,333	)		– 0	–		– 0	–		– 0	–
HSBC Bank USA		49,498		– 0	–		– 0	–		– 0	–		49,498
JPMorgan Chase Bank, NA/JPMorgan Securities, LLC		201,222		(201,222	)		– 0	–		– 0	–		– 0	–
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services, Inc.		628,253		(601,973	)		– 0	–		– 0	–		26,280
Natwest Markets PLC		44,968		– 0	–		– 0	–		– 0	–		44,968
Standard Chartered Bank		532,881		(285,806	)		– 0	–		– 0	–		247,075
State Street Bank & Trust Co.		935		(935	)		– 0	–		– 0	–		– 0	–
Total	$	5,376,015	$	(4,593,810	)	$	(263,000	)	$	– 0	–	$	519,205	^
Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Bank of America, NA	$	842,814	$	– 0	–	$	– 0	–	$	– 0	–	$	842,814
Barclays Bank PLC		392,553		– 0	–		– 0	–		(322,422	)		70,131
Citibank, NA/Citigroup Global Markets, Inc.		3,162,541		(3,162,541	)		– 0	–		– 0	–		– 0	–
Credit Suisse International		701,311		– 0	–		(260,000	)		(305,258	)		136,053
Deutsche Bank AG		1,057,251		– 0	–		– 0	–		(1,057,251	)		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		1,925,705		(341,333	)		– 0	–		(1,584,372	)		– 0	–
JPMorgan Chase Bank, NA/JPMorgan Securities, LLC		758,365		(201,222	)		(334,800	)		(222,343	)		– 0	–
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC		601,973		(601,973	)		– 0	–		– 0	–		– 0	–
Standard Chartered Bank		285,806		(285,806	)		– 0	–		– 0	–		– 0	–
State Street Bank & Trust Co.		228,896		(935	)		– 0	–		– 0	–		227,961
UBS AG		178,183		– 0	–		– 0	–		– 0	–		178,183
Total	$	10,135,398	$	(4,593,810	)	$	(594,800	)	$	(3,491,646	)	$	1,455,142	^

abfunds.com AB BOND INFLATION STRATEGY    ^|    83

NOTES TO FINANCIAL STATEMENTS (continued)

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

See Note D.3 for additional disclosure of netting arrangements regarding reverse repurchase agreements.

2. Currency Transactions

The Fund may invest in non-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund may seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives, including forward currency exchange contracts, futures and options on futures, swaps, and other options. The Fund may enter into transactions for investment opportunities when it anticipates that a foreign currency will appreciate or depreciate in value but securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).

3. Reverse Repurchase Agreements

The Fund may enter into reverse repurchase transactions (“RVP”) in accordance with the terms of a Master Repurchase Agreement (“MRA”), under which the Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time the Fund enters into a reverse repurchase agreement, it will establish a segregated account with the custodian containing liquid assets having a value comparable to the repurchase price. Under the MRA and other Master Agreements, the Fund is permitted to offset payables and/or receivables with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund in the event of a default. In the event of a default by a MRA counterparty, the Fund may be considered an unsecured creditor with respect to any excess collateral (collateral with a market value in excess of the repurchase price) held by and/or posted to the counterparty, and as such the return of such excess collateral may be delayed or denied. For the year ended October 31, 2020, the average amount of reverse repurchase agreements outstanding was $191,771,869 and the daily weighted average interest rate was 0.4%. At October 31, 2020, the Fund had reverse repurchase agreements outstanding in the amount of $230,695,208 as reported on the statement of assets and liabilities.

84    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

The following table presents the Fund’s RVP liabilities by counterparty net of the related collateral pledged by the Fund as of October 31, 2020:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
HSBC Bank USA	$	93,730,412	$	(93,730,412	)	$	– 0	–
JPMorgan Chase Bank		136,964,796		(136,564,579	)		400,217
Total	$	230,695,208	$	(230,294,991	)	$	400,217

† Including accrued interest.

* The actual collateral pledged may be more than the amount reported due to overcollateralization.

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2020			Year Ended October 31, 2019			Year Ended October 31, 2020			Year Ended October 31, 2019
Class A
Shares sold		1,261,189			1,335,847		$	14,062,730		$	14,431,686
Shares issued in reinvestment of dividends		43,961			62,261			495,138			668,363
Shares converted from Class C		14,046			12,244			156,235			134,636
Shares redeemed		(2,126,950	)		(2,875,737	)		(23,152,124	)		(30,519,097	)
Net decrease		(807,754	)		(1,465,385	)	$	(8,438,021	)	$	(15,284,412	)
Class C
Shares sold		187,777			35,201		$	2,049,635		$	369,805
Shares issued in reinvestment of dividends		3,364			3,952			37,161			41,489
Shares converted to Class A		(14,427	)		(12,562	)		(156,235	)		(134,636	)
Shares redeemed		(81,140	)		(113,462	)		(868,047	)		(1,186,063	)
Net increase (decrease)		95,574			(86,871	)	$	1,062,514		$	(909,405	)

abfunds.com AB BOND INFLATION STRATEGY    ^|    85

NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Year Ended October 31, 2020			Year Ended October 31, 2019			Year Ended October 31, 2020			Year Ended October 31, 2019
Advisor Class
Shares sold		5,506,776			8,127,810		$	60,921,189		$	87,174,658
Shares issued in reinvestment of dividends		253,528			321,349			2,856,501			3,475,201
Shares redeemed		(9,408,756	)		(7,376,016	)		(103,456,299	)		(78,961,128	)
Net increase (decrease)		(3,648,452	)		1,073,143		$	(39,678,609	)	$	11,688,731
Class R
Shares sold		77,780			220,089		$	845,022		$	2,367,556
Shares issued in reinvestment of dividends		4,957			12,562			55,751			135,386
Shares redeemed		(457,340	)		(200,399	)		(4,996,719	)		(2,150,725	)
Net increase (decrease)		(374,603	)		32,252		$	(4,095,946	)	$	352,217
Class K
Shares sold		289,515			209,936		$	3,233,235		$	2,243,823
Shares issued in reinvestment of dividends		11,291			14,611			127,416			155,925
Shares redeemed		(174,841	)		(915,078	)		(1,884,738	)		(9,803,750	)
Net increase (decrease)		125,965			(690,531	)	$	1,475,913		$	(7,404,002	)
Class I
Shares sold		366,818			665,974		$	4,053,521		$	6,999,802
Shares issued in reinvestment of dividends		20,138			21,589			224,256			231,059
Shares redeemed		(574,453	)		(322,578	)		(6,419,617	)		(3,425,749	)
Net increase (decrease)		(187,497	)		364,985		$	(2,141,840	)	$	3,805,112
Class 1
Shares sold		4,785,245			5,037,568		$	52,219,913		$	53,163,034
Shares issued in reinvestment of dividends		515,381			588,041			5,712,290			6,246,030
Shares redeemed		(7,432,024	)		(5,661,186	)		(80,548,968	)		(59,833,807	)
Net decrease		(2,131,398	)		(35,577	)	$	(22,616,765	)	$	(424,743	)

86    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Year Ended October 31, 2020			Year Ended October 31, 2019			Year Ended October 31, 2020			Year Ended October 31, 2019
Class 2
Shares sold		2,095,390			1,269,811		$	22,581,072		$	13,428,822
Shares issued in reinvestment of dividends		115,965			117,535			1,284,697			1,249,674
Shares redeemed		(2,363,445	)		(832,324	)		(25,251,716	)		(8,662,540	)
Net increase (decrease)		(152,090	)		555,022		$	(1,385,947	)	$	6,015,956
Class Z
Shares sold		1,366,377			1,121,518		$	14,759,779		$	11,902,841
Shares issued in reinvestment of dividends		45,824			78,469			501,842			836,980
Shares redeemed		(3,464,375	)		(704,502	)		(37,710,934	)		(7,491,195	)
Net increase (decrease)		(2,052,174	)		495,485		$	(22,449,313	)	$	5,248,626

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

abfunds.com AB BOND INFLATION STRATEGY    ^|    87

NOTES TO FINANCIAL STATEMENTS (continued)

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.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. Although the Fund invests principally in inflation-indexed securities, the value of its securities may be vulnerable to changes in expectations of inflation or interest rates.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

Foreign (Non-U.S.) Risk—Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

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

Mortgage-Related and/or Other Asset-Backed Securities Risk—Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to

88    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally go down.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR is underway but remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed

abfunds.com AB BOND INFLATION STRATEGY    ^|    89

NOTES TO FINANCIAL STATEMENTS (continued)

in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2020.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2020 and October 31, 2019 were as follows:

	2020			2019
Distributions paid from:
Ordinary income	$	13,870,708		$	16,015,055
Total taxable distributions paid	$	13,870,708		$	16,015,055
Return of capital		– 0	–		371,868
Total distributions paid	$	13,870,708		$	16,386,923

90    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

As of October 31, 2020, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Accumulated capital and other losses	$	(11,427,672	)(a)
Unrealized appreciation/(depreciation)		38,726,683	(b)
Total accumulated earnings/(deficit)	$	27,299,011	(c)

(a) As of October 31, 2020, the Fund had a net capital loss carryforward of $11,427,672. During the fiscal year, the Fund utilized $6,094,772 of capital loss carry forwards to offset current year net realized gains.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the recognition for tax purposes of unrealized gains/losses on certain derivative instruments, the tax treatment of passive foreign investment companies (PFICs), the tax treatment of Treasury inflation-protected securities, the tax treatment of swaps, the tax deferral of losses on wash sales, and the amortization on callable bonds.

(c) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to the accrual of foreign capital gains tax and the tax treatment of defaulted securities.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2020, the fund had a net long-term capital loss carryforward of $11,427,672, which may be carried forward for an indefinite period.

During the current fiscal year, permanent differences primarily due to the tax treatment of swaps resulted in a net increase in distributable earnings and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE I

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Fund has adopted ASU 2017-08, which did not have a material impact on the Fund’s financial position or the results of its operations, and had no impact on the Fund’s net assets.

abfunds.com AB BOND INFLATION STRATEGY    ^|    91

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE J

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

92    ^|    AB BOND INFLATION STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.95			$  10.47			$  10.83			$  10.92			$  10.44
Income From Investment Operations
Net investment income(a)(b)		.25			.21			.28			.21			.18
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.59			.52			(.38	)		(.11	)		.51
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.84			.73			(.10	)		.10			.69
Less: Dividends and Distributions
Dividends from net investment income		(.23	)		(.24	)		(.26	)		(.19	)		(.21	)
Return of capital		– 0	–		(.01	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.23	)		(.25	)		(.26	)		(.19	)		(.21	)
Net asset value, end of period		$  11.56			$  10.95			$  10.47			$  10.83			$  10.92
Total Return
Total investment return based on net asset value(d)		7.64	%		7.00	%		(.99	)%		.91	%		6.63	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$31,248			$38,422			$52,116			$27,718			$16,712
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.91	%		1.25	%		1.31	%		1.01	%		.98	%
Expenses, before waivers/reimbursements(e)		1.18	%		1.51	%		1.56	%		1.34	%		1.42	%
Net investment income(b)		2.26	%		1.93	%		2.60	%		1.95	%		1.71	%
Portfolio turnover rate		48	%		40	%		36	%		42	%		41	%

See footnote summary on page 102.

abfunds.com AB BOND INFLATION STRATEGY    ^|    93

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.67			$  10.24			$  10.61			$  10.71			$  10.27
Income From Investment Operations
Net investment income(a)(b)		.18			.13			.19			.13			.10
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.56			.49			(.37	)		(.11	)		.50
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.74			.62			(.18	)		.02			.60
Less: Dividends
Dividends from net investment income		(.16	)		(.19	)		(.19	)		(.12	)		(.16	)
Net asset value, end of period		$  11.25			$  10.67			$  10.24			$  10.61			$  10.71
Total Return
Total investment return based on net asset value(d)		6.92	%		6.18	%		(1.77	)%		.16	%		5.86	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$3,823			$2,607			$3,391			$3,627			$2,505
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.64	%		1.99	%		2.03	%		1.76	%		1.72	%
Expenses, before waivers/reimbursements(e)		1.91	%		2.26	%		2.29	%		2.09	%		2.16	%
Net investment income(b)		1.62	%		1.28	%		1.77	%		1.26	%		.96	%
Portfolio turnover rate		48	%		40	%		36	%		42	%		41	%

See footnote summary on page 102.

94    ^|    AB BOND INFLATION STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.96			$  10.49			$  10.84			$  10.93			$  10.46
Income From Investment Operations
Net investment income(a)(b)		.27			.27			.30			.25			.22
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.60			.48			(.37	)		(.13	)		.49
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.87			.75			(.07	)		.12			.71
Less: Dividends and Distributions
Dividends from net investment income		(.26	)		(.27	)		(.28	)		(.21	)		(.24	)
Return of capital		– 0	–		(.01	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.26	)		(.28	)		(.28	)		(.21	)		(.24	)
Net asset value, end of period		$  11.57			$  10.96			$  10.49			$  10.84			$  10.93
Total Return
Total investment return based on net asset value(d)		7.93	%		7.21	%		(.68	)%		1.15	%		6.87	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$135,677			$168,440			$150,011			$107,545			$29,186
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.66	%		.97	%		1.05	%		.77	%		.73	%
Expenses, before waivers/reimbursements(e)		.92	%		1.24	%		1.31	%		1.10	%		1.16	%
Net investment income(b)		2.44	%		2.47	%		2.80	%		2.31	%		2.04	%
Portfolio turnover rate		48	%		40	%		36	%		42	%		41	%

See footnote summary on page 102.

abfunds.com AB BOND INFLATION STRATEGY    ^|    95

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class R
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.93			$  10.46			$  10.82			$  10.89			$  10.44
Income From Investment Operations
Net investment income(a)(b)		.21			.20			.24			.21			.29
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.62			.49			(.37	)		(.12	)		.37
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.83			.69			(.13	)		.09			.66
Less: Dividends
Dividends from net investment income		(.19	)		(.22	)		(.23	)		(.16	)		(.21	)
Net asset value, end of period		$  11.57			$  10.93			$  10.46			$  10.82			$  10.89
Total Return
Total investment return based on net asset value(d)		7.61	%+		6.64	%		(1.15	)%		.80	%(f)		6.41	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$3,066			$6,992			$6,354			$5,364			$408
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		1.21	%		1.47	%		1.54	%		1.29	%		1.24	%
Expenses, before waivers/reimbursements(e)		1.58	%		1.83	%		1.90	%		1.67	%		1.71	%
Net investment income(b)		1.88	%		1.88	%		2.24	%		2.08	%		2.71	%
Portfolio turnover rate		48	%		40	%		36	%		42	%		41	%

See footnote summary on page 102.

96    ^|    AB BOND INFLATION STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class K
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.92			$  10.45			$  10.81			$  10.89			$  10.42
Income From Investment Operations
Net investment income(a)(b)		.27			.17			.27			.21			.20
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.58			.54			(.38	)		(.11	)		.49
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.85			.71			(.11	)		.10			.69
Less: Dividends and Distributions
Dividends from net investment income		(.23	)		(.23	)		(.25	)		(.18	)		(.22	)
Return of capital		– 0	–		(.01	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.23	)		(.24	)		(.25	)		(.18	)		(.22	)
Net asset value, end of period		$  11.54			$  10.92			$  10.45			$  10.81			$  10.89
Total Return
Total investment return based on net asset value(d)		7.74	%		6.88	%		(1.01	)%		.96	%		6.66	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$6,790			$5,051			$12,055			$2,903			$2,409
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.89	%		1.27	%		1.35	%		1.01	%		.98	%
Expenses, before waivers/reimbursements(e)		1.21	%		1.57	%		1.65	%		1.37	%		1.36	%
Net investment income(b)		2.40	%		1.61	%		2.57	%		1.95	%		1.87	%
Portfolio turnover rate		48	%		40	%		36	%		42	%		41	%

See footnote summary on page 102.

abfunds.com AB BOND INFLATION STRATEGY    ^|    97

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class I
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.84			$  10.38			$  10.74			$  10.84			$  10.38
Income From Investment Operations
Net investment income(a)(b)		.27			.25			.28			.24			.22
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.59			.49			(.36	)		(.12	)		.50
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.86			.74			(.08	)		.12			.72
Less: Dividends and Distributions
Dividends from net investment income		(.26	)		(.27	)		(.28	)		(.22	)		(.26	)
Return of capital		– 0	–		(.01	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.26	)		(.28	)		(.28	)		(.22	)		(.26	)
Net asset value, end of period		$  11.44			$  10.84			$  10.38			$  10.74			$  10.84
Total Return
Total investment return based on net asset value(d)		7.97	%		7.23	%		(.73	)%		1.15	%		6.98	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$8,297			$9,893			$5,688			$642			$345
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.65	%		.94	%		1.11	%		.76	%		.72	%
Expenses, before waivers/reimbursements(e)		.88	%		1.18	%		1.34	%		.99	%		1.03	%
Net investment income(b)		2.42	%		2.40	%		2.67	%		2.25	%		2.08	%
Portfolio turnover rate		48	%		40	%		36	%		42	%		41	%

See footnote summary on page 102.

98    ^|    AB BOND INFLATION STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 1
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.77			$  10.33			$  10.69			$  10.80			$  10.35
Income From Investment Operations
Net investment income(a)(b)		.26			.24			.28			.22			.20
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.59			.48			(.36	)		(.11	)		.51
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.85			.72			(.08	)		.11			.71
Less: Dividends and Distributions
Dividends from net investment income		(.27	)		(.27	)		(.28	)		(.22	)		(.26	)
Return of capital		– 0	–		(.01	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.27	)		(.28	)		(.28	)		(.22	)		(.26	)
Net asset value, end of period		$  11.35			$  10.77			$  10.33			$  10.69			$  10.80
Total Return
Total investment return based on net asset value(d)		7.84	%		7.18	%		(.77	)%(f)		1.01	%		6.89	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$312,381			$319,282			$306,620			$274,366			$226,408
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.75	%		1.07	%		1.14	%		.86	%		.82	%
Expenses, before waivers/reimbursements(e)		.88	%		1.20	%		1.28	%		1.04	%		1.03	%
Net investment income(b)		2.42	%		2.31	%		2.66	%		2.10	%		1.86	%
Portfolio turnover rate		48	%		40	%		36	%		42	%		41	%

See footnote summary on page 102.

abfunds.com AB BOND INFLATION STRATEGY    ^|    99

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 2
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.76			$  10.32			$  10.69			$  10.79			$  10.35
Income From Investment Operations
Net investment income(a)(b)		.28			.26			.29			.24			.20
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.58			.48			(.37	)		(.11	)		.51
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.86			.74			(.08	)		.13			.71
Less: Dividends and Distributions
Dividends from net investment income		(.28	)		(.29	)		(.29	)		(.23	)		(.27	)
Return of capital		– 0	–		(.01	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.28	)		(.30	)		(.29	)		(.23	)		(.27	)
Net asset value, end of period		$  11.34			$  10.76			$  10.32			$  10.69			$  10.79
Total Return
Total investment return based on net asset value(d)		7.96	%		7.19	%		(.77	)%		1.21	%		6.92	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$60,289			$58,829			$50,705			$54,118			$37,207
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.65	%		.96	%		1.03	%		.76	%		.72	%
Expenses, before waivers/reimbursements(e)		.78	%		1.09	%		1.17	%		.94	%		.93	%
Net investment income(b)		2.53	%		2.45	%		2.78	%		2.24	%		1.93	%
Portfolio turnover rate		48	%		40	%		36	%		42	%		41	%

See footnote summary on page 102.

100    ^|    AB BOND INFLATION STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class Z
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.80			$  10.35			$  10.72			$  10.82			$  10.38
Income From Investment Operations
Net investment income(a)(b)		.24			.27			.28			.24			.25
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.62			.47			(.36	)		(.11	)		.46
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.86			.74			(.08	)		.13			.71
Less: Dividends and Distributions
Dividends from net investment income		(.28	)		(.28	)		(.29	)		(.23	)		(.27	)
Return of capital		– 0	–		(.01	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.28	)		(.29	)		(.29	)		(.23	)		(.27	)
Net asset value, end of period		$  11.38			$  10.80			$  10.35			$  10.72			$  10.82
Total Return
Total investment return based on net asset value(d)		7.92	%		7.26	%		(.77	)%		1.19	%		6.89	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$11,016			$32,606			$26,142			$16,019			$11,576
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)		.67	%		.96	%		1.06	%		.76	%		.73	%
Expenses, before waivers/reimbursements(e)		.81	%		1.10	%		1.21	%		.94	%		.95	%
Net investment income(b)		2.16	%		2.50	%		2.69	%		2.22	%		2.40	%
Portfolio turnover rate		48	%		40	%		36	%		42	%		41	%

See footnote summary on page 102.

abfunds.com AB BOND INFLATION STRATEGY    ^|    101

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Amount is less than $.005.

(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

+ The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements.

(e) The expense ratios presented below exclude interest expense:

	Year Ended October 31,
	2020			2019			2018			2017			2016
Class A
Net of waivers/reimbursements		.75	%		.75	%		.75	%		.75	%		.76	%
Before waivers/reimbursements		1.01	%		1.02	%		1.01	%		1.07	%		1.20	%
Class C
Net of waivers/reimbursements		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Before waivers/reimbursements		1.77	%		1.77	%		1.76	%		1.82	%		1.94	%
Advisor Class
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.77	%		.77	%		.76	%		.83	%		.93	%
Class R
Net of waivers/reimbursements		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Before waivers/reimbursements		1.37	%		1.36	%		1.36	%		1.38	%		1.47	%
Class K
Net of waivers/reimbursements		.75	%		.75	%		.75	%		.75	%		.75	%
Before waivers/reimbursements		1.07	%		1.04	%		1.05	%		1.10	%		1.13	%
Class I
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.73	%		.73	%		.73	%		.72	%		.81	%
Class 1
Net of waivers/reimbursements		.60	%		.60	%		.60	%		.60	%		.60	%
Before waivers/reimbursements		.73	%		.73	%		.74	%		.77	%		.81	%
Class 2
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.63	%		.63	%		.64	%		.67	%		.71	%
Class Z
Net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Before waivers/reimbursements		.63	%		.64	%		.65	%		.68	%		.72	%

(f) The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements.

See notes to financial statements.

102    ^|    AB BOND INFLATION STRATEGY abfunds.com

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of AB Bond Inflation Strategy

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Bond Inflation Strategy (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2020, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2020, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures

abfunds.com AB BOND INFLATION STRATEGY    ^|    103

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 28, 2020

104    ^|    AB BOND INFLATION STRATEGY abfunds.com

2020 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2020. For foreign shareholders, 92.66% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2021.

abfunds.com AB BOND INFLATION STRATEGY    ^|    105

BOARD OF DIRECTORS

Marshall C. Turner, Jr⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith, President and
Chief Executive Officer Jeanette Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Michael Canter⁽²⁾, Vice President Shawn E. Keegan⁽²⁾, Vice President Janaki Rao⁽²⁾, Vice President Dimitri Silva⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Analyst Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Vincent S. Noto, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210 Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105 Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036 Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s U.S. Multi-Sector Fixed-Income Team. Messrs. Canter, Keegan, Rao and Silva are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

106    ^|    AB BOND INFLATION STRATEGY abfunds.com

MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,# 1345 Avenue of the Americas New York, NY 10105 60 (2010)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and the head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business, with which he had been associated since prior to 2004.		77	None

abfunds.com AB BOND INFLATION STRATEGY    ^|    107

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 77 (2005)	Private Investor since prior to 2015. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		77	None

108    ^|    AB BOND INFLATION STRATEGY abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Jorge A. Bermudez,## 69 (2020)	Private Investor since prior to 2015. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		77	Moody’s Corporation since April 2011
Michael J. Downey,## 76 (2005)	Private Investor since prior to 2015. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2015 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		77	None

abfunds.com AB BOND INFLATION STRATEGY    ^|    109

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Nancy P. Jacklin,## 72 (2006)	Private Investor since prior to 2015. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		77	None
Jeanette Loeb,## 68 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		77	Apollo Investment Corp. (business development company) since August 2011

110    ^|    AB BOND INFLATION STRATEGY abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Carol C. McMullen,## 65 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		77	None

abfunds.com AB BOND INFLATION STRATEGY    ^|    111

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Garry L. Moody,## 68 (2008)	Private Investor since prior to 2015. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		77	None

112    ^|    AB BOND INFLATION STRATEGY abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Earl D. Weiner,## 81 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		77	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Keith is an “interested person” of the Fund as defined in the “40 Act”, due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

abfunds.com AB BOND INFLATION STRATEGY    ^|    113

MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Robert M. Keith 60	President and Chief Executive Officer	See biography above.
Michael Canter 51	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also Director of Securitized Assets and US Multi-Sector Fixed-Income.
Shawn E. Keegan 49	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015.
Janaki Rao 50	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015.
Dimitri Silva 38	Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2015.
Emilie D. Wrapp 65	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2015.
Michael B. Reyes 44	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2015.
Joseph J. Mantineo 61	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2015.
Phyllis J. Clarke 59	Controller	Vice President of ABIS**, with which she has been associated since prior to 2015.
Vincent S. Noto 56	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2015.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

114    ^|    AB BOND INFLATION STRATEGY abfunds.com

Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”). Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2020, which covered the period December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner. Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, taking into account any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP. The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended, and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP, and there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

abfunds.com AB BOND INFLATION STRATEGY    ^|    115

Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Bond Inflation Strategy (the “Fund”) at a meeting held on November 4-6, 2019 (the “Meeting”).*

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the underlying fund advised by the Adviser in which the Fund invests.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business

* Following transactions completed on November 13, 2019 that may have been deemed to have been an “assignment” causing termination of the Fund’s investment advisory agreement, a new investment advisory agreement, having the same terms as the prior one, was entered into by the Fund and the Adviser.

116    ^|    AB BOND INFLATION STRATEGY abfunds.com

judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2017 and 2018 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and

abfunds.com AB BOND INFLATION STRATEGY    ^|    117

distribution expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the underlying fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Fund’s recent profitability to the Adviser would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3- and 5-year periods ended July 31, 2019 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and noted that it was above the median. The directors took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of the Fund. For this pur-

118    ^|    AB BOND INFLATION STRATEGY abfunds.com

pose, they reviewed the relevant advisory fee information from the Adviser’s Form ADV and in a report from the Fund’s Senior Analyst and noted the differences between the Fund’s fee schedule, on the one hand, and the Adviser’s institutional fee schedule and the schedule of fees charged by the Adviser to any offshore funds and for services to any sub-advised funds utilizing investment strategies similar to those of the Fund, on the other. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The directors previously discussed these matters with an independent fee consultant.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional, offshore fund and sub-advised fund clients. In this regard, the Adviser noted, among other things, that, compared to institutional and offshore or sub-advisory accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional, offshore fund and sub-advised fund clients as compared to the Fund, and the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

abfunds.com AB BOND INFLATION STRATEGY    ^|    119

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also previously discussed economies of scale with an independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

120    ^|    AB BOND INFLATION STRATEGY abfunds.com

This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL EQUITY (continued)

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio¹

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

FIXED INCOME (continued)

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to February 5, 2020, Tax-Aware Fixed Income Opportunities Portfolio was named Tax-Aware Fixed Income Portfolio.

abfunds.com AB BOND INFLATION STRATEGY    ^|    121

NOTES

122    ^|    AB BOND INFLATION STRATEGY abfunds.com

NOTES

abfunds.com AB BOND INFLATION STRATEGY    ^|    123

NOTES

124    ^|    AB BOND INFLATION STRATEGY abfunds.com

AB BOND INFLATION STRATEGY

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

BIS-0151-1020                

OCT    ^10.31.20

ANNUAL REPORT

AB INCOME FUND

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Income Fund (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB INCOME FUND    ^|    1

ANNUAL REPORT

December 9, 2020

This report provides management’s discussion of fund performance for AB Income Fund for the annual reporting period ended October 31, 2020.

The investment objective of the Fund is to seek high current income consistent with preservation of capital.

NAV RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	6 Months		12 Months
AB INCOME FUND
Class A Shares		7.55%		3.55%
Class C Shares		7.14%		2.77%
Advisor Class Shares1		7.67%		3.80%
Class Z Shares1		7.69%		3.89%	2
Bloomberg Barclays US Aggregate Bond Index		1.27%		6.19%

1 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund, or through other limited or special arrangements approved by the Adviser, such as purchases by shareholders of the Fund’s Predecessor Fund.

2 Since inception on 11/20/2019.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays US Aggregate Bond Index, for the six- and 12-month periods ended October 31, 2020. The inception date for Class Z shares was November 20, 2019; due to limited performance history, there is no discussion of performance for this share class for the 12-month period.

During the 12-month period, all share classes underperformed the benchmark, before sales charges. Security selection was the primary detractor, relative to the benchmark, as losses mostly from commercial mortgage-backed securities (“CMBS”), high-yield corporate bonds and investment-grade credit default swaps were greater than gains in emerging-market corporate bonds and investment-grade corporates. Sector allocation also detracted, primarily from positioning in emerging-market corporates, high-yield credit default swaps and US agency mortgages, which outweighed gains from sector allocation to cash, as well as investment-grade and high-yield corporate bonds. Yield-curve positioning contributed, mainly from exposure in five- to 10-year maturities and short-term bonds that offset losses from positioning among two-year and 20- to 30-year maturities.

2    ^|    AB INCOME FUND abfunds.com

Currency decisions and country allocations were small contributors to performance.

During the six-month period, all share classes outperformed the benchmark, before sales charges. Sector allocation was the primary contributor due to exposures in agency risk-sharing transactions, high-yield corporate bonds and emerging-market sovereign bonds, which more than offset exposure to investment-grade corporate bonds. Security selection also contributed, mostly within emerging-market corporate and sovereign bonds, investment-grade corporates and asset-backed securities, while selection in high-yield corporate bonds and US agency mortgages detracted. Yield-curve positioning also added, due to positioning in the 20- and 30-year parts of the yield curve. Country allocations to Indonesia and Mexico contributed to returns. Currency decisions were a minor contributor to performance.

During both periods, the Fund utilized derivatives in the form of futures, interest rate swaptions and interest rate swaps to manage and hedge duration risk and/or to take active yield-curve positioning. Currency forwards were used to hedge foreign currency exposure and to take active currency risk. Credit default swaps, both single name and index, were used to create synthetic exposure in investment-grade and high-yield credit risk. The utilization of government-agency-related To Be Announced mortgage short-term positions was a significant contributor to the Fund’s turnover rate of 246%.

MARKET REVIEW AND INVESTMENT STRATEGY

Global fixed-income market returns were positive over the 12-month period ended October 31, 2020. Central banks and governments enacted an unprecedented amount of monetary and fiscal stimulus to combat market illiquidity and cushion the negative economic impact of COVID-19, which set the stage for a rebound in risk assets following the sell-off that started in March. Government bonds rallied as interest rates were slashed. Emerging- and developed-market investment-grade corporate bonds led gains, followed by developed-market high-yield corporate bonds, as investors searched for higher yields in a period of falling interest rates. Corporate bonds in the US outperformed their European counterparts. Securitized assets also advanced, while emerging-market sovereign bonds were slightly positive and emerging-market local bonds fell during the period. The US dollar declined against most major developed-market currencies and gained against a majority of emerging-market currencies. Brent crude oil prices fell almost 34% as demand slowed sharply and the oil industry outlook was uncertain.

The Fund’s Senior Investment Management Team (the “Team”) continues to pursue high income, while preserving capital by investing primarily in government bonds from both US and non-US issuers as well as corporate

abfunds.com AB INCOME FUND    ^|    3

bonds, with scope to invest a select amount in below investment-grade bonds. The Team manages the Fund with a core fixed-income strategy through a global, multi-sector approach that seeks an attractive risk/return profile.

INVESTMENT POLICIES

The Fund pursues its objective by investing, under normal circumstances, at least 80% of its net assets in income-producing securities. The Fund also normally invests at least 65% of its total assets in securities of US and foreign governments, their agencies or instrumentalities and repurchase agreements relating to US government securities.

The Fund normally invests at least 65% of its total assets in US dollar-denominated securities. The Fund may also invest up to 35% of its total assets in non-government fixed-income securities, including corporate debt securities, non-government mortgage-backed and other asset-backed securities, certificates of deposit and commercial paper. The Fund may invest up to 35% of its net assets in below investment-grade securities (commonly known as “junk bonds”). The Fund may invest no more than 25% of its total assets in securities of issuers in any one country other than the US. The Fund’s investments in foreign securities may include investments in securities of emerging-market countries or of issuers in emerging markets.

The Adviser selects securities for purchase or sale based on its assessment of the securities’ risks and return characteristics as well as the securities’ impact on the overall risks and return characteristics of the Fund. 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 Fund’s other holdings. The Fund may invest in fixed-income securities with any maturity or duration.

The Fund utilizes derivatives, such as options, futures contracts, forwards and swaps to a significant extent. The Fund may, for example, use credit default, interest rate and total return swaps to establish exposure to the fixed-income markets or particular fixed-income securities. Derivatives may provide a more efficient and economical exposure to market segments than direct investments, and may also be a more efficient way to alter the Fund’s exposure. The Fund may also enter into transactions such as reverse repurchase agreements that are similar to borrowings for investment purposes. The Fund’s use of derivatives and these borrowing transactions may create aggregate exposure that is substantially in excess of its net assets, effectively leveraging the Fund.

4    ^|    AB INCOME FUND abfunds.com

DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays US Aggregate Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Barclays US Aggregate Bond Index represents the performance of securities within the US investment-grade fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. The index is not leveraged, whereas the Fund utilizes leverage. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

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.

Below Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

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 the full maturity of

abfunds.com AB INCOME FUND    ^|    5

DISCLOSURES AND RISKS (continued)

a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline, as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Foreign (Non-US) Risk: Investments in securities of non-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

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

Leverage Risk: To the extent the Fund 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 Fund’s investments.

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

Illiquid Investments Risk: Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

Mortgage-Related and/or Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be

6    ^|    AB INCOME FUND abfunds.com

DISCLOSURES AND RISKS (continued)

subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

The Fund commenced operations on April 22, 2016. The Fund acquired the assets and liabilities of the AllianceBernstein Income Fund, Inc., a closed-end fund (the “Predecessor Fund”), effective at the close of business on April 21, 2016 (the “Reorganization”). The Fund has the same investment objective that the Predecessor Fund

abfunds.com AB INCOME FUND    ^|    7

DISCLOSURES AND RISKS (continued)

had and similar investment strategies and policies. In addition, the Fund has higher expenses (including transfer agency and shareholder servicing fees), and a different advisory fee arrangement than the Predecessor Fund had.

Performance information prior to April 22, 2016 shown in this report reflects the historical performance of the Predecessor Fund based on its NAV. Such performance information may not be representative of performance the Fund would have achieved as an open-end fund under its current investment strategies and policies and expense levels.

8    ^|    AB INCOME FUND abfunds.com

HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

10/31/2010 TO 10/31/2020

This chart illustrates the total value of an assumed $10,000 investment in AB Income Fund Advisor Class shares (from 10/31/2010 to 10/31/2020) as compared to the performance of the Fund’s benchmark. The chart assumes the reinvestment of dividends and capital gains distributions.

1 Performance returns of Advisor Class shares for the periods prior to April 21, 2016 are based on the NAV per share of the Predecessor Fund. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund, or through other limited or special arrangements approved by the Adviser, such as purchases by shareholders of the Fund’s Predecessor Fund.

abfunds.com AB INCOME FUND    ^|    9

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						2.40%
1 Year		3.55%		-0.80%
Since Inception2		4.46%		3.48%
CLASS C SHARES						1.75%
1 Year		2.77%		1.78%
Since Inception2		3.70%		3.70%
ADVISOR CLASS SHARES3						2.75%
1 Year		3.80%		3.80%
5 Years		4.62%		4.62%
10 Years		5.02%		5.02%
CLASS Z SHARES3						2.83%
Since Inception2		3.89%		3.89%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 0.83%, 1.57%, 0.58% and 0.50% for Class A, Class C, Advisor Class and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios exclusive of acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses and brokerage commissions and other transaction costs to 0.77%, 1.52%, 0.52% and 0.50% for Class A, Class C, Advisor Class and Class Z shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2021. Any fees waived and expense borne by the Adviser through April 22, 2018 under the expense limitations in effect prior to that date may be reimbursed by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne, provided that no reimbursement payment will be made that would cause the Fund’s total annual operating expenses to exceed the expense limitations. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2020.

2 Inception dates: 4/21/2016 for all share classes except Class Z; 11/20/2019 for Class Z shares.

3 Performance returns of Advisor Class shares for the periods prior to April 21, 2016 are based on the NAV per share of the Predecessor Fund. These share classes are offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund, or through other limited or special arrangements approved by the Adviser, such as purchases by shareholders of the Fund’s Predecessor Fund.

10    ^|    AB INCOME FUND abfunds.com

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2020 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-0.17%
Since Inception1		3.62%
CLASS C SHARES
1 Year		2.42%
Since Inception1		3.86%
ADVISOR CLASS SHARES2
1 Year		4.46%
5 Years		4.75%
10 Years		5.15%
CLASS Z SHARES2
Since Inception1		4.06%

1 Inception dates: 4/21/2016 for all share classes except Class Z; 11/20/2019 for Class Z shares.

2 Performance returns of Advisor Class shares for the periods prior to April 21, 2016 are based on the NAV per share of the Predecessor Fund. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund, or through other limited or special arrangements approved by the Adviser, such as purchases by shareholders of the Fund’s Predecessor Fund.

abfunds.com AB INCOME FUND    ^|    11

EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

	Beginning Account Value May 1, 2020		Ending Account Value October 31, 2020		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,075.50	$	4.12		0.79	%
Hypothetical**	$	1,000	$	1,021.17	$	4.01		0.79	%
Class C
Actual	$	1,000	$	1,071.40	$	8.02		1.54	%
Hypothetical**	$	1,000	$	1,017.39	$	7.81		1.54	%
Advisor Class
Actual	$	1,000	$	1,076.70	$	2.82		0.54	%
Hypothetical**	$	1,000	$	1,022.42	$	2.75		0.54	%
Class Z
Actual	$	1,000	$	1,076.90	$	2.65		0.48	%
Hypothetical**	$	1,000	$	1,024.04	$	2.58		0.48	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

12    ^|    AB INCOME FUND abfunds.com

PORTFOLIO SUMMARY

October 31, 2020 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $4,623.3

1 All data are as of October 31, 2020. The Fund’s security type breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” security type weightings represent 0.7% or less in the following types: Agencies, Common Stocks, Emerging Markets–Treasuries, Local Governments–Provincial Bonds, Local Governments–US Municipal Bonds, Options Purchased–Puts, Preferred Stocks, Quasi-Sovereigns, Warrants and Whole Loan Trusts.

abfunds.com AB INCOME FUND    ^|    13

PORTFOLIO SUMMARY (continued)

October 31, 2020 (unaudited)

1 All data are as of October 31, 2020. The Fund’s country breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 0.5% or less in the following: Angola, Australia, Bahrain, Bermuda, Chile, China, Colombia, Costa Rica, Denmark, Ecuador, El Salvador, Finland, Germany, Ghana, Guatemala, Honduras, Hong Kong, Indonesia, Ireland, Israel, Ivory Coast, Jamaica, Japan, Kazakhstan, Kenya, Kuwait, Lebanon, Luxembourg, Macau, Malaysia, Nigeria, Norway, Oman, Pakistan, Panama, Peru, Qatar, Saudi Arabia, Senegal, Spain, Sri Lanka, Sweden, Switzerland, Turkey, Ukraine, United Arab Emirates and Zambia.

14    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS

October 31, 2020

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS – TREASURIES – 52.3%
Indonesia – 0.4%
Indonesia Treasury Bond Series FR78 8.25%, 05/15/2029	IDR		223,106,000	$	16,841,643
Mexico – 0.8%
Mexican Bonos Series M 20 8.50%, 05/31/2029	MXN		645,000		35,434,861
Russia – 0.7%
Russian Federal Bond – OFZ Series 6217 7.50%, 08/18/2021	RUB		670,156		8,643,963
Series 6227 7.40%, 07/17/2024			1,925,000		26,060,178
					34,704,141
United States – 50.4%
U.S. Treasury Bonds 1.125%, 08/15/2040	U.S.$		37,958		36,107,167
1.25%, 05/15/2050			54,108		49,187,826
4.50%, 02/15/2036			17,631		26,060,822
5.50%, 08/15/2028(a)(b)			161,400		220,361,438
6.00%, 02/15/2026			30,903		39,893,454
6.125%, 11/15/2027(c)			469,196		647,417,720
6.125%, 08/15/2029			47,418		69,156,189
6.25%, 05/15/2030(c)			122,903		184,584,192
6.375%, 08/15/2027			45,300		62,741,054
6.50%, 11/15/2026			39,144		53,076,818
6.625%, 02/15/2027			106,822		147,013,365
6.875%, 08/15/2025			18,100		23,665,750
7.50%, 11/15/2024			20,000		25,800,000
U.S. Treasury Notes 0.625%, 05/15/2030			158,239		155,147,904
1.50%, 08/15/2026(b)			69,083		73,055,167
1.625%, 08/15/2022(b)(c)			100,287		102,919,739
1.625%, 10/31/2023-08/15/2029			45,600		47,975,919
1.75%, 11/15/2029(c)			78,385		84,961,991
2.125%, 07/31/2024(b)			125,561		134,272,115
2.25%, 11/15/2025(b)(d)			16,500		18,028,828
2.625%, 02/15/2029			9,944		11,448,030
2.875%, 09/30/2023			65,000		70,057,813
3.125%, 11/15/2028			39,000		46,324,688
					2,329,257,989
Total Governments – Treasuries (cost $2,283,812,993)					2,416,238,634

abfunds.com AB INCOME FUND    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
MORTGAGE PASS-THROUGHS – 24.8%
Agency Fixed Rate 30-Year – 24.8%
Federal Home Loan Mortgage Corp. Series 2020 2.50%, 08/01/2050-09/01/2050	U.S.$		132,426	$	141,721,745
4.50%, 02/01/2050			6,374		7,128,784
Federal National Mortgage Association Series 1998 8.00%, 06/01/2028			5		5,002
Series 1999 7.50%, 11/01/2029			9		10,550
Series 2020 2.50%, 08/01/2050-09/01/2050			75,698		80,746,155
4.50%, 02/01/2050			11,769		13,107,122
Government National Mortgage Association Series 2020 3.00%, 11/01/2050, TBA			77,688		81,080,859
Uniform Mortgage-Backed Security Series 2018 4.00%, 11/01/2050, TBA			92,255		98,507,464
Series 2019 4.50%, 11/01/2050, TBA			271,125		293,196,631
Series 2020 3.50%, 11/01/2050, TBA			13,429		14,178,908
1.50%, 11/01/2050, TBA			85,148		85,719,852
3.00%, 11/01/2050, TBA			315,523		329,796,014
Total Mortgage Pass-Throughs (cost $1,145,945,099)					1,145,199,086
CORPORATES – INVESTMENT GRADE – 13.7%
Financial Institutions – 7.5%
Banking – 4.4%
AIB Group PLC 4.263%, 04/10/2025(e)			4,005		4,309,861
4.75%, 10/12/2023(e)			1,734		1,883,783
Ally Financial, Inc. 5.80%, 05/01/2025			1,497		1,746,610
8.00%, 11/01/2031			75		103,748
American Express Co. Series C 3.535% (LIBOR 3 Month + 3.29%), 12/15/2020(f)(g)			711		664,785
Australia & New Zealand Banking Group Ltd. 4.40%, 05/19/2026(e)			200		226,354
4.50%, 03/19/2024(e)			2,577		2,818,130

16    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Banco de Credito del Peru 3.125%, 07/01/2030(e)	U.S.$		3,765	$	3,802,650
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand 5.375%, 04/17/2025(e)			3,998		4,472,762
Banco Santander SA 5.179%, 11/19/2025			4,000		4,557,200
Bank of America Corp. Series DD 6.30%, 03/10/2026(g)			2,526		2,860,493
Series X 6.25%, 09/05/2024(g)			6,520		7,081,372
Series Z 6.50%, 10/23/2024(g)			2,072		2,303,173
Bank of New York Mellon Corp. (The) Series E 3.647% (LIBOR 3 Month + 3.42%), 12/20/2020(f)(g)			844		833,425
Series G 4.70%, 09/20/2025(g)			992		1,061,867
Barclays Bank PLC 6.86%, 06/15/2032(e)(g)			656		882,182
Barclays PLC 7.125%, 06/15/2025(g)	GBP		333		451,893
7.25%, 03/15/2023(e)(g)			1,350		1,797,020
7.875%, 03/15/2022(e)(g)	U.S.$		205		211,380
8.00%, 12/15/2020(g)	EUR		614		719,843
BBVA Bancomer SA/Texas 5.875%, 09/13/2034(e)	U.S.$		5,343		5,563,399
BNP Paribas SA 6.75%, 03/14/2022(e)(g)			1,296		1,331,458
7.625%, 03/30/2021(e)(g)			4,218		4,273,973
CIT Group, Inc. 3.929%, 06/19/2024			1,568		1,633,213
Citigroup, Inc. 5.95%, 01/30/2023(g)			2,055		2,120,698
Series Q 4.375% (LIBOR 3 Month + 4.10%), 02/15/2021(f)(g)			927		909,137
Series T 6.25%, 08/15/2026(g)			1,388		1,546,537
Series U 5.00%, 09/12/2024(g)			2,540		2,554,783
Series V 4.70%, 01/30/2025(g)			3,590		3,513,246
Comerica, Inc. 5.625%, 07/01/2025(g)			10,316		11,096,509

abfunds.com AB INCOME FUND    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Commonwealth Bank of Australia 4.50%, 12/09/2025(e)	U.S.$		6,462	$	7,288,361
Cooperatieve Rabobank UA 4.625%, 12/01/2023			2,250		2,503,642
Credit Agricole SA 6.50%, 06/23/2021(e)(g)	EUR		3,780		4,484,922
8.125%, 12/23/2025(e)(g)	U.S.$		2,233		2,625,718
Danske Bank A/S 3.244%, 12/20/2025(e)			200		212,076
5.00%, 01/12/2022(e)			478		500,528
5.375%, 01/12/2024(e)			1,459		1,637,684
5.875%, 04/06/2022(e)(g)	EUR		3,302		3,927,395
Discover Bank 3.45%, 07/27/2026	U.S.$		500		548,995
4.682%, 08/09/2028			8,350		8,756,728
Fifth Third Bancorp Series L 4.50%, 09/30/2025(g)			1,353		1,365,948
Goldman Sachs Group, Inc. (The) Series O 5.30%, 11/10/2026(g)			760		808,929
HSBC Holdings PLC 4.75%, 07/04/2029(e)(g)	EUR		4,667		5,463,904
6.00%, 09/29/2023(e)(g)			3,669		4,529,487
6.375%, 03/30/2025(g)	U.S.$		1,277		1,337,389
ING Groep NV 6 .50%, 04/16/2025(g)			6,341		6,722,475
6.875%, 04/16/2022(e)(g)			515		533,143
Intesa Sanpaolo SpA 6.50%, 02/24/2021(e)			3,000		3,049,560
JPMorgan Chase & Co. Series S 6.75%, 02/01/2024(g)			2,998		3,269,079
Series V 3.545% (LIBOR 3 Month + 3.32%), 01/01/2021(f)(g)			37		34,605
Series Z 4.014% (LIBOR 3 Month + 3.80%), 02/01/2021(f)(g)			119		117,297
Lloyds Banking Group PLC 4.50%, 11/04/2024			4,360		4,788,414
Morgan Stanley Series J 4.047% (LIBOR 3 Month + 3.81%), 01/15/2021(f)(g)			847		833,592
Nationwide Building Society 3.622%, 04/26/2023(e)			1,150		1,194,953

18    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Natwest Group PLC 8.625%, 08/15/2021(g)	U.S.$		3,800	$	3,926,768
Nordea Bank Abp 6.625%, 03/26/2026(e)(g)			8,725		9,798,349
Santander Holdings USA, Inc. 4.40%, 07/13/2027			463		515,472
Societe Generale SA 4.75%, 11/24/2025(e)			8,825		9,728,062
Standard Chartered PLC 1.724% (LIBOR 3 Month + 1.51%), 01/30/2027(e)(f)(g)			7,800		6,932,640
7.50%, 04/02/2022(e)(g)			1,278		1,319,880
7.75%, 04/02/2023(e)(g)			265		281,610
Swedbank AB 6.00%, 03/17/2022(e)(g)			200		204,424
Series NC5 5.625%, 09/17/2024(e)(g)			2,000		2,092,680
Truist Financial Corp. Series P 4.95%, 09/01/2025(g)			10,721		11,453,030
Series Q 5. 10%, 03/01/2030(g)			2,924		3,195,026
UBS Group AG 7.00%, 01/31/2024-02/19/2025(e)(g)			3,569		3,844,363
UniCredit SpA 2.569%, 09/22/2026(e)			4,320		4,291,358
4.875%, 02/20/2029(e)	EUR		2,970		3,641,335
					205,091,305
Brokerage – 0.2%
Charles Schwab Corp. (The) Series G 5.375%, 06/01/2025(g)	U.S.$		6,567		7,194,543
Finance – 1.0%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 2.875%, 08/14/2024			373		368,714
3.30%, 01/23/2023			150		151,522
3.65%, 07/21/2027			1,600		1,512,112
3.875%, 01/23/2028			1,421		1,343,925
4.125%, 07/03/2023			430		441,864
4.50%, 09/15/2023			2,506		2,603,383
4.875%, 01/16/2024			3,065		3,206,388
6.50%, 07/15/2025			861		947,608
Air Lease Corp. 4.25%, 02/01/2024			3,032		3,181,417
Aircastle Ltd. 4.125%, 05/01/2024			678		667,383

abfunds.com AB INCOME FUND    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
4.40%, 09/25/2023	U.S.$		1,556	$	1,565,523
5.00%, 04/01/2023			140		142,748
5.25%, 08/11/2025(e)			5,324		5,283,058
GE Capital Funding LLC 4.40%, 05/15/2030(e)			3,510		3,836,079
Huarong Finance II Co., Ltd. 5.00%, 11/19/2025(e)			2,067		2,288,557
5.50%, 01/16/2025(e)			4,215		4,695,684
Synchrony Financial 2.85%, 07/25/2022			806		831,397
3.95%, 12/01/2027			6,904		7,529,502
4.25%, 08/15/2024			4,911		5,368,705
4.375%, 03/19/2024			499		546,126
4.50%, 07/23/2025			576		640,616
					47,152,311
Insurance – 1.3%
ACE Capital Trust II 9.70%, 04/01/2030			750		1,114,995
AIG Life Holdings, Inc. 8.125%, 03/15/2046(e)			509		725,518
Assicurazioni Generali SpA 5.50%, 10/27/2047(e)	EUR		6,630		9,015,312
Caisse Nationale de Reassurance Mutuelle Agricole Groupama 6.00%, 01/23/2027			3,100		4,390,193
CNP Assurances 4.75%, 06/27/2028(e)(g)			7,200		8,932,466
Fairfax Financial Holdings Ltd. 8.30%, 04/15/2026	U.S.$		5,000		6,142,000
Hartford Financial Services Group, Inc. (The) Series ICON 2.405% (LIBOR 3 Month + 2.13%), 02/12/2047(e)(f)			3,275		2,861,564
MetLife Capital Trust IV 7.875%, 12/15/2037(e)			4,117		5,674,049
Prudential Financial, Inc. 5.20%, 03/15/2044			4,029		4,251,804
5.625%, 06/15/2043			2,868		3,061,561
Voya Financial, Inc. 5.65%, 05/15/2053			12,065		12,431,173
					58,600,635
Other Finance – 0.0%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 4.45%, 04/03/2026			710		715,495

20    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
REITS – 0.6%
Brixmor Operating Partnership LP 4.05%, 07/01/2030	U.S.$		2,215	$	2,392,931
GLP Capital LP/GLP Financing II, Inc. 5.25%, 06/01/2025			886		970,259
5.375%, 04/15/2026			283		314,645
Kite Realty Group LP 4.00%, 10/01/2026			515		499,921
MPT Operating Partnership LP/MPT Finance Corp. 4.625%, 08/01/2029			1,047		1,096,753
5.00%, 10/15/2027			75		78,134
Omega Healthcare Investors, Inc. 4.50%, 01/15/2025			336		359,661
Regency Centers LP 3.60%, 02/01/2027			1,700		1,828,044
Sabra Health Care LP 4.80%, 06/01/2024			1,946		2,055,696
Spirit Realty LP 3.20%, 01/15/2027			2,453		2,475,249
3.40%, 01/15/2030			1,800		1,826,136
4.45%, 09/15/2026			1,010		1,092,355
STORE Capital Corp. 4.625%, 03/15/2029			1,143		1,237,366
Trust Fibra Uno 4.869%, 01/15/2030(e)			4,814		5,006,560
VEREIT Operating Partnership LP 3.40%, 01/15/2028			2,588		2,709,843
4.625%, 11/01/2025			1,286		1,424,682
4.875%, 06/01/2026			459		519,831
					25,888,066
					344,642,355
Industrial – 5.6%
Basic – 0.9%
Anglo American Capital PLC 4.875%, 05/14/2025(e)			2,450		2,787,537
5.375%, 04/01/2025(e)			3,216		3,708,788
ArcelorMittal SA 7.25%, 10/15/2039			1,180		1,441,476
Arconic Corp. 6.00%, 05/15/2025(e)			1,765		1,867,458
Glencore Funding LLC 4.125%, 03/12/2024(e)			7,218		7,804,463
Gold Fields Orogen Holdings BVI Ltd. 5.125%, 05/15/2024(e)			1,445		1,578,663
GTL Trade Finance, Inc. 7.25%, 04/16/2044(e)			274		357,142

abfunds.com AB INCOME FUND    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
GTL Trade Finance, Inc./Gerdau Holdings, Inc. 5.893%, 04/29/2024(e)	U.S.$		1,243	$	1,364,231
GUSAP III LP 4.25%, 01/21/2030(e)			1,491		1,563,779
Industrias Penoles SAB de CV 5.65%, 09/12/2049(e)			970		1,147,631
MEGlobal Canada ULC 5.00%, 05/18/2025(e)			1,988		2,161,950
Minsur SA 6.25%, 02/07/2024(e)			285		312,609
Nexa Resources SA 5.375%, 05/04/2027(e)			10,030		10,596,695
Suzano Austria GmbH 3.75%, 01/15/2031			1,304		1,332,818
7.00%, 03/16/2047(e)			1,532		1,849,890
Vale Overseas Ltd. 3.75%, 07/08/2030			614		641,931
					40,517,061
Capital Goods – 0.1%
General Electric Co. 3.45%, 05/01/2027			815		863,387
Series D 5.00%, 01/21/2021(g)			1,203		983,284
Westinghouse Air Brake Technologies Corp. 3.20%, 06/15/2025			419		444,806
4.40%, 03/15/2024			2,081		2,270,891
					4,562,368
Communications - Media – 0.3%
Prosus NV 3.68%, 01/21/2030(e)			5,224		5,666,407
4.027%, 08/03/2050(e)			1,123		1,165,113
5.50%, 07/21/2025(e)			683		781,181
Weibo Corp. 3.50%, 07/05/2024			4,574		4,771,254
					12,383,955
Communications - Telecommunications – 0.1%
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC 4.738%, 03/20/2025(e)			1,990		2,163,050
5.152%, 03/20/2028(e)			1,990		2,320,201
					4,483,251

22    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Automotive – 0.8%
General Motors Co. 6.125%, 10/01/2025	U.S.$		1,290	$	1,510,551
6.80%, 10/01/2027			1,832		2,252,682
General Motors Financial Co., Inc. 2.20%, 04/01/2024(e)	EUR		1,571		1,889,569
3.50%, 11/07/2024	U.S.$		951		1,006,586
3.70%, 05/09/2023			336		353,099
3.95%, 04/13/2024			1,800		1,918,260
4.15%, 06/19/2023			1,073		1,142,970
5.10%, 01/17/2024			5,068		5,566,438
5.20%, 03/20/2023			1,712		1,858,907
5.25%, 03/01/2026			146		166,634
Harley-Davidson Financial Services, Inc. 2.55%, 06/09/2022(e)			130		132,196
3.35%, 06/08/2025(e)			5,173		5,454,101
Lear Corp. 3.50%, 05/30/2030			855		890,346
3.80%, 09/15/2027			1,378		1,472,820
4.25%, 05/15/2029			545		598,056
Nissan Motor Acceptance Corp. 2.60%, 09/28/2022(e)			246		248,716
2.80%, 01/13/2022(e)			225		228,096
3.45%, 03/15/2023(e)			356		365,818
Nissan Motor Co., Ltd. 4.345%, 09/17/2027(e)			4,615		4,628,337
Volkswagen Group of America Finance LLC 3.35%, 05/13/2025(e)			3,894		4,239,203
					35,923,385
Consumer Cyclical - Other – 0.0%
Lennar Corp. 4.75%, 11/29/2027			75		85,559
Marriott International, Inc./MD Series EE 5.75%, 05/01/2025			1,526		1,699,079
Standard Industries, Inc./NJ 4.375%, 07/15/2030(e)			212		219,017
					2,003,655
Consumer Cyclical - Retailers – 0.1%
VF Corp. 2.80%, 04/23/2027			2,807		3,030,886
Consumer Non - Cyclical – 0.4%
Altria Group, Inc. 4.80%, 02/14/2029			1,145		1,343,348

abfunds.com AB INCOME FUND    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
BAT Capital Corp. 3.215%, 09/06/2026	U.S.$		5,837	$	6,286,041
Cigna Corp. 3.00%, 07/15/2023			6,987		7,417,190
Kimberly-Clark de Mexico SAB de CV 2.431%, 07/01/2031(e)			1,267		1,271,355
					16,317,934
Energy – 1.4%
Boardwalk Pipelines LP 5.95%, 06/01/2026			1,798		2,074,784
Cenovus Energy, Inc. 3.80%, 09/15/2023			2,500		2,537,275
5.375%, 07/15/2025			1,453		1,532,813
Ecopetrol SA 5.875%, 09/18/2023-05/28/2045			813		887,918
6.875%, 04/29/2030			4,658		5,598,916
Empresa Electrica Cochrane SpA 5.50%, 05/14/2027(e)			994		999,323
Enable Midstream Partners LP 4.40%, 03/15/2027			5,350		5,073,565
Energy Transfer Operating LP 5.50%, 06/01/2027			7,425		8,234,622
Eni SpA 4.25%, 05/09/2029(e)			1,969		2,228,495
Hess Corp. 7.30%, 08/15/2031			8,898		10,848,798
Oleoducto Central SA 4.00%, 07/14/2027(e)			1,169		1,218,916
ONEOK, Inc. 4.35%, 03/15/2029			3,952		4,126,639
5.85%, 01/15/2026			7,452		8,484,847
PBF Holding Co. LLC/PBF Finance Corp. 9.25%, 05/15/2025(e)			4,960		4,431,859
Plains All American Pipeline LP/PAA Finance Corp. 4.50%, 12/15/2026			1,287		1,366,640
4.65%, 10/15/2025			3,902		4,163,668
Raizen Fuels Finance SA 5.30%, 01/20/2027(e)			2,218		2,407,223
Sunoco Logistics Partners Operations LP 3.90%, 07/15/2026			383		396,290
					66,612,591
Services – 0.0%
Expedia Group, Inc. 6.25%, 05/01/2025(e)			1,612		1,772,539

24    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Technology – 0.5%
Baidu, Inc. 3.075%, 04/07/2025	U.S.$		797	$	845,918
3.425%, 04/07/2030			225		246,704
Broadcom, Inc. 4.25%, 04/15/2026			6,425		7,226,519
Dell International LLC/EMC Corp. 4.90%, 10/01/2026(e)			4,940		5,625,326
NXP BV/NXP Funding LLC 5.35%, 03/01/2026 (e)			3,499		4,147,330
NXP BV/NXP Funding LLC/NXP USA, Inc. 3.875%, 06/18/2026(e)			1,227		1,383,320
VMware, Inc. 4.50%, 05/15/2025			5,333		6,026,397
					25,501,514
Transportation - Airlines – 0.6%
Delta Air Lines, Inc. 7.00%, 05/01/2025(e)			4,659		5,083,761
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.50%, 10/20/2025(e)			1,412		1,432,686
4.75%, 10/20/2028(e)			1,640		1,677,425
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd. 6.50%, 06/20/2027(e)			8,739		9,113,318
Southwest Airlines Co. 5.25%, 05/04/2025			9,941		11,029,838
					28,337,028
Transportation - Railroads – 0.1%
Lima Metro Line 2 Finance Ltd. 4.35%, 04/05/2036(e)			387		425,216
5.875%, 07/05/2034(e)			1,757		2,108,924
					2,534,140
Transportation - Services – 0.3%
Aviation Capital Group LLC 2.875%, 01/20/2022(e)			1,672		1,669,375
3.50%, 11/01/2027(e)			766		676,700
3.875%, 05/01/2023(e)			3,587		3,587,502
4.125%, 08/01/2025(e)			1,592		1,532,411
4.375%, 01/30/2024(e)			1,694		1,706,010
4.875%, 10/01/2025(e)			1,315		1,297,997
5.50%, 12/15/2024(e)			4,722		4,917,208
					15,387,203
					259,367,510

abfunds.com AB INCOME FUND    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Utility – 0.6%
Electric – 0.6%
AES Panama Generation Holdings SRL 4.375%, 05/31/2030(e)	U.S.$		1,094	$	1,154,344
Colbun SA 3.15%, 03/06/2030(e)			209		217,888
ComEd Financing III 6.35%, 03/15/2033			3,462		4,038,319
Empresas Publicas de Medellin ESP 4.25%, 07/18/2029(e)			3,775		3,875,188
4.375%, 02/15/2031(e)			5,315		5,422,961
Enel Finance International NV 4.625%, 09/14/2025(e)			5,060		5,822,795
Engie Energia Chile SA 4.50%, 01/29/2025(e)			6,212		6,807,187
LLPL Capital Pte Ltd. 6.875%, 02/04/2039(e)			1,155		1,325,689
					28,664,371
Total Corporates – Investment Grade (cost $597,959,805)					632,674,236
CORPORATES – NON-INVESTMENT GRADE – 12.6%
Industrial – 10.5%
Basic – 1.0%
Advanced Drainage Systems, Inc. 5.00%, 09/30/2027(e)			489		513,323
Alcoa Nederland Holding BV 6.125%, 05/15/2028(e)			510		546,506
Big River Steel LLC/BRS Finance Corp. 6.625%, 01/31/2029(e)			1,726		1,775,502
CF Industries, Inc. 4.95%, 06/01/2043			75		89,775
Cleveland-Cliffs, Inc. 9.875%, 10/17/2025(e)			3,089		3,532,086
Constellium SE 4.25%, 02/15/2026(e)	EUR		2,060		2,409,568
Element Solutions, Inc. 3.875%, 09/01/2028(e)	U.S.$		792		781,870
ERP Iron Ore, LLC 9.039%, 12/31/2019(h)(i)(j)(k)(l)			118		100,623
Graham Packaging Co., Inc. 7.125%, 08/15/2028(e)			454		475,406
Graphic Packaging International LLC 4.75%, 07/15/2027(e)			1,032		1,121,031
Hecla Mining Co. 7.25%, 02/15/2028			5,371		5,773,932

26    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Illuminate Buyer LLC/Illuminate Holdings IV, Inc. 9.00%, 07/01/2028(e)	U.S.$		2,965	$	3,171,216
INEOS Group Holdings SA 5.375%, 08/01/2024(e)	EUR		3,215		3,730,009
Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co-Issuer LLC 6.00%, 09/15/2028(e)	U.S.$		2,626		2,673,688
Joseph T Ryerson & Son, Inc. 8.50%, 08/01/2028(e)			2,712		2,909,054
Kaiser Aluminum Corp. 6.50%, 05/01/2025(e)			1,211		1,286,276
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018(h)(i)(j)(k)(m)			1,407		– 0	–
Nouryon Holding BV 6.50%, 10/01/2026(e)	EUR		2,515		2,980,911
8.00%, 10/01/2026(e)	U.S.$		772		814,483
OCI NV 5.25%, 11/01/2024(e)			2,462		2,518,675
Olin Corp. 5.625%, 08/01/2029			1,148		1,185,241
Peabody Energy Corp. 6.00%, 03/31/2022(m)			2,380		1,088,160
SPCM SA 4.875%, 09/15/2025(e)			913		942,006
United States Steel Corp. 12.00%, 06/01/2025(e)			5,365		5,954,452
Valvoline, Inc. 4.25%, 02/15/2030(e)			1,485		1,516,022
					47,889,815
Capital Goods – 1.1%
ARD Finance SA 5.00% (5.00% Cash or 5.75% PIK), 06/30/2027(e)(l)	EUR		1,076		1,212,436
6.50% (6.50% Cash or 7.25% PIK), 06/30/2027(e)(l)	U.S.$		5,393		5,470,120
Bombardier, Inc. 6.00%, 10/15/2022(e)			2,000		1,783,780
7.50%, 12/01/2024-03/15/2025(e)			2,675		1,972,057
7.875%, 04/15/2027(e)			1,946		1,417,233
Clean Harbors, Inc. 4.875%, 07/15/2027(e)			1,462		1,527,907
Cleaver-Brooks, Inc. 7.875%, 03/01/2023(e)			1,258		1,218,889
Colfax Corp. 6.00%, 02/15/2024(e)			338		351,777
6.375%, 02/15/2026(e)			361		384,071

abfunds.com AB INCOME FUND    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

			Principal Amount (000)		U.S. $ Value
Energizer Holdings, Inc. 4.75%, 06/15/2028(e)		U.S.$		139	$	143,554
F-Brasile SpA/F-Brasile US LLC Series XR 7.375%, 08/15/2026(e)				2,778		2,411,637
Gates Global LLC/Gates Corp. 6.25%, 01/15/2026(e)				4,047		4,188,645
GFL Environmental, Inc. 5.125%, 12/15/2026(e)				273		286,478
7.00%, 06/01/2026(e)				910		950,231
8.50%, 05/01/2027(e)				960		1,047,984
Griffon Corp. 5.75%, 03/01/2028				3,209		3,363,192
OI European Group BV 3.125%, 11/15/2024(e)		EUR		3,140		3,659,049
Signature Aviation US Holdings, Inc. 4.00%, 03/01/2028(e)		U.S.$		2,300		2,225,273
Terex Corp. 5.625%, 02/01/2025(e)				677		687,697
TransDigm, Inc. 6.25%, 03/15/2026(e)				1,033		1,077,223
6.375%, 06/15/2026				847		844,044
6.50%, 07/15/2024				1,489		1,493,497
8.00%, 12/15/2025(e)				920		996,157
Triumph Group, Inc. 6.25%, 09/15/2024(e)				1,309		1,131,421
7.75%, 08/15/2025				724		470,622
8.875%, 06/01/2024(e)				1,838		1,956,661
Trivium Packaging Finance BV 3.75%, 08/15/2026(e)		EUR		100		115,009
8.50%, 08/15/2027(e)	U.S.$			2,328		2,492,473
Vertical Holdco GmbH 7.625%, 07/15/2028(e)				1,124		1,167,634
Vertical US Newco, Inc. 5.25%, 07/15/2027(e)				2,459		2,530,508
Wesco Distribution, Inc. 7.25%, 06/15/2028(e)				724		792,165
						49,369,424
Communications - Media – 0.9%
Advantage Sales & Marketing, Inc. 1.00%, 10/22/2027(n)				1,300		1,269,944
6.50%, 11/15/2028(e)				6,967		6,809,755
Banijay Entertainment SASU 3.50%, 03/01/2025(e)		EUR		600		684,814
5.375%, 03/01/2025(e)		U.S.$		1,955		1,977,639
CCO Holdings LLC/CCO Holdings Capital Corp. 5.75%, 02/15/2026(e)				75		77,742

28    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Clear Channel Worldwide Holdings, Inc. 5.125%, 08/15/2027(e)	U.S.$		1,977	$	1,935,799
CSC Holdings LLC 3.375%, 02/15/2031(e)			459		441,517
6.50%, 02/01/2029(e)			692		767,892
7.50%, 04/01/2028(e)			1,631		1,786,548
DISH DBS Corp. 7.75%, 07/01/2026			3,045		3,229,223
iHeartCommunications, Inc. 5.25%, 08/15/2027(e)			1,439		1,420,969
6.375%, 05/01/2026			81		84,738
8.375%, 05/01/2027			147		143,795
Lamar Media Corp. 4.875%, 01/15/2029			364		378,585
LCPR Senior Secured Financing DAC 6.75%, 10/15/2027(e)			3,152		3,347,991
Meredith Corp. 6.875%, 02/01/2026			2,853		2,364,909
National CineMedia LLC 5.875%, 04/15/2028(e)			2,267		1,581,301
Sinclair Television Group, Inc. 5.50%, 03/01/2030(e)			2,251		2,117,943
Sirius XM Radio, Inc. 5.50%, 07/01/2029(e)			75		81,612
TEGNA, Inc. 5.00%, 09/15/2029			3,630		3,674,831
Univision Communications, Inc. 5.125%, 02/15/2025(e)			270		265,402
6.625%, 06/01/2027(e)			3,010		3,039,769
Ziggo Bond Co. BV 5. 125%, 02/28/2030(e)			693		712,813
6.00%, 01/15/2027(e)			3,000		3,114,630
					41,310,161
Communications - Telecommunications – 0.3%
C&W Senior Financing DAC 6.875%, 09/15/2027(e)			1,247		1,324,676
7.50%, 10/15/2026(e)			893		940,659
Connect Finco SARL/Connect US Finco LLC 6.75%, 10/01/2026(e)			2,301		2,318,165
Consolidated Communications, Inc. 6.50%, 10/01/2028(e)			3,624		3,723,479
DKT Finance ApS 7.00%, 06/17/2023(e)	EUR		1,424		1,666,754
Intelsat Jackson Holdings SA 5.50%, 08/01/2023(j)(o)	U.S.$		4,941		2,907,235

abfunds.com AB INCOME FUND    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Telecom Italia Capital SA 7.721%, 06/04/2038	U.S.$		75	$	101,898
Zayo Group Holdings, Inc. 6.125%, 03/01/2028(e)			2,825		2,859,776
					15,842,642
Consumer Cyclical - Automotive – 0.8%
Adient US LLC 9.00%, 04/15/2025(e)			2,568		2,823,336
American Axle & Manufacturing, Inc. 6.875%, 07/01/2028			3,792		3,853,772
Clarios Global LP/Clarios US Finance Co. 4.375%, 05/15/2026(e)	EUR		360		420,729
6.25%, 05/15/2026(e)	U.S.$		226		235,248
8.50%, 05/15/2027(e)			1,679		1,752,439
Dealer Tire LLC/DT Issuer LLC 8.00%, 02/01/2028(e)			2,269		2,324,749
Exide International 10.75%, 10/31/2021(h)(i)			3,093		0
Exide Technologies 11.00%, 10/31/2024(h)(i)			3,206		0
Ford Motor Co. 8.50%, 04/21/2023			8,065		8,900,615
9.00%, 04/22/2025			2,242		2,641,323
Garrett LX I Sarl/Garrett Borrowing LLC 5.125%, 10/15/2026(e)(j)(o)	EUR		2,434		2,792,690
IHO Verwaltungs GmbH 3.625%, 05/15/2025(e)(l)			560		651,304
3.875%, 05/15/2027(e)(l)			623		725,577
Jaguar Land Rover Automotive PLC 7.75%, 10/15/2025(e)	U.S.$		1,661		1,677,793
Meritor, Inc. 6.25%, 06/01/2025(e)			1,006		1,029,571
PM General Purchaser LLC 9.50%, 10/01/2028(e)			1,079		1,127,447
Tenneco, Inc. 4.875%, 04/15/2022(e)	EUR		2,484		2,835,362
5.00%, 07/15/2026	U.S.$		2,680		2,080,377
Titan International, Inc. 6.50%, 11/30/2023			873		673,240
Truck Hero, Inc. 8.50%, 04/21/2024(e)			1,851		1,953,286
					38,498,858
Consumer Cyclical - Entertainment – 0.9%
AMC Entertainment Holdings, Inc. 5.75%, 06/15/2025			2,000		97,800

30    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Carnival Corp. 9.875%, 08/01/2027(e)	U.S.$		1,508	$	1,568,486
11.50%, 04/01/2023(e)			8,707		9,582,924
Cedar Fair LP 5.25%, 07/15/2029			996		902,197
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op 5.50%, 05/01/2025(e)			9,553		9,671,648
Mattel, Inc. 5.875%, 12/15/2027(e)			1,591		1,728,208
6.75%, 12/31/2025(e)			450		472,630
Royal Caribbean Cruises Ltd. 10.875%, 06/01/2023(e)			2,193		2,392,081
11.50%, 06/01/2025(e)			3,954		4,523,060
SeaWorld Parks & Entertainment, Inc. 8.75%, 05/01/2025(e)			4,017		4,219,899
9.50%, 08/01/2025(e)			3,735		3,920,405
Six Flags Theme Parks, Inc. 7.00%, 07/01/2025(e)			1,820		1,927,125
Viking Cruises Ltd. 5.875%, 09/15/2027(e)			1,057		816,342
VOC Escrow Ltd. 5.00%, 02/15/2028(e)			75		65,029
					41,887,834
Consumer Cyclical - Other – 0.9%
Adams Homes, Inc. 7.50%, 02/15/2025(e)			2,232		2,248,450
Beazer Homes USA, Inc. 5.875%, 10/15/2027			663		676,220
Boyd Gaming Corp. 8.625%, 06/01/2025(e)			787		860,884
Brookfield Residential Properties, Inc./Brookfield Residential US Corp. 4.875%, 02/15/2030(e)			937		890,319
6.25%, 09/15/2027(e)			3,475		3,558,574
Caesars Entertainment, Inc. 6.25%, 07/01/2025(e)			1,876		1,929,691
Five Point Operating Co. LP/Five Point Capital Corp. 7.875%, 11/15/2025(e)			2,330		2,327,297
Forestar Group, Inc. 5.00%, 03/01/2028(e)			1,669		1,655,665
8.00%, 04/15/2024(e)			1,470		1,540,281
Forterra Finance LLC/FRTA Finance Corp. 6.50%, 07/15/2025(e)			1,383		1,463,629
Hilton Domestic Operating Co., Inc. 5.375%, 05/01/2025(e)			314		326,221

abfunds.com AB INCOME FUND    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
5.75%, 05/01/2028(e)	U.S.$		339	$	355,563
Installed Building Products, Inc. 5.75%, 02/01/2028(e)			846		890,440
International Game Technology PLC 5.25%, 01/15/2029(e)			1,325		1,319,514
K. Hovnanian Enterprises, Inc. 10.00%, 07/15/2022(e)			3,302		3,193,463
Marriott Ownership Resorts, Inc. 6.125%, 09/15/2025(e)			1,618		1,686,555
Marriott Ownership Resorts, Inc./ILG LLC 6.50%, 09/15/2026			2,111		2,173,401
Mattamy Group Corp. 5.25%, 12/15/2027(e)			954		1,008,855
Shea Homes LP/Shea Homes Funding Corp. 4.75%, 02/15/2028(e)			1,969		2,000,406
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp. 5.875%, 05/15/2025(e)			688		667,133
Taylor Morrison Communities, Inc. 5.875%, 06/15/2027(e)			1,345		1,491,565
Twin River Worldwide Holdings, Inc. 6.75%, 06/01/2027(e)			2,577		2,610,166
Wyndham Destinations, Inc. 6.625%, 07/31/2026(e)			2,404		2,558,433
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.50%, 03/01/2025(e)			75		71,788
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp. 5.125%, 10/01/2029(e)			1,583		1,520,519
7.75%, 04/15/2025(e)			793		834,537
					39,859,569
Consumer Cyclical - Restaurants – 0.0%
1011778 BC ULC/New Red Finance, Inc. 3.875%, 01/15/2028(e)			14		14,215
IRB Holding Corp. 6.75%, 02/15/2026(e)			1,031		1,039,444
					1,053,659
Consumer Cyclical - Retailers – 0.6%
Burlington Coat Factory Warehouse Corp. 6.25%, 04/15/2025(e)			616		647,219
Dufry One BV 2.50%, 10/15/2024(e)	EUR		1,810		1,905,584
FirstCash, Inc. 4.625%, 09/01/2028(e)	U.S.$		1,608		1,636,944
L Brands, Inc. 5.25%, 02/01/2028			252		247,943

32    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
6.625%, 10/01/2030(e)	U.S.$		1,849	$	1,940,248
6.75%, 07/01/2036			704		712,786
6.875%, 07/01/2025(e)			186		199,316
6.875%, 11/01/2035			2,210		2,246,885
7.50%, 06/15/2029			236		252,609
9.375%, 07/01/2025(e)			320		371,360
Penske Automotive Group, Inc. 3.50%, 09/01/2025			790		792,259
PetSmart, Inc. 7.125%, 03/15/2023(e)			5,216		5,129,466
Rite Aid Corp. 7.50%, 07/01/2025(e)			2,583		2,583,594
Specialty Building Products Holdings LLC/SBP Finance Corp. 6.375%, 09/30/2026(e)			3,230		3,301,674
Staples, Inc. 7.50%, 04/15/2026(e)			4,173		3,896,831
10.75%, 04/15/2027(e)			1,108		881,946
TPro Acquisition Corp. 11.00%, 10/15/2024(e)			1,216		1,217,739
William Carter Co. (The) 5.50%, 05/15/2025(e)			2,154		2,262,217
					30,226,620
Consumer Non-Cyclical – 0.8%
Acadia Healthcare Co., Inc. 5.50%, 07/01/2028(e)			1,720		1,797,452
AdaptHealth LLC 6.125%, 08/01/2028(e)			1,265		1,317,497
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 4.625%, 01/15/2027(e)			799		824,025
4.875%, 02/15/2030(e)			82		87,058
Bausch Health Americas, Inc. 8.50%, 01/31/2027(e)			223		243,681
Bausch Health Cos., Inc. 4.50%, 05/15/2023(e)	EUR		1,800		2,075,637
6.125%, 04/15/2025(e)	U.S.$		446		457,636
7.25%, 05/30/2029(e)			223		239,926
CD&R Smokey Buyer, Inc. 6.75%, 07/15/2025(e)			332		352,903
CHS/Community Health Systems, Inc. 8.125%, 06/30/2024(e)			162		124,853
Emergent BioSolutions, Inc. 3.875%, 08/15/2028(e)			642		645,255
Endo Dac/Endo Finance LLC/Endo Finco, Inc.
6.00%, 06/30/2028(e)			1,928		1,489,322

abfunds.com AB INCOME FUND    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
9.50%, 07/31/2027(e)	U.S.$		1,413	$	1,515,442
Envision Healthcare Corp. 8.75%, 10/15/2026(e)			1,623		769,221
Grifols SA 3.20%, 05/01/2025(e)	EUR		5,083		5,901,683
Mallinckrodt International Finance SA/Mallinckrodt CB LLC 5.50%, 04/15/2025(e)(j)(o)	U.S.$		548		193,093
5.625%, 10/15/2023(e)(j)(o)			107		34,636
MEDNAX, Inc. 6.25%, 01/15/2027(e)			75		77,359
Par Pharmaceutical, Inc. 7.50%, 04/01/2027(e)			1,366		1,446,908
Post Holdings, Inc. 4.625%, 04/15/2030(e)			2,122		2,180,461
Providence Service Corp. (The) 5.875%, 11/15/2025(e)			870		885,486
Radiology Partners, Inc. 9.25%, 02/01/2028(e)			3,294		3,510,021
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/2026(e)			4,840		5,214,084
Sunshine Mid BV 6.50%, 05/15/2026(e)	EUR		2,077		2,419,486
Tenet Healthcare Corp. 7.50%, 04/01/2025(e)	U.S.$		2,520		2,714,821
Vizient, Inc. 6.25%, 05/15/2027(e)			561		591,384
					37,109,330
Energy – 1.3%
Antero Resources Corp. 5.125%, 12/01/2022			1,908		1,768,010
Callon Petroleum, Co. 6.25%, 04/15/2023			1,252		485,976
Citgo Holding, Inc. 9.25%, 08/01/2024(e)			737		617,790
CITGO Petroleum Corp. 6.25%, 08/15/2022(e)			1,577		1,517,705
7.00%, 06/15/2025(e)			2,880		2,667,370
Comstock Resources, Inc. 9.75%, 08/15/2026			1,613		1,699,796
Diamond Offshore Drilling, Inc. 7.875%, 08/15/2025(j)(o)			2,642		180,924
EnLink Midstream Partners LP 4.40%, 04/01/2024			318		289,956
EQT Corp. 8.75%, 02/01/2030			2,652		3,294,314

34    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Genesis Energy LP/Genesis Energy Finance Corp. 6.25%, 05/15/2026	U.S.$		1,149	$	920,418
6.50%, 10/01/2025			179		148,212
7.75%, 02/01/2028			4,346		3,608,484
Global Partners LP/GLP Finance Corp. 6.875%, 01/15/2029(e)			1,924		1,982,413
Gran Tierra Energy, Inc. 7.75%, 05/23/2027(e)			1,998		696,423
Gulfport Energy Corp. 6.00%, 10/15/2024			280		155,134
6.375%, 05/15/2025-01/15/2026			2,469		1,365,407
Hess Midstream Operations LP 5.625%, 02/15/2026(e)			2,739		2,737,603
HighPoint Operating Corp. 7.00%, 10/15/2022			343		76,307
Indigo Natural Resources LLC 6.875%, 02/15/2026(e)			1,285		1,272,176
Nabors Industries Ltd. 7.25%, 01/15/2026(e)			1,294		538,175
7.50%, 01/15/2028(e)			1,372		548,827
New Fortress Energy, Inc. 6.75%, 09/15/2025(e)			6,052		6,239,673
NGL Energy Partners LP/NGL Energy Finance Corp. 7.50%, 11/01/2023			2,596		1,398,907
Occidental Petroleum Corp. 2.90%, 08/15/2024			4,990		4,152,927
3.20%, 08/15/2026			771		595,351
5.875%, 09/01/2025			1,121		986,166
8.00%, 07/15/2025			1,755		1,711,634
8.50%, 07/15/2027			891		855,387
8.875%, 07/15/2030			891		871,959
Parkland Corp./Canada 6.00%, 04/01/2026(e)			2,841		2,935,492
PDC Energy, Inc. 5.75%, 05/15/2026			1,075		1,013,005
QEP Resources, Inc. 5.25%, 05/01/2023			581		458,827
5.625%, 03/01/2026			1,571		995,904
SandRidge Energy, Inc. 7.50%, 02/15/2023(h)(i)(j)			1,259		– 0	–
SM Energy Co. 5.625%, 06/01/2025			685		272,185
Sunoco LP/Sunoco Finance Corp. 5.875%, 03/15/2028			1,164		1,207,801
6.00%, 04/15/2027			87		89,937

abfunds.com AB INCOME FUND    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 6.50%, 07/15/2027	U.S.$		775	$	817,625
Transocean Phoenix 2 Ltd. 7.75%, 10/15/2024(e)			480		440,582
Transocean, Inc. 7.50%, 01/15/2026(e)			1,061		234,385
8.00%, 02/01/2027(e)			2,513		692,859
Vantage Drilling International 7.125%, 04/01/2023(h)(i)(j)			3,068		– 0	–
Vine Oil & Gas LP/Vine Oil & Gas Finance Corp. 8.75%, 04/15/2023(e)			3,507		2,573,752
Western Midstream Operating LP 3.95%, 06/01/2025			207		191,703
4.65%, 07/01/2026			3,058		2,929,962
4.75%, 08/15/2028			1,490		1,397,605
5.05%, 02/01/2030			1,254		1,189,406
					60,824,454
Other Industrial – 0.1%
Avient Corp. 5.75%, 05/15/2025(e)			1,790		1,880,305
KAR Auction Services, Inc. 5.125%, 06/01/2025(e)			75		76,081
Laureate Education, Inc. 8.25%, 05/01/2025(e)			992		1,056,589
					3,012,975
Services – 0.8%
Allied Universal Holdco LLC/Allied Universal Finance Corp. 6.625%, 07/15/2026(e)			2,167		2,269,434
9.75%, 07/15/2027(e)			1,513		1,617,972
ANGI Group LLC 3.875%, 08/15/2028(e)			458		452,664
APX Group, Inc. 6.75%, 02/15/2027(e)			3,506		3,671,729
7.625%, 09/01/2023(c)			2,000		2,016,180
7.875%, 12/01/2022			694		693,077
Aramark Services, Inc. 6.375%, 05/01/2025(e)			2,767		2,903,939
Cars.com, Inc. 6.375%, 11/01/2028(e)			2,427		2,414,501
eDreams ODIGEO SA 5.50%, 09/01/2023(e)	EUR		1,327		1,294,997
Garda World Security Corp. 9.50%, 11/01/2027(e)	U.S.$		3,358		3,606,123
Gartner, Inc. 4.50%, 07/01/2028(e)			921		961,192

36    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Monitronics International, Inc. 0.00%, 04/01/2020(h)(i)(j)(k)	U.S.$		1,835	$	– 0	–
MPH Acquisition Holdings LLC 5.75%, 11/01/2028(e)			4,123		4,051,878
Prime Security Services Borrower LLC/Prime Finance, Inc. 5.25%, 04/15/2024(e)			75		78,427
6.25%, 01/15/2028(e)			3,102		3,134,075
Refinitiv US Holdings, Inc. 8.25%, 11/15/2026(e)			348		378,126
Sabre GLBL, Inc. 9.25%, 04/15/2025(e)			1,581		1,750,009
TripAdvisor, Inc. 7.00%, 07/15/2025(e)			1,231		1,280,228
Verscend Escrow Corp. 9.75%, 08/15/2026(e)			4,000		4,299,680
					36,874,231
Technology – 0.6%
Avaya, Inc. 6.125%, 09/15/2028(e)			3,860		3,965,146
Banff Merger Sub, Inc. 9.75%, 09/01/2026(e)			2,954		3,104,300
Cablevision Lightpath LLC 5.625%, 09/15/2028(e)			1,847		1,866,190
CDW LLC/CDW Finance Corp. 3.25%, 02/15/2029			772		771,352
CommScope, Inc. 6.00%, 03/01/2026(e)			589		610,834
8.25%, 03/01/2027(e)			1,061		1,098,634
Logan Merger Sub, Inc. 5.50%, 09/01/2027(e)			881		893,184
Microchip Technology, Inc. 4.25%, 09/01/2025(e)			994		1,030,291
NCR Corp. 5.75%, 09/01/2027(e)			473		487,587
6.125%, 09/01/2029(e)			366		386,196
8.125%, 04/15/2025(e)			1,180		1,297,398
Presidio Holdings, Inc. 4.875%, 02/01/2027(e)			165		169,488
8.25%, 02/01/2028(e)			1,836		1,948,180
Science Applications International Corp. 4.875%, 04/01/2028(e)			448		469,284
Veritas US, Inc./Veritas Bermuda Ltd. 7.50%, 02/01/2023-09/01/2025(e)			7,607		7,686,769
Xerox Corp. 4.375%, 03/15/2023			27		28,103
					25,812,936

abfunds.com AB INCOME FUND    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Transportation - Airlines – 0.2%
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd. 8.00%, 09/20/2025(e)	U.S.$		7,724	$	8,188,262
Transportation - Services – 0.2%
Algeco Global Finance PLC 8.00%, 02/15/2023(e)			2,258		2,262,584
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 5.75%, 07/15/2027(e)			787		742,172
10.50%, 05/15/2025(e)			4,367		5,031,701
XPO Logistics, Inc. 6.75%, 08/15/2024(e)			170		179,792
					8,216,249
					485,977,019
Financial Institutions – 2.0%
Banking – 1.0%
Alliance Data Systems Corp. 4.75%, 12/15/2024(e)			4,513		4,201,422
7.00%, 01/15/2026(e)			1,800		1,806,012
Banco Bilbao Vizcaya Argentaria SA 5.875%, 05/24/2022-09/24/2023(e)(g)	EUR		6,400		7,323,319
Series 9 6.50%, 03/05/2025(g)	U.S.$		1,800		1,772,568
Banco Santander SA 6.75%, 04/25/2022(e)(g)	EUR		3,700		4,449,254
Citizens Financial Group, Inc. Series A 4.194% (LIBOR 3 Month + 3.96%), 01/06/2021(f)(g)	U.S.$		222		214,277
Credit Suisse Group AG 6.25%, 12/18/2024(e)(g)			640		682,605
6.375%, 08/21/2026(e)(g)			3,961		4,282,712
7.50%, 07/17/2023-12/11/2023(e)(g)			7,239		7,717,627
Discover Financial Services Series D 6.125%, 06/23/2025(g)			2,197		2,352,372
Exide Global Holding NETH 10.75%, 06/30/2024(h)(i)			1,124		899,242
HSBC Finance Corp. 6.676%, 01/15/2021			2,765		2,791,489
Intesa Sanpaolo SpA 5.017%, 06/26/2024(e)			999		1,054,305
Societe Generale SA 8.00%, 09/29/2025(e)(g)			2,015		2,258,251
UniCredit SpA 9.25%, 06/03/2022(e)(g)	EUR		2,700		3,368,510
					45,173,965

38    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Brokerage – 0.1%
NFP Corp. 6.875%, 08/15/2028(e)	U.S.$		2,285	$	2,220,769
7.00%, 05/15/2025(e)			2,239		2,379,139
					4,599,908
Finance – 0.2%
Curo Group Holdings Corp. 8.25%, 09/01/2025(e)			2,000		1,654,620
Enova International, Inc. 8.50%, 09/01/2024(e)			3,418		3,167,939
goeasy Ltd. 5.375%, 12/01/2024(e)			2,145		2,170,997
Jefferies Finance LLC/JFIN Co-Issuer Corp. 6.25%, 06/03/2026(e)			823		840,036
Lincoln Financing SARL 3.625%, 04/01/2024(e)	EUR		759		840,452
Navient Corp. 6.50%, 06/15/2022	U.S.$		71		72,924
					8,746,968
Insurance – 0.2%
Acrisure LLC/Acrisure Finance, Inc. 7.00%, 11/15/2025(e)			4,241		4,234,554
10.125%, 08/01/2026(e)			831		920,249
Alliant Holdings Intermediate LLC/Alliant Holdings Co-Issuer 6.75%, 10/15/2027(e)			2,948		3,095,400
Ardonagh Midco 2 PLC 11.50%, 01/15/2027(e)			2,227		2,191,257
					10,441,460
Other Finance – 0.3%
Altice France Holding SA 10.50%, 05/15/2027(e)			3,024		3,333,990
Intrum AB 2.75%, 07/15/2022(e)	EUR		127		146,581
3.00%, 09/15/2027(e)			1,490		1,504,738
3.50%, 07/15/2026(e)			1,040		1,078,000
Nordic Aviation Capital 5.04%, 02/27/2024(i)	U.S.$		12,727		9,450,051
					15,513,360
REITS – 0.2%
Brookfield Property REIT, Inc./BPR Cumulus LLC/BPR Nimbus LLC/GGSI Sellco LL 5.75%, 05/15/2026(e)			2,479		2,055,488
Diversified Healthcare Trust 9.75%, 06/15/2025			1,389		1,526,205

abfunds.com AB INCOME FUND    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Iron Mountain, Inc. 4.875%, 09/15/2027-09/15/2029(e)	U.S.$		1,110	$	1,119,682
5.00%, 07/15/2028(e)			138		140,876
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. 4.625%, 06/15/2025(e)			628		639,436
Realogy Group LLC/Realogy Co-Issuer Corp. 9.375%, 04/01/2027(e)			4,479		4,747,605
					10,229,292
					94,704,953
Utility – 0.1%
Electric – 0.1%
NRG Energy, Inc. 6.625%, 01/15/2027			75		78,904
Talen Energy Supply LLC 6.50%, 06/01/2025			394		234,552
7.25%, 05/15/2027(e)			850		839,698
10.50%, 01/15/2026(e)			3,081		2,104,200
Vistra Operations Co. LLC 5.625%, 02/15/2027(e)			75		78,375
					3,335,729
Total Corporates – Non-Investment Grade (cost $601,532,562)					584,017,701
COLLATERALIZED MORTGAGE OBLIGATIONS – 8.4%
Risk Share Floating Rate – 7.4%
Bellemeade Re Ltd. Series 2017-1, Class M2 3.499% (LIBOR 1 Month + 3.35%), 10/25/2027(e)(f)			541		540,177
Series 2018-3A, Class M1B 1.999% (LIBOR 1 Month + 1.85%), 10/25/2028(e)(f)			944		937,432
Series 2019-1A, Class M2 2.849% (LIBOR 1 Month + 2.70%), 03/25/2029(e)(f)			1,340		1,258,768
Series 2019-2A, Class M1C 2.149% (LIBOR 1 Month + 2.00%), 04/25/2029(e)(f)			9,029		8,916,403
Series 2019-3A, Class M1B 1.749% (LIBOR 1 Month + 1.60%), 07/25/2029(e)(f)			634		621,503
Series 2019-3A, Class M1C 2.099% (LIBOR 1 Month + 1.95%), 07/25/2029(e)(f)			15,567		14,804,609

40    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-4A, Class M1C 2.649% (LIBOR 1 Month + 2.50%), 10/25/2029(e)(f)	U.S.$		7,608	$	7,418,412
Series 2020-2A, Class M1C 4.149% (LIBOR 1 Month + 4.00%), 08/26/2030(e)(f)			10,680		10,733,741
Connecticut Avenue Securities Trust Series 2020-R02, Class 2M1 0.899% (LIBOR 1 Month + 0.75%), 01/25/2040(e)(f)			6,728		6,721,716
Eagle RE Ltd. Series 2018-1, Class M1 1.849% (LIBOR 1 Month + 1.70%), 11/25/2028(e)(f)			513		505,317
Federal Home Loan Mortgage Corp.
Series 2018-HQA2, Class M2 2.449% (LIBOR 1 Month + 2.30%), 10/25/2048(e)(f)			11,000		10,688,148
Series 2020-HQA2, Class M2 3.249% (LIBOR 1 Month + 3.10%), 03/25/2050(e)(f)			509		500,274
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes
Series 2013-DN2, Class M2 4.399% (LIBOR 1 Month + 4.25%), 11/25/2023(f)			2,449		2,246,011
Series 2014-DN3, Class M3 4.149% (LIBOR 1 Month + 4.00%), 08/25/2024(f)			2,350		2,368,111
Series 2014-HQ2, Class M3 3.899% (LIBOR 1 Month + 3.75%), 09/25/2024(f)			1,010		1,031,019
Series 2015-DN1, Class B 11.649% (LIBOR 1 Month + 11.50%), 01/25/2025(f)			2,541		2,844,043
Series 2015-DNA1, Class M3 3.449% (LIBOR 1 Month + 3.30%), 10/25/2027(f)			700		720,534
Series 2015-DNA2, Class B 7.699% (LIBOR 1 Month + 7.55%), 12/25/2027(f)			1,485		1,486,731
Series 2015-DNA3, Class B 9.499% (LIBOR 1 Month + 9.35%), 04/25/2028(f)			2,467		2,865,542
Series 2015-HQA1, Class B 8.949% (LIBOR 1 Month + 8.80%), 03/25/2028(f)			1,573		1,682,662

abfunds.com AB INCOME FUND    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2016-DNA1, Class B 10.148% (LIBOR 1 Month + 10.00%), 07/25/2028(f)	U.S.$		2,226	$	2,442,051
Series 2016-DNA2, Class M3 4.799% (LIBOR 1 Month + 4.65%), 10/25/2028(f)			4,632		4,810,647
Series 2016-DNA4, Class M3 3.949% (LIBOR 1 Month + 3.80%), 03/25/2029(f)			5,093		5,280,981
Series 2016-HQA2, Class M3 5.299% (LIBOR 1 Month + 5.15%), 11/25/2028(f)			7,384		7,695,081
Series 2017-DNA1, Class M2 3.399% (LIBOR 1 Month + 3.25%), 07/25/2029(f)			2,516		2,587,932
Series 2017-DNA2, Class B1 5.299% (LIBOR 1 Month + 5.15%), 10/25/2029(f)			5,178		5,371,540
Series 2017-DNA2, Class M2 3.599% (LIBOR 1 Month + 3.45%), 10/25/2029(f)			1,168		1,200,309
Series 2017-DNA3, Class B1 4.599% (LIBOR 1 Month + 4.45%), 03/25/2030(f)			4,550		4,481,780
Series 2017-HQA2, Class B1 4.899% (LIBOR 1 Month + 4.75%), 12/25/2029(f)			3,000		2,955,008
Series 2017-HQA3, Class B1 4.599% (LIBOR 1 Month + 4.45%), 04/25/2030(f)			9,090		8,824,019
Series 2017-HQA3, Class M2 2.499% (LIBOR 1 Month + 2.35%), 04/25/2030(f)			6,985		7,047,856
Series 2018-HQA1, Class B1 4.499% (LIBOR 1 Month + 4.35%), 09/25/2030(f)			4,520		4,246,004
Series 2018-HQA1, Class M2 2.449% (LIBOR 1 Month + 2.30%), 09/25/2030(f)			2,999		2,932,137
Series 2020-DNA1, Class M2 1.849% (LIBOR 1 Month + 1.70%), 01/25/2050(e)(f)			11,178		10,929,180
Federal National Mortgage Association Connecticut Avenue Securities
Series 2014-C01, Class M2 4.549% (LIBOR 1 Month + 4.40%), 01/25/2024(f)			4,204		3,983,396

42    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2014-C02, Class 1M2 2.749% (LIBOR 1 Month + 2.60%), 05/25/2024(f)	U.S.$		2,901	$	2,554,891
Series 2014-C04, Class 1M2 5.049% (LIBOR 1 Month + 4.90%), 11/25/2024(f)			5,428		5,624,829
Series 2014-C04, Class 2M2 5.149% (LIBOR 1 Month + 5.00%), 11/25/2024(f)			822		840,994
Series 2015-C02, Class 2M2 4.149% (LIBOR 1 Month + 4.00%), 05/25/2025(f)			767		777,720
Series 2015-C03, Class 1M2 5.149% (LIBOR 1 Month + 5.00%), 07/25/2025(f)			2,459		2,501,746
Series 2015-C03, Class 2M2 5.149% (LIBOR 1 Month + 5.00%), 07/25/2025(f)			710		726,650
Series 2015-C04, Class 1M2 5.849% (LIBOR 1 Month + 5.70%), 04/25/2028(f)			3,208		3,396,034
Series 2015-C04, Class 2M2 5.699% (LIBOR 1 Month + 5.55%), 04/25/2028(f)			1,695		1,779,162
Series 2016-C01, Class 1M2 6.899% (LIBOR 1 Month + 6.75%), 08/25/2028(f)			2,005		2,135,862
Series 2016-C01, Class 2M2 7.099% (LIBOR 1 Month + 6.95%), 08/25/2028(f)			776		835,640
Series 2016-C02, Class 1M2 6.149% (LIBOR 1 Month + 6.00%), 09/25/2028(f)			4,980		5,240,068
Series 2016-C04, Class 1M2 4.399% (LIBOR 1 Month + 4.25%), 01/25/2029(f)			441		455,641
Series 2016-C05, Class 2B 10.899% (LIBOR 1 Month + 10.75%), 01/25/2029(f)			2,741		3,104,739
Series 2016-C05, Class 2M2 4.599% (LIBOR 1 Month + 4.45%), 01/25/2029(f)			3,797		3,942,805
Series 2016-C07, Class 2B 9.649% (LIBOR 1 Month + 9.50%), 05/25/2029(f)			1,191		1,271,293
Series 2016-C07, Class 2M2 4.499% (LIBOR 1 Month + 4.35%), 05/25/2029(f)			494		513,564

abfunds.com AB INCOME FUND    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2017-C01, Class 1B1 5.899% (LIBOR 1 Month + 5.75%), 07/25/2029(f)	U.S.$		16,579	$	17,035,821
Series 2017-C02, Class 2B1 5.649% (LIBOR 1 Month + 5.50%), 09/25/2029(f)			7,031		7,244,370
Series 2017-C02, Class 2M2 3.799% (LIBOR 1 Month + 3.65%), 09/25/2029(f)			536		540,699
Series 2017-C03, Class 1B1 4.999% (LIBOR 1 Month + 4.85%), 10/25/2029(f)			7,080		7,115,287
Series 2017-C03, Class 1M2 3.149% (LIBOR 1 Month + 3.00%), 10/25/2029(f)			193		194,595
Series 2017-C05, Class 1B1 3.749% (LIBOR 1 Month + 3.60%), 01/25/2030(f)			7,280		6,843,027
Series 2017-C07, Class 1M2 2.549% (LIBOR 1 Month + 2.40%), 05/25/2030(f)			814		801,952
Series 2017-C07, Class 2B1 4.599% (LIBOR 1 Month + 4.45%), 05/25/2030(f)			7,313		7,102,662
Series 2018-C01, Class 1B1 3.699% (LIBOR 1 Month + 3.55%), 07/25/2030(f)			8,575		7,930,686
Series 2018-C03, Class 1B1 3.899% (LIBOR 1 Month + 3.75%), 10/25/2030(f)			7,250		6,678,219
Series 2018-C04, Class 2M2 2.699% (LIBOR 1 Month + 2.55%), 12/25/2030(f)			951		932,551
Series 2018-C05, Class 1B1 4.399% (LIBOR 1 Month + 4.25%), 01/25/2031(f)			6,873		6,443,005
Series 2018-C06, Class 2M2 2.249% (LIBOR 1 Month + 2.10%), 03/25/2031(f)			520		507,524
Home Re Ltd.
Series 2020-1, Class M2 5.394% (LIBOR 1 Month + 5.25%), 10/25/2030(e)(f)			4,734		4,733,935
Series 2018-1, Class M1 1.749% (LIBOR 1 Month + 1.60%), 10/25/2028(e)(f)			698		689,146
Series 2019-1, Class B1 4.499% (LIBOR 1 Month + 4.35%), 05/25/2029(f)(m)			2,000		1,813,495

44    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
JP Morgan Madison Avenue Securities Trust
Series 2014-CH1, Class M2 4.399% (LIBOR 1 Month + 4.25%), 11/25/2024(f)(m)	U.S.$		885	$	823,892
Series 2015-CH1, Class M2 5.649% (LIBOR 1 Month + 5.50%), 10/25/2025(f)(m)			1,612		1,466,820
Mortgage Insurance-Linked Notes Series 2019-1, Class M2 3.049% (LIBOR 1 Month + 2.90%), 11/26/2029(e)(f)			13,630		12,340,364
Oaktown Re III Ltd. Series 2019-1A, Class M2 2.699% (LIBOR 1 Month + 2.55%), 07/25/2029(e)(f)			7,478		7,069,499
Oaktown Re Ltd. Series 2017-1A, Class M2 4.149% (LIBOR 1 Month + 4.00%), 04/25/2027(e)(f)			444		443,464
PMT Credit Risk Transfer Trust
Series 2019-1R, Class A 2.152% (LIBOR 1 Month + 2.00%), 03/27/2024(f)(m)			2,526		2,253,152
Series 2019-2R, Class A 2.902% (LIBOR 1 Month + 2.75%), 05/27/2023(f)(m)			3,456		3,098,799
Series 2019-3R, Class A 2.852% (LIBOR 1 Month + 2.70%), 10/27/2022(f)(m)			1,439		1,289,022
Series 2020-1R, Class A 2.502% (LIBOR 1 Month + 2.35%), 02/27/2023(f)(m)			6,875		6,153,420
Radnor Re Ltd.
Series 2018-1, Class B1 3.949% (LIBOR 1 Month + 3.80%), 03/25/2028(f)(m)			1,500		1,357,977
Series 2018-1, Class M2 2.849% (LIBOR 1 Month + 2.70%), 03/25/2028(e)(f)			721		690,387
Series 2019-1, Class M1B 2.099% (LIBOR 1 Month + 1.95%), 02/25/2029(e)(f)			2,673		2,672,146
Series 2019-1, Class M2 3.349% (LIBOR 1 Month + 3.20%), 02/25/2029(e)(f)			6,106		5,861,528
Series 2019-2, Class M1B 1.899% (LIBOR 1 Month + 1.75%), 06/25/2029(e)(f)			9,100		9,029,837

abfunds.com AB INCOME FUND    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2020-1, Class M1A 1.099% (LIBOR 1 Month + 0.95%), 02/25/2030(e)(f)	U.S.$		6,523	$	6,498,795
Series 2020-1, Class M1B 1.599% (LIBOR 1 Month + 1.45%), 02/25/2030(e)(f)			4,640		4,493,989
Series 2020-1, Class M1C 1.899% (LIBOR 1 Month + 1.75%), 02/25/2030(e)(f)			2,088		1,957,533
STACR Trust Series 2018-DNA2, Class B1 3.849% (LIBOR 1 Month + 3.70%), 12/25/2030(e)(f)			7,000		6,531,702
Traingle Re Ltd. Series 2020-1, Class M1C 4.647%, 10/25/2030(e)(f)			4,200		4,196,917
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 5.399% (LIBOR 1 Month + 5.25%), 11/25/2025(f)(m)			555		541,897
					344,758,826
Agency Floating Rate – 0.9%
Federal Home Loan Mortgage Corp. REMICs
Series 3119, Class PI 7.052% (7.20% – LIBOR 1 Month), 02/15/2036(f)(p)			1,420		369,052
Series 3856, Class KS 6.402% (6.55% – LIBOR 1 Month), 05/15/2041(f)(p)			9,685		1,893,920
Series 4248, Class SL 5.902% (6.05% – LIBOR 1 Month), 05/15/2041(f)(p)			856		162,300
Series 4372, Class JS 5.952% (6.10% – LIBOR 1 Month), 08/15/2044(f)(p)			5,047		1,023,854
Series 4570, Class ST 5.852% (6.00% – LIBOR 1 Month), 04/15/2046(f)(p)			2,036		475,338
Series 4735, Class SA 6.052% (6.20% – LIBOR 1 Month), 12/15/2047(f)(p)			9,910		2,606,626
Series 4763, Class SB 6.852% (7.00% – LIBOR 1 Month), 03/15/2048(f)(p)			17,776		3,709,413
Series 4774, Class BS 6.052% (6.20% – LIBOR 1 Month), 02/15/2048(f)(p)			9,906		1,591,461

46    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 4774, Class SL 6.052% (6.20% – LIBOR 1 Month), 04/15/2048(f)(p)	U.S.$		12,836	$	2,076,877
Series 4927, Class SJ 5.902% (6.05% – LIBOR 1 Month), 11/25/2049(f)(p)			5,323		978,818
Federal National Mortgage Association REMICs
Series 2013-4, Class ST 6.001% (6.15% – LIBOR 1 Month), 02/25/2043(f)(p)			3,241		685,007
Series 2014-88, Class BS 6.001% (6.15% – LIBOR 1 Month), 01/25/2045(f)(p)			2,937		616,837
Series 2015-90, Class SA 6.001% (6.15% – LIBOR 1 Month), 12/25/2045(f)(p)			22,645		5,307,817
Series 2016-69, Class DS 5.951% (6.10% – LIBOR 1 Month), 10/25/2046(f)(p)			33,352		6,729,088
Series 2017-49, Class SP 6.001% (6.15% – LIBOR 1 Month), 07/25/2047(f)(p)			2,842		670,783
Series 2018-32, Class SB 6.051% (6.20% – LIBOR 1 Month), 05/25/2048(f)(p)			6,142		1,359,881
Series 2018-45, Class SL 6.051% (6.20% – LIBOR 1 Month), 06/25/2048(f)(p)			3,994		939,142
Series 2018-57, Class SL 6.051% (6.20% – LIBOR 1 Month), 08/25/2048(f)(p)			17,695		2,890,933
Series 2018-58, Class SA 6.051% (6.20% – LIBOR 1 Month), 08/25/2048(f)(p)			6,476		1,046,415
Series 2018-59, Class HS 6.051% (6.20% – LIBOR 1 Month), 08/25/2048(f)(p)			18,103		2,989,570
Series 2019-25, Class SA 5.901% (6.05% – LIBOR 1 Month), 06/25/2049(f)(p)			5,493		1,247,472
Series 2019-60, Class SJ 5.901% (6.05% – LIBOR 1 Month), 10/25/2049(f)(p)			5,421		1,098,036
					40,468,640
Non-Agency Fixed Rate – 0.1%
Alternative Loan Trust Series 2006-24CB, Class A15 5.75%, 08/25/2036			1,128		904,245

abfunds.com AB INCOME FUND    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CHL Mortgage Pass-Through Trust Series 2007-3, Class A30 5.75%, 04/25/2037	U.S.$		636	$	468,770
Series 2007-HY4, Class 1A1 3.021%, 09/25/2047			252		234,946
Citigroup Mortgage Loan Trust Series 2007-AR4, Class 1A1A 3.933%, 03/25/2037			168		162,546
CSMC Mortgage-Backed Trust Series 2006-7, Class 3A12 6.25%, 08/25/2036			430		287,742
Wells Fargo Mortgage Backed Securities Trust Series 2007-AR7, Class A1 3.009%, 12/28/2037			1,005		934,668
					2,992,917
Agency Fixed Rate – 0.0%
Federal National Mortgage Association REMICs Series 2013-87, Class KI 3.00%, 12/25/2037(q)			3,110		132,159
Series 2016-26, Class IO 5.00%, 05/25/2046(q)			623		108,791
					240,950
Non-Agency Floating Rate – 0.0%
First Horizon Alternative Mortgage Securities Trust Series 2007-FA2, Class 1A10 0.399% (LIBOR 1 Month + 0.25%), 04/25/2037(f)			416		118,060
Lehman XS Trust Series 2007-10H, Class 2AIO 6.851% (7.00% – LIBOR 1 Month), 07/25/2037(f)(p)			351		68,098
					186,158
Total Collateralized Mortgage Obligations (cost $394,315,960)					388,647,491
EMERGING MARKETS – SOVEREIGNS – 4.8%
Angola – 0.1%
Angolan Government International Bond 8.25%, 05/09/2028(e)			460		360,525
9.50%, 11/12/2025(e)			4,256		3,633,560
					3,994,085
Bahrain – 0.4%
Bahrain Government International Bond 5.45%, 09/16/2032(e)			7,434		7,269,058

48    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
6.75%, 09/20/2029(e)	U.S.$		1,709	$	1,849,458
7.00%, 10/12/2028(e)			2,107		2,322,310
7.375%, 05/14/2030(e)			1,961		2,171,195
CBB International Sukuk Programme Co. SPC 4.50%, 03/30/2027(e)			1,087		1,112,476
6.25%, 11/14/2024(e)			2,362		2,546,531
					17,271,028
Brazil – 0.2%
Brazilian Government International Bond 2.875%, 06/06/2025			8,569		8,665,937
Costa Rica – 0.2%
Costa Rica Government International Bond 6.125%, 02/19/2031(e)			5,214		4,306,438
7.158%, 03/12/2045(e)			4,004		3,160,658
					7,467,096
Dominican Republic – 0.6%
Dominican Republic International Bond 4.50%, 01/30/2030(e)			9,442		9,527,568
4.875%, 09/23/2032(e)			3,361		3,425,069
5.95%, 01/25/2027(e)			1,251		1,364,763
6.40%, 06/05/2049(e)			2,287		2,327,023
6.875%, 01/29/2026(e)			6,782		7,653,063
7.50%, 05/06/2021(e)			1,667		1,709,375
					26,006,861
Ecuador – 0.1%
Ecuador Government International Bond Zero Coupon, 07/31/2030(e)			626		281,955
0.50%, 07/31/2030-07/31/2040(e)			7,137		4,100,486
					4,382,441
Egypt – 0.7%
Egypt Government International Bond 5.75%, 05/29/2024(e)			6,333		6,479,451
6.125%, 01/31/2022(e)			5,970		6,134,175
6.20%, 03/01/2024(e)			4,724		4,901,150
6.588%, 02/21/2028(e)			1,000		1,006,562
7.053%, 01/15/2032(e)			2,597		2,538,567
7.50%, 01/31/2027(e)			6,064		6,414,575
7.60%, 03/01/2029(e)			217		225,680
7.625%, 05/29/2032(e)			5,226		5,289,692
					32,989,852
El Salvador – 0.0%
El Salvador Government International Bond 7.125%, 01/20/2050(e)			628		473,551

abfunds.com AB INCOME FUND    ^|    49

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Ghana – 0.3%
Ghana Government International Bond 6.375%, 02/11/2027(e)	U.S.$		13,133	$	12,172,649
8.627%, 06/16/2049(e)			238		208,250
8.95%, 03/26/2051(e)			1,313		1,176,366
10.75%, 10/14/2030(e)			693		847,626
					14,404,891
Guatemala – 0.0%
Guatemala Government Bond 5.375%, 04/24/2032(e)			200		235,688
6.125%, 06/01/2050(e)			1,172		1,446,321
					1,682,009
Honduras – 0.2%
Honduras Government International Bond 6.25%, 01/19/2027(e)			1,555		1,738,685
7.50%, 03/15/2024(e)			3,298		3,629,861
8.75%, 12/16/2020(e)			5,825		5,859,586
					11,228,132
Ivory Coast – 0.1%
Ivory Coast Government International Bond 6.125%, 06/15/2033(e)			1,654		1,666,405
6.375%, 03/03/2028(e)			2,440		2,556,662
					4,223,067
Kenya – 0.2%
Kenya Government International Bond 6.875%, 06/24/2024(e)			620		654,487
7.00%, 05/22/2027(e)			1,680		1,741,950
7.25%, 02/28/2028(e)			1,639		1,712,755
8.00%, 05/22/2032(e)			3,420		3,587,794
					7,696,986
Lebanon – 0.0%
Lebanon Government International Bond 6.65%, 04/22/2024(e)(j)(o)			507		69,871
6.85%, 03/23/2027(e)(j)(o)			1,053		145,117
Series G 6.60%, 11/27/2026(e)(j)(o)			1,284		176,951
					391,939
Nigeria – 0.3%
Nigeria Government International Bond 5.625%, 06/27/2022			248		251,565
6.75%, 01/28/2021(e)			2,136		2,149,350
7.625%, 11/21/2025-11/28/2047(e)			11,691		11,859,854
7.696%, 02/23/2038(e)			1,729		1,591,761
7.875%, 02/16/2032(e)			426		412,821
					16,265,351

50    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Oman – 0.3%
Oman Government International Bond 4.125%, 01/17/2023(e)	U.S.$		5,200	$	5,107,375
4.875%, 02/01/2025(e)			1,810		1,739,863
5.375%, 03/08/2027(e)			4,550		4,160,406
6.00%, 08/01/2029(e)			4,272		3,900,870
					14,908,514
Pakistan – 0.0%
Pakistan Government International Bond 6.875%, 12/05/2027(e)			245		238,033
Senegal – 0.3%
Senegal Government International Bond 6.25%, 05/23/2033(e)			5,158		5,245,041
6.75%, 03/13/2048(e)			6,453		6,291,675
8.75%, 05/13/2021(e)			864		892,080
					12,428,796
South Africa – 0.6%
Republic of South Africa Government International Bond 4.30%, 10/12/2028			425		412,250
4.85%, 09/30/2029			9,846		9,753,694
5.65%, 09/27/2047			2,762		2,490,116
5.75%, 09/30/2049			10,390		9,363,987
5.875%, 06/22/2030			2,797		2,954,331
6.30%, 06/22/2048			2,368		2,280,680
					27,255,058
Sri Lanka – 0.0%
Sri Lanka Government International Bond 6.20%, 05/11/2027(e)			685		368,187
Ukraine – 0.2%
Ukraine Government International Bond 7.253%, 03/15/2033(e)			4,689		4,407,660
7.375%, 09/25/2032(e)			3,586		3,433,595
					7,841,255
Total Emerging Markets – Sovereigns (cost $225,928,127)					220,183,069
COLLATERALIZED LOAN OBLIGATIONS – 2.5%
CLO - Floating Rate – 2.5%
Apidos CLO Series 2017-26A, Class D 6.318% (LIBOR 3 Month + 6.10%), 07/18/2029(e)(f)			550		481,735

abfunds.com AB INCOME FUND    ^|    51

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Ares XXXIV CLO Ltd. Series 2015-2A, Class CR 2.218% (LIBOR 3 Month + 2.00%), 04/17/2033(e)(f)	U.S.$		9,437	$	9,058,793
Ballyrock CLO Ltd. Series 2019-2A, Class A1A 1.503% (LIBOR 3 Month + 1.25%), 11/20/2030(e)(f)			8,315		8,248,854
Black Diamond CLO Ltd. Series 2016-1A, Class A2AR 1.965% (LIBOR 3 Month + 1.75%), 04/26/2031(e)(f)			5,300		5,011,786
BlueMountain Fuji US CLO II Ltd. Series 2017-2A, Class D 6.368% (LIBOR 3 Month + 6.15%), 10/20/2030(e)(f)			3,300		2,783,085
CBAM Ltd. Series 2017-3A, Class E1 6.718% (LIBOR 3 Month + 6.50%), 10/17/2029(e)(f)			1,604		1,403,134
Series 2018-7A, Class B1 1.818% (LIBOR 3 Month + 1.60%), 07/20/2031(e)(f)			1,996		1,939,699
Dryden CLO Ltd. Series 2020-78A, Class C 2.168% (LIBOR 3 Month + 1.95%), 04/17/2033(e)(f)			1,480		1,442,597
Series 2020-78A, Class D 3.218% (LIBOR 3 Month + 3.00%), 04/17/2033(e)(f)			6,824		6,372,156
Dryden Senior Loan Fund Series 2017-49A, Class E 6.518% (LIBOR 3 Month + 6.30%), 07/18/2030(e) (f)			605		542,240
Elevation CLO Ltd. Series 2020-11A, Class D1 4.087% (LIBOR 3 Month + 3.85%), 04/15/2033(e)(f)			4,490		4,218,746
GoldenTree Loan Opportunities Ltd. Series 2014-9A, Class DR2 3.213% (LIBOR 3 Month + 3.00%), 10/29/2029(e)(f)			2,815		2,646,092
Greywolf CLO VI Ltd. Series 2018-1A, Class A2 1.845% (LIBOR 3 Month + 1.63%), 04/26/2031(e)(f)			5,300		5,170,484

52    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Halcyon Loan Advisors Funding Ltd. Series 2018-1A, Class A2 2.018% (LIBOR 3 Month + 1.80%), 07/21/2031(e)(f)	U.S.$		1,826	$	1,754,339
Series 2018-1A, Class C 3.418% (LIBOR 3 Month + 3.20%), 07/21/2031(e)(f)			2,000		1,705,454
Kayne CLO 7 Ltd. Series 2020-7A, Class A1 1.418% (LIBOR 3 Month + 1.20%), 04/17/2033(e)(f)			2,663		2,628,527
Marble Point CLO XI Ltd. Series 2017-2A, Class A 1.452% (LIBOR 3 Month + 1.18%), 12/18/2030(e)(f)			2,400		2,354,967
Northwoods Capital Ltd. Series 2018-12BA, Class B 2.10% (LIBOR 3 Month + 1.85%), 06/15/2031(e)(f)			1,350		1,272,731
Octagon Investment Partners 29 Ltd. Series 2016-1A, Class DR 3.315% (LIBOR 3 Month + 3.10%), 01/24/2033(e)(f)			6,571		5,945,006
OZLM Ltd. Series 2014-7RA, Class CR 3.218% (LIBOR 3 Month + 3.00%), 07/17/2029(e)(f)			1,000		894,395
Series 2018-18A, Class B 1.787% (LIBOR 3 Month + 1.55%), 04/15/2031(e)(f)			5,450		5,240,638
Rockford Tower CLO Ltd. Series 2017-2A, Class DR 3.087% (LIBOR 3 Month + 2.85%), 10/15/2029(e)(f)			4,444		4,084,888
Series 2017-3A, Class A 1.408% (LIBOR 3 Month + 1.19%), 10/20/2030(e)(f)			1,931		1,913,804
Romark CLO III Ltd. Series 2019-3A, Class A2 2.307% (LIBOR 3 Month + 2.07%), 07/15/2032(e)(f)			4,450		4,360,159
Series 2019-3A, Class B 3.037% (LIBOR 3 Month + 2.80%), 07/15/2032(e)(f)			600		580,318
Signal Peak Clo 2 LLC Series 2015-1A, Class AR2 1.198% (LIBOR 3 Month + 0.98%), 04/20/2029(e)(f)			4,575		4,529,987

abfunds.com AB INCOME FUND    ^|    53

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Sound Point CLO XIX Ltd. Series 2018-1A, Class A 1.237% (LIBOR 3 Month + 1.00%), 04/15/2031(e)(f)	U.S.$		7,931	$	7,759,484
THL Credit Wind River CLO Ltd. Series 2017-1A, Class AR 1.358% (LIBOR 3 Month + 1.14%), 04/18/2029(e)(f)			12,200		12,072,083
TIAA CLO II Ltd. Series 2017-1A, Class A 1.498% (LIBOR 3 Month + 1.28%), 04/20/2029(e)(f)			1,000		991,720
Venture CLO Ltd. Series 2017-27A, Class D 4.218% (LIBOR 3 Month + 4.00%), 07/20/2030(e)(f)			1,591		1,424,643
Voya CLO Ltd. Series 2019-1A, Class DR 3.087% (LIBOR 3 Month + 2.85%), 04/15/2031(e)(f)			4,595		3,999,554
York CLO-7 Ltd. Series 2019-2A, Class A1 1.586% (LIBOR 3 Month + 1.37%), 01/22/2033(e)(f)			4,400		4,357,386
Total Collateralized Loan Obligations (cost $121,263,029)					117,189,484
COMMERCIAL MORTGAGE-BACKED SECURITIES – 2.3%
Non-Agency Fixed Rate CMBS – 1.8%
Banc of America Commercial Mortgage Trust Series 2016-UB10, Class C 4.909%, 07/15/2049			372		369,249
BANK Series 2020-BN25, Class XA 0.887%, 01/15/2063(q)			65,894		4,518,234
Barclays Commercial Mortgage Trust Series 2019-C3, Class XA 1.345%, 05/15/2052(q)			10,917		1,000,905
Benchmark Mortgage Trust Series 2019-B13, Class XA 1.132%, 08/15/2057(q)			44,479		3,388,897
CD Mortgage Trust Series 2017-CD3, Class XA 1.012%, 02/10/2050(q)			14,802		734,569
CFCRE Commercial Mortgage Trust Series 2016-C4, Class XA 1.686%, 05/10/2058(q)			14,267		1,008,896

54    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Citigroup Commercial Mortgage Trust Series 2013-GC15, Class C 5.182%, 09/10/2046	U.S.$		516	$	530,484
Series 2016-C3, Class XA 1.147%, 11/15/2049(q)			37,587		1,711,393
Commercial Mortgage Trust Series 2014-CR15, Class XA 0.932%, 02/10/2047(q)			41,928		994,387
Series 2015-CR27, Class XA 0.938%, 10/10/2048(q)			6,598		251,621
CSAIL Commercial Mortgage Trust Series 2015-C1, Class D 3.768%, 04/15/2050(e)			670		444,211
Series 2019-C15, Class B 4.476%, 03/15/2052			960		1,053,781
GS Mortgage Securities Trust Series 2011-GC5, Class C 5.388%, 08/10/2044(e)			375		350,189
Series 2011-GC5, Class D
5.388%, 08/10/2044(e)			14,025		11,397,490
Series 2014-GC22, Class D 4.692%, 06/10/2047(e)			1,805		1,208,735
Series 2016-GS3, Class XA 1.236%, 10/10/2049(q)			34,952		1,812,946
Series 2019-GC39, Class XA 1.14%, 05/10/2052(q)			15,745		1,126,398
JP Morgan Chase Commercial Mortgage Securities Trust Series 2012-C8, Class B 3.977%, 10/15/2045(e)			2,411		2,437,283
Series 2012-C8, Class E 4.67%, 10/15/2045(e)			2,103		1,234,273
Series 2012-CBX, Class E 5.132%, 06/15/2045(e)			1,863		712,341
Series 2012-LC9, Class E 4.418%, 12/15/2047(e)			7,500		5,458,070
Series 2012-LC9, Class G 4.418%, 12/15/2047(e)			831		538,267
Series 2016-JP2, Class XA 1.798%, 08/15/2049(q)			16,238		1,309,163
JPMBB Commercial Mortgage Securities Trust Series 2014-C21, Class B 4.341%, 08/15/2047			1,599		1,672,391
Series 2014-C21, Class D 4.657%, 08/15/2047(e)			3,450		3,027,053
Series 2014-C24, Class C 4.407%, 11/15/2047			5,869		5,410,149

abfunds.com AB INCOME FUND    ^|    55

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
JPMCC Commercial Mortgage Securities Trust Series 2017-JP6, Class XA 1.136%, 07/15/2050(q)	U.S.$		10,707	$	547,443
JPMDB Commercial Mortgage Securities Trust Series 2019-COR6, Class XA 0.944%, 11/13/2052(q)			37,352		2,507,046
LB-UBS Commercial Mortgage Trust Series 2006-C6, Class AJ 5.452%, 09/15/2039			1,074		622,003
LCCM Series 2017-LC26, Class XA 1.417%, 07/12/2050(e)(q)			45,107		2,988,961
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C9, Class D 4.119%, 05/15/2046(e)			680		549,498
Series 2014-C18, Class C 4.524%, 10/15/2047			4,408		4,288,640
Series 2015-C22, Class XA 1.053%, 04/15/2048(q)			12,249		415,156
UBS Commercial Mortgage Trust Series 2012-C1, Class D 5.569%, 05/10/2045(e)			2,000		1,467,357
Series 2017-C1, Class XA 1.548%, 06/15/2050(q)			8,944		680,185
Series 2019-C16, Class XA 1.558%, 04/15/2052(q)			16,881		1,676,652
Series 2019-C18, Class XA 1.044%, 12/15/2052(q)			23,593		1,650,527
UBS-Barclays Commercial Mortgage Trust Series 2013-C5, Class B 3.649%, 03/10/2046(e)			2,414		2,442,749
Series 2013-C5, Class C 4.097%, 03/10/2046(e)			782		743,429
Wells Fargo Commercial Mortgage Trust Series 2015-LC20, Class XA 1.311%, 04/15/2050(q)			8,295		325,068
Series 2016-C36, Class XA 1.289%, 11/15/2059(q)			50,390		2,833,319
Series 2016-LC24, Class XA 1.668%, 10/15/2049(q)			31,438		2,283,552
Series 2016-LC25, Class XA 0.97%, 12/15/2059(q)			19,878		774,534
Series 2019-C52, Class XA 1.619%, 08/15/2052(q)			20,014		2,144,343

56    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
WFRBS Commercial Mortgage Trust Series 2011-C4, Class E 5.221%, 06/15/2044(e)	U.S.$		489	$	294,303
Series 2014-LC14, Class C 4.344%, 03/15/2047			134		129,067
					83,065,207
Non-Agency Floating Rate CMBS – 0.5%
BFLD Series 2019-DPLO, Class E 2.388% (LIBOR 1 Month + 2.24%), 10/15/2034(e)(f)			11,227		10,118,036
DBWF Mortgage Trust Series 2018-GLKS, Class E 3.166% (LIBOR 1 Month + 3.02%), 12/19/2030(e)(f)			1,994		1,791,674
Great Wolf Trust Series 2019-WOLF, Class D 2.081% (LIBOR 1 Month + 1.93%), 12/15/2036(e)(f)			12,005		10,879,213
Morgan Stanley Capital I Trust Series 2019-BPR, Class D 4.148% (LIBOR 1 Month + 4.00%), 05/15/2036(e)(f)			1,651		1,306,046
					24,094,969
Agency CMBS – 0.0%
Government National Mortgage Association Series 2006-32, Class XM 0.107%, 11/16/2045(q)			166		386
Total Commercial Mortgage-Backed Securities (cost $118,408,972)					107,160,562
BANK LOANS – 2.1%
Industrial – 1.9%
Basic – 0.0%
Illuminate Buyer, LLC 4.148% (LIBOR 1 Month + 4.00%), 06/30/2027(n)			1,330		1,306,100
Nouryon Finance B.V. (fka AkzoNobel) 3.145% (LIBOR 1 Month + 3.00%), 10/01/2025(n)			168		162,398
					1,468,498

abfunds.com AB INCOME FUND    ^|    57

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Capital Goods – 0.3%
Apex Tool Group, LLC 6.500% (LIBOR 1 Month + 5.25%), 08/01/2024(n)	U.S.$		4,905	$	4,632,489
Brookfield WEC Holdings Inc. (fka Westinghouse Electric Company LLC) 3.750% (LIBOR 1 Month + 3.00%), 08/01/2025(n)			749		730,248
BWay Holding Company 3.480% (LIBOR 3 Month + 3.25%), 04/03/2024(n)			5,549		5,174,560
Garrett Motion SARL (fka Garrett Motion Inc.) 5.750% (PRIME 2 Month + 2.50%), 09/27/2025(i)(n)			2,080		2,017,717
Granite US Holdings Corporation 5.470% (LIBOR 3 Month + 5.25%), 09/30/2026(i)(n)			3,598		3,363,812
					15,918,826
Communications - Media – 0.1%
iHeartCommunications, Inc. (fka Clear Channel Communications, Inc.) 3.148% (LIBOR 1 Month + 3.00%), 05/01/2026(n)			248		232,572
Nielsen Finance LLC 4.750% (LIBOR 1 Month + 3.75%), 06/04/2025(n)			1,035		1,030,661
Univision Communications Inc. 3.750% (LIBOR 1 Month + 2.75%), 03/15/2024(n)			933		900,595
					2,163,828
Consumer Cyclical - Automotive – 0.1%
Clarios Global LP 3.648% (LIBOR 1 Month + 3.50%), 04/30/2026(n)			399		386,522
Navistar, Inc. 3.650% (LIBOR 1 Month + 3.50%), 11/06/2024(n)			2,698		2,667,218
					3,053,740
Consumer Cyclical - Other – 0.3%
Caesars Resort Collection, LLC 2.898% (LIBOR 1 Month + 2.75%), 12/23/2024(n)			4,565		4,269,362
Flutter Entertainment PLC 3.720% (LIBOR 3 Month + 3.50%), 07/10/2025(n)			332		331,284

58    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Golden Nugget Online Gaming, Inc. 13.000% (LIBOR 2 Month + 12.00%), 10/04/2023(n)	U.S.$		1,359	$	1,304,654
13.000% (LIBOR 3 Month + 12.00%), 10/04/2023(n)			111		106,546
Playtika Holding Corp. 7.000% (LIBOR 3 Month + 6.00%), 12/10/2024(n)			5,884		5,879,762
Scientific Games International, Inc. 2.898% (LIBOR 1 Month + 2.75%), 08/14/2024(n)			2,570		2,386,513
					14,278,121
Consumer Cyclical - Restaurants – 0.0%
IRB Holding Corp. (aka Arby’s/Buffalo Wild Wings) 3.750% (LIBOR 3 Month + 2.75%), 02/05/2025(n)			561		532,497
Whatabrands LLC 2.897% (LIBOR 1 Month + 2.75%), 07/31/2026(n)			602		585,209
					1,117,706
Consumer Cyclical - Retailers – 0.1%
Bass Pro Group, LLC 5.750% (LIBOR 3 Month + 5.00%), 09/25/2024(n)			1,214		1,208,651
PetSmart, Inc. 4.500% (LIBOR 3 Month + 3.50%), 03/11/2022(n)			920		909,047
					2,117,698
Consumer Non-Cyclical – 0.3%
Aldevron, LLC 5.250% (LIBOR 1 Month + 4.25%), 10/12/2026(n)			2,596		2,592,994
Alphabet Holding Company, Inc. (fka Nature’s Bounty) 7.898% (LIBOR 1 Month + 7.75%), 09/26/2025(n)			3,524		3,385,862
Froneri International Limited 5.898% (LIBOR 1 Month + 5.75%), 01/31/2028(i)(n)			322		317,770
Global Medical Response, Inc. 5.250% (LIBOR 3 Month + 4.25%), 03/14/2025(n)			1,155		1,114,948
LifePoint Health, Inc. (fka Regionalcare Hospital Partners Holdings, Inc.) 3.898% (LIBOR 1 Month + 3.75%), 11/16/2025(n)			1,176		1,139,914

abfunds.com AB INCOME FUND    ^|    59

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
U.S. Renal Care, Inc. 5.188% (LIBOR 1 Month + 5.00%), 06/26/2026(n)	U.S.$		5,992	$	5,750,452
					14,301,940
Energy – 0.0%
CITGO Petroleum Corporation 6.000% (LIBOR 3 Month + 5.00%), 03/28/2024(n)			1,603		1,492,017
Other Industrial – 0.1%
American Tire Distributors, Inc. 7.000% (LIBOR 3 Month + 6.00%), 09/01/2023(n)			292		268,315
8.500% (LIBOR 1 Month + 7.50%), 09/02/2024(n)			733		619,202
Dealer Tire, LLC 4.398% (LIBOR 1 Month + 4.25%), 12/12/2025(n)			1,320		1,285,374
KAR Auction Services, Inc. 2.438% (LIBOR 1 Month + 2.25%), 09/19/2026(i)(n)			200		191,692
Rockwood Service Corporation 4.398% (LIBOR 1 Month + 4.25%), 01/23/2027(i)(n)			182		179,208
					2,543,791
Services – 0.2%
Allied Universal Holdco LLC (fka USAGM Holdco, LLC) 4.398% (LIBOR 1 Month + 4.25%), 07/10/2026(n)			411		402,545
Amentum Government Services Holdings LLC 3.648% (LIBOR 1 Month + 3.50%), 01/29/2027(n)			449		429,798
Garda World Security Corporation 4.900% (LIBOR 1 Month + 4.75%), 10/30/2026(n)			390		387,423
Parexel International Corporation 2.898% (LIBOR 1 Month + 2.75%), 09/27/2024(n)			2,735		2,619,862
Team Health Holdings, Inc. 3.750% (LIBOR 1 Month + 2.75%), 02/06/2024(n)			2,649		2,152,172
Verscend Holding Corp. 4.648% (LIBOR 1 Month + 4.50%), 08/27/2025(n)			1,955		1,915,238
					7,907,038

60    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Technology – 0.4%
athenahealth, Inc. 4.750% (LIBOR 3 Month + 4.50%), 02/11/2026(i)(n)	U.S.$		4,973	$	4,860,651
Avaya Inc. 4.398% (LIBOR 1 Month + 4.25%), 12/15/2024(n)			125		122,579
Boxer Parent Company Inc. (fka BMC Software, Inc.) 4.398% (LIBOR 1 Month + 4.25%), 10/02/2025(n)			3,487		3,383,894
Pitney Bowes Inc. 5.650% (LIBOR 1 Month + 5.50%), 01/07/2025(n)			2,872		2,827,828
Presidio Holdings Inc. 3.720% (LIBOR 3 Month + 3.50%), 01/22/2027(n)			1,644		1,605,285
Solera, LLC (Solera Finance, Inc.) 2.916% (LIBOR 2 Month + 2.75%), 03/03/2023(n)			2,054		1,996,160
Veritas US Inc. 6.500% (LIBOR 3 Month + 5.50%), 09/01/2025(n)			5,761		5,633,717
					20,430,114
Transportation - Airlines – 0.0%
Delta Air Lines, Inc. 4.964% (LIBOR 3 Month + 4.75%), 04/29/2023(n)			688		684,407
					87,477,724
Financial Institutions – 0.1%
Finance – 0.0%
Jefferies Finance LLC 3.188% (LIBOR 1 Month + 3.00%), 06/03/2026(n)			1,804		1,747,900
Insurance – 0.1%
Hub International Limited 5.000% (LIBOR 2 Month + 4.00%), 04/25/2025(n)			2,870		2,851,285
Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.) 4.148% (LIBOR 1 Month + 4.00%), 09/03/2026(n)			2,254		2,186,595
					5,037,880
					6,785,780

abfunds.com AB INCOME FUND    ^|    61

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Utility – 0.1%
Electric – 0.1%
Granite Generation LLC 4.750% (LIBOR 1 Month + 3.75%), 11/09/2026(n)	U.S.$		4,072	$	4,024,979
Total Bank Loans (cost $100,771,095)					98,288,483
EMERGING MARKETS – CORPORATE BONDS – 1.9%
Industrial – 1.7%
Basic – 0.6%
Braskem Netherlands Finance BV 4.50%, 01/31/2030(e)			5,877		5,444,982
Consolidated Energy Finance SA 6.875%, 06/15/2025(e)			787		729,447
CSN Resources SA 7.625%, 02/13/2023-04/17/2026(e)			5,342		5,514,664
Eldorado Gold Corp. 9.50%, 06/01/2024(e)			4,248		4,641,280
First Quantum Minerals Ltd. 6.875%, 10/15/2027(e)			2,310		2,307,112
7.25%, 04/01/2023(e)			1,952		1,962,370
7.50%, 04/01/2025(e)			410		410,103
Indika Energy Capital IV Pte Ltd. 8.25%, 10/22/2025(e)			4,123		4,102,385
Sasol Financing USA LLC 5.875%, 03/27/2024			1,467		1,408,778
					26,521,121
Capital Goods – 0.2%
Cemex SAB de CV 7.375%, 06/05/2027(e)			697		768,442
Embraer Netherlands Finance BV 5.40%, 02/01/2027			4,430		4,194,745
6.95%, 01/17/2028(e)			2,058		2,056,881
Odebrecht Finance Ltd. 4.375%, 04/25/2025(e)(j)(o)			6,760		236,600
5.25%, 06/27/2029(e)(j)(o)			2,103		73,605
					7,330,273
Communications - Media – 0.1%
Globo Comunicacao e Participacoes SA 4.875%, 01/22/2030(e)			996		988,219
VTR Finance NV 6.375%, 07/15/2028(e)			541		576,672
					1,564,891

62    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Communications - Telecommunications – 0.1%
Digicel Group 0.5 Ltd. 7.00%, 11/16/2020(g)(l)(m)	U.S.$		79	$	10,616
8.00% (5.00% Cash and 3.00% PIK), 04/01/2025(e)(l)			476		162,012
10.00% (8.00% Cash and 2.00% PIK), 04/01/2024(l)			1,322		1,000,294
Digicel International Finance Ltd./Digicel Holdings Bermuda Ltd. 8.75%, 05/25/2024(e)			339		340,728
MTN Mauritius Investments Ltd. 5.373%, 02/13/2022(e)			701		716,773
Sable International Finance Ltd. 5.75%, 09/07/2027(e)			2,638		2,781,085
VTR Comunicaciones SpA 5.125%, 01/15/2028(e)			759		800,271
					5,811,779
Consumer Cyclical - Other – 0.2%
Melco Resorts Finance Ltd. 5.375%, 12/04/2029(e)			200		192,750
5.625%, 07/17/2027(e)			2,333		2,365,079
MGM China Holdings Ltd. 5.25%, 06/18/2025(e)			895		896,398
5.375%, 05/15/2024(e)			569		581,553
5.875%, 05/15/2026(e)			598		604,727
Studio City Finance Ltd. 6.00%, 07/15/2025(e)			1,088		1,089,360
6.50%, 01/15/2028(e)			998		983,230
Wynn Macau Ltd. 5.50%, 01/15/2026(e)			2,168		2,100,250
5.625%, 08/26/2028(e)			1,919		1,835,044
					10,648,391
Consumer Non-Cyclical – 0.2%
BRF GmbH 4.35%, 09/29/2026(e)			941		951,292
BRF SA 4.875%, 01/24/2030(e)			4,401		4,407,690
Cosan Ltd. 5.50%, 09/20/2029(e)			437		451,476
Inretail Pharma SA 5.375%, 05/02/2023(e)			2,434		2,526,796
Minerva Luxembourg SA 6.50%, 09/20/2026(e)			261		271,440
Tonon Luxembourg SA 6.50% (0.50% Cash and 6.00% PIK), 10/31/2024(h)(i)(l)(m)			867		26,095

abfunds.com AB INCOME FUND    ^|    63

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Ulker Biskuvi Sanayi AS 6.95%, 10/30/2025(e)	U.S.$		609	$	601,578
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(j)(k)(m)			4,738		41,552
10.875%, 01/13/2020(j)(k)(m)			750		150,000
11.75%, 02/09/2022(j)(m)(o)			1,690		8,471
					9,436,390
Energy – 0.3%
Geopark Ltd. 5.50%, 01/17/2027(e)			410		357,084
Leviathan Bond Ltd. 6.125%, 06/30/2025(e)			1,763		1,808,957
Medco Oak Tree Pte Ltd. 7.375%, 05/14/2026(e)			1,031		998,459
Medco Platinum Road Pte Ltd. 6.75%, 01/30/2025(e)			1,532		1,486,998
MV24 Capital BV 6.748%, 06/01/2034(e)			1,747		1,758,372
Peru LNG Srl 5.375%, 03/22/2030(e)			262		199,202
Petrobras Global Finance BV 6.90%, 03/19/2049			7,273		8,230,418
					14,839,490
Transportation - Services – 0.0%
Rumo Luxembourg SARL 7.375%, 02/09/2024(e)			1,250		1,305,078
					77,457,413
Utility – 0.1%
Electric – 0.1%
AES Gener SA 6.35%, 10/07/2079(e)			1,816		1,822,356
Cemig Geracao e Transmissao SA 9.25%, 12/05/2024(e)			2,251		2,532,375
Light Servicos de Eletricidade SA/Light Energia SA 7.25%, 05/03/2023(e)			1,396		1,461,437
Star Energy Geothermal Wayang Windu Ltd. 6.75%, 04/24/2033(e)			839		921,300
Terraform Global Operating LLC 6.125%, 03/01/2026(m)			289		293,026
					7,030,494

64    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Financial Institutions – 0.1%
Banking – 0.0%
Fidelity Bank PLC 10.50%, 10/16/2022(e)	U.S.$		575	$	586,140
Insurance – 0.1%
Highlands Holdings Bond Issuer Ltd./Highlands Holdings Bond Co-Issuer, Inc. 7.625% (7.625% Cash or 8.375% PIK), 10/15/2025(e)(l)			3,138		3,118,670
					3,704,810
Total Emerging Markets – Corporate Bonds (cost $103,195,011)					88,192,717
ASSET-BACKED SECURITIES – 1.6%
Other ABS - Fixed Rate – 0.9%
CLUB Credit Trust Series 2017-P2, Class C 4.91%, 01/15/2024(e)			1,703		1,722,553
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2018-20, Class PT 10.361%, 11/16/2043(m)			1,548		1,447,515
Series 2019-36, Class PT 13.317%, 10/17/2044(m)			1,580		1,411,126
Series 2019-43, Class PT 6.564%, 11/15/2044(m)			1,108		1,042,039
Consumer Loan Underlying Bond Credit Trust Series 2018-P1, Class C 5.21%, 07/15/2025(e)			3,255		3,229,478
Marlette Funding Trust Series 2018-3A, Class C 4.63%, 09/15/2028(e)			4,539		4,597,928
Series 2018-4A, Class C 4.91%, 12/15/2028(e)			558		566,594
Series 2019-2A, Class C 4.11%, 07/16/2029(e)			2,692		2,735,324
Series 2019-3A, Class C 3.79%, 09/17/2029(e)			4,413		4,436,756
SoFi Consumer Loan Program LLC Series 2016-1, Class R Zero Coupon, 08/25/2025(h)(i)(m)			2,118		472,733
Series 2016-5, Class R Zero Coupon, 09/25/2028(h)(i)(m)			24		401,347
Series 2017-5, Class R1 Zero Coupon, 09/25/2026(h)(i)(m)			17		417,975

abfunds.com AB INCOME FUND    ^|    65

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
SoFi Consumer Loan Program Trust Series 2018-1, Class R1 Zero Coupon, 02/25/2027(h)(i)(m)	U.S.$		37	$	1,481,640
Series 2018-2, Class C 4.25%, 04/26/2027(e)			1,400		1,429,629
Series 2018-3, Class C 4.67%, 08/25/2027(e)			4,611		4,716,446
Series 2019-2, Class D 4.20%, 04/25/2028(e)			1,000		1,023,734
Series 2019-3, Class D 3.89%, 05/25/2028(e)			5,378		5,512,694
Series 2019-4, Class D 3.48%, 08/25/2028(e)			3,000		2,956,012
					39,601,523
Autos - Fixed Rate – 0.7%
Avis Budget Rental Car Funding AESOP LLC Series 2018-1A, Class C 4.73%, 09/20/2024(e)			2,372		2,460,002
CPS Auto Receivables Trust Series 2016-C, Class E 8.39%, 09/15/2023(e)			1,500		1,527,402
CPS Auto Trust Series 2016-D, Class E 6.86%, 04/15/2024(e)			3,000		3,042,640
Series 2017-A, Class E 7.07%, 04/15/2024(e)			4,200		4,349,916
Exeter Automobile Receivables Trust Series 2017-1A, Class D 6.20%, 11/15/2023(e)			2,000		2,060,829
Series 2017-3A, Class D 5.28%, 10/15/2024(e)			4,370		4,562,541
Series 2019-2A, Class E 4.68%, 05/15/2026(e)			2,670		2,779,819
Series 2019-3A, Class E 4.00%, 08/17/2026(e)			4,355		4,451,008
First Investors Auto Owner Trust Series 2017-1A, Class E 5.86%, 11/15/2023(e)			450		459,678
Flagship Credit Auto Trust Series 2017-1, Class E 6.46%, 12/15/2023(e)			1,000		1,043,172
Series 2018-3, Class D 4.15%, 12/16/2024(e)			670		703,017
Series 2019-4, Class E
4.11%, 03/15/2027(e)			2,970		2,992,150

66    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Westlake Automobile Receivables Trust Series 2019-2A, Class E 4.02%, 04/15/2025(e)	U.S.$		2,551	$	2,602,560
					33,034,734
Total Asset-Backed Securities (cost $76,452,490)					72,636,257
INFLATION-LINKED SECURITIES – 1.4%
United States – 1.4%
U.S. Treasury Inflation Index 0.125%, 07/15/2024 (TIPS) (cost $61,375,959)			61,430		64,598,006
GOVERNMENTS – SOVEREIGN BONDS – 1.1%
Colombia – 0.1%
Colombia Government International Bond 3.125%, 04/15/2031			864		886,464
4.125%, 05/15/2051			4,097		4,291,608
					5,178,072
Israel – 0.2%
Israel Government International Bond 2.75%, 07/03/2030			7,916		8,645,756
Mexico – 0.1%
Mexico Government International Bond 3.90%, 04/27/2025			1,205		1,316,237
4.75%, 04/27/2032			2,706		3,093,296
					4,409,533
Panama – 0.1%
Panama Notas del Tesoro 3.75%, 04/17/2026(e)			5,330		5,734,747
Peru – 0.0%
Peruvian Government International Bond 2.392%, 01/23/2026			247		259,350
2.783%, 01/23/2031			719		778,677
					1,038,027
Qatar – 0.2%
Qatar Government International Bond 3.375%, 03/14/2024(e)			4,399		4,733,049
3.40%, 04/16/2025(e)			1,074		1,179,722
3.75%, 04/16/2030(e)			1,810		2,102,994
3.875%, 04/23/2023(e)			861		923,691
					8,939,456

abfunds.com AB INCOME FUND    ^|    67

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Saudi Arabia – 0.2%
Saudi Government International Bond 2.90%, 10/22/2025(e)	U.S.$		3,031	$	3,235,593
3.25%, 10/22/2030(e)			3,774		4,108,942
					7,344,535
United Arab Emirates – 0.2%
Abu Dhabi Government International Bond 2.50%, 04/16/2025(e)			2,587		2,739,633
3.125%, 04/16/2030(e)			4,640		5,162,000
					7,901,633
Total Governments – Sovereign Bonds (cost $45,316,703)					49,191,759
AGENCIES – 0.9%
Agency Debentures – 0.9%
Federal Home Loan Banks 5.50%, 07/15/2036			8,695		13,389,778
Federal Home Loan Mortgage Corp. 6.25%, 07/15/2032			10,400		16,079,856
Series GDIF 6.75%, 09/15/2029			4,606		6,864,783
6.75%, 03/15/2031			4,000		6,162,160
Total Agencies (cost $36,284,860)					42,496,577
QUASI-SOVEREIGNS – 0.9%
Quasi-Sovereign Bonds – 0.9%
Bahrain – 0.1%
Oil and Gas Holding Co. BSCC (The) 7.625%, 11/07/2024(e)			668		710,585
8.375%, 11/07/2028(e)			3,912		4,292,197
					5,002,782
Chile – 0.0%
Corp. Nacional del Cobre de Chile 3.75%, 01/15/2031(e)			212		234,260
Empresa de Transporte de Pasajeros Metro SA 3.65%, 05/07/2030(e)			200		217,600
					451,860
Indonesia – 0.1%
Indonesia Asahan Aluminium Persero PT 4.75%, 05/15/2025(e)			2,044		2,220,295
5.71%, 11/15/2023(e)			277		305,479
					2,525,774

68    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Kazakhstan – 0.1%
KazMunayGas National Co. JSC 4.75%, 04/24/2025(e)	U.S.$		768	$	852,720
5.375%, 04/24/2030(e)			1,940		2,313,450
					3,166,170
Malaysia – 0.1%
Petronas Capital Ltd. 3.50%, 04/21/2030(e)			3,739		4,163,526
Mexico – 0.5%
Petroleos Mexicanos 5.95%, 01/28/2031			11,914		9,959,389
6.49%, 01/23/2027			1,455		1,353,514
6.50%, 01/23/2029			403		359,516
6.75%, 09/21/2047			4,901		3,795,825
6.84%, 01/23/2030			2,180		1,949,124
7.69%, 01/23/2050			5,270		4,373,837
					21,791,205
Panama – 0.0%
Aeropuerto Internacional de Tocumen SA 6.00%, 11/18/2048(e)			1,013		1,136,536
Ukraine – 0.0%
NAK Naftogaz Ukraine via Kondor Finance PLC 7.625%, 11/08/2026(e)			2,168		2,032,785
United Arab Emirates – 0.0%
DP World Crescent Ltd. 3.875%, 07/18/2029(e)			296		308,210
DP World PLC 5.625%, 09/25/2048(e)			696		792,570
					1,100,780
Total Quasi-Sovereigns (cost $39,707,341)					41,371,418
LOCAL GOVERNMENTS – PROVINCIAL BONDS – 0.7%
Canada – 0.7%
Province of Alberta Canada 3.40%, 12/01/2023	CAD		5,934		4,842,827
Province of British Columbia Canada Series T 9.00%, 08/23/2024			3,539		3,490,416
Province of Quebec Canada 8.50%, 04/01/2026			12,134		12,760,873

abfunds.com AB INCOME FUND    ^|    69

PORTFOLIO OF INVESTMENTS (continued)

Company		Principal Amount (000)		U.S. $ Value
Province of Saskatchewan Canada 3.20%, 06/03/2024	CAD		12,746	$	10,435,973
Total Local Governments – Provincial Bonds (cost $30,212,867)					31,530,089
EMERGING MARKETS – TREASURIES – 0.4%
Brazil – 0.2%
Brazil Notas do Tesouro Nacional Series F 10.00%, 01/01/2025	BRL		47,870		9,341,117
Dominican Republic – 0.1%
Dominican Republic International Bond 16.95%, 02/04/2022(e)	DOP		149,900		2,848,747
South Africa – 0.1%
Republic of South Africa Government Bond Series 2030 8.00%, 01/31/2030	ZAR		135,695		7,668,288
Total Emerging Markets – Treasuries (cost $24,926,399)					19,858,152
		Shares
PREFERRED STOCKS – 0.2%
Industrial – 0.2%
Auto Components – 0.1%
Exide Corp.(h)(i) 8.00%			3,093		2,325,936
Capital Goods – 0.1%
Stanley Black & Decker, Inc. Series C 5.00%			4,000		4,792,000
					7,117,936
Financial Institutions – 0.0%
Banking – 0.0%
Paysafe Holdings UK Ltd. 0.00%(h)(i)(j)			974,025		974,025
Total Preferred Stocks (cost $7,138,521)					8,091,961

70    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Company	Shares		U.S. $ Value
COMMON STOCKS – 0.1%
Consumer Discretionary – 0.1%
Auto Components – 0.1%
ATD New Holdings, Inc.(i)(j)		29,486	$	294,860
Exide Corp.(h)(i)(j)		497		484,575
Exide Technologies(h)(i)(j)		585,460		1
Exide Technologies/Old(h)(i)(j)		45,970		– 0	–
				779,436
Media – 0.0%
Ion Media Networks, Inc. – Class A(h)(i)		2,512		2,403,984
				3,183,420
Energy – 0.0%
Oil, Gas & Consumable Fuels – 0.0%
Berry Corp.		137,884		361,256
Denbury, Inc.(j)		26,032		431,871
Golden Energy Offshore Services AS(j)		1,497,659		108,246
Paragon Litigation – Class A(i)		10,360		1,036
Paragon Litigation – Class B(i)		15,538		100,997
Tervita Corp.(j)		116,270		152,722
Vantage Drilling International(j)		16,001		40,003
Whiting Petroleum Corp.(j)		12,942		188,953
				1,385,084
Consumer Staples – 0.0%
Food & Staples Retailing – 0.0%
Southeastern Grocers, Inc. Npv(h)(i)		16,421		1,190,523
Information Technology – 0.0%
IT Services – 0.0%
Paysafe Group Ltd.(h)(i)		3,109		28,323
Software – 0.0%
Monitronics International, Inc.(h)(i)(j)		68,348		227,289
				255,612
Communication Services – 0.0%
Media – 0.0%
iHeartMedia, Inc.– Class A(j)		1,690		13,892
Total Common Stocks (cost $13,688,927)				6,028,531

abfunds.com AB INCOME FUND    ^|    71

PORTFOLIO OF INVESTMENTS (continued)

Company		Principal Amount (000)		U.S. $ Value
LOCAL GOVERNMENTS – US MUNICIPAL BONDS – 0.1%
United States – 0.1%
Texas Transportation Commission State Highway Fund Series 2010B 5.178%, 04/01/2030 (cost $2,560,000)	U.S.$		2,560	$	3,235,610
		Notional Amount
OPTIONS PURCHASED – PUTS – 0.0%
Swaptions – 0.0%
IRS Swaption Expiration: Jan 2021; Contracts: 17,889,000; Exercise Rate: 1.52%; Counterparty: JPMorgan Chase Bank, NA(j)	USD		17,889,000		411,752
IRS Swaption Expiration: Nov 2020; Contracts: 4,935,000; Exercise Rate: 1.28%; Counterparty: Goldman Sachs International(j)			4,935,000		124,774
IRS Swaption Expiration: Nov 2020; Contracts: 4,934,000; Exercise Rate: 1.28%; Counterparty: Goldman Sachs International(j)			4,934,000		124,748
IRS Swaption Expiration: Nov 2020; Contracts: 3,795,000; Exercise Rate: 1.28%; Counterparty: Goldman Sachs International(j)			3,795,000		88,149
Total Options Purchased – Puts (premiums paid $607,771)					749,423
		Shares
WARRANTS – 0.0%
Avaya Holdings Corp., expiring 12/15/2022(j)			2,936		7,193
Encore Automotive Acceptance, expiring 07/05/2031(h)(i)			12		– 0	–
Flexpath Capital, Inc., expiring 04/15/2031(h)(i)(j)			17,195		– 0	–

72    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Company		Shares		U.S. $ Value
iHeartMedia, Inc., expiring 05/01/2039(j)			12,695	$	94,895
SandRidge Energy, Inc., B-CW22, expiring 10/04/2022(j)			1,042		7
SandRidge Energy, Inc., A-CW22, expiring 10/04/2022(j)			2,475		25
Total Warrants (cost $203,120)					102,120
		Principal Amount (000)
WHOLE LOAN TRUSTS – 0.0%
Performing Asset – 0.0%
Sheridan Auto Loan Holdings I LLC 10.00%, 12/31/2020-09/30/2021(h)(i) (cost $1,713,829)	U.S.$		1,719		89,129
		Shares
SHORT-TERM INVESTMENTS – 0.7%
Investment Companies – 0.6%
AB Fixed Income Shares, Inc.—AB Government Money Market Portfolio –Class AB, 0.03%(r)(s)(t) (cost $26,220,252)			26,220,252		26,220,252
		Principal Amount (000)
Governments – Treasuries – 0.1%
Egypt – 0.1%
Egypt Treasury Bills Series 182D Zero Coupon, 03/23/2021 (cost $7,029,112)	EGP		116,475		7,050,447
Total Short-Term Investments (cost $33,249,364)					33,270,699
Total Investments – 133.5% (cost $6,066,570,804)					6,171,041,194
Other assets less liabilities – (33.5)%					(1,547,739,073	)
Net Assets – 100.0%				$	4,623,302,121

abfunds.com AB INCOME FUND    ^|    73

PORTFOLIO OF INVESTMENTS (continued)

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month		Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
Euro-BOBL Futures		9		December 2020	$	1,424,169	$	8,900
Long Gilt Futures		13		December 2020		2,285,054		(8,939	)
U.S. T-Note 10 Yr (CBT) Futures		1,730		December 2020		239,118,438		(2,099,170	)
Sold Contracts
Euro Buxl 30 Yr Bond Futures		16		December 2020		4,262,806		(157,291	)
Euro-Bund Futures		61		December 2020		12,514,340		(173,409	)
Euro-Schatz Futures		496		December 2020		64,967,256		(116,042	)
U.S. 10 Yr Ultra Futures		42		December 2020		6,605,812		92,801
U.S. T-Note 2 Yr (CBT) Futures		853		December 2020		188,379,719		57,833
U.S. Ultra Bond (CBT) Futures		30		December 2020		6,450,000		274,291
							$	(2,121,026	)

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Bank of America, NA	ZAR	99,938	USD	5,977		11/27/2020	$	(147,272	)
Barclays Bank PLC	CAD	42,068	USD	31,681		12/10/2020		100,482
BNP Paribas SA	BRL	61,115	USD	11,027		11/04/2020		376,094
BNP Paribas SA	USD	10,589	BRL	61,115		11/04/2020		62,465
Citibank, NA	BRL	61,115	USD	10,589		11/04/2020		(62,465	)
Citibank, NA	USD	10,660	BRL	61,115		11/04/2020		(9,196	)
Citibank, NA	BRL	61,115	USD	10,651		12/02/2020		14,399
Citibank, NA	AUD	16,428	USD	11,551		01/12/2021		(546	)
Goldman Sachs Bank USA	RUB	2,808,480	USD	36,509		11/19/2020		1,220,289
Goldman Sachs Bank USA	AUD	16,671	USD	11,750		01/12/2021		27,287
Goldman Sachs Bank USA	IDR	205,054,625	USD	13,680		01/15/2021		(86,268	)
JPMorgan Chase Bank, NA	MXN	758,438	USD	35,349		12/11/2020		(258,917	)
Morgan Stanley Capital Services, Inc.	GBP	1,303	USD	1,694		11/19/2020		5,836
Morgan Stanley Capital Services, Inc.	EUR	86,792	USD	102,084		12/18/2020		891,637
Morgan Stanley Capital Services, Inc.	USD	1,334	EUR	1,137		12/18/2020		(8,054	)
State Street Bank & Trust Co.	GBP	50	USD	65		11/19/2020		421
State Street Bank & Trust Co.	EUR	1,100	USD	1,284		12/18/2020		1,987
							$	2,128,179

74    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020				Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
CDX-NAHY Series 34, 5 Year Index, 06/20/2025*		5.00	%		Quarterly		3.96	%	USD		27,778	$	1,343,287		$	1,607,166		$	(263,879	)
iTraxx -Xover Series 33, 5 Year Index, 06/20/2025*		5.00			Quarterly		3.54		EUR		20,141		1,559,174			(235,457	)		1,794,631
Republic of Colombia, 10.375%, 01/28/2033, 06/20/2025*		1.00			Quarterly		1.11		USD		5,872		(30,232	)		(327,631	)		297,399
Republic of South Africa, 5.875%, 09/16/2025, 06/20/2025*		1.00			Quarterly		2.63		USD		6,075		(432,088	)		(748,587	)		316,499
Russian Federation, 7.50%, 03/31/2030, 06/20/2025*		1.00			Quarterly		0.95		USD		5,872		16,016			(254,519	)		270,535
												$	2,456,157		$	40,972		$	2,415,185

* Termination date

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund		Payments received by the Fund		Payment Frequency Paid/ Received		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
USD	109,350		04/20/2023		2.850%		3 Month LIBOR		Semi- Annual/ Quarterly	$	(7,093,214	)	$	– 0	–	$	(7,093,214	)
USD	46,860		04/02/2024		2.851%		3 Month LIBOR		Semi- Annual/ Quarterly		(4,159,092	)		–0	–		(4,159,092	)
USD	30,755		02/10/2025		2.034%		3 Month LIBOR		Semi- Annual/ Quarterly		(2,286,695	)		–0	–		(2,286,695	)
USD	6,010		06/09/2025		2.491%		3 Month LIBOR		Semi- Annual/ Quarterly		(630,229	)		–0	–		(630,229	)
USD	10,000		01/11/2027		2.285%		3 Month LIBOR		Semi- Annual/ Quarterly		(1,123,365	)		–0	–		(1,123,365	)
USD	11,920		04/26/2027		2.287%		3 Month LIBOR		Semi- Annual/ Quarterly		(1,299,957	)		–0	–		(1,299,957	)
										$	(16,592,552	)	$	–0	–	$	(16,592,552	)

abfunds.com AB INCOME FUND    ^|    75

PORTFOLIO OF INVESTMENTS (continued)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020				Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
Barclays Bank PLC
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00	%		Monthly		25.00	%	USD		5,000	$	(2,503,139	)	$	(122,372	)	$	(2,380,767	)
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		25.00		USD		4,000		(2,002,512	)		(604,657	)		(1,397,855	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		1,529		(494,657	)		(153,637	)		(341,020	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		5,300		(1,714,639	)		(328,193	)		(1,386,446	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		9,557		(3,091,849	)		(954,782	)		(2,137,067	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		9,557		(3,091,849	)		(945,173	)		(2,146,676	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		9,557		(3,091,849	)		(945,173	)		(2,146,676	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		5,000		(1,617,583	)		(601,026	)		(1,016,557	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		5,000		(1,617,583	)		(499,262	)		(1,118,321	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		5,000		(1,617,584	)		(506,591	)		(1,110,993	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		12,000		(3,883,200	)		(1,503,699	)		(2,379,501	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		3,250		(1,051,429	)		(331,874	)		(719,555	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		643		(208,075	)		(71,846	)		(136,229	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		13,500		(4,367,475	)		(1,181,148	)		(3,186,327	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		162		(52,491	)		(10,120	)		(42,371	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		1,146		(370,750	)		(180,940	)		(189,810	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		1,187		(384,212	)		(316,435	)		(67,777	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		2,969		(961,016	)		(725,531	)		(235,485	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		2,227		(720,843	)		(544,210	)		(176,633	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		2,227		(720,843	)		(549,707	)		(171,136	)

76    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020				Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		25.00	%	USD		9,029	$	(2,921,032	)	$	(770,744	)	$	(2,150,288	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		13,543		(4,381,386	)		(1,150,264	)		(3,231,122	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		9,564		(3,094,114	)		(593,558	)		(2,500,556	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		11,206		(3,625,328	)		(690,434	)		(2,934,894	)
Towd Point Mortgage Trust REMIC, 2.750% 04/25/2057*		0.45			Monthly		0.45		USD		8,771		(25,599	)		– 0	–		(25,599	)
Credit Suisse International
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		9.67		USD		15,000		(1,873,000	)		(418,558	)		(1,454,442	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		9.67		USD		1,136		(141,786	)		(45,304	)		(96,482	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		9.67		USD		567		(70,768	)		(22,191	)		(48,577	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		9.67		USD		2,839		(354,338	)		(111,112	)		(243,226	)
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		9.67		USD		6,500		(811,273	)		(346,799	)		(464,474	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		9,220		(2,982,824	)		(1,101,564	)		(1,881,260	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		17,343		(5,612,195	)		(2,123,205	)		(3,488,990	)
Deutsche Bank AG
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		9.67		USD		23,700		(2,958,024	)		(1,025,748	)		(1,932,276	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		10,000		(3,235,166	)		(1,565,809	)		(1,669,357	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		20,000		(6,470,333	)		(2,854,485	)		(3,615,848	)
Goldman Sachs International
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		25.00		USD		16,500		(8,260,359	)		(3,683,994	)		(4,576,365	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		13,000		(4,205,717	)		(1,302,841	)		(2,902,876	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		32,853		(10,628,493	)		(4,523,434	)		(6,105,059	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		14,291		(4,624,567	)		(1,642,424	)		(2,982,143	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		11,909		(3,853,752	)		(1,366,069	)		(2,487,683	)

abfunds.com AB INCOME FUND    ^|    77

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020				Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		25.00	%	USD		8,827	$	(2,855,681	)	$	(1,434,547	)	$	(1,421,134	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		6,323		(2,045,596	)		(1,013,026	)		(1,032,570	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		9,029		(2,921,032	)		(767,065	)		(2,153,967	)
JPMorgan Chase Bank, NA
Rolls-Royce PLC, 2.125%,06/18/2021, 06/20/2025*		1.00			Quarterly		4.32		EUR		1,638		(260,862	)		(301,826	)		40,964
Rolls-Royce PLC, 2.125%,06/18/2021, 06/20/2025*		1.00			Quarterly		4.32		EUR		1,742		(277,423	)		(322,809	)		45,386
JPMorgan Securities, LLC
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		25.00		USD		3,869		(1,937,467	)		(730,861	)		(1,206,606	)
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		25.00		USD		3,748		(1,876,874	)		(718,383	)		(1,158,491	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		9,543		(3,087,319	)		(1,063,838	)		(2,023,481	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		3,000		(970,550	)		(187,112	)		(783,438	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		4,514		(1,460,354	)		(383,393	)		(1,076,961	)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		9.67		USD		293		(36,576	)		(11,886	)		(24,690	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		547		(176,964	)		(45,057	)		(131,907	)
Morgan Stanley Capital Services LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD		7,808		(2,526,018	)		(475,214	)		(2,050,804	)
												$	(124,126,348	)	$	(43,869,930	)	$	(80,256,418	)

* Termination date

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Interest Rate			Maturity		U.S. $ Value at October 31, 2020
Barclays Capital, Inc.†		(1.25	)%*		—	$	2,030,006
HSBC Securities (USA), Inc.†		0.14	%		—		164,958,414
HSBC Securities (USA), Inc.†		0.14	%		—		88,144,742
JPMorgan Chase Bank†		0.09	%		—		42,950,277
JPMorgan Chase Bank†		0.19	%		—		272,543,677
						$	570,627,116

* Interest payment due from counterparty.

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on October 31, 2020.

78    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

The type of underlying collateral and the remaining maturity of open reverse repurchase agreements on the statements of assets and liabilities is as follows:

	Overnight and Continuous		Up to 30 Days		31-90 Days		Greater than 90 Days		Total
Corporates—Non-Investment Grade	$	2,030,006	$	– 0 –	$	– 0 –	$	– 0 –	$	2,030,006
Government-Treasuries		568,597,110		– 0 –		– 0 –		– 0 –		568,597,110
Total	$	570,627,116	$	– 0 –	$	– 0 –	$	– 0 –	$	570,627,116

(a) Position, or a portion thereof, has been segregated to collateralize margin requirements for open centrally cleared swaps.

(b) Position, or a portion thereof, has been segregated to collateralize OTC derivatives outstanding.

(c) Position, or a portion thereof, has been segregated to collateralize reverse repurchase agreements.

(d) Position, or a portion thereof, has been segregated to collateralize margin requirements for open futures contracts.

(e) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2020, the aggregate market value of these securities amounted to $1,474,101,876 or 31.9% of net assets.

(f) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2020.

(g) Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date.

(h) Fair valued by the Adviser.

(i) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(j) Non-income producing security.

(k) Defaulted matured security.

(l) Pay-In-Kind Payments (PIK). The issuer may pay cash interest and/or interest in additional debt securities. Rates shown are the rates in effect at October 31, 2020.

(m) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.58% of net assets as of October 31, 2020, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentageof Net Assets
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2018-20, Class PT 10.361%, 11/16/2043		09/27/2018	$	1,548,491	$	1,447,515		0.03	%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-36, Class PT 13.317%, 10/17/2044		09/04/2019		1,568,571		1,411,126		0.03	%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-43, Class PT 6.564%, 11/15/2044		01/09/2019		1,103,058		1,042,039		0.02	%

abfunds.com AB INCOME FUND    ^|    79

PORTFOLIO OF INVESTMENTS (continued)

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value			Percentageof Net Assets
Digicel Group 0.5 Ltd. 7.00%, 11/16/2020		06/19/2000	$	7,645	$	10,616			0.00	%
Home Re Ltd. Series 2019-1, Class B1 4.499%, 05/25/2029		12/20/2019		2,075,860		1,813,495			0.04	%
JP Morgan Madison Avenue Securities Trust Series 2014-CH1, Class M2 4.399%, 11/25/2024		11/06/2015	$	879,273	$	823,892			0.02	%
JP Morgan Madison Avenue Securities Trust Series 2015-CH1, Class M2 5.649%, 10/25/2025		09/18/2015		1,603,618		1,466,820			0.03	%
Magnetation LLC/Mag Finance Corp. 11.00%, 05/15/2018		02/19/2015		861,787		– 0	–		0.00	%
PMT Credit Risk Transfer Trust Series 2019-1R, Class A 2.152%, 03/27/2024		03/21/2019		2,525,753		2,253,152			0.05	%
PMT Credit Risk Transfer Trust Series 2019-2R, Class A 2.902%, 05/27/2023		06/07/2019		3,456,466		3,098,799			0.07	%
PMT Credit Risk Transfer Trust Series 2019-3R, Class A 2.852%, 10/27/2022		01/11/2019		1,439,119		1,289,022			0.03	%
PMT Credit Risk Transfer Trust Series 2020-1R, Class A 2.502%, 02/27/2023		02/11/2000		6,874,671		6,153,420			0.13	%
Peabody Energy Corp. 6.00%, 03/31/2022		08/22/2017		2,394,873		1,088,160			0.02	%
Radnor Re Ltd. Series 2018-1, Class B1 3.949%, 03/25/2028		12/23/2019		1,542,318		1,357,977			0.03	%
SoFi Consumer Loan Program LLC Series 2016-1, Class R Zero Coupon, 08/25/2025		07/19/2017		680,401		472,733			0.01	%
SoFi Consumer Loan Program LLC Series 2016-5, Class R Zero Coupon, 09/25/2028		06/23/2017		1,275,923		401,347			0.01	%
SoFi Consumer Loan Program LLC Series 2017-5, Class R1 Zero Coupon, 09/25/2026		09/18/2017		1,758,337		417,975			0.01	%
SoFi Consumer Loan Program Trust Series 2018-1, Class R1 Zero Coupon, 02/25/2027		02/01/2018		3,677,430		1,481,640			0.03	%
Terraform Global Operating LLC 6.125%, 03/01/2026		02/08/2018		289,000		293,026			0.01	%
Tonon Luxembourg SA 6.50%, 10/31/2024		07/24/2015		1,856,320		26,095			0.00	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		06/19/2013		3,510,941		41,552			0.00	%
Virgolino de Oliveira Finance SA 10.875%, 01/13/2020		06/09/2014		745,965		150,000			0.00	%
Virgolino de Oliveira Finance SA 11.75%, 02/09/2022		01/31/2014		916,308		8,471			0.00	%
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 5.399%, 11/25/2025		09/06/2016		560,065		541,897			0.01	%

80    ^|    AB INCOME FUND abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

(n) The stated coupon rate represents the greater of the LIBOR or the LIBOR floor rate plus a spread at October 31, 2020.

(o) Defaulted.

(p) Inverse interest only security.

(q) IO – Interest Only.

(r) Affiliated investments.

(s) 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.

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

Currency Abbreviations:

AUD – Australian Dollar

BRL – Brazilian Real

CAD – Canadian Dollar

DOP – Dominican Peso

EGP – Egyptian Pound

EUR – Euro

GBP – Great British Pound

IDR – Indonesian Rupiah

MXN – Mexican Peso

RUB – Russian Ruble

USD – United States Dollar

ZAR – South African Rand

Glossary:

ABS – Asset-Backed Securities

BOBL – Bundesobligationen

CBT – Chicago Board of Trade

CDX-CMBX.NA – North American Commercial Mortgage-Backed Index

CDX-NAHY – North American High Yield Credit Default Swap Index

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

IRS – Interest Rate Swaption

JSC – Joint Stock Company

LIBOR – London Interbank Offered Rate

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

TBA – To Be Announced

TIPS – Treasury Inflation Protected Security

See notes to financial statements.

abfunds.com AB INCOME FUND    ^|    81

STATEMENT OF ASSETS & LIABILITIES

October 31, 2020

Assets
Investments in securities, at value
Unaffiliated issuers (cost $6,040,350,552)	$	6,144,820,942
Affiliated issuers (cost $26,220,252)		26,220,252
Cash		1,104,445
Cash collateral due from broker		1,991,000
Foreign currencies, at value (cost $1,972,572)		1,965,752
Receivable for investment securities sold		123,162,103
Unaffiliated interest and dividends receivable		58,355,740
Receivable for capital stock sold		12,486,037
Unrealized appreciation on forward currency exchange contracts		2,700,897
Affiliated dividends receivable		1,215
Total assets		6,372,808,383
Liabilities
Payable for investment securities purchased and foreign currency transactions		1,037,820,983
Payable for reverse repurchase agreements		570,627,116
Market value on credit default swaps (net premiums received $43,869,930)		124,126,348
Payable for capital stock repurchased		11,023,394
Advisory fee payable		1,468,158
Cash collateral due to broker		1,210,000
Dividends payable		898,721
Unrealized depreciation on forward currency exchange contracts		572,718
Payable for variation margin on futures		273,197
Distribution fee payable		244,860
Transfer Agent fee payable		67,239
Administrative fee payable		26,759
Directors’ fees payable		7,192
Payable for variation margin on centrally cleared swaps		3,001
Accrued expenses and other liabilities		1,136,576
Total liabilities		1,749,506,262
Net Assets	$	4,623,302,121
Composition of Net Assets
Capital stock, at par	$	580,055
Additional paid-in capital		4,615,069,570
Distributable earnings		7,652,496
	$	4,623,302,121

Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	289,618,986		36,376,460	$	7.96	*
C	$	217,968,208		27,344,023	$	7.97
Advisor	$	4,097,222,596		514,013,564	$	7.97
Z	$	18,492,331		2,320,560	$	7.97

* The maximum offering price per share for Class A shares was $8.31 which reflects a sales charge of 4.25%.

See notes to financial statements.

82    ^|    AB INCOME FUND abfunds.com

STATEMENT OF OPERATIONS

Year Ended October 31, 2020

Investment Income
Interest (net of foreign taxes withheld of $557,695)	$	175,375,128
Dividends
Unaffiliated issuers		708,947
Affiliated issuers		396,925
Other income		31,830		$	176,512,830
Expenses
Advisory fee (see Note B)		18,858,713
Distribution fee—Class A		678,338
Distribution fee—Class C		1,972,383
Transfer agency—Class A		209,621
Transfer agency—Class C		152,873
Transfer agency—Advisor Class		3,023,070
Transfer agency—Class Z		2,092
Registration fees		373,117
Custody and accounting		349,475
Printing		274,057
Audit and tax		148,683
Legal		83,890
Administrative		82,961
Directors’ fees		73,497
Miscellaneous		138,005
Total expenses before interest expense		26,420,775
Interest expense		458,441
Total expenses		26,879,216
Less: expenses waived and reimbursed by the Adviser (see Note B)		(929,000	)
Net expenses					25,950,216
Net investment income					150,562,614
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)					38,089,028
Forward currency exchange contracts					6,875,856
Futures					42,255,412
Swaps					(43,636,596	)
Foreign currency transactions					(9,147,825	)
Net change in unrealized appreciation/depreciation of:
Investments(b)					40,000,582
Forward currency exchange contracts					5,464,886
Futures					102,463
Swaps					(101,193,527	)
Foreign currency denominated assets and liabilities					183,670
Net loss on investment and foreign currency transactions					(21,006,051	)
Net Increase in Net Assets from Operations				$	129,556,563

(a) Net of foreign capital gains taxes of $359,201.

(b) Net of increase in accrued foreign capital gains taxes of $68,394.

See notes to financial statements.

abfunds.com AB INCOME FUND    ^|    83

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2020			Year Ended October 31, 2019
Increase (Decrease) in Net Assets from Operations
Net investment income	$	150,562,614		$	120,023,768
Net realized gain on investment and foreign currency transactions		34,435,875			31,842,411
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		(55,441,926	)		156,494,849
Contributions from Affiliates (see Note B)		– 0	–		6,818
Net increase in net assets from operations		129,556,563			308,367,846
Distributions to Shareholders
Class A		(10,178,007	)		(7,312,426	)
Class C		(5,915,916	)		(3,340,007	)
Advisor Class		(156,640,759	)		(102,301,258	)
Class Z(a)		(437,740	)		– 0	–
Return of capital
Class A		– 0	–		(1,342,784	)
Class C		– 0	–		(613,327	)
Advisor Class		– 0	–		(18,785,630	)
Capital Stock Transactions
Net increase		699,536,203			1,255,456,371
Total increase		655,920,344			1,430,128,785
Net Assets
Beginning of period		3,967,381,777			2,537,252,992
End of period	$	4,623,302,121		$	3,967,381,777

(a) Commenced distribution on November 20, 2019

See notes to financial statements.

84    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS

October 31, 2020

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of ten portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Income Fund (the “Fund”), a diversified portfolio. The Fund acquired the assets and liabilities of the AllianceBernstein Income Fund, Inc., a closed-end fund (the “Predecessor Fund”), effective at the close of business on April 21, 2016 (the “Reorganization”). The Predecessor Fund was the accounting survivor in the Reorganization and as such, the financial statements and the Advisor Class shares financial highlights reflect the financial information of the Predecessor Fund through April 21, 2016. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares. Effective November 20, 2019, the Fund commenced offering Class Z shares. Class B, Class K, Class R, Class I, Class T, Class 1 and Class 2 shares have not been issued. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Advisor Class and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eleven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily

abfunds.com AB INCOME FUND    ^|    85

NOTES TO FINANCIAL STATEMENTS (continued)

available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (the “Adviser”) will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

86    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

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

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

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized

abfunds.com AB INCOME FUND    ^|    87

NOTES TO FINANCIAL STATEMENTS (continued)

modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

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

Options are valued using market-based inputs to models, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency, where such inputs and models are available. Alternatively, the values may be obtained through unobservable management determined inputs and/or management’s proprietary models. Where models are used, the selection of a particular model to value an option depends upon the contractual terms of, and specific risks inherent in, the option as well as the availability of pricing information in the market. Valuation models require a variety of inputs, including contractual terms, market prices, measures of volatility and correlations of such inputs. Exchange traded options generally will be classified as Level 2. For options that do not trade on exchange but trade in liquid markets, inputs can generally be verified and model selection does not involve significant management judgment. Options are classified within Level 2 on the fair value hierarchy when all of the significant inputs can be corroborated to market evidence. Otherwise such instruments are classified as Level 3.

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss

88    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

Bank loan prices are provided by third party pricing services and consist of a composite of the quotes received by the vendor into a consensus price. Certain bank loans are classified as Level 3, as a significant input used in the fair value measurement of these instruments is the market quotes that are received by the vendor and these inputs are not observable.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

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

Investments in Securities:	Level 1			Level 2		Level 3			Total
Assets:
Governments – Treasuries	$	– 0	–	$	2,416,238,634	$	– 0	–	$	2,416,238,634
Mortgage Pass-Throughs		– 0	–		1,145,199,086		– 0	–		1,145,199,086
Corporates – Investment Grade		– 0	–		632,674,236		– 0	–		632,674,236
Corporates – Non-Investment Grade		– 0	–		572,297,841		11,719,860	(a)		584,017,701
Collateralized Mortgage Obligations		– 0	–		388,647,491		– 0	–		388,647,491
Emerging Markets – Sovereigns		– 0	–		220,183,069		– 0	–		220,183,069
Collateralized Loan Obligations		– 0	–		117,189,484		– 0	–		117,189,484
Commercial Mortgage-Backed Securities		– 0	–		107,160,562		– 0	–		107,160,562
Bank Loans		– 0	–		85,946,433		12,342,050			98,288,483

abfunds.com AB INCOME FUND    ^|    89

NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities:

Level 1

Level 2

Level 3

Total

Emerging Markets – Corporate Bonds

$

– 0

–

$

88,166,622

$

26,095

$

88,192,717

Asset-Backed Securities

– 0

–

69,862,562

2,773,695

72,636,257

Inflation-Linked Securities

– 0

–

64,598,006

– 0

–

64,598,006

Governments – Sovereign Bonds

– 0

–

49,191,759

– 0

–

49,191,759

Agencies

– 0

–

42,496,577

– 0

–

42,496,577

Quasi-Sovereigns

– 0

–

41,371,418

– 0

–

41,371,418

Local Governments – Provincial Bonds

– 0

–

31,530,089

– 0

–

31,530,089

Emerging Markets – Treasuries

– 0

–

19,858,152

– 0

–

19,858,152

Preferred Stocks

– 0

–

4,792,000

3,299,961

8,091,961

Common Stocks

1,412,552

– 0

–

4,615,979

(a)

6,028,531

Local Governments – US Municipal Bonds

– 0

–

3,235,610

– 0

–

3,235,610

Options Purchased – Puts

– 0

–

749,423

– 0

–

749,423

Warrants

102,120

– 0

–

0

(a)

102,120

Whole Loan Trusts

– 0

–

– 0

–

89,129

89,129

Short-Term Investments:

Investment Companies

26,220,252

– 0

–

– 0

–

26,220,252

Governments –Treasuries

– 0

–

7,050,447

– 0

–

7,050,447

Total Investments in Securities

27,734,924

6,108,439,501

34,866,769

6,171,041,194

Other Financial Instruments(b):

Assets:

Futures

433,825

– 0

–

– 0

–

433,825

(c)

Forward Currency Exchange Contracts

– 0

–

2,700,897

– 0

–

2,700,897

Centrally Cleared Credit Default Swaps

– 0

–

2,918,477

– 0

–

2,918,477

(c)

Liabilities:

Futures

(2,554,851

)

– 0

–

– 0

–

(2,554,851

)(c)

Forward Currency Exchange Contracts

– 0

–

(572,718

)

– 0

–

(572,718

)

Centrally Cleared Credit Default Swaps

– 0

–

(462,320

)

– 0

–

(462,320

)(c)

Centrally Cleared Interest Rate Swaps

– 0

–

(16,592,552

)

– 0

–

(16,592,552

)(c)

Credit Default Swaps

– 0

–

(124,126,348

)

– 0

–

(124,126,348

)

Reverse Repurchase Agreements

(570,627,116

)

– 0

–

– 0

–

(570,627,116

)

Total

$

(545,013,218

)

$

5,972,304,937

$

34,866,769

$

5,462,158,488

(d)

(a) The Fund held securities with zero market value at period end.

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

90    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

(c) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

(d) Amounts of $41,088,168, $4,941,724, $51,481,876 and $1,296,862 for Asset-Backed Securities, Bank Loans, Collateralized Loan Obligations and Collateralized Mortgage Olbigations, respectively, were transferred out of Level 3 into Level 2 as improved transparency of price inputs received from pricing vendors has increased the observability during the reporting period.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

abfunds.com AB INCOME FUND    ^|    91

NOTES TO FINANCIAL STATEMENTS (continued)

5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .45% of the first $2.5 billion of the Fund’s average daily net assets, .40% of the excess over $2.5 billion up to $5 billion and .35% in excess of $5 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) on an annual basis (the “Expense Caps”) to .77%, 1.52%, .52%, and .52% of daily average net assets for Class A, Class C, Advisor Class, and Class Z shares, respectively. For the year ended October 31, 2020, such

92    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

reimbursement/waivers amounted to $881,877. The Expense Caps may not be terminated by the Adviser before January 31, 2021. Any fees waived and expenses borne by the Adviser through April 22, 2018 are subject to repayment by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne; such waivers that are subject to repayment amounted to $1,361,441 and $396,862 for the years ended October 31, 2017 and October 31, 2018, respectively. In any case, no reimbursement payment will be made that would cause the Fund’s total annual operating expenses to exceed the Expense Caps’ net fee percentage set forth above.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2020, the reimbursement for such services amounted to $82,961.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $890,005 for the year ended October 31, 2020.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $74,341 from the sale of Class A shares and received $84,990 and $103,080 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2020.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2021. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2020, such waiver amounted to $47,123.

abfunds.com AB INCOME FUND    ^|    93

NOTES TO FINANCIAL STATEMENTS (continued)

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

Fund	Market Value 10/31/19 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/20 (000)		Dividend Income (000)
Government Money Market Portfolio	$	51,924	$	1,692,251	$	1,717,955	$	26,220	$	397

During the year ended October 31, 2019, the Adviser reimbursed the Fund $6,818 for trading losses incurred due to a trade entry error.

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (now named Equitable Holdings, Inc.)(“Equitable”), through an initial public offering. Equitable is the holding company for a diverse group of financial services companies, including an approximate 65% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns less than 10% of the outstanding shares of common stock of Equitable, and no longer owns a controlling interest in Equitable. AXA previously announced its intention to sell its entire interest in Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of Equitable common stock.

Sales under the Plan that were completed on November 13, 2019 resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and may have been deemed to have been an “assignment” causing a termination of the Fund’s investment advisory and administration agreements. In order to ensure that investment advisory and administration services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved new investment advisory and administration agreements with the Adviser, and shareholders of the Fund subsequently approved the new investment advisory agreement. These agreements became effective on November 13, 2019.

94    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .25% of the Fund’s average daily net assets attributable to Class A shares and 1% of the Fund’s average daily net assets attributable to Class C shares. There are no distribution and servicing fees on the Advisor Class and Class Z shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $992,755 for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2020 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	1,669,177,487	$	884,733,103
U.S. government securities		13,612,578,676		12,742,515,499

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	6,065,740,413
Gross unrealized appreciation	$	332,862,414
Gross unrealized depreciation		(243,795,115	)
Net unrealized appreciation	$	89,067,299

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

abfunds.com AB INCOME FUND    ^|    95

NOTES TO FINANCIAL STATEMENTS (continued)

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Futures

The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon for non-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

During the year ended October 31, 2020, the Fund held futures for hedging and non-hedging purposes.

96    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2020, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.

• Option Transactions

For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities, including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges and over-the-counter markets. Among other things, the Fund may use options transactions for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.

The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds

abfunds.com AB INCOME FUND    ^|    97

NOTES TO FINANCIAL STATEMENTS (continued)

from securities sold through the exercise of put options are decreased by the premiums paid.

When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. The Fund’s maximum payment for written put options equates to the number of shares multiplied by the strike price. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

The Fund may also invest in options on swap agreements, also called “swaptions”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium”. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return on a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. The Fund’s maximum payment for written put swaptions equates to the notional amount of the underlying swap. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract.

During the year ended October 31, 2020, the Fund held purchased swaptions for hedging and non-hedging purposes.

98    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk, equity markets or currencies. The Fund may also enter into swaps for non-hedging purposes as a means of gaining market exposures, making direct investments in foreign currencies, as described below under “Currency Transactions.” A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission

abfunds.com AB INCOME FUND    ^|    99

NOTES TO FINANCIAL STATEMENTS (continued)

merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams

100    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended October 31, 2020, the Fund held interest rate swaps for hedging and non-hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments.

abfunds.com AB INCOME FUND    ^|    101

NOTES TO FINANCIAL STATEMENTS (continued)

The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

During the year ended October 31, 2020, the Fund held credit default swaps for non-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

102    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

During the year ended October 31, 2020, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location		Fair Value
Interest rate contracts	Receivable/Payable for variation margin on futures	$	433,825	*		Receivable/Payable for variation margin on futures	$	2,554,851	*
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps		2,679,064	*		Receivable/Payable for variation margin on centrally cleared swaps		263,879	*
Interest rate contracts						Receivable/Payable for variation margin on centrally cleared swaps		16,592,552	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		2,700,897			Unrealized depreciation on forward currency exchange contracts		572,718
Interest rate contracts	Investments in securities, at value		749,423
Credit contracts						Market value on credit default swaps		124,126,348
Total		$	6,563,209				$	144,110,348

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives		Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures	$	42,255,412	$	102,463
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		6,875,856		5,464,886

abfunds.com AB INCOME FUND    ^|    103

NOTES TO FINANCIAL STATEMENTS (continued)

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments	$	(805,852	)	$	141,652
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(2,658,053	)		(6,411,354	)
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(40,978,543	)		(94,782,173	)
Total		$	4,688,820		$	(95,484,526)

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2020:

Futures:
Average notional amount of buy contracts	$	557,626,419
Average notional amount of sale contracts	$	369,576,970
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	56,117,614
Average principal amount of sale contracts	$	333,034,325
Purchased Swaptions:
Average notional amount	$	111,248,833	(a)
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	216,059,615
Credit Default Swaps:
Average notional amount of buy contracts	$	25,750,000	(b)
Average notional amount of sale contracts	$	396,544,656
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	55,255,529	(a)
Average notional amount of sale contracts	$	277,354,713

(a) Positions were open for six months during the year.

(b) Positions were open for one month during the year.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

104    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2020. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

Counterparty

Derivative Assets Subject to a MA

Derivatives Available for Offset

Cash Collateral Received*

Security Collateral Received*

Net Amount of Derivative Assets

Barclays Bank PLC

$

100,482

$

(100,482

)

$

– 0

–

$

– 0

–

$

– 0

–

BNP Paribas SA

438,559

– 0

–

(380,000

)

– 0

–

58,559

Citibank, NA/Citigroup Global Markets, Inc.

14,399

(14,399

)

– 0

–

– 0

–

– 0

–

Goldman Sachs Bank USA/Goldman Sachs International

1,585,247

(1,585,247

)

– 0

–

– 0

–

– 0

–

JPMorgan Chase Bank, NA/JPMorgan Securities, LLC

411,752

(411,752

)

– 0

–

– 0

–

– 0

–

Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC/Morgan Stanley Capital Services, Inc.

897,473

(897,473

)

– 0

–

– 0

–

– 0

–

State Street Bank & Trust Co.

2,408

– 0

–

– 0

–

– 0

–

2,408

Total

$

3,450,320

$

(3,009,353

)

$

(380,000

)

$

– 0

–

$

60,967

^

Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Bank of America, NA	$	147,272	$	– 0	–	$	– 0	–	$	– 0	–	$	147,272
Barclays Bank PLC		2,503,139		(100,482	)		– 0	–		(2,402,657	)		– 0	–
Citibank, NA/Citigroup Global Markets, Inc.		45,180,105		(14,399	)		(1,621,000	)		(43,544,706	)		– 0	–
Credit Suisse International		11,846,184		– 0	–		– 0	–		(11,846,184	)		– 0	–
Deutsche Bank AG		12,663,523		– 0	–		– 0	–		(12,663,523	)		– 0	–
Goldman Sachs Bank USA/Goldman Sachs International		39,481,465		(1,585,247	)		(370,000	)		(37,526,218	)		– 0	–
JPMorgan Chase Bank, NA/JPMorgan Securities, LLC		10,129,766		(411,752	)		– 0	–		(9,718,014	)		– 0	–

abfunds.com AB INCOME FUND    ^|    105

NOTES TO FINANCIAL STATEMENTS (continued)

Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Morgan Stanley & Co. International PLC/Morgan Stanley Capital Services LLC/Morgan Stanley Capital Services, Inc.	$	2,747,612	$	(897,473	)	$	– 0	–	$	(1,850,139	)	$	– 0	–
Total	$	124,699,066	$	(3,009,353	)	$	(1,991,000	)	$	(119,551,441	)	$	147,272	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

2. Currency Transactions

The Fund may invest in non-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund may seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives, including forward currency exchange contracts, futures and options on futures, swaps, and other options. The Fund may enter into transactions for investment opportunities when it anticipates that a foreign currency will appreciate or depreciate in value but securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).

3. TBA and Dollar Rolls

The Fund may invest in TBA mortgage-backed securities. A TBA, or “To Be Announced”, trade represents a contract for the purchase or sale of mortgage-backed securities to be delivered at a future agree-upon date; however, the specific mortgage pool numbers or the number of pools that will be delivered to fulfill the trade obligation or terms of the contract are unknown at the time of the trade. Mortgage pools (including fixed-rate or variable-rate mortgages) guaranteed by the Government National Mortgage Association, or GNMA, the Federal National Mortgage Association, or FNMA, or the Federal Home Loan Mortgage Corporation, or FHLMC, are subsequently allocated to the TBA transactions.

106    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

The Fund may enter into certain TBA transactions known as dollar rolls. Dollar rolls involve sales by the Fund of securities for delivery in the current month and the Fund’s simultaneously contracting to repurchase substantially similar (same type and coupon) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the lower forward price for the future purchase (often referred to as the “drop”) as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls involve the risk that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. Dollar rolls are speculative techniques. For the year ended October 31, 2020, the Fund earned drop income of $4,545,230 which is included in interest income in the accompanying statement of operations.

4. Reverse Repurchase Agreements

The Fund may enter into reverse repurchase transactions (“RVP”) in accordance with the terms of a Master Repurchase Agreement (“MRA”), under which the Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time the Fund enters into a reverse repurchase agreement, it will establish a segregated account with the custodian containing liquid assets having a value comparable to the repurchase price. Under the MRA and other Master Agreements, the Fund is permitted to offset payables and/or receivables with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund in the event of a default. In the event of a default by a MRA counterparty, the Fund may be considered an unsecured creditor with respect to any excess collateral (collateral with a market value in excess of the repurchase price) held by and/or posted to the counterparty, and as such the return of such excess collateral may be delayed or denied. For the year ended October 31, 2020, the average amount of reverse repurchase agreements outstanding was $250,835,986 and the daily weighted average interest rate was .13%. At October 31, 2020, the Fund had reverse repurchase agreements outstanding in the amount of $570,627,116 as reported on the statement of assets and liabilities.

The following table presents the Fund’s RVP liabilities by counterparty net of the related collateral pledged by the Fund as of October 31, 2020:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
Barclays Capital, Inc.	$	2,030,006	$	(2,030,006	)	$	– 0	–
HSBC Securities (USA), Inc.		253,103,156		(252,474,351	)		628,805
JPMorgan Chase Bank		315,493,954		(314,730,970	)		762,984
Total	$	570,627,116	$	(569,235,327	)	$	1,391,789

abfunds.com AB INCOME FUND    ^|    107

NOTES TO FINANCIAL STATEMENTS (continued)

† Including accrued interest.

* The actual collateral pledged may be more than the amount reported due to overcollateralization.

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2020			Year Ended October 31, 2019			Year Ended October 31, 2020			Year Ended October 31, 2019
Class A
Shares sold		21,145,246			19,499,931		$	167,807,929		$	151,947,171
Shares issued in reinvestment of dividends and distributions		794,985			691,103			6,292,343			5,360,840
Shares converted from Class C		197,566			292,725			1,553,543			2,325,762
Shares redeemed		(15,889,560	)		(21,445,308	)		(124,259,840	)		(163,431,602	)
Net increase (decrease)		6,248,237			(961,549	)	$	51,393,975		$	(3,797,829	)
Class C
Shares sold		11,945,989			12,928,047		$	95,198,555		$	101,302,295
Shares issued in reinvestment of dividends and distributions		508,293			331,542			4,029,036			2,584,334
Shares converted to Class A		(197,320	)		(292,359	)		(1,553,543	)		(2,325,762	)
Shares redeemed		(5,477,623	)		(3,371,776	)		(42,721,251	)		(25,885,420	)
Net increase		6,779,339			9,595,454		$	54,952,797		$	75,675,447
Advisor Class
Shares sold		265,870,110			243,748,977		$	2,104,021,251		$	1,904,501,801
Shares issued in reinvestment of dividends and distributions		12,977,218			9,782,125			102,871,686			76,229,658
Shares redeemed		(210,433,650	)		(104,179,175	)		(1,630,716,915	)		(797,152,706	)
Net increase		68,413,678			149,351,927		$	576,176,022		$	1,183,578,753

108    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Shares

Amount

Year Ended October 31, 2020

Year Ended October 31, 2019

Year Ended October 31, 2020

Year Ended October 31, 2019

Class Z(a)

Shares sold

2,554,455

– 0

–

$

18,769,036

$

– 0

–

Share issued in reinvestment of dividends and distributions

37,721

– 0

–

298,182

– 0

–

Shares redeemed

(271,616

)

– 0

–

(2,053,809

)

– 0

–

Net increase

2,320,560

– 0

–

$

17,013,409

$

– 0

–

(a) Commenced distribution on November 20, 2019.

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment Grade Securities Risk—Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new

abfunds.com AB INCOME FUND    ^|    109

NOTES TO FINANCIAL STATEMENTS (continued)

investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

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.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Foreign (Non-U.S.) Risk—Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

Emerging Market Risk—Investments in emerging market countries may have more risk because the markets are less developed and less liquid as well as being subject to increased economic, political, regulatory or other uncertainties.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

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

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest

110    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

rate environment, when the value and liquidity of fixed-income securities generally decline.

Mortgage-Related and/or Other Asset-Backed Securities Risk—Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR is underway but remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related

abfunds.com AB INCOME FUND    ^|    111

NOTES TO FINANCIAL STATEMENTS (continued)

investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2020.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2020 and October 31, 2019 were as follows:

	2020			2019
Distributions paid from:
Ordinary income	$	173,172,422		$	112,953,691
Total taxable distributions paid	$	173,172,422		$	112,953,691
Return of capital		– 0	–		20,741,741
Total distributions paid	$	173,172,422		$	133,695,432

112    ^|    AB INCOME FUND abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

As of October 31, 2020, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Accumulated capital and other losses	$	(71,977,526	)(a)
Unrealized appreciation/(depreciation)		86,652,003	(b)
Total accumulated earnings/(deficit)	$	14,674,477	(c)

(a) As of October 31, 2020, the Fund had a net capital loss carryforward of $55,561,127. During the fiscal year, the Fund utilized $20,690,535 of capital loss carry forwards to offset current year net realized gains. As of October 31, 2020, the cumulative deferred loss on straddles was $16,416,399.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the recognition for tax purposes of unrealized gains/losses on certain derivative instruments, the tax treatment of passive foreign investment companies (PFICs), the tax treatment of grantor trusts, the amortization on callable bonds, the tax treatment of swaps, the tax deferral of losses on wash sales, and the tax treatment of partnership investments.

(c) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to the accrual of foreign capital gains tax, the tax treatment of defaulted securities, and dividends payable.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2020, the Fund had a net long-term capital loss carryforward of $55,561,127, which may be carried forward for an indefinite period.

During the current fiscal year, permanent differences primarily due to the tax treatment of swaps resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE I

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Fund has adopted ASU 2017-08, which did not have a material impact on the Fund’s financial position or the results of its operations, and had no impact on the Fund’s net assets.

abfunds.com AB INCOME FUND    ^|    113

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE J

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

114    ^|    AB INCOME FUND abfunds.com

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,												April 21, 2016(a) to October 31, 2016
	2020			2019			2018			2017
Net asset value, beginning of period		$  7.98			$  7.49			$  8.09			$  8.08			$  7.99
Income From Investment Operations
Net investment income(b)(c)		.26			.31			.29			.36			.17†
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.02	(d)		.53			(.50	)		.05			.08
Contributions from Affiliates		– 0	–		.00	(e)		.00	(e)		.00	(e)		– 0	–
Net increase (decrease) in net asset value from operations		.28			.84			(.21	)		.41			.25
Less: Dividends and Distributions
Dividends from net investment income		(.30	)		(.30	)		(.36	)		(.40	)		(.16	)
Return of capital		– 0	–		(.05	)		(.03	)		– 0	–		– 0	–
Total dividends and distributions		(.30	)		(.35	)		(.39	)		(.40	)		(.16	)
Net asset value, end of period		$  7.96			$  7.98			$  7.49			$  8.09			$  8.08
Total Return
Total investment return based on net asset value(f)		3.55	%		11.50	%		(2.71	)%		5.17	%		3.14	%†
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$289,619			$240,567			$232,931			$165,294			$2,104
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)		.78	%		.77	%		1.08	%		1.03	%		1.16	%^
Expenses, before waivers/reimbursements(g)		.80	%		.83	%		1.16	%		1.11	%		1.37	%^
Net investment income(c)		3.24	%		4.02	%		3.73	%		4.42	%		4.06	%†^
Portfolio turnover rate**		246	%		270	%		105	%		42	%		14	%

See footnote summary on page 118-119.

abfunds.com AB INCOME FUND    ^|    115

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,												April 21, 2016(a) to October 31, 2016
	2020			2019			2018			2017
Net asset value, beginning of period		$  7.99			$  7.50			$  8.10			$  8.09			$  7.99
Income From Investment Operations
Net investment income(b)(c)		.20			.25			.23			.30			.14†
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.02	(d)		.53			(.50	)		.05			.09
Contributions from Affiliates		– 0	–		.00	(e)		.00	(e)		.00	(e)		– 0	–
Net increase (decrease) in net asset value from operations		.22			.78			(.27	)		.35			.23
Less: Dividends and Distributions
Dividends from net investment income		(.24	)		(.25	)		(.30	)		(.34	)		(.13	)
Return of capital		– 0	–		(.04	)		(.03	)		– 0	–		– 0	–
Total dividends and distributions		(.24	)		(.29	)		(.33	)		(.34	)		(.13	)
Net asset value, end of period		$  7.97			$  7.99			$  7.50			$  8.10			$  8.09
Total Return
Total investment return based on net asset value(f)		2.77	%		10.65	%		(3.43	)%		4.37	%		2.85	%†
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$217,968			$164,413			$82,283			$62,121			$1,133
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)		1.53	%		1.52	%		1.83	%		1.78	%		1.90	%^
Expenses, before waivers/reimbursements(g)		1.55	%		1.57	%		1.92	%		1.87	%		2.15	%^
Net investment income(c)		2.49	%		3.21	%		2.98	%		3.68	%		3.34	%†^
Portfolio turnover rate**		246	%		270	%		105	%		42	%		14	%

See footnote summary on page 118-119.

116    ^|    AB INCOME FUND abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,												January 1, 2016 to October 31,			Year Ended December 31,
	2020			2019			2018			2017			2016(h)			2015
Net asset value, beginning of period		$  7.99			$  7.50			$  8.10			$  8.09			$  7.86			$  8.34
Income From Investment Operations
Net investment income(b)(c)		.27			.33			.31			.41			.29†			.38
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.03	(d)		.53			(.50	)		.02			.22			(.41	)
Contributions from Affiliates		– 0	–		.00	(e)		.00	(e)		.00	(e)		– 0	–		– 0	–
Net increase (decrease) in net asset value from operations		.30			.86			(.19	)		.43			.51			(.03	)
Less: Dividends and Distributions
Dividends from net investment income		(.32	)		(.31	)		(.38	)		(.42	)		(.28	)		(.46	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		– 0	–		– 0	–		– 0	–		(.05	)
Return of capital		– 0	–		(.06	)		(.03	)		– 0	–		– 0	–		– 0	–
Total dividends and distributions		(.32	)		(.37	)		(.41	)		(.42	)		(.28	)		(.51	)
Redemption fee		– 0	–		– 0	–		– 0	–		– 0	–		.00	(e)		– 0	–
Anti-Dilutive Effect of Share Repurchase Program		– 0	–		– 0	–		– 0	–		– 0	–		– 0	–		.06
Net asset value, end of period		$  7.97			$  7.99			$  7.50			$  8.10			$  8.09			$  7.86
Market value, end of period		N/A			N/A			N/A			N/A			N/A			$  7.67
Discount, end of period		N/A			N/A			N/A			N/A			N/A			(2.42	)%
Total Return
Total investment return based on:
Market value		N/A			N/A			N/A			N/A			N/A			9.71	%(i)
Net asset value(f)		3.80	%		11.76	%		(2.46	)%		5.44	%		6.66	%†		.70	%(i)
Ratios/Supplemental Data
Net assets, end of period (000,000’s omitted)		$4,097			$3,562			$2,222			$1,806			$916			$1,696
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)		.53	%		.52	%		.83	%		.81	%		.88	%^		.75	%
Expenses, before waivers/reimbursements(g)		.55	%		.58	%		.91	%		.93	%		.96	%^		.75	%
Net investment income(c)		3.48	%		4.24	%		3.98	%		5.11	%		4.29	%†^		4.57	%
Portfolio turnover rate**		246	%		270	%		105	%		42	%		14	%		34	%

See footnote summary on page 118-119.

abfunds.com AB INCOME FUND    ^|    117

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class Z
	November 20, 2019(j) to October 31, 2020
Net asset value, beginning of period		$  7.97
Income From Investment Operations
Net investment income(b)(c)		.27
Net realized and unrealized gain on investment and foreign currency transactions		.03	(d)
Net increase in net asset value from operations		.30
Less: Dividends
Dividends from net investment income		(.30	)
Net asset value, end of period		$  7.97
Total Return
Total investment return based on net asset value(f)		3.89	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$18,492
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(g)		.48	%
Expenses, before waivers/reimbursements(g)		.48	%
Net investment income(c)		3.49	%
Portfolio turnover rate**		246	%

(a) Inception date. Amount is less than $.005.

(b) Based on average shares outstanding.

(c) Net of expenses waived/reimbursed by the Adviser.

(d) Due to timing of sales and repurchase of capital shares, the net realized and unrealized gain (loss) per share is not in accordance with the Fund’s change in net realized and unrealized gain (loss) on investment transactions for the period.

(e) Amount is less than $.005.

(f) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

See notes to financial statements.

118    ^|    AB INCOME FUND abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(g) The expense ratios, excluding interest expense are:

	Year Ended October 31,												January 1, 2016 to December 31,			Year Ended December 31,
	2020			2019			2018			2017			2016(h)			2015
Class A
Net of waivers/reimbursements		.77	%		.77	%		.77	%		.77	%		.88	%^		N/A
Before waivers/reimbursements		.79	%		.82	%		.85	%		.85	%		1.09	%^		N/A
Class C
Net of waivers/reimbursements		1.52	%		1.52	%		1.52	%		1.52	%		1.63	%^		N/A
Before waivers/reimbursements		1.54	%		1.57	%		1.60	%		1.61	%		1.87	%^		N/A
Advisor Class
Net of waivers/reimbursements		.52	%		.52	%		.52	%		.54	%		.61	%^		.61	%
Before waivers/reimbursements		.54	%		.57	%		.60	%		.65	%		.69	%^		.61	%
Class Z
Net of waivers/reimbursements		.46	%		N/A			N/A			N/A			N/A			N/A
Before waivers/reimbursements		.46	%		N/A			N/A			N/A			N/A			N/A

(h) The Predecessor Fund’s fiscal year end was December 31 and the Fund’s fiscal year end is October 31.

(i) Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the closing of the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Generally, total investment return based on net asset value will be higher than total investment return based on market value in periods where there is an increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end of such periods. Conversely, total investment return based on net asset value will be lower than total investment return based on market value in periods where there is a decrease in the discount or an increase in the premium of the market value to the net asset value from the beginning to the end of such periods. Total investment return calculated for a period of less than one year is not annualized.

(j) Commencement of distributions.

† For the year ended October 31, 2016, the amount includes a refund for overbilling of prior years’ custody out of pocket fees as follows:

Net Investment Income Per Share	Net Investment Income Ratio	Total Return
$.003	.04%	.03%

^ Annualized.

** The Fund accounts for dollar roll transactions as purchases and sales.

See notes to financial statements.

abfunds.com AB INCOME FUND    ^|    119

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of AB Income Fund

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Income Fund (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2020, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the four years in the period then ended, the period from January 1, 2016 to October 31, 2016, and for the year ended December 31, 2015 and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the four years in the period then ended, the period from January 1, 2016 to October 31, 2016, and for the year ended December 31, 2015, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

120    ^{|    AB INCOME FUND} abfunds.com

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 29, 2020

abfunds.com AB INCOME FUND    ^|    121

2020 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2020. For foreign shareholders, 63.58% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2021.

122    ^|    AB INCOME FUND abfunds.com

BOARD OF DIRECTORS

Marshall C. Turner, Jr⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith, President and Chief Executive Officer Jeanette Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Scott A. DiMaggio⁽²⁾, Vice President Gershon M. Distenfeld⁽²⁾,
Vice President Douglas J. Peebles^(2),* Vice President Matthew S. Sheridan⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Analyst Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller
Vincent S. Noto,
Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210 Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105 Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036 Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s U.S. Investment Grade: Core Fixed Income Investment Team. Messrs. DiMaggio, Distenfeld, Peebles and Sheridan are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

* Mr. Peebles is expected to retire from the Adviser effective December 30, 2020.

abfunds.com AB INCOME FUND    ^|    123

MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,# 1345 Avenue of the Americas New York, NY 10105 60 (2010)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and the head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business, with which he had been associated since prior to 2004.		77	None

124    ^|    AB INCOME FUND abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 79 (2005)	Private Investor since prior to 2015. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		77	None

abfunds.com AB INCOME FUND    ^|    125

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Jorge A. Bermudez,## 69 (2020)	Private Investor since prior to 2015. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		77	Moody’s Corporation since April 2011

126    ^|    AB INCOME FUND abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Michael J. Downey,## 76 (2005)	Private Investor since prior to 2015. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2015 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities Inc. He has served as a director or trustee of the AB Funds since 2005.		77	None
Nancy P. Jacklin,## 72 (2006)	Private Investor since prior to 2015. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		77	None

abfunds.com AB INCOME FUND    ^|    127

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Jeanette Loeb,## 68 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		77	Apollo Investment Corp. (business development company) since August 2011

128    ^|    AB INCOME FUND abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Carol C. McMullen,## 65 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 to 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		77	None

abfunds.com AB INCOME FUND    ^|    129

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Garry L. Moody,## 68 (2008)	Private Investor since prior to 2015. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		77	None

130    ^|    AB INCOME FUND abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Earl D. Weiner,## 81 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		77	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal & Compliance Dept. Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Keith is an “interested person” of the Fund, as defined in the 1940 Act, due to this position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

abfunds.com AB INCOME FUND    ^|    131

MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST FIVE YEARS
Robert M. Keith 60	President and Chief Executive Officer	See biography above.
Scott A. DiMaggio 49	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also co-Head of Fixed-Income.
Gershon M. Distenfeld 44	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also co-Head of Fixed Income.
Douglas J. Peebles^ 55	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also Chief Investment Officer of Fixed Income.
Matthew S. Sheridan 45	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015.
Emilie D. Wrapp 65	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2015.
Michael B. Reyes 44	Senior Analyst	Vice President of the Adviser**, with which has been associated since prior to 2015.
Joseph J. Mantineo 61	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”**), with which he has been associated since prior to 2015.
Phyllis J. Clarke 59	Controller	Vice President of ABIS**, with which she has been associated since prior to 2015.
Vincent S. Noto 56	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2015.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

^ Mr. Peebles is expected to retire from the Adviser effective December 30, 2020.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com for a free prospectus or SAI.

132    ^|    AB INCOME FUND abfunds.com

Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”). Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2020, which covered the period December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner. Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, taking into account any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP. The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended, and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP, and there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

abfunds.com AB INCOME FUND    ^|    133

Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Income Fund (the “Fund”) at a meeting held on November 4-6, 2019 (the “Meeting”).*

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the underlying fund advised by the Adviser in which the Fund invests.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business

* Following transactions completed on November 13, 2019 that may have been deemed to have been an “assignment” causing termination of the Fund’s investment advisory agreement, a new investment advisory agreement, having the same terms as the prior one, was entered into by the Fund and the Adviser.

134    ^|    AB INCOME FUND abfunds.com

judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2017 and 2018 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency, distribution and brokerage services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund

abfunds.com AB INCOME FUND    ^|    135

before taxes and distribution expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the underlying fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1- and 3-year periods ended July 31, 2019 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and noted that it was above the median. The directors took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The Adviser informed the directors that there were no institutional products managed by the Adviser that utilize investment strategies similar to those of the Fund.

136    ^|    AB INCOME FUND abfunds.com

The directors noted that the Fund invests in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the Investment Company Act of 1940 as these may be varied as a result of exemptive orders issued by the SEC. The directors also noted that ETFs pay advisory fees pursuant to their advisory contracts, and that the Adviser had provided, and they had reviewed, information about the expense ratios of the relevant ETFs. The directors concluded, based on the Adviser’s explanation of how it uses ETFs when they are the most cost-effective way to obtain desired exposures, in some cases pending purchases of underlying securities, that the advisory fee for the Fund is for services that are in addition to, rather than duplicative of, the services provided under the advisory contracts of the ETFs.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels and that the Fund’s net assets were above the first breakpoint level. Accordingly, the Fund’s current effective advisory fee rate reflected a reduction due to the breakpoint and would be further reduced to the extent the net assets of the Fund increase. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also previously discussed economies of scale with an independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a

abfunds.com AB INCOME FUND    ^|    137

fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s breakpoint arrangements were acceptable and provide a means for sharing economies of scale.

138    ^|    AB INCOME FUND abfunds.com

This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL EQUITY (continued)

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio¹

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

FIXED INCOME (continued)

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to February 5, 2020, Tax-Aware Fixed Income Opportunities Portfolio was named Tax-Aware Fixed Income Portfolio.

abfunds.com AB INCOME FUND    ^|    139

NOTES

140    ^|    AB INCOME FUND abfunds.com

AB INCOME FUND

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

IF-0151-1020                

OCT    ^10.31.20

ANNUAL REPORT

AB TOTAL RETURN BOND PORTFOLIO

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Total Return Bond Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    1

ANNUAL REPORT

December 14, 2020

This report provides management’s discussion of fund performance for AB Total Return Bond Portfolio for the annual reporting period ended October 31, 2020.

The Fund’s investment objective is to maximize long-term total return without assuming what the Adviser considers undue risk.

NAV RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	6 Months		12 Months
AB TOTAL RETURN BOND PORTFOLIO
Class A Shares		7.32%		4.60%
Class C Shares		6.84%		3.83%
Advisor Class Shares1		7.35%		4.86%
Class R Shares1		7.09%		4.33%
Class K Shares1		7.31%		4.59%
Class I Shares1		7.44%		4.93%
Class Z Shares1		7.43%		4.84%
Bloomberg Barclays US Aggregate Bond Index		1.27%		6.19%

1 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays US Aggregate Bond Index, for the six- and 12-month periods ended October 31, 2020.

During the 12-month period, all share classes of the Fund underperformed the benchmark, before sales charges. Security selection was the primary detractor, relative to the benchmark, mostly from losses in commercial mortgage-backed securities (“CMBS”) that were partially offset by gains among investment-grade and emerging-market corporate bonds. Country allocation (a result of bottom-up security analysis combined with fundamental research) also detracted, from losses within non-US exposure primarily in Japan and the eurozone, which were greater than gains from exposure to Canada and South Africa. Sector allocation was a minor detractor, as an allocation to agency risk-sharing transactions was mostly offset by exposure to investment-grade corporates. The Fund’s longer-than-benchmark duration contributed, as did yield-curve positioning mostly in five- and 10-year maturities. Currency decisions also contributed,

2    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

due to gains in various non-US currencies including the Australian dollar, offshore Chinese renminbi and yen, despite a small loss in the South Korean won.

During the six-month period, all share classes of the Fund outperformed the benchmark, before sales charges. Sector allocation was the largest contributor, mostly from exposures to agency risk-sharing transactions, high-yield corporate bonds, CMBS and US agency mortgages. Security selection also contributed, as gains from selections in investment-grade corporates, CMBS and asset-backed securities were greater than a loss in high-yield corporate bonds. Currency decision added to performance, as gains in several non-US currencies including the Australian dollar, offshore Chinese renminbi, yen and Canadian dollar exceeded a loss in the South Korean won. Country allocations outside the US also added to returns, mostly from an allocation to South Korea. The Fund’s longer-than-benchmark duration and yield-curve positioning detracted from performance.

During both periods, the Fund utilized currency forwards to hedge currency risk and actively manage currency positions. Credit default swaps were utilized in the corporate and CMBS sectors for hedging and investment purposes. Total return swaps and written options were utilized in the corporate sectors for hedging and investment purposes. Treasury futures and interest rate swaps were utilized to manage duration, country exposure and yield-curve positioning. Written swaptions were used for duration management.

MARKET REVIEW AND INVESTMENT STRATEGY

Global fixed-income market returns were positive over the 12-month period ended October 31, 2020. Central banks and governments enacted an unprecedented amount of monetary and fiscal stimulus to combat market illiquidity and cushion the negative economic impact of COVID-19, which set the stage for a rebound in risk assets following the sell-off that started in March. Government bonds rallied as interest rates were slashed. Emerging- and developed-market investment-grade corporate bonds led gains, followed by developed-market high-yield corporate bonds, as investors searched for higher yields in a period of falling interest rates. Corporate bonds in the US outperformed their European counterparts. Securitized assets also advanced, while emerging-market sovereign bonds were slightly positive and emerging-market local bonds fell during the period. The US dollar declined against most major developed-market currencies and gained against a majority of emerging-market currencies. Brent crude oil prices fell almost 34% as demand slowed sharply and the oil industry outlook was uncertain.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    3

INVESTMENT POLICIES

The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities. The Fund expects to invest in readily marketable fixed-income securities with a range of maturities from short- to long-term and relatively attractive yields that do not involve undue risk of loss of capital. The Fund may invest up to 25% of its net assets in below investment-grade bonds. The Fund may use leverage for investment purposes.

The Fund may invest without limit in US dollar-denominated foreign fixed-income securities and may invest up to 25% of its assets in non-US dollar-denominated foreign fixed-income securities. These investments may include, in each case, developed- and emerging-market debt securities.

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 Fund. 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 Fund’s other holdings.

The Fund may invest in mortgage-related and other asset-backed securities, loan participations and assignments, inflation-indexed securities, variable, floating, and inverse floating-rate instruments and preferred stock, and may use other investment techniques. The Fund intends, among other things, to enter into transactions such as reverse repurchase agreements and dollar rolls. The Fund may invest, without limit, in derivatives, such as options, futures contracts, forwards or swaps.

4    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays US Aggregate Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Barclays US Aggregate Bond Index represents the performance of securities within the US investment-grade fixed-rate bond market, with index components for government and corporate securities, mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets 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, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

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

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    5

DISCLOSURES AND RISKS (continued)

fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. The Fund invests in inflation-indexed securities, the value of which may be vulnerable to changes in expectations of inflation or interest rates.

Foreign (Non-US) Risk: Investments in securities of non-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

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

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

Mortgage-Related and/or Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Leverage Risk: To the extent the Fund 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 Fund’s investments.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk.

6    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

DISCLOSURES AND RISKS (continued)

Illiquid Investments Risk: Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

Active Trading Risk: The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com. Class B shares are no longer being offered. Effective November 7, 2019, all outstanding Class B shares were converted to Class A shares. Please see Note A for more information.

On July 12, 2019, the Fund implemented its current investment policies (the change eliminated the guidelines for the average duration and maturity of the Fund and addressed certain related matters) and also changed its name from AB Intermediate Bond Portfolio to AB Total Return Bond Portfolio. Accordingly, the performance shown for periods prior to July 12, 2019, is based on the Fund’s

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    7

DISCLOSURES AND RISKS (continued)

prior investment strategies and may not be representative of the Fund’s performance under its current investment policies.

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

8    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

10/31/2010 TO 10/31/2020

This chart illustrates the total value of an assumed $10,000 investment in AB Total Return Bond Portfolio Class A shares (from 10/31/2010 to 10/31/2020) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    9

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						2.08%
1 Year		4.60%		0.19%
5 Years		3.86%		2.97%
10 Years		3.55%		3.10%
CLASS C SHARES						1.42%
1 Year		3.83%		2.83%
5 Years		3.08%		3.08%
10 Years		2.80%		2.80%
ADVISOR CLASS SHARES2						2.42%
1 Year		4.86%		4.86%
5 Years		4.12%		4.12%
10 Years		3.82%		3.82%
CLASS R SHARES2						1.76%
1 Year		4.33%		4.33%
5 Years		3.59%		3.59%
10 Years		3.31%		3.31%
CLASS K SHARES2						2.07%
1 Year		4.59%		4.59%
5 Years		3.86%		3.86%
10 Years		3.57%		3.57%
CLASS I SHARES2						2.46%
1 Year		4.93%		4.93%
5 Years		4.14%		4.14%
10 Years		3.83%		3.83%
CLASS Z SHARES2						2.50%
1 Year		4.84%		4.84%
5 Years		4.11%		4.11%
Since Inception3		3.82%		3.82%

The Fund’s prospectus fee table shows the Fund’s total annual operating expense ratios as 1.04%, 1.79%, 0.79%, 1.42%, 1.10%, 0.75% and 0.68% for Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios exclusive of interest expense to 0.77%, 1.52%, 0.52%, 1.02%, 0.77%, 0.52% and 0.52% for Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2021 and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

(footnotes continued on next page)

10    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

HISTORICAL PERFORMANCE (continued)

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2020.

2 These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

3 Inception date: 4/25/2014.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    11

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2020 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		0.52%
5 Years		3.03%
10 Years		3.17%
CLASS C SHARES
1 Year		3.18%
5 Years		3.16%
10 Years		2.88%
ADVISOR CLASS SHARES1
1 Year		5.21%
5 Years		4.20%
10 Years		3.90%
CLASS R SHARES1
1 Year		4.68%
5 Years		3.67%
10 Years		3.39%
CLASS K SHARES1
1 Year		4.94%
5 Years		3.92%
10 Years		3.64%
CLASS I SHARES1
1 Year		5.19%
5 Years		4.20%
10 Years		3.90%
CLASS Z SHARES1
1 Year		5.10%
5 Years		4.18%
Since Inception2		3.89%

1 Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

2 Inception date: 4/25/2014.

12    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    13

EXPENSE EXAMPLE (continued)

	Beginning Account Value May 1, 2020		Ending Account Value October 31, 2020		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,073.20	$	4.01		0.77	%
Hypothetical**	$	1,000	$	1,021.27	$	3.91		0.77	%
Class C
Actual	$	1,000	$	1,068.40	$	7.90		1.52	%
Hypothetical**	$	1,000	$	1,017.50	$	7.71		1.52	%
Advisor Class
Actual	$	1,000	$	1,073.50	$	2.71		0.52	%
Hypothetical**	$	1,000	$	1,022.52	$	2.64		0.52	%
Class R
Actual	$	1,000	$	1,070.90	$	5.31		1.02	%
Hypothetical**	$	1,000	$	1,020.01	$	5.18		1.02	%
Class K
Actual	$	1,000	$	1,073.10	$	4.01		0.77	%
Hypothetical**	$	1,000	$	1,021.27	$	3.91		0.77	%
Class I
Actual	$	1,000	$	1,074.40	$	2.71		0.52	%
Hypothetical**	$	1,000	$	1,022.52	$	2.64		0.52	%
Class Z
Actual	$	1,000	$	1,074.30	$	2.71		0.52	%
Hypothetical**	$	1,000	$	1,022.52	$	2.64		0.52	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

14    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO SUMMARY

October 31, 2020 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $373.7

TOP TEN SECTORS (including derivatives)¹

Governments–Treasuries2	73.34	%
Corporates–Investment Grade	27.98
Interest Rate Swaps3	17.19
Commercial Mortgage-Backed Securities4	17.00
Collateralized Mortgage Obligations	16.30
Mortgage Pass-Throughs	12.88
Asset-Backed Securities	4.36
Corporates–Non-Investment Grade4	3.91
U.S. Treasury Bills	3.07
Inflation-Linked Securities	2.74

SECTOR BREAKDOWN (excluding derivatives)⁵

Corporates–Investment Grade	26.9	%
Collateralized Mortgage Obligations	15.7
Commercial Mortgage-Backed Securities	15.1
Mortgage Pass-Throughs	12.4
Governments–Treasuries	10.4
Asset-Backed Securities	4.2
Inflation-Linked Securities	2.6
Corporates–Non-Investment Grade	2.6
Collateralized Loan Obligations	1.1
Governments–Sovereign Bonds	1.0
Quasi-Sovereigns	1.0
Local Governments–US Municipal Bonds	1.0
Emerging Markets–Treasuries	0.9
Other	1.2
Short-Term	3.9
	100.0	%

1 All data are as of October 31, 2020. The Fund’s sectors include derivative exposure and are expressed as approximate percentages of the Fund’s total net assets, based on the Adviser’s internal classification. The percentages will vary over time.

2 Includes Treasury Futures.

3 Represents the exposure of the Fund’s fixed-rate payments on the Interest Rate Swaps. Interest Rate Swaps involve the exchange by a fund with another party of payments calculated by reference to specified interest rates (e.g., an exchange of floating-rate payments for fixed-rate payments).

4 Includes Credit Default Swaps.

5 All data are as of October 31, 2020. The Fund’s sector breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” sector breakdown weightings represent 0.6% or less in the following sector breakdown: Common Stocks, Emerging Markets–Corporate Bonds and Emerging Markets-Sovereigns.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    15

PORTFOLIO OF INVESTMENTS

October 31, 2020

		Principal Amount (000)		U.S. $ Value
CORPORATES – INVESTMENT GRADE – 28.0%
Industrial – 16.8%
Basic – 1.7%
Alpek SAB de CV 4.25%, 09/18/2029(a)	U.S.$		203	$	207,626
Celulosa Arauco y Constitucion SA 4.20%, 01/29/2030(a)			332		353,788
DuPont de Nemours, Inc. 4.205%, 11/15/2023			485		533,204
4.493%, 11/15/2025			485		559,404
Eastman Chemical Co. 3.80%, 03/15/2025			220		241,641
Fresnillo PLC 4.25%, 10/02/2050(a)			1,126		1,144,297
Glencore Funding LLC 4.125%, 05/30/2023(a)			516		552,801
GUSAP III LP 4.25%, 01/21/2030(a)			535		561,115
Industrias Penoles SAB de CV 4.75%, 08/06/2050(a)			268		280,395
Inversiones CMPC SA 4.375%, 04/04/2027(a)			490		545,431
Inversiones CMPC SA/Cayman Islands Branch 4.375%, 05/15/2023(a)			225		238,739
Nutrition & Biosciences, Inc. 1.832%, 10/15/2027(a)			196		196,576
Orbia Advance Corp. SAB de CV 4.00%, 10/04/2027(a)			350		375,703
4.875%, 09/19/2022(a)			225		238,219
Suzano Austria GmbH 3.75%, 01/15/2031			145		148,205
					6,177,144
Capital Goods – 0.0%
Westinghouse Air Brake Technologies Corp. 3.20%, 06/15/2025			117		124,206
Communications - Media – 1.2%
Charter Communications Operating LLC/Charter Communications Operating Capital 4.20%, 03/15/2028			48		54,288
4.80%, 03/01/2050			129		147,101
5.125%, 07/01/2049			198		231,571
Comcast Corp. 3.45%, 02/01/2050			331		369,141
Cox Communications, Inc. 2.95%, 06/30/2023(a)			233		244,655

16    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Interpublic Group of Cos., Inc. (The) 4.75%, 03/30/2030	U.S.$		460	$	552,938
Prosus NV 4.027%, 08/03/2050(a)			360		373,500
Tencent Holdings Ltd. 1.81%, 01/26/2026(a)			533		542,434
3.24%, 06/03/2050(a)			328		329,394
ViacomCBS, Inc. 4.20%, 05/19/2032			115		132,487
4.95%, 01/15/2031			189		229,104
Walt Disney Co. (The) 2.75%, 09/01/2049			380		367,228
Weibo Corp. 3.375%, 07/08/2030			782		784,444
					4,358,285
Communications - Telecommunications – 1.3%
AT&T, Inc. 2.75%, 06/01/2031			203		210,365
3.50%, 09/15/2053(a)			590		561,462
3.65%, 09/15/2059(a)			457		435,854
Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC 4.738%, 03/20/2025(a)			740		804,350
Verizon Communications, Inc. 2.987%, 10/30/2056(a)			460		464,862
3.00%, 03/22/2027			328		361,817
4.862%, 08/21/2046			355		471,621
5.012%, 04/15/2049			44		60,707
Vodafone Group PLC 3.75%, 01/16/2024			1,249		1,362,909
					4,733,947
Consumer Cyclical - Automotive – 1.5%
General Motors Co. 6.125%, 10/01/2025			196		229,510
6.80%, 10/01/2027			279		343,067
General Motors Financial Co., Inc. 2.70%, 08/20/2027			525		530,854
4.30%, 07/13/2025			135		147,277
5.10%, 01/17/2024			665		730,403
5.25%, 03/01/2026			165		188,319
Harley-Davidson Financial Services, Inc. 3.35%, 06/08/2025(a)			1,078		1,136,578
Lear Corp. 3.50%, 05/30/2030			314		326,981
3.80%, 09/15/2027			97		103,675

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Nissan Motor Co., Ltd. 4.345%, 09/17/2027(a)	U.S.$		1,120	$	1,123,237
Volkswagen Group of America Finance LLC 2.90%, 05/13/2022(a)			621		641,083
					5,500,984
Consumer Cyclical - Other – 0.2%
Las Vegas Sands Corp. 2.90%, 06/25/2025			507		502,508
3.20%, 08/08/2024			293		296,375
Marriott International, Inc./MD Series EE 5.75%, 05/01/2025			93		103,548
					902,431
Consumer Cyclical - Retailers – 0.8%
Advance Auto Parts, Inc. 1.75%, 10/01/2027			217		215,555
3.90%, 04/15/2030			249		280,942
AutoNation, Inc. 4.75%, 06/01/2030			216		253,418
Ralph Lauren Corp. 2.95%, 06/15/2030			1,081		1,121,072
Ross Stores, Inc. 4.70%, 04/15/2027			893		1,049,543
					2,920,530
Consumer Non-Cyclical – 2.8%
Altria Group, Inc. 3.40%, 05/06/2030			750		814,020
4.80%, 02/14/2029			209		245,205
Anheuser-Busch InBev Worldwide, Inc. 4.60%, 06/01/2060			616		737,364
5.55%, 01/23/2049			945		1,271,951
Banner Health 1.897%, 01/01/2031			225		223,429
Baptist Healthcare System Obligated Group Series 20B 3.54%, 08/15/2050			524		523,162
BAT Capital Corp. 2.259%, 03/25/2028			1,125		1,124,055
2.726%, 03/25/2031			220		217,857
4.70%, 04/02/2027			480		550,070
Cigna Corp. 3.75%, 07/15/2023			168		181,853
4.125%, 11/15/2025			299		342,591
4.375%, 10/15/2028			399		472,165
Coca-Cola Femsa SAB de CV 1.85%, 09/01/2032			284		281,736
2.75%, 01/22/2030			443		473,368

18    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CommonSpirit Health 1.547%, 10/01/2025	U.S.$		339	$	340,115
CVS Health Corp. 4.30%, 03/25/2028			124		143,809
5.05%, 03/25/2048			433		549,551
Kimberly-Clark de Mexico SAB de CV 2.431%, 07/01/2031(a)			270		270,928
Royalty Pharma PLC 1.75%, 09/02/2027(a)			127		126,336
Sutter Health Series 20A 2.294%, 08/15/2030			748		748,898
Tyson Foods, Inc. 3.95%, 08/15/2024			541		602,149
Zimmer Biomet Holdings, Inc. 3.55%, 03/20/2030			208		230,585
					10,471,197
Energy – 4.1%
Baker Hughes a GE Co. LLC/Baker Hughes Co-Obligor, Inc. 3.337%, 12/15/2027			433		462,708
Boardwalk Pipelines LP 3.40%, 02/15/2031			399		383,714
BP Capital Markets America, Inc. 3.194%, 04/06/2025			685		748,383
Cenovus Energy, Inc. 4.25%, 04/15/2027			42		42,622
Energy Transfer Operating LP 3.75%, 05/15/2030			1,150		1,130,047
4.75%, 01/15/2026			1,138		1,222,121
Eni SpA 4.25%, 05/09/2029(a)			850		962,022
Exxon Mobil Corp. 1.571%, 04/15/2023			1,065		1,094,926
2.992%, 03/19/2025			881		959,524
Husky Energy, Inc. 4.40%, 04/15/2029			1,409		1,432,911
Kinder Morgan, Inc. 3.15%, 01/15/2023			1,700		1,781,447
Marathon Oil Corp. 3.85%, 06/01/2025			111		113,524
6.80%, 03/15/2032			650		688,376
Marathon Petroleum Corp. 5.125%, 12/15/2026			255		291,682
Newfield Exploration Co. 5.625%, 07/01/2024			325		314,425

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Oleoducto Central SA 4.00%, 07/14/2027(a)	U.S.$		429	$	447,318
ONEOK, Inc. 4.35%, 03/15/2029			425		443,781
6.35%, 01/15/2031			241		279,789
Sabine Pass Liquefaction LLC 5.00%, 03/15/2027			482		541,040
5.625%, 03/01/2025			396		452,917
Shell International Finance BV 3.25%, 04/06/2050			698		720,336
Tengizchevroil Finance Co. International Ltd. 3.25%, 08/15/2030(a)			237		240,629
Valero Energy Corp. 2.70%, 04/15/2023			674		693,600
					15,447,842
Other Industrial – 0.1%
Alfa SAB de CV 5.25%, 03/25/2024(a)			530		564,119
Services – 0.3%
Booking Holdings, Inc. 4.625%, 04/13/2030			925		1,095,561
Expedia Group, Inc. 6.25%, 05/01/2025(a)			75		82,469
					1,178,030
Technology – 2.0%
Analog Devices, Inc. 2.95%, 04/01/2025			58		62,985
Apple, Inc. 2.40%, 08/20/2050			753		733,761
Baidu, Inc. 3.425%, 04/07/2030			202		221,486
Broadcom Corp./Broadcom Cayman Finance Ltd. 3.50%, 01/15/2028			151		162,381
Broadcom, Inc. 4.11%, 09/15/2028			555		618,442
4.15%, 11/15/2030			1,073		1,202,393
5.00%, 04/15/2030			205		241,389
Dell International LLC/EMC Corp. 6.02%, 06/15/2026(a)			469		555,821
Infor, Inc. 1.75%, 07/15/2025(a)			279		286,751
International Business Machines Corp. 2.95%, 05/15/2050			360		363,168
Micron Technology, Inc. 4.185%, 02/15/2027			992		1,121,198

20    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
NXP BV/NXP Funding LLC/NXP USA, Inc. 2.70%, 05/01/2025(a)	U.S.$		132	$	140,254
Oracle Corp. 2.50%, 04/01/2025			1,031		1,104,428
3.60%, 04/01/2050			340		373,092
Seagate HDD Cayman 4.091%, 06/01/2029(a)			168		182,181
					7,369,730
Transportation - Airlines – 0.4%
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.50%, 10/20/2025(a)			345		350,077
4.75%, 10/20/2028(a)			401		410,151
Southwest Airlines Co. 5.25%, 05/04/2025			639		708,989
					1,469,217
Transportation - Railroads – 0.1%
Lima Metro Line 2 Finance Ltd. 4.35%, 04/05/2036(a)			216		237,330
5.875%, 07/05/2034(a)			184		220,929
					458,259
Transportation - Services – 0.3%
Aviation Capital Group LLC 2.875%, 01/20/2022(a)			64		63,899
3.50%, 11/01/2027(a)			90		79,508
3.875%, 05/01/2023(a)			328		328,046
4.125%, 08/01/2025(a)			5		4,813
4.375%, 01/30/2024(a)			135		135,957
4.875%, 10/01/2025(a)			153		151,022
5.50%, 12/15/2024(a)			381		396,751
					1,159,996
					62,835,917
Financial Institutions – 10.4%
Banking – 8.0%
ABN AMRO Bank NV 4.75%, 07/28/2025(a)			200		227,024
AIB Group PLC 4.75%, 10/12/2023(a)			225		244,435
American Express Co. Series C 3.535% (LIBOR 3 Month + 3.29%), 12/15/2020(b)(c)			461		431,035
Australia & New Zealand Banking Group Ltd. 4.40%, 05/19/2026(a)			510		577,203
Banco de Credito del Peru 3.125%, 07/01/2030(a)			635		641,350

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand 5.375%, 04/17/2025(a)	U.S.$		443	$	495,606
Banco Santander SA 5.179%, 11/19/2025			1,000		1,139,300
Bank of America Corp. Series DD 6.30%, 03/10/2026(b)			185		209,498
Series L 3.95%, 04/21/2025			1,455		1,621,874
Series Z 6.50%, 10/23/2024(b)			289		321,244
Bank of New York Mellon Corp. (The) Series G 4.70%, 09/20/2025(b)			166		177,691
Barclays Bank PLC 6.86%, 06/15/2032(a)(b)			129		173,478
BNP Paribas SA 4.375%, 09/28/2025-05/12/2026(a)			1,007		1,131,211
BPCE SA 5.70%, 10/22/2023(a)			230		258,301
Capital One Financial Corp. 2.60%, 05/11/2023			579		606,728
CIT Group, Inc. 5.25%, 03/07/2025			383		428,052
Citigroup, Inc. 3.875%, 03/26/2025			309		341,442
4.45%, 09/29/2027			721		832,387
5.95%, 01/30/2023(b)			216		222,906
Series Q 4.375% (LIBOR 3 Month + 4.10%), 02/15/2021(b)(c)			575		563,920
Series R 6.125%, 02/15/2021(b)			347		344,918
Commonwealth Bank of Australia 4.50%, 12/09/2025(a)			505		569,579
Cooperatieve Rabobank UA 4.375%, 08/04/2025			1,373		1,552,465
Credit Agricole SA/London 3.25%, 10/04/2024(a)			257		277,606
Danske Bank A/S 3.244%, 12/20/2025(a)			492		521,707
Deutsche Bank AG/New York NY 2.222%, 09/18/2024			288		291,217
3.961%, 11/26/2025			265		283,195
Discover Bank 4.682%, 08/09/2028			250		262,177

22    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Fifth Third Bancorp Series L 4.50%, 09/30/2025(b)	U.S.$		205	$	206,962
Goldman Sachs Group, Inc. (The) Series M 4.165% (LIBOR 3 Month + 3.92%), 11/30/2020(b)(c)			482		473,247
HSBC Holdings PLC 4.041%, 03/13/2028			462		515,130
4.25%, 03/14/2024			282		305,460
4.292%, 09/12/2026			536		600,969
6.375%, 03/30/2025(b)			547		572,868
ING Groep NV 6.875%, 04/16/2022(a)(b)			425		439,973
JPMorgan Chase & Co. 2.083%, 04/22/2026			465		486,069
Series Z 4.014% (LIBOR 3 Month + 3.80%), 02/01/2021(b)(c)			200		197,138
Mastercard, Inc. 3.30%, 03/26/2027			417		472,824
3.85%, 03/26/2050			440		549,494
Morgan Stanley 3.591%, 07/22/2028			476		536,176
5.00%, 11/24/2025			396		467,363
Series G 4.35%, 09/08/2026			553		641,524
Series J 4.047% (LIBOR 3 Month + 3.81%), 01/15/2021(b)(c)			110		108,259
Nationwide Building Society 4.00%, 09/14/2026(a)			950		1,030,655
Natwest Group PLC 8.625%, 08/15/2021(b)			320		330,675
Series U 2.54% (LIBOR 3 Month + 2.32%), 09/30/2027(b)(c)			700		672,630
Santander Holdings USA, Inc. 4.40%, 07/13/2027			315		350,699
Standard Chartered PLC 1.724% (LIBOR 3 Month + 1.51%), 01/30/2027(a)(b)(c)			400		355,520
5.20%, 01/26/2024(a)			350		380,891
7.50%, 04/02/2022(a)(b)			363		374,896
State Street Corp. 2.901%, 03/30/2026			77		83,649

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Truist Financial Corp. Series Q 5.10%, 03/01/2030(b)	U.S.$		692	$	756,141
UBS AG/Stamford CT 7.625%, 08/17/2022			620		689,589
UBS Group AG 7.00%, 02/19/2025(a)(b)			312		348,258
7.125%, 08/10/2021(a)(b)			578		592,444
UniCredit SpA 2.569%, 09/22/2026(a)			1,125		1,117,541
US Bancorp Series J 5.30%, 04/15/2027(b)			380		414,401
Wells Fargo & Co. 2.188%, 04/30/2026			542		564,081
Series G 4.30%, 07/22/2027			290		332,705
					29,715,780
Brokerage – 0.2%
Charles Schwab Corp. (The) Series G 5.375%, 06/01/2025(b)			568		622,278
Finance – 1.3%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 3.30%, 01/23/2023			200		202,030
4.125%, 07/03/2023			233		239,428
4.50%, 09/15/2023			281		291,920
6.50%, 07/15/2025			179		197,006
Air Lease Corp. 3.875%, 07/03/2023			62		64,737
4.25%, 02/01/2024			251		263,369
Aircastle Ltd. 4.125%, 05/01/2024			152		149,620
4.40%, 09/25/2023			345		347,111
5.00%, 04/01/2023			31		31,609
5.25%, 08/11/2025(a)			268		265,939
GE Capital European Funding Unlimited Co. 4.625%, 02/22/2027	EUR		150		206,844
GE Capital Funding LLC 4.40%, 05/15/2030(a)	U.S.$		1,218		1,331,152
GE Capital International Funding Co. Unlimited Co. 4.418%, 11/15/2035			272		294,051
Synchrony Financial 4.50%, 07/23/2025			1,008		1,121,077
					5,005,893

24    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Insurance – 0.8%
Alleghany Corp. 3.625%, 05/15/2030	U.S.$		777	$	869,688
Centene Corp. 4.25%, 12/15/2027			116		122,067
4.625%, 12/15/2029			132		143,712
Guardian Life Insurance Co. of America (The) 4.85%, 01/24/2077(a)			294		373,371
MetLife Capital Trust IV 7.875%, 12/15/2037(a)			699		963,362
Nationwide Mutual Insurance Co. 9.375%, 08/15/2039(a)			246		417,305
Voya Financial, Inc. 5.65%, 05/15/2053			180		185,463
					3,074,968
Other Finance – 0.1%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 4.45%, 04/03/2026			271		273,098
					38,692,017
Utility – 0.8%
Electric – 0.8%
AES Panama Generation Holdings SRL 4.375%, 05/31/2030(a)			274		289,114
Colbun SA 3.15%, 03/06/2030(a)			400		417,010
Enel Chile SA 4.875%, 06/12/2028			514		600,737
Israel Electric Corp., Ltd. Series 6 5.00%, 11/12/2024(a)			580		655,400
Kentucky Utilities Co. 3.30%, 06/01/2050			312		335,796
NextEra Energy Capital Holdings, Inc. 2.75%, 05/01/2025			211		227,684
Star Energy Geothermal Darajat II/Star Energy Geothermal Salak 4.85%, 10/14/2038(a)			499		513,970
					3,039,711
Total Corporates – Investment Grade (cost $99,758,315)					104,567,645

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
COLLATERALIZED MORTGAGE OBLIGATIONS – 16.3%
Risk Share Floating Rate – 14.2%
Bellemeade Re Ltd. Series 2018-3A, Class M1B 1.999% (LIBOR 1 Month + 1.85%), 10/25/2028(a)(c)	U.S.$		445	$	441,623
Series 2018-3A, Class M2 2.899% (LIBOR 1 Month + 2.75%), 10/25/2028(a)(c)			325		316,451
Series 2019-1A, Class M1B 1.899% (LIBOR 1 Month + 1.75%), 03/25/2029(a)(c)			1,000		998,827
Series 2019-2A, Class M1C 2.149% (LIBOR 1 Month + 2.00%), 04/25/2029(a)(c)			487		481,076
Series 2019-2A, Class M2 3.249% (LIBOR 1 Month + 3.10%), 04/25/2029(a)(c)			325		310,547
Series 2019-3A, Class M1B 1.749% (LIBOR 1 Month + 1.60%), 07/25/2029(a)(c)			359		351,767
Series 2019-3A, Class M1C 2.099% (LIBOR 1 Month + 1.95%), 07/25/2029(a)(c)			263		250,120
Series 2019-4A, Class M1B 2.149% (LIBOR 1 Month + 2.00%), 10/25/2029(a)(c)			885		875,406
Series 2019-4A, Class M1C 2.649% (LIBOR 1 Month + 2.50%), 10/25/2029(a)(c)			750		731,277
Series 2019-4A, Class M2 2.999% (LIBOR 1 Month + 2.85%), 10/25/2029(a)(c)			540		505,156
Series 2020-2A, Class M1B 3.349% (LIBOR 1 Month + 3.20%), 08/26/2030(a)(c)			335		338,035
Series 2020-3A, Class M1B 2.998% (LIBOR 1 Month + 2.85%), 10/25/2030(a)(c)			220		219,983
Connecticut Avenue Securities Trust Series 2018-R07, Class 1M2 2.549% (LIBOR 1 Month + 2.40%), 04/25/2031(a)(c)			198		196,755
Series 2019-HRP1, Class M2 2.299% (LIBOR 1 Month + 2.15%), 11/25/2039(a)(c)			651		586,331

26    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-R01, Class 2M2 2.599% (LIBOR 1 Month + 2.45%), 07/25/2031(a)(c)	U.S.$		529	$	523,889
Series 2019-R02, Class 1M2 2.449% (LIBOR 1 Month + 2.30%), 08/25/2031(a)(c)			181		179,572
Series 2019-R03, Class 1M2 2.299% (LIBOR 1 Month + 2.15%), 09/25/2031(a)(c)			392		389,050
Series 2019-R04, Class 2M2 2.249% (LIBOR 1 Month + 2.10%), 06/25/2039(a)(c)			644		638,392
Series 2019-R05, Class 1M2 2.149% (LIBOR 1 Month + 2.00%), 07/25/2039(a)(c)			538		536,297
Series 2019-R06, Class 2M2 2.249% (LIBOR 1 Month + 2.10%), 09/25/2039(a)(c)			769		761,154
Series 2019-R07, Class 1M2 2.249% (LIBOR 1 Month + 2.10%), 10/25/2039(a)(c)			745		738,030
Series 2020-R01, Class 1B1 3.399% (LIBOR 1 Month + 3.25%), 01/25/2040(a)(c)			500		393,521
Series 2020-R01, Class 1M2 2.199% (LIBOR 1 Month + 2.05%), 01/25/2040(a)(c)			1,100		1,077,479
Series 2020-R02, Class 2M2 2.149% (LIBOR 1 Month + 2.00%), 01/25/2040(a)(c)			950		921,430
Series 2020-SBT1, Class 1M2 3.799% (LIBOR 1 Month + 3.65%), 02/25/2040(a)(c)			1,000		928,666
Series 2020-SBT1, Class 2M2 3.799% (LIBOR 1 Month + 3.65%), 02/25/2040(a)(c)			300		284,981
Eagle Re Ltd. Series 2018-1, Class M2 3.149% (LIBOR 1 Month + 3.00%), 11/25/2028(a)(c)			325		312,284
Series 2019-1, Class M2 3.449% (LIBOR 1 Month + 3.30%), 04/25/2029(a)(c)			325		309,752
Series 2020-1, Class M1A 1.049% (LIBOR 1 Month + 0.90%), 01/25/2030(a)(c)			950		942,773

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2020-2, Class M1B 4.148% (LIBOR 1 Month + 4.00%), 10/25/2030(a)(c)	U.S.$		1,579	$	1,579,910
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2015-HQA2, Class M3 4.949% (LIBOR 1 Month + 4.80%), 05/25/2028(c)			396		405,539
Series 2016-DNA4, Class M3 3.949% (LIBOR 1 Month + 3.80%), 03/25/2029(c)			960		995,157
Series 2016-HQA3, Class M3 3.999% (LIBOR 1 Month + 3.85%), 03/25/2029(c)			1,162		1,202,679
Series 2017-DNA2, Class B1 5.299% (LIBOR 1 Month + 5.15%), 10/25/2029(c)			750		778,100
Series 2017-DNA3, Class M2 2.649% (LIBOR 1 Month + 2.50%), 03/25/2030(c)			250		252,657
Series 2017-HQA1, Class M2 3.699% (LIBOR 1 Month + 3.55%), 08/25/2029(c)			857		870,948
Series 2017-HQA2, Class B1 4.899% (LIBOR 1 Month + 4.75%), 12/25/2029(c)			800		788,002
Series 2017-HQA2, Class M2 2.799% (LIBOR 1 Month + 2.65%), 12/25/2029(c)			233		231,706
Series 2017-HQA3, Class B1 4.599% (LIBOR 1 Month + 4.45%), 04/25/2030(c)			750		728,054
Series 2017-HQA3, Class M2 2.499% (LIBOR 1 Month + 2.35%), 04/25/2030(c)			580		585,358
Series 2018-HQA2, Class B1 4.399% (LIBOR 1 Month + 4.25%), 10/25/2048(a)(c)			1,250		1,167,106
Series 2019-DNA1, Class B2 10.899% (LIBOR 1 Month + 10.75%), 01/25/2049(c)(d)			750		700,909
Series 2019-DNA1, Class M2 2.799% (LIBOR 1 Month + 2.65%), 01/25/2049(a)(c)			931		921,853
Series 2019-DNA3, Class B1 3.399% (LIBOR 1 Month + 3.25%), 07/25/2049(a)(c)			600		554,821

28    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-DNA3, Class M2 2.199% (LIBOR 1 Month + 2.05%), 07/25/2049(a)(c)	U.S.$		573	$	561,032
Series 2019-DNA4, Class M2 2.099% (LIBOR 1 Month + 1.95%), 10/25/2049(a)(c)			743		736,949
Series 2019-FTR2, Class B1 3.149% (LIBOR 1 Month + 3.00%), 11/25/2048(a)(c)			750		649,451
Series 2019-FTR2, Class M2 2.299% (LIBOR 1 Month + 2.15%), 11/25/2048(a)(c)			895		840,814
Series 2019-FTR3, Class B2 4.948% (LIBOR 1 Month + 4.80%), 09/25/2047(c)(d)			700		525,078
Series 2019-HQA1, Class M2 2.499% (LIBOR 1 Month + 2.35%), 02/25/2049(a)(c)			579		568,927
Series 2019-HQA2, Class B1 4.249% (LIBOR 1 Month + 4.10%), 04/25/2049(a)(c)			750		712,883
Series 2019-HQA3, Class B1 3.149% (LIBOR 1 Month + 3.00%), 09/25/2049(a)(c)			500		454,981
Series 2019-HQA3, Class M2 1.999% (LIBOR 1 Month + 1.85%), 09/25/2049(a)(c)			252		246,632
Series 2019-HQA4, Class B1 3.099% (LIBOR 1 Month + 2.95%), 11/25/2049(a)(c)			750		678,626
Series 2020-DNA1, Class M2 1.849% (LIBOR 1 Month + 1.70%), 01/25/2050(a)(c)			890		870,181
Series 2020-DNA2, Class M2 1.999% (LIBOR 1 Month + 1.85%), 02/25/2050(a)(c)			690		675,048
Series 2020-DNA5, Class M2 2.887%, 10/25/2050(a)(c)			620		619,612
Federal National Mortgage Association Connecticut Avenue Securities Series 2015-C01, Class 1M2 4.449% (LIBOR 1 Month + 4.30%), 02/25/2025(c)			305		309,446
Series 2015-C01, Class 2M2 4.699% (LIBOR 1 Month + 4.55%), 02/25/2025(c)			76		77,311

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2015-C02, Class 1M2 4.149% (LIBOR 1 Month + 4.00%), 05/25/2025(c)	U.S.$		276	$	278,106
Series 2015-C02, Class 2M2 4.149% (LIBOR 1 Month + 4.00%), 05/25/2025(c)			98		99,636
Series 2015-C03, Class 1M2 5.149% (LIBOR 1 Month + 5.00%), 07/25/2025(c)			283		288,260
Series 2015-C03, Class 2M2 5.149% (LIBOR 1 Month + 5.00%), 07/25/2025(c)			176		180,407
Series 2015-C04, Class 1M2 5.849% (LIBOR 1 Month + 5.70%), 04/25/2028(c)			408		431,458
Series 2016-C02, Class 1B 12.399% (LIBOR 1 Month + 12.25%), 09/25/2028(c)			149		179,295
Series 2016-C03, Class 1B 11.899% (LIBOR 1 Month + 11.75%), 10/25/2028(c)			99		117,447
Series 2016-C05, Class 2M2 4.599% (LIBOR 1 Month + 4.45%), 01/25/2029(c)			607		630,225
Series 2016-C06, Class 1B 9.399% (LIBOR 1 Month + 9.25%), 04/25/2029(c)			379		405,318
Series 2016-C06, Class 1M2 4.399% (LIBOR 1 Month + 4.25%), 04/25/2029(c)			281		290,879
Series 2016-C07, Class 2B 9.649% (LIBOR 1 Month + 9.50%), 05/25/2029(c)			379		404,969
Series 2017-C01, Class 1B1 5.899% (LIBOR 1 Month + 5.75%), 07/25/2029(c)			750		770,673
Series 2017-C01, Class 1M2 3.699% (LIBOR 1 Month + 3.55%), 07/25/2029(c)			328		336,929
Series 2017-C02, Class 2B1 5.649% (LIBOR 1 Month + 5.50%), 09/25/2029(c)			750		772,760
Series 2017-C03, Class 1M2 3.149% (LIBOR 1 Month + 3.00%), 10/25/2029(c)			673		677,855
Series 2017-C04, Class 2M2 2.999% (LIBOR 1 Month + 2.85%), 11/25/2029(c)			278		277,464

30    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2017-C06, Class 2B1 4.599% (LIBOR 1 Month + 4.45%), 02/25/2030(c)	U.S.$		750	$	737,932
Series 2017-C07, Class 1B1 4.149% (LIBOR 1 Month + 4.00%), 05/25/2030(c)			305		286,688
Series 2017-C07, Class 2B1 4.599% (LIBOR 1 Month + 4.45%), 05/25/2030(c)			750		728,428
Home Re Ltd. Series 2018-1, Class B1 4.149% (LIBOR 1 Month + 4.00%), 10/25/2028(c)(d)			500		443,355
Series 2020-1, Class M1B 3.394% (LIBOR 1 Month + 3.25%), 10/25/2030(a)(c)			510		510,005
JP Morgan Madison Avenue Securities Trust Series 2014-CH1, Class M2 4.399% (LIBOR 1 Month + 4.25%), 11/25/2024(c)(d)			50		46,167
Mortgage Insurance-Linked Notes Series 2019-1, Class M2 3.049% (LIBOR 1 Month + 2.90%), 11/26/2029(a)(c)			900		814,826
Oaktown Re V Ltd. Series 2020-2A, Class M1B 3.743% (LIBOR 1 Month + 3.60%), 10/25/2030(a)(c)			934		933,044
PMT Credit Risk Transfer Trust Series 2019-1R, Class A 2.152% (LIBOR 1 Month + 2.00%), 03/27/2024(c)(d)			399		355,844
Series 2019-2R, Class A 2.902% (LIBOR 1 Month + 2.75%), 05/27/2023(c)(d)			477		428,057
Series 2019-3R, Class A 2.852% (LIBOR 1 Month + 2.70%), 10/27/2022(c)(d)			388		347,530
Series 2020-1R, Class A 2.502% (LIBOR 1 Month + 2.35%), 02/27/2023(c)(d)			624		558,640
Radnor Re Ltd. Series 2018-1, Class B1 3.949% (LIBOR 1 Month + 3.80%), 03/25/2028(c)(d)			500		452,659
Series 2019-1, Class M1B 2.099% (LIBOR 1 Month + 1.95%), 02/25/2029(a)(c)			635		635,061

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2019-2, Class M1B 1.899% (LIBOR 1 Month + 1.75%), 06/25/2029(a)(c)	U.S.$		351	$	348,671
Series 2020-1, Class M1A 1.099% (LIBOR 1 Month + 0.95%), 02/25/2030(a)(c)			900		896,692
Series 2020-1, Class M2A 2.149% (LIBOR 1 Month + 2.00%), 02/25/2030(a)(c)			850		762,200
Series 2020-2, Class M1C 4.746% (LIBOR 1 Month + 4.60%), 10/25/2030(a)(c)			376		376,915
Traingle Re Ltd. Series 2020-1, Class M1B 4.047% (LIBOR 1 Month + 3.90%), 10/25/2030(a)(c)			1,075		1,073,980
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 5.399% (LIBOR 1 Month + 5.25%), 11/25/2025(c)(d)			285		277,964
Series 2015-WF1, Class 2M2 5.649% (LIBOR 1 Month + 5.50%), 11/25/2025(c)(d)			82		80,881
					53,067,614
Agency Floating Rate – 1.0%
Federal Home Loan Mortgage Corp. REMICs Series 4981, Class HS 5.952% (6.10% – LIBOR 1 Month), 06/25/2050(c)(e)			4,321		794,489
Federal Home Loan Mortgage Corp. REMICs Series 4719, Class JS 6.002% (6.15% – LIBOR 1 Month), 09/15/2047(c)(e)			1,392		236,109
Federal National Mortgage Association REMICs Series 2011-131, Class ST 6.391% (6.54% – LIBOR 1 Month), 12/25/2041(c)(e)			743		175,111
Series 2015-90, Class SL 6.001% (6.15% – LIBOR 1 Month), 12/25/2045(c)(e)			1,472		349,964
Series 2016-77, Class DS 5.851% (6.00% – LIBOR 1 Month), 10/25/2046(c)(e)			1,308		262,651
Series 2017-16, Class SG 5.901% (6.05% – LIBOR 1 Month), 03/25/2047(c)(e)			1,477		297,772

32    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2017-26, Class TS 5.801% (5.95% – LIBOR 1 Month), 04/25/2047(c)(e)	U.S.$		1,455	$	330,438
Series 2017-62, Class AS 6.001% (6.15% – LIBOR 1 Month), 08/25/2047(c)(e)			1,476		275,597
Series 2017-81, Class SA 6.051% (6.20% – LIBOR 1 Month), 10/25/2047(c)(e)			1,544		344,398
Series 2017-97, Class LS 6.051% (6.20% – LIBOR 1 Month), 12/25/2047(c)(e)			1,388		360,304
Government National Mortgage Association Series 2017-65, Class ST 5.999% (6.15% – LIBOR 1 Month), 04/20/2047(c)(e)			1,421		301,537
					3,728,370
Agency Fixed Rate – 0.5%
Federal Home Loan Mortgage Corp. REMICs Series 4976, Class MI 4.50%, 05/25/2050(f)			3,053		493,446
Series 5015, Class BI 4.00%, 09/25/2050(f)			2,295		373,626
Series 5018, Class EI 4.00%, 10/25/2050(f)			1,954		277,145
Federal National Mortgage Association Grantor Trust Series 2004-T5, Class AB4 0.688%, 05/28/2035			65		61,194
Federal National Mortgage Association REMICs Series 2016-31, Class IO 5.00%, 06/25/2046(f)			4,319		722,391
					1,927,802
Non-Agency Fixed Rate – 0.4%
Alternative Loan Trust Series 2006-24CB, Class A16 5.75%, 08/25/2036			246		197,165
Series 2006-28CB, Class A14 6.25%, 10/25/2036			181		134,128
Series 2006-J1, Class 1A13 5.50%, 02/25/2036			123		110,293
Countrywide Home Loan Mortgage Pass-Through Trust Series 2006-13, Class 1A19 6.25%, 09/25/2036			60		40,623

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
First Horizon Alternative Mortgage Securities Trust Series 2006-FA3, Class A9 6.00%, 07/25/2036	U.S.$		210	$	145,910
JP Morgan Alternative Loan Trust Series 2006-A3, Class 2A1 3.635%, 07/25/2036			539		453,818
Structured Asset Securities Corp. Mortgage Pass-Through Certificates Series 2002-3, Class B3 6.50%, 03/25/2032			452		257,751
					1,339,688
Non-Agency Floating Rate – 0.2%
Chase Mortgage Reference Notes Series 2019-CL1, Class M3 2.249% (LIBOR 1 Month + 2.10%), 04/25/2047(a)(c)			182		181,784
Deutsche Alt-A Securities Mortgage Loan Trust Series 2006-AR4, Class A2 0.339% (LIBOR 1 Month + 0.19%), 12/25/2036(c)			543		279,700
HomeBanc Mortgage Trust Series 2005-1, Class A1 0.399% (LIBOR 1 Month + 0.25%), 03/25/2035(c)			136		120,617
Impac Secured Assets Corp. Series 2005-2, Class A2D 0.579% (LIBOR 1 Month + 0.43%), 03/25/2036(c)			246		215,531
Residential Accredit Loans, Inc. Trust Series 2007-QS4, Class 2A4 0.489% (LIBOR 1 Month + 0.34%), 03/25/2037(c)			573		49,947
					847,579
Total Collateralized Mortgage Obligations (cost $64,661,803)					60,911,053
COMMERCIAL MORTGAGE-BACKED SECURITIES – 15.6%
Non-Agency Fixed Rate CMBS – 12.3%
BAMLL Commercial Mortgage Securities Trust Series 2013-WBRK, Class D 3.534%, 03/10/2037(a)			960		849,037
Banc of America Commercial Mortgage Trust Series 2015-UBS7, Class AS 3.989%, 09/15/2048			860		945,294

34    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CFCRE Commercial Mortgage Trust Series 2016-C4, Class A4 3.283%, 05/10/2058	U.S.$		735	$	790,989
Series 2016-C4, Class AM 3.691%, 05/10/2058			375		407,379
CGRBS Commercial Mortgage Trust Series 2013-VN05, Class A 3.369%, 03/13/2035(a)			1,305		1,370,905
Citigroup Commercial Mortgage Trust Series 2013-GC11, Class B 3.732%, 04/10/2046			500		521,130
Series 2013-GC17, Class D 5.109%, 11/10/2046(a)			565		469,469
Series 2015-GC27, Class A5 3.137%, 02/10/2048			1,223		1,314,496
Series 2015-GC35, Class A4 3.818%, 11/10/2048			340		377,848
Series 2016-GC36, Class A5 3.616%, 02/10/2049			425		469,490
Series 2018-B2, Class A4 4.009%, 03/10/2051			1,050		1,211,338
COMM Mortgage Trust Series 2013-LC6, Class B 3.739%, 01/10/2046			1,580		1,620,800
Commercial Mortgage Trust Series 2013-SFS, Class A1 1.873%, 04/12/2035(a)			187		185,238
Series 2014-LC17, Class B 4.49%, 10/10/2047			800		858,158
Series 2014-UBS6, Class AM 4.048%, 12/10/2047			375		408,388
Series 2015-3BP, Class A 3.178%, 02/10/2035(a)			170		181,127
Series 2015-CR24, Class A5 3.696%, 08/10/2048			430		476,398
Series 2015-CR25, Class A4 3.759%, 08/10/2048			1,045		1,161,027
Series 2015-DC1, Class A5 3.35%, 02/10/2048			765		826,394
Series 2015-PC1, Class A5 3.902%, 07/10/2050			685		756,976
CSAIL Commercial Mortgage Trust Series 2015-C2, Class A4 3.504%, 06/15/2057			332		363,790
Series 2015-C3, Class A4 3.718%, 08/15/2048			573		627,605

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2015-C4, Class A4 3.808%, 11/15/2048	U.S.$		1,450	$	1,606,240
DBUBS Mortgage Trust Series 2011-LC1A, Class C 5.594%, 11/10/2046(a)			730		729,899
GS Mortgage Securities Trust Series 2011-GC5, Class D 5.388%, 08/10/2044(a)			1,750		1,422,194
Series 2012-GC6, Class B 5.651%, 01/10/2045(a)			600		612,775
Series 2012-GCJ9, Class AS 3.124%, 11/10/2045			762		786,392
Series 2013-G1, Class A2 3.557%, 04/10/2031(a)			766		757,769
Series 2014-GC22, Class A5 3.862%, 06/10/2047			658		715,286
Series 2018-GS9, Class A4 3.992%, 03/10/2051			1,125		1,296,007
JP Morgan Chase Commercial Mortgage Securities Trust Series 2011-C5, Class D 5.424%, 08/15/2046(a)			127		101,796
Series 2012-C6, Class D 5.152%, 05/15/2045			690		589,838
Series 2012-C6, Class E 5.152%, 05/15/2045(a)			389		213,766
Series 2012-C8, Class AS 3.424%, 10/15/2045(a)			850		875,137
JPMBB Commercial Mortgage Securities Trust Series 2014-C21, Class A5 3.775%, 08/15/2047			735		800,210
Series 2014-C24, Class C 4.407%, 11/15/2047			890		820,451
Series 2015-C30, Class A5 3.822%, 07/15/2048			425		471,091
Series 2015-C31, Class A3 3.801%, 08/15/2048			1,009		1,118,804
Series 2015-C31, Class B 4.62%, 08/15/2048			948		1,035,103
Series 2015-C33, Class A4 3.77%, 12/15/2048			1,050		1,174,099
JPMCC Commercial Mortgage Securities Trust Series 2017-JP7, Class XA 1.058%, 09/15/2050(f)			4,693		238,484
LB-UBS Commercial Mortgage Trust Series 2006-C6, Class AJ 5.452%, 09/15/2039			131		75,596

36    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
LSTAR Commercial Mortgage Trust Series 2016-4, Class A2 2.579%, 03/10/2049(a)	U.S.$		548	$	558,025
Morgan Stanley Bank of America Merrill Lynch Trust Series 2014-C16, Class A5 3.892%, 06/15/2047			730		792,872
Morgan Stanley Capital I Trust Series 2011-C1, Class D 5.516%, 09/15/2047(a)			100		100,101
Series 2016-UB12, Class A4 3.596%, 12/15/2049			660		732,367
SG Commercial Mortgage Securities Trust Series 2016-C5, Class B 3.933%, 10/10/2048			540		551,896
UBS Commercial Mortgage Trust Series 2018-C10, Class A4 4.313%, 05/15/2051			750		871,592
Series 2018-C8, Class A4 3.983%, 02/15/2051			720		828,433
Series 2018-C9, Class A4 4.117%, 03/15/2051			1,300		1,491,010
UBS-Barclays Commercial Mortgage Trust Series 2012-C4, Class A5 2.85%, 12/10/2045			1,098		1,135,814
Wells Fargo Commercial Mortgage Trust Series 2015-C27, Class A5 3.451%, 02/15/2048			1,040		1,131,688
Series 2015-SG1, Class A4 3.789%, 09/15/2048			723		789,437
Series 2015-SG1, Class C 4.463%, 09/15/2048			516		485,569
Series 2016-C35, Class XA 1.932%, 07/15/2048(f)			3,775		308,193
Series 2016-LC24, Class XA 1.668%, 10/15/2049(f)			8,814		640,246
Series 2016-LC25, Class C 4.417%, 12/15/2059			545		524,730
Series 2016-NXS6, Class C 4.315%, 11/15/2049			600		577,699
Series 2018-C43, Class A4 4.012%, 03/15/2051			900		1,035,438
Series 2018-C48, Class A5 4.302%, 01/15/2052			89		104,738
WF-RBS Commercial Mortgage Trust Series 2013-C11, Class B 3.714%, 03/15/2045			480		496,545

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2013-C11, Class XA 1.175%, 03/15/2045(a)(f)	U.S.$		7,382	$	159,768
Series 2014-C24, Class AS 3.931%, 11/15/2047			945		966,355
					45,916,729
Non-Agency Floating Rate CMBS – 3.3%
Ashford Hospitality Trust Series 2018-ASHF, Class A 1.048% (LIBOR 1 Month + 0.90%), 04/15/2035(a)(c)			568		536,118
Series 2018-KEYS, Class A 1.148% (LIBOR 1 Month + 1.00%), 06/15/2035(a)(c)			1,000		942,696
Atrium Hotel Portfolio Trust Series 2018-ATRM, Class A 1.098% (LIBOR 1 Month + 0.95%), 06/15/2035(a)(c)			750		711,940
BAMLL Commercial Mortgage Securities Trust Series 2017-SCH, Class AF 1.148% (LIBOR 1 Month + 1.00%), 11/15/2033(a)(c)			1,330		1,256,827
BBCMS Mortgage Trust Series 2020-BID, Class A 2.285% (LIBOR 1 Month + 2.14%), 10/15/2037(a)(c)			627		625,519
BHMS Series 2018-ATLS, Class A 1.398% (LIBOR 1 Month + 1.25%), 07/15/2035(a)(c)			547		521,805
Braemar Hotels & Resorts Trust Series 2018-PRME, Class A 0.968% (LIBOR 1 Month + 0.82%), 06/15/2035(a)(c)			700		662,362
BX Trust Series 2018-EXCL, Class A 1.236% (LIBOR 1 Month + 1.09%), 09/15/2037(a)(c)			780		710,659
CLNY Trust Series 2019-IKPR, Class D 2.173% (LIBOR 1 Month + 2.03%), 11/15/2038(a)(c)			540		489,267
DBWF Mortgage Trust Series 2018-GLKS, Class A 1.177% (LIBOR 1 Month + 1.03%), 12/19/2030(a)(c)			541		525,735

38    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Great Wolf Trust Series 2019-WOLF, Class A 1.182% (LIBOR 1 Month + 1.03%), 12/15/2036(a)(c)	U.S.$		1,019	$	974,278
GS Mortgage Securities Corp. Trust Series 2019-BOCA, Class A 1.348% (LIBOR 1 Month + 1.20%), 06/15/2038(a)(c)			725		708,343
Series 2019-SMP, Class A 1.298% (LIBOR 1 Month + 1.15%), 08/15/2032(a)(c)			700		678,994
JP Morgan Chase Commercial Mortgage Securities Trust Series 2020-NNN, Class EFL 1.996% (LIBOR 1 Month + 1.85%), 01/16/2037(a)(c)			1,000		915,080
Morgan Stanley Capital I Trust Series 2015-XLF2, Class SNMA 2.098% (LIBOR 1 Month + 1.95%), 11/15/2026(c)(d)			173		138,765
Series 2019-BPR, Class C 3.198% (LIBOR 1 Month + 3.05%), 05/15/2036(a)(c)			520		450,859
Natixis Commercial Mortgage Securities Trust Series 2018-850T, Class A 0.932% (LIBOR 1 Month + 0.78%), 07/15/2033(a)(c)			540		534,320
Series 2019-MILE, Class A 1.648% (LIBOR 1 Month + 1.50%), 07/15/2036(a)(c)			379		375,298
Starwood Retail Property Trust Series 2014-STAR, Class A 1.618% (LIBOR 1 Month + 1.47%), 11/15/2027(a)(c)			1,045		773,725
					12,532,590
Agency CMBS – 0.0%
Government National Mortgage Association Series 2006-39, Class IO 0.00%, 07/16/2046(f)			743		7
Total Commercial Mortgage-Backed Securities (cost $58,033,164)					58,449,326
MORTGAGE PASS-THROUGHS – 12.9%
Agency Fixed Rate 30-Year – 11.9%
Federal Home Loan Mortgage Corp. Series 2019 3.50%, 10/01/2049-11/01/2049			970		1,046,158

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2020 3.50%, 01/01/2050	U.S.$		1,176	$	1,287,061
Federal Home Loan Mortgage Corp. Gold Series 2005 5.50%, 01/01/2035			138		159,835
Series 2007 5.50%, 07/01/2035			20		22,933
Series 2016 4.00%, 02/01/2046			956		1,060,330
Series 2017 4.00%, 07/01/2044			724		802,637
Series 2018 4.00%, 08/01/2048-12/01/2048			1,790		1,942,648
4.50%, 03/01/2048-11/01/2048			2,249		2,473,111
5.00%, 11/01/2048			442		494,772
Federal National Mortgage Association Series 2003 5.50%, 04/01/2033-07/01/2033			130		149,101
Series 2004 5.50%, 04/01/2034-01/01/2035			438		507,943
Series 2005 5.50%, 02/01/2035			54		62,336
Series 2007 5.50%, 08/01/2037			257		296,659
Series 2010 4.00%, 12/01/2040			439		487,241
Series 2012 3.50%, 02/01/2042-01/01/2043			3,134		3,457,684
Series 2013 3.50%, 04/01/2043			1,487		1,642,134
4.00%, 10/01/2043			997		1,104,848
Series 2016 3.50%, 01/01/2047			945		1,008,500
Series 2018 4.00%, 08/01/2048-12/01/2048			2,197		2,384,160
4.50%, 09/01/2048			2,375		2,609,832
Series 2019 3.50%, 08/01/2049-11/01/2049			2,825		3,042,885
4.00%, 06/01/2049			1,405		1,538,078
Series 2020 3.50%, 01/01/2050			1,175		1,277,624
Government National Mortgage Association Series 2016 3.00%, 04/20/2046-05/20/2046			649		681,565
Uniform Mortgage-Backed Security Series 2020 1.50%, 11/01/2050, TBA			5,590		5,627,558

40    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
2.00%, 11/01/2050, TBA	U.S.$		3,645	$	3,759,191
2.50%, 11/01/2050, TBA			5,360		5,585,287
					44,512,111
Agency Fixed Rate 15-Year – 1.0%
Federal Home Loan Mortgage Corp. Series 2016 2.50%, 08/01/2031-11/01/2031			1,191		1,241,807
Federal National Mortgage Association Series 2016 2.50%, 12/01/2031-01/01/2032			1,410		1,471,019
Series 2017 2.50%, 02/01/2032			804		838,658
					3,551,484
Other Agency Fixed Rate Programs – 0.0%
Federal Home Loan Mortgage Corp. Series 2012 2.50%, 05/01/2022			32		32,909
Agency ARMs – 0.0%
Federal Home Loan Mortgage Corp. Series 2006 4.095% (LIBOR 12 Month + 2.00%), 01/01/2037(c)			18		19,007
Total Mortgage Pass-Throughs (cost $46,511,907)					48,115,511
GOVERNMENTS – TREASURIES – 10.7%
Malaysia – 0.2%
Malaysia Government Bond Series 117 3.882%, 03/10/2022	MYR		3,708		919,366
United States – 10.5%
U.S. Treasury Bonds 1.25%, 05/15/2050	U.S.$		2,825		2,568,102
2.25%, 08/15/2046			1,378		1,577,379
2.875%, 08/15/2045-11/15/2046			1,556		1,989,716
3.00%, 05/15/2045			80		104,025
3.125%, 08/15/2044(g)			7,419		9,817,027
4.375%, 11/15/2039			1,210		1,841,469
U.S. Treasury Notes 0.125%, 08/31/2022			14,969		14,959,644
1.75%, 12/31/2024(g)			2,098		2,223,552
2.00%, 12/31/2021			1,698		1,734,613
2.25%, 04/30/2021(g)			2,420		2,445,031
					39,260,558
Total Governments – Treasuries (cost $36,888,091)					40,179,924

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
ASSET-BACKED SECURITIES – 4.3%
Autos - Fixed Rate – 2.7%
Avis Budget Rental Car Funding AESOP LLC Series 2016-1A, Class A 2.99%, 06/20/2022(a)	U.S.$		418	$	421,550
Series 2018-1A, Class A 3.70%, 09/20/2024(a)			920		966,986
Series 2018-2A, Class A 4.00%, 03/20/2025(a)			755		807,949
CPS Auto Trust Series 2017-A, Class E 7.07%, 04/15/2024(a)			550		569,632
Exeter Automobile Receivables Trust Series 2016-3A, Class D 6.40%, 07/17/2023(a)			350		358,761
Series 2017-1A, Class D 6.20%, 11/15/2023(a)			525		540,968
Series 2017-3A, Class C 3.68%, 07/17/2023(a)			385		392,961
First Investors Auto Owner Trust Series 2018-1A, Class E 5.35%, 07/15/2024(a)			1,000		1,052,478
Series 2020-1A, Class A 1.49%, 01/15/2025(a)			386		389,391
Flagship Credit Auto Trust Series 2016-2, Class D 8.56%, 11/15/2023(a)			350		359,831
Series 2016-4, Class E 6.44%, 01/16/2024(a)			565		580,906
Series 2018-3, Class B 3.59%, 12/16/2024(a)			675		688,964
Series 2019-3, Class E 3.84%, 12/15/2026(a)			960		967,765
Series 2020-1, Class E 3.52%, 06/15/2027(a)			1,000		985,576
Hertz Vehicle Financing II LP Series 2015-3A, Class A 2.67%, 09/25/2021(a)			54		54,269
Series 2017-1A, Class A 2.96%, 10/25/2021(a)			295		295,036
Series 2019-1A, Class A 3.71%, 03/25/2023(a)			211		211,325
Series 2019-2A, Class A 3.42%, 05/25/2025(a)			155		155,845
Hertz Vehicle Financing LLC Series 2018-2A, Class A 3.65%, 06/27/2022(a)			321		322,197
					10,122,390

42    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Other ABS - Fixed Rate – 0.9%
Affirm Asset Securitization Trust Series 2020-A, Class A 2.10%, 02/18/2025(a)	U.S.$		467	$	468,000
Marlette Funding Trust Series 2017-1A, Class C 6.658%, 03/15/2024(a)			189		189,331
Series 2018-4A, Class A 3.71%, 12/15/2028(a)			57		57,335
Series 2019-3A, Class A 2.69%, 09/17/2029(a)			240		241,456
Series 2020-1A, Class A 2.24%, 03/15/2030(a)			845		851,018
Prosper Marketplace Issuance Trust Series 2019-3A, Class A 3.19%, 07/15/2025(a)			79		79,732
SoFi Consumer Loan Program LLC Series 2017-1, Class A 3.28%, 01/26/2026(a)			1		1,249
Series 2017-2, Class A 3.28%, 02/25/2026(a)			14		13,992
Series 2017-3, Class A 2.77%, 05/25/2026(a)			32		32,327
Series 2017-4, Class B 3.59%, 05/26/2026(a)			870		888,950
Series 2017-6, Class A2 2.82%, 11/25/2026(a)			163		163,810
SoFi Consumer Loan Program Trust Series 2018-3, Class A2 3.67%, 08/25/2027(a)			148		149,737
Upstart Securitization Trust Series 2020-3, Class A 1.702%, 11/20/2030(a)			417		417,205
					3,554,142
Credit Cards - Fixed Rate – 0.7%
World Financial Network Credit Card Master Trust
Series 2018-B, Class A 3.46%, 07/15/2025			330		338,315
Series 2018-B, Class M 3.81%, 07/15/2025			825		833,852
Series 2019-A, Class M 3.61%, 12/15/2025			780		800,586
Series 2019-B, Class M 3.04%, 04/15/2026			600		618,575
					2,591,328

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    43

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Home Equity Loans - Floating Rate – 0.0%
ABFC Trust Series 2003-WF1, Class A2 1.274% (LIBOR 1 Month + 1.13%), 12/25/2032(c)	U.S.$		19	$	18,736
Total Asset-Backed Securities (cost $16,010,715)					16,286,596
INFLATION-LINKED SECURITIES – 2.7%
Canada – 0.2%
Canadian Government Real Return Bond 0.50%, 12/01/2050	CAD		712		651,095
Japan – 0.9%
Japanese Government CPI Linked Bond Series 22 0.10%, 03/10/2027	JPY		377,850		3,592,096
United States – 1.6%
U.S. Treasury Inflation Index 0.125%, 07/15/2026 (TIPS)	U.S.$		1,054		1,133,715
0.375%, 07/15/2025 (TIPS)			4,518		4,865,246
					5,998,961
Total Inflation-Linked Securities (cost $9,759,492)					10,242,152
CORPORATES – NON-INVESTMENT GRADE – 2.7%
Industrial – 1.7%
Basic – 0.2%
Ingevity Corp. 3.875%, 11/01/2028(a)			453		460,108
Sealed Air Corp. 4.00%, 12/01/2027(a)			379		396,612
					856,720
Capital Goods – 0.1%
TransDigm, Inc. 6.25%, 03/15/2026(a)			362		377,497
Communications - Media – 0.1%
Cable One, Inc. 4.00%, 11/15/2030(a)			326		330,913
CSC Holdings LLC 6.75%, 11/15/2021			120		125,485
					456,398

44    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Cyclical - Automotive – 0.2%
Clarios Global LP/Clarios US Finance Co. 4.375%, 05/15/2026(a)	EUR		130	$	151,930
Ford Motor Credit Co. LLC 4.063%, 11/01/2024	U.S.$		360		361,980
					513,910
Consumer Cyclical - Entertainment – 0.4%
Carnival Corp. 11.50%, 04/01/2023(a)			401		441,341
Royal Caribbean Cruises Ltd. 10.875%, 06/01/2023(a)			364		397,044
11.50%, 06/01/2025(a)			655		749,267
					1,587,652
Consumer Cyclical - Restaurants – 0.2%
1011778 BC ULC/New Red Finance, Inc. 3.50%, 02/15/2029(a)			685		681,068
Consumer Non-Cyclical – 0.3%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 3.50%, 02/15/2023(a)			671		681,736
Spectrum Brands, Inc. 5.75%, 07/15/2025			512		527,145
					1,208,881
Energy – 0.2%
Sunoco LP/Sunoco Finance Corp. 4.875%, 01/15/2023			459		461,038
Transocean Poseidon Ltd. 6.875%, 02/01/2027(a)			225		169,508
					630,546
					6,312,672
Financial Institutions – 1.0%
Banking – 0.7%
Credit Suisse Group AG 7.50%, 07/17/2023(a)(b)			1,020		1,078,109
Discover Financial Services Series D 6.125%, 06/23/2025(b)			1,087		1,163,873
Intesa Sanpaolo SpA 5.017%, 06/26/2024(a)			288		303,944
					2,545,926

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    45

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Finance – 0.3%
Navient Corp. 6.625%, 07/26/2021	U.S.$		440	$	448,761
7.25%, 01/25/2022			99		102,133
SLM Corp. 4.20%, 10/29/2025			587		595,517
					1,146,411
					3,692,337
Total Corporates – Non-Investment Grade (cost $9,664,119)					10,005,009
COLLATERALIZED LOAN OBLIGATIONS – 1.2%
CLO - Floating Rate – 1.2%
Dryden CLO Ltd. Series 2020-77A, Class A 2.374% (LIBOR 3 Month + 2.00%), 05/20/2031(a) (c)			440		441,393
Elevation CLO Ltd. Series 2020-11A, Class D1 4.087% (LIBOR 3 Month + 3.85%), 04/15/2033(a) (c)			1,000		939,587
Goldentree Loan Management US CLO Ltd. Series 2020-7A, Class A 2.118% (LIBOR 3 Month + 1.90%), 04/20/2031(a) (c)			630		631,696
Magnetite XXVI Ltd. Series 2020-26A, Class A 1.987% (LIBOR 3 Month + 1.75%), 07/15/2030(a) (c)			808		809,517
OCP CLO Ltd. Series 2020-18A, Class A 2.018% (LIBOR 3 Month + 1.80%), 04/20/2030(a) (c)			632		633,430
SCFF I Ltd. Series 2020-1A, Class A2A 3.487% (LIBOR 3 Month + 3.25%), 04/15/2031(a) (c)			750		754,275
Voya CLO Ltd. Series 2019-1A, Class DR 3.087% (LIBOR 3 Month + 2.85%), 04/15/2031(a) (c)			210		182,775
Total Collateralized Loan Obligations (cost $4,458,635)					4,392,673

46    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS – SOVEREIGN BONDS – 1.1%
Colombia – 0.1%
Colombia Government International Bond 3.125%, 04/15/2031	U.S.$		375	$	384,750
Israel – 0.1%
Israel Government International Bond 3.875%, 07/03/2050			430		498,531
Mexico – 0.1%
Mexico Government International Bond 3.90%, 04/27/2025			493		538,510
Qatar – 0.1%
Qatar Government International Bond 3.40%, 04/16/2025(a)			252		276,806
Saudi Arabia – 0.2%
Saudi Government International Bond 2.90%, 10/22/2025(a)			692		738,710
United Arab Emirates – 0.4%
Abu Dhabi Government International Bond 1.70%, 03/02/2031(a)			521		511,882
2.50%, 04/16/2025(a)			396		419,364
3.875%, 04/16/2050(a)			356		422,528
					1,353,774
Uruguay – 0.1%
Uruguay Government International Bond 4.375%, 01/23/2031			156		188,779
Total Governments – Sovereign Bonds (cost $3,669,682)					3,979,860
QUASI-SOVEREIGNS – 1.0%
Quasi-Sovereign Bonds – 1.0%
Chile – 0.3%
Corp. Nacional del Cobre de Chile 3.15%, 01/14/2030(a)			565		600,842
3.75%, 01/15/2031(a)			201		222,105
Empresa de Transporte de Pasajeros Metro SA 3.65%, 05/07/2030(a)			200		217,600
					1,040,547
Indonesia – 0.3%
Indonesia Asahan Aluminium Persero PT 4.75%, 05/15/2025(a)			407		442,104

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    47

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Pertamina Persero PT 6.45%, 05/30/2044(a)	U.S.$		570	$	739,934
					1,182,038
Malaysia – 0.1%
Petronas Capital Ltd. 4.55%, 04/21/2050(a)			332		414,225
Mexico – 0.1%
Petroleos Mexicanos 6.75%, 09/21/2047			392		303,604
6.84%, 01/23/2030			143		127,855
					431,459
Peru – 0.2%
Corp. Financiera de Desarrollo SA 2.40%, 09/28/2027(a)			808		820,928
Total Quasi-Sovereigns (cost $3,655,661)					3,889,197
LOCAL GOVERNMENTS – US MUNICIPAL BONDS – 1.0%
United States – 1.0%
Port Authority of New York & New Jersey Series 2020A 1.086%, 07/01/2023			435		439,933
State Board of Administration Finance Corp. Series 2020A 1.705%, 07/01/2027			695		697,801
State of California 5.70%, 11/01/2021			545		574,686
Series 2010 7.625%, 03/01/2040			970		1,652,996
Tobacco Settlement Finance Authority/WV 3.00%, 06/01/2035			500		499,605
Total Local Governments – US Municipal Bonds (cost $3,582,021)					3,865,021
EMERGING MARKETS – TREASURIES – 0.9%
South Africa – 0.9%
Republic of South Africa Government Bond Series 2030 8.00%, 01/31/2030 (cost $2,930,111)	ZAR		60,009		3,391,186

48    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
EMERGING MARKETS – CORPORATE BONDS – 0.6%
Industrial – 0.6%
Basic – 0.1%
Braskem Netherlands Finance BV 4.50%, 01/31/2030(a)	U.S.$		390	$	361,331
Capital Goods – 0.2%
Embraer Netherlands Finance BV 5.40%, 02/01/2027			540		511,323
6.95%, 01/17/2028(a)			219		218,881
Odebrecht Finance Ltd. 5.25%, 06/27/2029(a)(h)(i)			341		11,935
7.125%, 06/26/2042(a)(h)(i)			394		13,790
					755,929
Communications - Media – 0.1%
Globo Comunicacao e Participacoes SA 4.875%, 01/22/2030(a)			417		413,742
Consumer Non-Cyclical – 0.1%
BRF GmbH 4.35%, 09/29/2026(a)			349		352,817
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018(d)(i)(j)			660		5,789
					358,606
Transportation - Services – 0.1%
Rumo Luxembourg SARL 5.875%, 01/18/2025(a)			315		329,569
					2,219,177
Utility – 0.0%
Electric – 0.0%
Terraform Global Operating LLC 6.125%, 03/01/2026(d)			60		60,836
Total Emerging Markets – Corporate Bonds (cost $3,129,319)					2,280,013
EMERGING MARKETS – SOVEREIGNS – 0.4%
Brazil – 0.1%
Brazilian Government International Bond 2.875%, 06/06/2025			496		501,611
Dominican Republic – 0.2%
Dominican Republic International Bond 4.875%, 09/23/2032(a)			763		777,545

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    49

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Egypt – 0.1%
Egypt Government International Bond 6.125%, 01/31/2022(a)	U.S.$		235	$	241,462
Total Emerging Markets – Sovereigns (cost $1,491,358)					1,520,618
		Shares
COMMON STOCKS – 0.2%
Financials – 0.2%
Insurance – 0.2%
Mt Logan Re Ltd. (Preference Shares)(k)(l)(m) (cost $626,000)			626		651,284
		Principal Amount (000)
SHORT-TERM INVESTMENTS – 4.2%
U.S. Treasury Bills – 3.1%
U.S. Treasury Bill Zero Coupon, 11/10/2020 (cost $11,484,759)	U.S.$		11,485		11,484,834
		Shares
Investment Companies – 1.0%
AB Fixed Income Shares, Inc. – AB Government Money Market Portfolio – Class AB, 0.03%(n)(o)(p) (cost $3,611,550)			3,611,550		3,611,550
		Principal Amount (000)
Short-Term Municipal Notes – 0.1%
New York – 0.1%
New York State Dormitory Authority (State of New York Pers Income Tax)
Series 2020B 5.00%, 03/31/2021 (cost $188,388)	U.S.$		185		188,656
Total Short-Term Investments (cost $15,284,697)					15,285,040
Total Investments – 103.8% (cost $380,115,090)					388,012,108
Other assets less liabilities – (3.8)%					(14,343,326	)
Net Assets – 100.0%				$	373,668,782

50    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month	Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
Euro-Bund Futures		21	December 2020	$	4,308,215	$	49,381
U.S. 10 Yr Ultra Futures		168	December 2020		26,423,250		(331,139	)
U.S. T-Note 2 Yr (CBT) Futures		837	December 2020		184,846,219		(59,599	)
U.S. T-Note 10 Yr (CBT) Futures		9	December 2020		1,243,969		(10,309	)
U.S. Ultra Bond (CBT) Futures		105	December 2020		22,575,000		(888,234	)
Sold Contracts
10 Yr Canadian Bond Futures		20	December 2020		2,267,357		13,028
Japan 10 Yr Bond (OSE) Futures		3	December 2020		4,352,071		(3,314	)
U.S. T-Note 5 Yr (CBT) Futures		23	December 2020		2,888,836		4,088
						$	(1,226,098)

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)		In Exchange For (000)		Settlement Date		Unrealized Appreciation/ (Depreciation)
Bank of America, NA	ZAR	107,389	USD	6,422		11/27/2020	$	(158,251	)
BNP Paribas SA	CAD	11,436	USD	8,609		12/10/2020		24,126
Citibank, NA	USD	575	GBP	445		11/19/2020		1,105
Citibank, NA	USD	532	ZAR	9,001		11/27/2020		19,125
Citibank, NA	USD	3,815	JPY	402,790		12/11/2020		34,099
Citibank, NA	CNY	51,476	USD	7,659		12/17/2020		164
Citibank, NA	NZD	11,359	USD	7,530		12/22/2020		18,973
Goldman Sachs Bank USA	KRW	3,314,587	USD	2,802		11/16/2020		(112,573	)
Goldman Sachs Bank USA	USD	2,783	CNY	19,408		11/16/2020		110,642
Goldman Sachs Bank USA	USD	1,051	ZAR	17,589		11/27/2020		27,283
Goldman Sachs Bank USA	USD	7,327	AUD	10,396		01/12/2021		(17,016	)
HSBC Bank USA	USD	7,539	KRW	8,767,507		11/10/2020		169,972
HSBC Bank USA	USD	1,304	ZAR	21,632		11/27/2020		21,992
JPMorgan Chase Bank, NA	USD	13,145	EUR	11,179		12/18/2020		(111,410	)
Morgan Stanley & Co., Inc.	AUD	21,264	USD	15,179		01/12/2021		227,558
Morgan Stanley & Co., Inc.	MYR	4,032	USD	968		03/25/2021		3,351
Standard Chartered Bank	KRW	5,515,849	USD	4,665		11/16/2020		(185,425	)
Standard Chartered Bank	USD	4,636	CNY	32,269		11/16/2020		174,841
State Street Bank & Trust Co.	GBP	445	USD	574		11/19/2020		(2,546	)
State Street Bank & Trust Co.	USD	459	ZAR	7,610		11/27/2020		7,556
State Street Bank & Trust Co.	EUR	235	USD	278		12/18/2020		3,920
State Street Bank & Trust Co.	USD	996	EUR	841		12/18/2020		(15,888	)
State Street Bank & Trust Co.	USD	124	AUD	174		01/12/2021		(1,688	)
State Street Bank & Trust Co.	USD	5	SEK	42		01/15/2021		(48	)
							$	239,862

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    51

PORTFOLIO OF INVESTMENTS (continued)

CALL OPTIONS WRITTEN (see Note D)

Description

Counterparty

Contracts

Exercise Price

Expiration Month

Notional (000)

Premiums Received

U.S. $ Value

iShares 7-10 Year Treasury Bond ETF(q)

Citibank, NA

247,200

USD

121.00

November 2020

USD

29,911

$

223,716

$    (106,333)

CREDIT DEFAULT SWAPTIONS WRITTEN (see Note D)

Description

Counterparty

Buy/Sell Protection

Strike Rate

Expiration Month

Notional Amount (000)

Premiums Received

Market Value

Put

CDX-NAHY Series 34, 5 Year Index RTP

Bank of America, NA

Sell

103.00

%

December 2020

USD

18,800

$

419,616

$

(385,564

)

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value		Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
CDX-NAHY Series 33, 5 Year Index, 12/20/2024*		5.00	%		Quarterly		3.70	%		USD	3,070	$	165,771	$	(297,552	)	$	463,323
CDX-NAHY Series 34, 5 Year Index, 06/20/2025*		5.00			Quarterly		3.96			USD	1,335		64,575		69,415			(4,840	)
												$	230,346	$	(228,137	)	$	458,483

* Termination date

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
CAD	27,650		08/27/2021	3 Month CDOR	1.623%	Semi-Annual/ Semi-Annual	$	237,706		$	78	$	237,628
SEK	121,200		08/30/2024	3 Month STIBOR	(0.165)%	Quarterly/Annual		(85,923	)		—		(85,923	)

52    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
CAD	42,660		08/10/2025	3 Month CDOR	0.698%	Semi-Annual/ Semi-Annual	$	(92,046	)	$	—	$	(92,046	)
USD	2,000		12/13/2029	1.764%	3 Month LIBOR	Semi-Annual/ Quarterly		(180,248	)		—		(180,248	)
							$	(120,511	)	$	78	$	(120,589	)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value		Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
Buy Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)%		Monthly		9.62	%		USD	461	$	119,346	$	93,797	$	25,549
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	463		119,863		94,131		25,732
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	3,486		902,467		713,922		188,545
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	1,743		451,379		350,353		101,026
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	697		180,500		138,840		41,660
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	692		179,031		142,616		36,415
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	433		112,096		75,932		36,164
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	368		95,207		75,060		20,147
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	462		119,604		95,346		24,258
CDX-CMBX.NA.BBB- Series 9, 09/17/2058*		(3.00	)		Monthly		9.62			USD	231		59,802		45,314		14,488

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    53

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		25.00	%		USD	252	$	(81,547	)	$	(28,279	)	$	(53,268	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	362		(117,143	)		(40,623	)		(76,520	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	504		(163,094	)		(55,309	)		(107,785	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	723		(233,962	)		(79,342	)		(154,620	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	504		(163,094	)		(54,223	)		(108,871	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	857		(277,325	)		(90,045	)		(187,280	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	540		(174,744	)		(57,027	)		(117,717	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	200		(64,720	)		(21,094	)		(43,626	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	180		(58,248	)		(22,386	)		(35,862	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	153		(49,511	)		(19,028	)		(30,483	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	252		(81,547	)		(31,341	)		(50,206	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	178		(57,601	)		(22,867	)		(34,734	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	351		(113,613	)		(41,490	)		(72,123	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	105		(33,986	)		(12,411	)		(21,575	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	107		(34,616	)		(10,668	)		(23,948	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	201		(65,027	)		(26,130	)		(38,897	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00	%		USD	85		(27,499	)		(11,313	)		(16,186	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	297		(96,085	)		(44,693	)		(51,392	)

54    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		25.00	%		USD	41	$	(13,264	)	$	(6,473	)	$	(6,791	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	269		(87,026	)		(39,297	)		(47,729	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	36		(11,650	)		(4,545	)		(7,105	)
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	509		(164,670	)		(32,277	)		(132,393	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	155		(50,145	)		(10,505	)		(39,640	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	1,882		(608,798	)		(75,418	)		(533,380	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	291		(94,143	)		(42,317	)		(51,826	)
Deutsche Bank AG
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		9.67			USD	850		(106,090	)		(16,299	)		(89,791	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	745		(241,020	)		(51,181	)		(189,839	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	46		(14,882	)		(2,588	)		(12,294	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	131		(42,381	)		(10,562	)		(31,819	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	52		(16,823	)		(5,975	)		(10,848	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	322		(104,172	)		(39,773	)		(64,399	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	4		(1,295	)		(449	)		(846	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	181		(58,556	)		(20,286	)		(38,270	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	530		(171,463	)		(55,968	)		(115,495	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	90		(29,124	)		(11,314	)		(17,810	)

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    55

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		25.00	%		USD	760	$	(245,873	)	$	(59,308	)	$	(186,565	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	219		(70,850	)		(14,232	)		(56,618	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	311		(100,614	)		(26,343	)		(74,271	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	26		(8,411	)		(2,284	)		(6,127	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	52		(16,823	)		(4,653	)		(12,170	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	52		(16,823	)		(5,035	)		(11,788	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	104		(33,645	)		(11,005	)		(22,640	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	260		(84,114	)		(34,685	)		(49,429	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	574		(185,698	)		(74,596	)		(111,102	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	356		(115,172	)		(37,179	)		(77,993	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	325		(105,143	)		(48,971	)		(56,172	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	224		(72,468	)		(35,888	)		(36,580	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	313		(101,261	)		(50,868	)		(50,393	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	20		(6,471	)		(2,978	)		(3,493	)
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	61		(19,734	)		(7,630	)		(12,104	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	374		(120,995	)		(44,959	)		(76,036	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	130		(42,058	)		(15,766	)		(26,292	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	131		(42,380	)		(12,493	)		(29,887	)

56    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		25.00	%		USD	30	$	(9,706	)	$	(2,869	)	$	(6,837	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	32		(10,353	)		(3,061	)		(7,292	)
Morgan Stanley & Co. International PLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	800		(258,813	)		(115,892	)		(142,921	)
												$	(3,036,974	)	$	121,120		$	(3,158,094	)

* Termination date

TOTAL RETURN SWAPS (see Note D)

Counterparty & Referenced Obligation

Rate Paid/ Received

Payment Frequency

Current Notional (000)

Maturity Date

Unrealized Appreciation/ (Depreciation)

Pay Total Return on Reference Obligation

Barclays Bank PLC iBoxx $ Liquid High Yield Index

3 Month LIBOR

Maturity

USD

13,350

12/20/2020

$

(246,522

)

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2020, the aggregate market value of these securities amounted to $120,303,552 or 32.2% of net assets.

(b) Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date.

(c) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2020.

(d) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 1.18% of net assets as of October 31, 2020, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Federal Home Loan Mortgage Corp. Series 2019-DNA1, Class B2 10.899%, 01/25/2049		02/11/2000	$	1,033,171	$	700,909		0.19	%
Federal Home Loan Mortgage Corp. Series 2019-FTR3, Class B2 4.948%, 09/25/2047		10/07/2000		733,330		525,078		0.14	%

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    57

PORTFOLIO OF INVESTMENTS (continued)

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Home Re Ltd. Series 2018-1, Class B1 4.149%, 10/25/2028		12/12/2019	$	516,486	$	443,355		0.12	%
JP Morgan Madison Avenue Securities Trust Series 2014-CH1, Class M2 4.399%, 11/25/2024		11/06/2015		49,270		46,167		0.01	%
Morgan Stanley Capital I Trust Series 2015-XLF2, Class SNMA 2.098%, 11/15/2026		11/16/2015		172,236		138,765		0.04	%
PMT Credit Risk Transfer Trust Series 2019-1R, Class A 2.152%, 03/27/2024		03/21/2019		398,712		355,844		0.10	%
PMT Credit Risk Transfer Trust Series 2019-2R, Class A 2.902%, 05/27/2023		06/07/2019		477,464		428,057		0.11	%
PMT Credit Risk Transfer Trust Series 2019-3R, Class A 2.852%, 10/27/2022		10/11/2019		388,085		347,530		0.09	%
PMT Credit Risk Transfer Trust Series 2020-1R, Class A 2.502%, 02/27/2023		02/11/2000		624,119		558,640		0.15	%
Radnor Re Ltd. Series 2018-1, Class B1 3.949%, 03/25/2028		01/10/2000		517,402		452,659		0.12	%
Terraform Global Operating LLC 6.125%, 03/01/2026		02/08/2018		60,000		60,836		0.02	%
Virgolino de Oliveira Finance SA 10.50%, 01/28/2018		01/24/2014		365,927		5,789		0.00	%
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 1M2 5.399%, 11/25/2025		09/28/2015		290,665		277,964		0.07	%
Wells Fargo Credit Risk Transfer Securities Trust Series 2015-WF1, Class 2M2 5.649%, 11/25/2025		09/28/2015		83,523		80,881		0.02	%

(e) Inverse interest only security.

(f) IO – Interest Only.

(g) Position, or a portion thereof, has been segregated to collateralize OTC derivatives outstanding.

(h) Defaulted.

58    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

(i) Non-income producing security.

(j) Defaulted matured security.

(k) Restricted and illiquid security.

Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Mt Logan Re Ltd. (Preference Shares)		12/30/2014	$	626,000	$	651,284		0.17	%

(l) Fair valued by the Adviser.

(m) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(n) Affiliated investments.

(o) 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.

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

(q) One contract relates to 1 share.

Currency Abbreviations:

AUD – Australian Dollar

CAD – Canadian Dollar

CNY – Chinese Yuan Renminbi

EUR – Euro

GBP – Great British Pound

JPY – Japanese Yen

KRW – South Korean Won

MYR – Malaysian Ringgit

NZD – New Zealand Dollar

SEK – Swedish Krona

USD – United States Dollar

ZAR – South African Rand

Glossary:

ABS – Asset-Backed Securities

ARMs – Adjustable Rate Mortgages

CBT – Chicago Board of Trade

CDOR – Canadian Dealer Offered Rate

CDX-CMBX.NA – North American Commercial Mortgage-Backed Index

CDX-NAHY – North American High Yield Credit Default Swap Index

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

CPI – Consumer Price Index

LIBOR – London Interbank Offered Rate

OSE – Osaka Securities Exchange

REMICs – Real Estate Mortgage Investment Conduits

RTP – Right To Pay

STIBOR – Stockholm Interbank Offered Rate

TBA – To Be Announced

TIPS – Treasury Inflation Protected Security

See notes to financial statements.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    59

STATEMENT OF ASSETS & LIABILITIES

October 31, 2020

Assets
Investments in securities, at value
Unaffiliated issuers (cost $376,503,540)	$	384,400,558
Affiliated issuers (cost $3,611,550)		3,611,550
Cash collateral due from broker		3,957,920
Foreign currencies, at value (cost $52,055)		52,442
Receivable for investment securities sold		2,461,899
Market value on credit default swaps (net premiums paid $1,825,311)		2,339,295
Interest receivable		1,922,909
Unrealized appreciation on forward currency exchange contracts		844,707
Receivable for capital stock sold		431,711
Affiliated dividends receivable		148
Total assets		400,023,139
Liabilities
Swaptions written, at value (premiums received $419,616)		385,564
Options written, at value (premiums received $223,716)		106,333
Payable for investment securities purchased		18,398,620
Market value on credit default swaps (net premiums received $1,704,191)		5,376,269
Unrealized depreciation on forward currency exchange contracts		604,845
Payable for capital stock redeemed		359,027
Unrealized depreciation on total return swaps		246,522
Dividends payable		214,624
Payable for variation margin on futures		213,059
Advisory fee payable		100,884
Distribution fee payable		58,046
Administrative fee payable		26,336
Transfer Agent fee payable		20,487
Payable for variation margin on centrally cleared swaps		17,957
Directors’ fees payable		1,931
Accrued expenses and other liabilities		223,853
Total liabilities		26,354,357
Net Assets	$	373,668,782
Composition of Net Assets
Capital stock, at par	$	32,413
Additional paid-in capital		362,293,966
Distributable earnings		11,342,403
	$	373,668,782

See notes to financial statements.

60    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

STATEMENT OF ASSETS & LIABILITIES (continued)

Net Asset Value Per Share—27 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	224,484,863		19,474,995	$	11.53	*
C	$	10,127,865		880,529	$	11.50
Advisor	$	122,107,923		10,588,528	$	11.53
R	$	1,802,323		156,395	$	11.52
K	$	6,579,522		570,311	$	11.54
I	$	2,742,737		237,555	$	11.55
Z	$	5,823,549		504,215	$	11.55

* The maximum offering price per share for Class A shares was $12.04 which reflects a sales charge of 4.25%.

See notes to financial statements.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    61

STATEMENT OF OPERATIONS

Year Ended October 31, 2020

Investment Income
Interest	$	12,287,408
Dividends—Affiliated issuers		23,472
Other income		810		$	12,311,690
Expenses
Advisory fee (see Note B)		1,654,114
Distribution fee—Class A		546,006
Distribution fee—Class B		78
Distribution fee—Class C		105,659
Distribution fee—Class R		12,759
Distribution fee—Class K		16,858
Transfer agency—Class A		270,065
Transfer agency—Class B		16
Transfer agency—Class C		13,353
Transfer agency—Advisor Class		145,830
Transfer agency—Class R		6,267
Transfer agency—Class K		13,486
Transfer agency—Class I		2,300
Transfer agency—Class Z		1,579
Custody and accounting		179,098
Audit and tax		109,673
Registration fees		105,263
Administrative		79,850
Printing		67,887
Legal		34,359
Directors’ fees		21,607
Miscellaneous		21,456
Total expenses		3,407,563
Less: expenses waived and reimbursed by the Adviser (see Note B)		(816,864	)
Net expenses					2,590,699
Net investment income					9,720,991
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)					11,298,950
Forward currency exchange contracts					(337,756	)
Futures					4,555,186
Options written					223,082
Swaps					(3,000,704	)
Swaptions written					116,202
Foreign currency transactions					(101,890	)
Net change in unrealized appreciation/depreciation of:
Investments(b)					(3,625,095	)
Forward currency exchange contracts					295,045
Futures					(1,160,253	)
Options written					117,383
Swaps					(2,710,033	)
Swaptions written					34,052
Foreign currency denominated assets and liabilities					20,243
Net gain on investment and foreign currency transactions					5,724,412
Net Increase in Net Assets from Operations				$	15,445,403

(a) Net of foreign capital gains taxes of $7,582.

(b) Net of decrease in accrued foreign capital gains taxes of $5,303.

See notes to financial statements.

62    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2020			Year Ended October 31, 2019
Increase (Decrease) in Net Assets from Operations
Net investment income	$	9,720,991		$	10,364,693
Net realized gain on investment and foreign currency transactions		12,753,070			3,530,308
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		(7,028,658	)		19,671,907
Contributions from Affiliates (see Note B)		– 0	–		3,028
Net increase in net assets from operations		15,445,403			33,569,936
Distributions to Shareholders
Class A		(6,405,787	)		(7,511,236	)
Class B		(201	)		(12,399	)
Class C		(231,596	)		(292,422	)
Advisor Class		(3,763,633	)		(3,142,500	)
Class R		(68,726	)		(97,619	)
Class K		(197,901	)		(272,681	)
Class I		(89,863	)		(127,077	)
Class Z		(250,502	)		(273,970	)
Capital Stock Transactions
Net increase		9,467,968			11,877,351
Total increase		13,905,162			33,717,383
Net Assets
Beginning of period		359,763,620			326,046,237
End of period	$	373,668,782		$	359,763,620

See notes to financial statements.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    63

NOTES TO FINANCIAL STATEMENTS

October 31, 2020

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Total Return Bond Portfolio (the “Fund”) (formerly AB Intermediate Bond Portfolio), a diversified portfolio. The Fund offers Class A, Class C, Advisor Class, Class R, Class K, Class I, Class T and Class Z shares. Class B and Class T shares have been authorized but currently are not offered. Effective August 2, 2019, sales of Class B shares were suspended. On November 7, 2019, all remaining outstanding Class B Shares of the Fund were converted to Class A shares. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Class R and Class K shares are sold without an initial or contingent deferred sales charge. Advisor Class, Class I and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All nine classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accord-

64    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

ance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (the “Adviser”) will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    65

NOTES TO FINANCIAL STATEMENTS (continued)

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

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

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

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized

66    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

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

Investments in Securities:	Level 1			Level 2		Level 3			Total
Assets:
Corporates – Investment Grade	$	– 0	–	$	104,567,645	$	– 0	–	$	104,567,645
Collateralized Mortgage Obligations		– 0	–		60,911,053		– 0	–		60,911,053
Commercial Mortgage-Backed Securities		– 0	–		58,449,326		– 0	–		58,449,326

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    67

NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities:

Level 1

Level 2

Level 3

Total

Mortgage Pass-Throughs

$

– 0

–

$

48,115,511

$

– 0

–

$

48,115,511

Governments – Treasuries

– 0

–

40,179,924

– 0

–

40,179,924

Asset-Backed Securities

– 0

–

16,286,596

– 0

–

16,286,596

Inflation-Linked Securities

– 0

–

10,242,152

– 0

–

10,242,152

Corporates – Non-Investment Grade

– 0

–

10,005,009

– 0

–

10,005,009

Collateralized Loan Obligations

– 0

–

4,392,673

– 0

–

4,392,673

Governments – Sovereign Bonds

– 0

–

3,979,860

– 0

–

3,979,860

Quasi-Sovereigns

– 0

–

3,889,197

– 0

–

3,889,197

Local Governments – US Municipal Bonds

– 0

–

3,865,021

– 0

–

3,865,021

Emerging Markets – Treasuries

– 0

–

3,391,186

– 0

–

3,391,186

Emerging Markets – Corporate Bonds

– 0

–

2,280,013

– 0

–

2,280,013

Emerging Markets – Sovereigns

– 0

–

1,520,618

– 0

–

1,520,618

Common Stocks

– 0

–

– 0

–

651,284

651,284

Short-Term Investments:

U.S. Treasury Bills

– 0

–

11,484,834

– 0

–

11,484,834

Investment Companies

3,611,550

– 0

–

– 0

–

3,611,550

Short-Term Municipal Notes

– 0

–

188,656

– 0

–

188,656

Total Investments in Securities

3,611,550

383,749,274

651,284

388,012,108

Other Financial Instruments(a):

Assets:

Futures

66,497

– 0

–

– 0

–

66,497

(b)

Forward Currency Exchange Contracts

– 0

–

844,707

– 0

–

844,707

Centrally Cleared Credit Default Swaps

– 0

–

230,346

– 0

–

230,346

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

237,706

– 0

–

237,706

(b)

Credit Default Swaps

– 0

–

2,339,295

– 0

–

2,339,295

Liabilities:

Futures

(1,292,595

)

– 0

–

– 0

–

(1,292,595

)(b)

Forward Currency Exchange Contracts

– 0

–

(604,845

)

– 0

–

(604,845

)

Call Options Written

– 0

–

(106,333

)

– 0

–

(106,333

)

Credit Default Swaptions Written

– 0

–

(385,564

)

– 0

–

(385,564

)

68    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities:	Level 1			Level 2			Level 3			Total
Centrally Cleared Interest Rate Swaps	$	– 0	–	$	(358,217	)	$	– 0	–	$	(358,217	)(b)
Credit Default Swaps		– 0	–		(5,376,269	)		– 0	–		(5,376,269	)
Total Return Swaps		– 0	–		(246,522	)		– 0	–		(246,522	)
Total	$	2,385,452		$	380,323,578		$	651,284		$	383,360,314	(c)

(a) 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.

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

(c) Amounts of $62,884 and $4,177,503 for Asset-Backed Securities and Collateralized Mortgage Obligations, respectively, were transferred out of Level 3 into Level 2 as improved transparency of price inputs received from pricing vendors has increased the observability during the reporting period.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    69

NOTES TO FINANCIAL STATEMENTS (continued)

gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .45% of the first $2.5 billion,

70    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

.40% of the next $2.5 billion up to $5 billion, .35% of the excess over $5 billion up to $8 billion and .30% in excess of $8 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding interest expense) on an annual basis (the “Expense Caps”) to .77%, 1.52%, .52%, 1.02%, .77%, .52%, and .52% of the daily average net assets for the Class A, Class C, Advisor Class, Class R, Class K, Class I, and Class Z shares, respectively. This waiver extends through January 31, 2021 and then may be extended by the Adviser for additional one year terms. For the year ended October 31, 2020, such reimbursements/waivers amounted to $813,217.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2020, the reimbursement for such services amounted to $79,850.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $181,654 for the year ended October 31, 2020.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $5,269 from the sale of Class A shares and received $731, $10 and $1,450 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A, Class B and Class C shares, respectively, for the year ended October 31, 2020.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2021. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    71

NOTES TO FINANCIAL STATEMENTS (continued)

an acquired fund fee and expense. For the year ended October 31, 2020, such waiver amounted to $3,647.

Fund	Market Value 10/31/19 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/20 (000)		Dividend Income (000)
Government Money Market Portfolio	$	11,000	$	200,508	$	207,896	$	3,612	$	23

During the year ended October 31, 2019, the Adviser reimbursed the Fund $3,028 for trading losses incurred due to a trade entry error.

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (now named Equitable Holdings, Inc.)(“Equitable”), through an initial public offering. Equitable is the holding company for a diverse group of financial services companies, including an approximate 65% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns less than 10% of the outstanding shares of common stock of Equitable, and no longer owns a controlling interest in Equitable. AXA previously announced its intention to sell its entire interest in Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of Equitable common stock.

Sales under the Plan that were completed on November 13, 2019 resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and may have been deemed to have been an “assignment” causing a termination of the Fund’s investment advisory and administration agreements. In order to ensure that investment advisory and administration services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved new investment advisory and administration agreements with the Adviser, and shareholders of the Fund subsequently approved the new investment advisory agreement. These agreements became effective on November 13, 2019.

72    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to both Class B and Class C shares, .50% of the Fund’s average daily net assets attributable to Class R shares and .25% of the Fund’s average daily net assets attributable to Class K shares. There are no distribution and servicing fees on the Advisor Class, Class I and Class Z shares. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $1,207,083, $146,581 and $64,704 for Class C, Class R and Class K shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2020 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	157,673,134	$	99,343,906
U.S. government securities		190,403,530		198,636,001

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	380,257,304
Gross unrealized appreciation	$	21,977,597
Gross unrealized depreciation		(14,455,445	)
Net unrealized appreciation	$	7,522,152

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    73

NOTES TO FINANCIAL STATEMENTS (continued)

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Futures

The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon for non-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

74    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

During the year ended October 31, 2020, the Fund held futures for hedging and non-hedging purposes.

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2020, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.

• Option Transactions

For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities, including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges and over-the-counter markets. Among other things, the Fund may use options transactions for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.

The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    75

NOTES TO FINANCIAL STATEMENTS (continued)

exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. The Fund’s maximum payment for written put options equates to the number of shares multiplied by the strike price. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

The Fund may also invest in options on swap agreements, also called “swaptions”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium”. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return on a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. The Fund’s maximum payment for written put swaptions equates to the notional amount of the underlying swap. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract.

During the year ended October 31, 2020, the Fund held written options for hedging and non-hedging purposes. During the year

76    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

ended October 31, 2020, the Fund held written swaptions for hedging and non-hedging purposes.

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk or currencies. The Fund may also enter into swaps for non-hedging purposes as a means of gaining market exposures, making direct investments in foreign currencies, as described below under “Currency Transactions.” A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    77

NOTES TO FINANCIAL STATEMENTS (continued)

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on

78    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended October 31, 2020, the Fund held interest rate swaps for hedging and non-hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    79

NOTES TO FINANCIAL STATEMENTS (continued)

The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

During the year ended October 31, 2020, the Fund held credit default swaps for hedging and non-hedging purposes.

Total Return Swaps:

The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the year ended October 31, 2020, the Fund held total return swaps for hedging and non-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a

80    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended October 31, 2020, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/Payable for variation margin on futures	$	66,497	*	Receivable/Payable for variation margin on futures	$	1,292,595	*
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps		463,323	*	Receivable/Payable for variation margin on centrally cleared swaps		4,840	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		237,628	*	Receivable/Payable for variation margin on centrally cleared swaps		358,217	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		844,707		Unrealized depreciation on forward currency exchange contracts		604,845
Credit contracts					Swaptions written, at value		385,564
Equity contracts					Options written, at value		106,333
Credit contracts	Market value on credit default swaps		2,339,295		Market value on credit default swaps		5,376,269
Credit contracts					Unrealized depreciation on total return swaps		246,522
Total		$	3,951,450			$	8,375,185

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    81

NOTES TO FINANCIAL STATEMENTS (continued)

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures	$	4,555,186		$	(1,160,253	)
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		(337,756	)		295,045
Equity contracts	Net realized gain (loss) on options written; Net change in unrealized appreciation/depreciation of options written		223,082			117,383
Credit contracts	Net realized gain (loss) on swaptions written; Net change in unrealized appreciation/depreciation of swaptions written		116,202			34,052
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		429,240			182,449
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(3,429,944	)		(2,892,482	)
Total		$	1,556,010		$	(3,423,806	)

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2020:

Futures:
Average notional amount of buy contracts	$	159,282,005
Average notional amount of sale contracts	$	10,102,415
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	11,784,832	(a)
Average principal amount of sale contracts	$	23,134,456
Options Written:
Average notional amount	$	24,870,340	(b)

82    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Swaptions Written:
Average notional amount	$	31,232,667	(c)
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	50,635,795
Credit Default Swaps:
Average notional amount of buy contracts	$	8,677,857	(d)
Average notional amount of sale contracts	$	22,472,199
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	17,047,668	(e)
Average notional amount of sale contracts	$	8,558,265	(e)
Total Return Swaps:
Average notional amount	$	16,375,000	(f)

(a) Positions were open for eleven months during the year.

(b) Positions were open for two months during the year.

(c) Positions were open for three months during the year.

(d) Positions were open for six months during the year.

(e) Positions were open for nine months during the year.

(f) Positions were open for four months during the year.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2020. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

Counterparty

Derivative Assets Subject to a MA

Derivatives Available for Offset

Cash Collateral Received*

Security Collateral Received*

Net Amount of Derivative Assets

BNP Paribas SA

$

24,126

$

– 0

–

$

– 0

–

$

– 0

–

$

24,126

Citibank, NA/Citigroup Global Markets, Inc.

2,026,052

(2,026,052

)

– 0

–

– 0

–

– 0

–

Goldman Sachs Bank USA/Goldman Sachs International

250,021

(250,021

)

– 0

–

– 0

–

– 0

–

HSBC Bank USA

191,964

– 0

–

– 0

–

– 0

–

191,964

JPMorgan Chase Bank, NA/JPMorgan Securities, LLC

95,207

(95,207

)

– 0

–

– 0

–

– 0

–

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    83

NOTES TO FINANCIAL STATEMENTS (continued)

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Morgan Stanley & Co. International PLC/Morgan Stanley & Co., Inc.	$	410,315	$	(258,813	)	$	– 0	–	$	– 0	–	$	151,502
Standard Chartered Bank		174,841		(174,841	)		– 0	–		– 0	–		– 0	–
State Street Bank & Trust Co.		11,476		(11,476	)		– 0	–		– 0	–		– 0	–
Total	$	3,184,002	$	(2,816,410	)	$	– 0	–	$	– 0	–	$	367,592	^
Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Bank of America, NA	$	543,815	$	– 0	–	$	– 0	–	$	(206,432	)	$	337,383
Barclays Bank PLC		246,522		– 0	–		– 0	–		– 0	–		246,522
Citibank, NA/Citigroup Global Markets, Inc.		2,111,635		(2,026,052	)		(85,583	)		– 0	–		– 0	–
Credit Suisse International		917,756		– 0	–		– 0	–		(753,019	)		164,737
Deutsche Bank AG		756,682		– 0	–		(420,000	)		(277,879	)		58,803
Goldman Sachs Bank USA/Goldman Sachs International		1,322,079		(250,021	)		– 0	–		(1,072,058	)		– 0	–
JPMorgan Chase Bank, NA/JPMorgan Securities, LLC		356,636		(95,207	)		– 0	–		(237,661	)		23,768
Morgan Stanley & Co. International PLC/Morgan Stanley & Co., Inc.		258,813		(258,813	)		– 0	–		– 0	–		– 0	–
Standard Chartered Bank		185,425		(174,841	)		– 0	–		– 0	–		10,584
State Street Bank & Trust Co.		20,170		(11,476	)		– 0	–		– 0	–		8,694
Total	$	6,719,533	$	(2,816,410	)	$	(505,583	)	$	(2,547,049	)	$	850,491	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

84    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

2. Currency Transactions

The Fund may invest in non-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund may seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives, including forward currency exchange contracts, futures and options on futures, swaps, and other options. The Fund may enter into transactions for investment opportunities when it anticipates that a foreign currency will appreciate or depreciate in value but securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).

3. TBA and Dollar Rolls

The Fund may invest in TBA mortgage-backed securities. A TBA, or “To Be Announced”, trade represents a contract for the purchase or sale of mortgage-backed securities to be delivered at a future agree-upon date; however, the specific mortgage pool numbers or the number of pools that will be delivered to fulfill the trade obligation or terms of the contract are unknown at the time of the trade. Mortgage pools (including fixed-rate or variable-rate mortgages) guaranteed by the Government National Mortgage Association, or GNMA, the Federal National Mortgage Association, or FNMA, or the Federal Home Loan Mortgage Corporation, or FHLMC, are subsequently allocated to the TBA transactions.

The Fund may enter into certain TBA transactions known as dollar rolls. Dollar rolls involve sales by the Fund of securities for delivery in the current month and the Fund’s simultaneously contracting to repurchase substantially similar (same type and coupon) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the lower forward price for the future purchase (often referred to as the “drop”) as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls involve the risk that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. Dollar rolls are speculative techniques. For the year ended October 31, 2020, the Fund earned drop income of $23,569 which is included in interest income in the accompanying statement of operations.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    85

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2020			Year Ended October 31, 2019			Year Ended October 31, 2020			Year Ended October 31, 2019
Class A
Shares sold		1,888,650			1,757,218		$	21,407,368		$	19,196,029
Shares issued in reinvestment of dividends and distributions		438,046			524,378			4,969,924			5,781,216
Shares converted from Class B		35,898			11,654			403,846			128,277
Shares converted from Class C		182,964			161,067			2,082,073			1,793,569
Shares redeemed		(2,549,088	)		(3,348,527	)		(28,719,237	)		(36,976,828	)
Net increase (decrease)		(3,530	)		(894,210	)	$	143,974		$	(10,077,737	)
Class B
Shares sold		2			3,175		$	30		$	34,706
Shares issued in reinvestment of dividends and distributions		– 0	–		1,076			– 0	–		11,835
Shares converted to Class A		(35,898	)		(11,651	)		(403,846	)		(128,277	)
Shares redeemed		(132	)		(4,565	)		(1,602	)		(50,676	)
Net decrease		(36,028	)		(11,965	)	$	(405,418	)	$	(132,412	)
Class C
Shares sold		432,800			233,063		$	4,849,702		$	2,560,907
Shares issued in reinvestment of dividends and distributions		14,549			18,800			164,668			206,427
Shares converted to Class A		(183,382	)		(161,416	)		(2,082,073	)		(1,793,569	)
Shares redeemed		(316,423	)		(224,164	)		(3,542,669	)		(2,453,077	)
Net decrease		(52,456	)		(133,717	)	$	(610,372	)	$	(1,479,312	)

86    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Year Ended October 31, 2020			Year Ended October 31, 2019			Year Ended October 31, 2020			Year Ended October 31, 2019
Advisor Class
Shares sold		5,154,674			5,806,792		$	58,200,348		$	63,820,451
Shares issued in reinvestment of dividends and distributions		155,888			165,044			1,769,237			1,825,673
Shares redeemed		(3,956,933	)		(3,908,822	)		(43,675,272	)		(42,732,896	)
Net increase		1,353,629			2,063,014		$	16,294,313		$	22,913,228
Class R
Shares sold		42,105			60,008		$	468,652		$	659,712
Shares issued in reinvestment of dividends and distributions		6,020			8,836			68,154			97,491
Shares redeemed		(182,460	)		(42,410	)		(1,990,251	)		(471,877	)
Net increase (decrease)		(134,335	)		26,434		$	(1,453,445	)	$	285,326
Class K
Shares sold		328,822			332,303		$	3,745,267		$	3,617,130
Shares issued in reinvestment of dividends and distributions		17,425			24,713			197,903			272,598
Shares redeemed		(431,270	)		(439,474	)		(4,696,457	)		(4,827,553	)
Net decrease		(85,023	)		(82,458	)	$	(753,287	)	$	(937,825	)
Class I
Shares sold		107,909			169,670		$	1,239,855		$	1,880,717
Shares issued in reinvestment of dividends and distributions		7,118			10,943			81,001			121,108
Shares redeemed		(238,893	)		(90,545	)		(2,743,592	)		(1,008,280	)
Net increase (decrease)		(123,866	)		90,068		$	(1,422,736	)	$	993,545
Class Z
Shares sold		342,251			372,346		$	3,852,305		$	4,155,412
Shares issued in reinvestment of dividends and distributions		22,034			24,733			250,023			273,479
Shares redeemed		(568,822	)		(369,959	)		(6,427,389	)		(4,116,353	)
Net increase (decrease)		(204,537	)		27,120		$	(2,325,061	)	$	312,538

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    87

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets 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, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment Grade Securities Risk—Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

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.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities. The Fund invests in inflation-indexed securities, the value of which may be vulnerable to changes in expectations of inflation or interest rates.

88    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Foreign (Non-U.S.) Risk—Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

Emerging Market Risk—Investments in emerging market countries may have more risk because the markets are less developed and less liquid as well as being subject to increased economic, political, regulatory or other uncertainties.

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

Mortgage-Related and/or Other Asset-Backed Securities Risk—Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    89

NOTES TO FINANCIAL STATEMENTS (continued)

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

Active Trading Risk—The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund’s return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR is underway but remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark

90    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2020.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2020 and October 31, 2019 were as follows:

	2020		2019
Distributions paid from:
Ordinary income	$	10,898,767	$	11,729,904
Net long-term capital gains…		109,442		– 0	–
Total taxable distributions paid	$	11,008,209	$	11,729,904

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    91

NOTES TO FINANCIAL STATEMENTS (continued)

As of October 31, 2020, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Undistributed capital gains	$	4,818,070	(a)
Other losses		(184,605	)(b)
Unrealized appreciation/(depreciation)		7,418,451	(c)
Total accumulated earnings/(deficit)	$	12,051,916	(d)

(a) During the fiscal year, the Fund utilized $3,757,123 of capital loss carry forwards to offset current year net realized gains.

(b) As of October 31, 2020, the cumulative deferred loss on straddles was $184,605.

(c) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the recognition for tax purposes of unrealized gains/losses on certain derivative instruments, the tax treatment of passive foreign investment companies (PFICs), the tax treatment of Treasury inflation-protected securities, the tax treatment of swaps, the tax deferral of losses on wash sales, and the amortization on callable bonds.

(d) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to the accrual of foreign capital gains tax, the tax treatment of defaulted securities, and dividends payable.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2020, the Fund did not have any capital loss carryforwards.

During the current fiscal year, there were no permanent differences that resulted in adjustments to distributable earnings or additional paid-in capital.

NOTE I

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Fund has adopted ASU 2017-08, which did not have a material impact on the Fund’s financial position or the results of its operations, and had no impact on the Fund’s net assets.

NOTE J

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

92    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  11.35			$  10.65			$  11.11			$  11.23			$  11.06
Income From Investment Operations
Net investment income(a)(b)		.29			.33			.25			.24	†		.26
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.22			.74			(.44	)		(.06	)		.27
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.51			1.07			(.19	)		.18			.53
Less: Dividends and Distributions
Dividends from net investment income		(.33	)		(.37	)		(.27	)		(.23	)		(.36	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		– 0	–		(.04	)		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.03	)		– 0	–
Total dividends and distributions		(.33	)		(.37	)		(.27	)		(.30	)		(.36	)
Net asset value, end of period		$  11.53			$  11.35			$  10.65			$  11.11			$  11.23
Total Return
Total investment return based on net asset value(d)		4.60	%		10.23	%		(1.75	)%		1.68	%†		4.93	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$224,484			$221,033			$216,950			$240,386			$245,683
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.77	%		.77	%		.77	%		.79	%		.85	%
Expenses, before waivers/reimbursements		.99	%		1.04	%		1.01	%		1.03	%		1.03	%
Net investment income(b)		2.58	%		2.98	%		2.29	%		2.16	%†		2.35	%
Portfolio turnover rate**		83	%		74	%		195	%		209	%		128	%

See footnote summary on page 100.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    93

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  11.32			$  10.63			$  11.08			$  11.21			$  11.04
Income From Investment Operations
Net investment income(a)(b)		.21			.25			.17			.15	†		.18
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.22			.73			(.43	)		(.06	)		.27
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.43			.98			(.26	)		.09			.45
Less: Dividends and Distributions
Dividends from net investment income		(.25	)		(.29	)		(.19	)		(.16	)		(.28	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		– 0	–		(.04	)		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.02	)		– 0	–
Total dividends and distributions		(.25	)		(.29	)		(.19	)		(.22	)		(.28	)
Net asset value, end of period		$  11.50			$  11.32			$  10.63			$  11.08			$  11.21
Total Return
Total investment return based on net asset value(d)		3.83	%		9.33	%		(2.40	)%		.83	%†		4.16	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$10,128			$10,564			$11,334			$15,676			$41,886
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.52	%		1.52	%		1.52	%		1.55	%		1.60	%
Expenses, before waivers/reimbursements		1.75	%		1.79	%		1.76	%		1.78	%		1.78	%
Net investment income(b)		1.84	%		2.24	%		1.54	%		1.38	%†		1.60	%
Portfolio turnover rate**		83	%		74	%		195	%		209	%		128	%

See footnote summary on page 100.

94    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  11.35			$  10.65			$  11.11			$  11.24			$  11.06
Income From Investment Operations
Net investment income(a)(b)		.32			.35			.28			.27	†		.29
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.22			.75			(.44	)		(.07	)		.28
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.54			1.10			(.16	)		.20			.57
Less: Dividends and Distributions
Dividends from net investment income		(.36	)		(.40	)		(.30	)		(.25	)		(.39	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		– 0	–		(.04	)		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.04	)		– 0	–
Total dividends and distributions		(.36	)		(.40	)		(.30	)		(.33	)		(.39	)
Net asset value, end of period		$  11.53			$  11.35			$  10.65			$  11.11			$  11.24
Total Return
Total investment return based on net asset value(d)		4.86	%		10.50	%		(1.50	)%		1.84	%†		5.29	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$122,108			$104,850			$76,406			$67,357			$56,068
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%		.52	%		.52	%		.54	%		.60	%
Expenses, before waivers/reimbursements		.74	%		.79	%		.76	%		.78	%		.78	%
Net investment income(b)		2.82	%		3.21	%		2.55	%		2.41	%†		2.60	%
Portfolio turnover rate**		83	%		74	%		195	%		209	%		128	%

See footnote summary on page 100.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    95

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class R
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  11.34			$  10.65			$  11.10			$  11.23			$  11.06
Income From Investment Operations
Net investment income(a)(b)		.26			.30			.23			.21	†		.23
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.22			.74			(.44	)		(.06	)		.28
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.48			1.04			(.21	)		.15			.51
Less: Dividends and Distributions
Dividends from net investment income		(.30	)		(.35	)		(.24	)		(.21	)		(.34	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		– 0	–		(.04	)		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.03	)		– 0	–
Total dividends and distributions		(.30	)		(.35	)		(.24	)		(.28	)		(.34	)
Net asset value, end of period		$  11.52			$  11.34			$  10.65			$  11.10			$  11.23
Total Return
Total investment return based on net asset value(d)		4.33	%		9.86	%		(1.90	)%		1.34	%†		4.67	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$1,802			$3,298			$2,814			$2,699			$3,023
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.02	%		1.02	%		1.02	%		1.04	%		1.10	%
Expenses, before waivers/reimbursements		1.37	%		1.42	%		1.35	%		1.39	%		1.38	%
Net investment income(b)		2.34	%		2.73	%		2.07	%		1.91	%†		2.10	%
Portfolio turnover rate**		83	%		74	%		195	%		209	%		128	%

See footnote summary on page 100.

96    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class K
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  11.36			$  10.66			$  11.11			$  11.24			$  11.07
Income From Investment Operations
Net investment income(a)(b)		.29			.33			.25			.24	†		.26
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.22			.74			(.43	)		(.07	)		.27
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.51			1.07			(.18	)		.17			.53
Less: Dividends and Distributions
Dividends from net investment income		(.33	)		(.37	)		(.27	)		(.23	)		(.36	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		– 0	–		(.04	)		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.03	)		– 0	–
Total dividends and distributions		(.33	)		(.37	)		(.27	)		(.30	)		(.36	)
Net asset value, end of period		$  11.54			$  11.36			$  10.66			$  11.11			$  11.24
Total Return
Total investment return based on net asset value(d)		4.59	%		10.22	%		(1.66	)%		1.59	%†		4.93	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$6,580			$7,444			$7,863			$5,876			$5,706
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.77	%		.77	%		.77	%		.79	%		.85	%
Expenses, before waivers/reimbursements		1.07	%		1.10	%		1.08	%		1.09	%		1.09	%
Net investment income(b)		2.59	%		2.98	%		2.32	%		2.15	%†		2.34	%
Portfolio turnover rate**		83	%		74	%		195	%		209	%		128	%

See footnote summary on page 100.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    97

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class I
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  11.36			$  10.66			$  11.12			$  11.24			$  11.07
Income From Investment Operations
Net investment income(a)(b)		.32			.36			.28			.27	†		.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.23			.74			(.44	)		(.06	)		.28
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.55			1.10			(.16	)		.21			.56
Less: Dividends and Distributions
Dividends from net investment income		(.36	)		(.40	)		(.30	)		(.25	)		(.39	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		– 0	–		(.04	)		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.04	)		– 0	–
Total dividends and distributions		(.36	)		(.40	)		(.30	)		(.33	)		(.39	)
Net asset value, end of period		$  11.55			$  11.36			$  10.66			$  11.12			$  11.24
Total Return
Total investment return based on net asset value(d)		4.93	%		10.50	%		(1.50	)%		1.93	%†		5.20	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$2,743			$4,107			$2,894			$2,729			$2,613
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%		.52	%		.52	%		.54	%		.60	%
Expenses, before waivers/reimbursements		.70	%		.75	%		.72	%		.75	%		.76	%
Net investment income(b)		2.85	%		3.22	%		2.57	%		2.41	%†		2.56	%
Portfolio turnover rate**		83	%		74	%		195	%		209	%		128	%

See footnote summary on page 100.

98    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class Z
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  11.37			$  10.67			$  11.13			$  11.26			$  11.08
Income From Investment Operations
Net investment income(a)(b)		.32			.36			.27			.27	†		.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		.22			.74			(.43	)		(.07	)		.29
Contributions from Affiliates		– 0	–		.00	(c)		– 0	–		.00	(c)		– 0	–
Net increase (decrease) in net asset value from operations		.54			1.10			(.16	)		.20			.57
Less: Dividends
Dividends from net investment income		(.36	)		(.40	)		(.30	)		(.25	)		(.39	)
Distributions from net realized gain on investment transactions		– 0	–		– 0	–		– 0	–		(.04	)		– 0	–
Return of capital		– 0	–		– 0	–		– 0	–		(.04	)		– 0	–
Total distributions		(.36	)		(.40	)		(.30	)		(.33	)		(.39	)
Net asset value, end of period		$  11.55			$  11.37			$  10.67			$  11.13			$  11.26
Total Return
Total investment return based on net asset value(d)		4.84	%		10.48	%		(1.49	)%		1.84	%†		5.28	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$5,824			$8,059			$7,274			$24,653			$18,134
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.52	%		.52	%		.52	%		.54	%		.60	%
Expenses, before waivers/reimbursements		.64	%		.68	%		.64	%		.66	%		.66	%
Net investment income(b)		2.82	%		3.22	%		2.48	%		2.42	%		2.52	%
Portfolio turnover rate**		83	%		74	%		195	%		209	%		128	%

See footnote summary on page 100.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    99

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Amount is less than $.005.

(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. Total investment return calculated for a period of less than one year is not annualized.

† For the year ended October 31, 2017, the amount includes a refund for overbilling of prior years’ custody out of pocket fees as follows:

Net Investment Income Per Share	Net Investment Income Ratio	Total Return
$.002	.02%	.02%

** The Fund accounts for dollar roll transactions as purchases and sales.

See notes to financial statements.

100    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders

of AB Total Return Bond Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Total Return Bond Portfolio, formerly known as AB Intermediate Bond Portfolio (the “Fund”), (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2020, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    101

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 28, 2020

102    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

2020 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended October 31, 2020. For foreign shareholders, 85.48% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2021.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    103

BOARD OF DIRECTORS

Marshall C. Turner, Jr⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith, President and
Chief Executive Officer Jeanette Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Michael Canter⁽²⁾, Vice President Shawn E. Keegan⁽²⁾, Vice President Douglas J. Peebles^{(2),^} Vice President Janaki Rao⁽²⁾, Vice President Dimitri Silva⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Analyst Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Vincent S. Noto, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210 Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105 Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036 Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2
The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s U.S. Investment Grade Core Fixed Income Team. Messrs. Canter, Keegan, Peebles, Rao and Silva are the investment professionals primarily responsible for the day-to-day management of the Fund’s portfolio.

^ Mr. Peebles is expected to retire from the Adviser effective December 30, 2020.

104    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,+ 1345 Avenue of the Americas New York, NY 10105 60 (2010)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business, with which he had been associated since prior to 2004.		77	None

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    105

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 79 (2005)	Private Investor since prior to 2015. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		77	None

106    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Jorge A. Bermudez,## 69 (2020)	Private Investor since prior to 2015. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		77	Moody’s Corporation since April 2011
Michael J. Downey,## 76 (2005)	Private Investor since prior to 2015. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2015 ntil January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities Inc. He has served as a director or trustee of the AB Funds since 2005.		77	None

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    107

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Nancy P. Jacklin,## 72 (2006)	Private Investor since prior to 2015. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		77	None
Jeanette Loeb,## 68 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		77	Apollo Investment Corp. (business development company) since August 2011

108    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Carol C. McMullen,## 65 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016 and Managing Director of The Crossland Group (consulting) from 2012 to 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		77	None

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    109

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Garry L. Moody,## 68 (2008)	Private Investor since prior to 2015. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee and as Chairman of the Audit Committees of the AB Funds since 2008.		77	None

110    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS* AND AGE (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Earl D. Weiner,## 81 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		77	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal & Compliance Department-Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Keith is an “interested person” of the Fund as defined in the “40 Act”, due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    111

MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is set forth below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Robert M. Keith 60	President and Chief Executive Officer	See biography above.
Michael Canter 51	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also Director of Securitized Assets and U.S. Multi-Sector Income.
Shawn E. Keegan 49	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015.
Douglas J. Peebles^ 55	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also Chief Investment Officer of Fixed Income.
Janaki Rao 50	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015.
Dimitri Silva 38	Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2015.
Emilie D. Wrapp 65	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2015.
Michael B. Reyes 44	Senior Analyst	Vice President of the Adviser**, with which has been associated since prior to 2015.
Joseph J. Mantineo 61	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2015.
Phyllis J. Clarke 59	Controller	Vice President of ABIS**, with which she has been associated since prior to 2015.
Vincent S. Noto 56	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2015.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

^ Mr. Peebles is expected to retire from the Adviser effective December 30, 2020.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

112    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”). Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2020, which covered the period December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner. Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, taking into account any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP. The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended, and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP, and there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    113

Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Total Return Bond Portfolio (formerly AB Intermediate Bond Portfolio) (the “Fund”) at a meeting held on November 4-6, 2019 (the “Meeting”).*

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the underlying fund advised by the Adviser in which the Fund invests.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business

114    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

* Following transactions completed on November 13, 2019 that may have been deemed to have been an “assignment” causing termination of the Fund’s investment advisory agreement, a new investment advisory agreement, having the same terms as the prior one, was entered into by the Fund and the Adviser.

judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The Adviser did not request any reimbursements from the Fund in the Fund’s latest fiscal year. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2017 and 2018 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    115

distribution expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the underlying fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended July 31, 2019 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The directors also considered the Adviser’s fee schedule for other clients utilizing investment strategies similar to those of the Fund. For this purpose, they reviewed the relevant advisory fee information from the Adviser’s Form ADV and in a report from the Fund’s Senior Analyst and

116    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

noted the differences between the Fund’s fee schedule, on the one hand, and the Adviser’s institutional fee schedule and the schedule of fees charged by the Adviser to any offshore funds and for services to any sub-advised funds utilizing investment strategies similar to those of the Fund, on the other. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The directors previously discussed these matters with an independent fee consultant. The directors also compared the advisory fee rate for the Fund with that for another fund advised by the Adviser utilizing similar investment strategies.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional, offshore fund and sub-advised fund clients. In this regard, the Adviser noted, among other things, that, compared to institutional and offshore or sub-advisory accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional, offshore fund and sub-advised fund clients as compared to the Fund, and the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    117

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also previously discussed economies of scale with an independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

118    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL EQUITY (continued)

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio¹

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

FIXED INCOME (continued)

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to February 5, 2020, Tax-Aware Fixed Income Opportunities Portfolio was named Tax-Aware Fixed Income Portfolio.

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    119

NOTES

120    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    121

NOTES

122    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

NOTES

abfunds.com AB TOTAL RETURN BOND PORTFOLIO    ^|    123

NOTES

124    ^|    AB TOTAL  RETURN BOND PORTFOLIO abfunds.com

AB TOTAL RETURN BOND PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

TRB-0151-1020                

OCT    ^10.31.20

ANNUAL REPORT

AB MUNICIPAL BOND INFLATION STRATEGY

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Municipal Bond Inflation Strategy (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    1

ANNUAL REPORT

December 11, 2020

This report provides management’s discussion of fund performance for AB Municipal Bond Inflation Strategy for the annual period ended October 31, 2020.

The Fund’s investment objective is to maximize real after-tax return for investors subject to federal income taxes, without undue risk to principal.

NAV RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	6 Months		12 Months
AB MUNICIPAL BOND INFLATION STRATEGY
Class 1 Shares1		8.63%		3.04%
Class 2 Shares1		8.68%		3.14%
Class A Shares		8.49%		2.85%
Class C Shares		8.08%		2.16%
Advisor Class Shares2		8.72%		3.19%
Bloomberg Barclays 1-10 Year TIPS Index		3.81%		7.00%

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

2 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays 1-10 Year Treasury Inflation-Protected Securities (“TIPS”) Index, for the six- and 12-month periods ended October 31, 2020.

All shares of the Fund underperformed the benchmark for the 12-month period, but outperformed for the six-month period, before sales charges. The Fund invests primarily in municipal bonds and uses tax-efficient hedges for inflation protection. Over both periods, the Fund’s lower-than-benchmark interest-rate risk detracted, relative to the benchmark, as rates fell. An overweight to tax-exempt bonds versus taxable bonds added to performance. An overweight to municipal credit detracted for the 12-month period but contributed for the six-month period. The use of consumer price index (“CPI”) swaps, a more tax-efficient way of achieving inflation protection, detracted from returns over the 12-month period and added over the six-month period.

2    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

The Fund utilized derivatives in the form of CPI swaps for hedging purposes, which added to absolute performance for the six-month period but detracted for the 12-month period. Interest rate swaps were utilized for hedging purposes, which detracted for the six-month period and had no material impact on performance for the 12-month period. Credit default swaps were utilized for investment purposes and had no material impact on performance for either period.

MARKET REVIEW AND INVESTMENT STRATEGY

Despite record volatility across most financial markets as the COVID-19 pandemic developed last spring, municipal performance was positive over both the six- and 12-month periods ended October 31, 2020. Following the onset of the virus, the US economy quickly contracted; however, according to the Federal Reserve Bank of New York, the US economy stopped contracting in early May and began a steady recovery through the rest of the summer. With respect to monetary policy, the US Federal Reserve (“the Fed”) Board of Governors stated that short-term interest rates were likely to be held at current low levels for the next few years. Consistent with the improving economy and steady monetary policy, municipals have continued to perform well following the sharp sell-off in March.

While outflows from open-end municipal bond funds and a general lack of liquidity across most markets sparked the sell-off in March, these themes have since largely abated, as investors have taken comfort in the significant federal support provided to state and local governments. On the monetary side, the Fed established the Municipal Liquidity Facility, which can purchase as much as $500 billion in short-term notes directly from municipalities, helping alleviate near-term liquidity concerns for eligible municipalities. The fiscal side brought issuers additional support in the form of the CARES Act, which included $150 billion to state and local governments, $120 billion to hospitals, $31 billion for education, $25 billion for transportation and $10 billion to airports.

The Fund’s Senior Investment Management Team (the “Team”) continues to focus on real after-tax return by investing in municipal bonds that generate income exempt from federal income taxes. In seeking to manage volatility and interest-rate risk, the Team focuses on intermediate-term bonds and seeks to provide inflation protection by entering inflation swap agreements or investing in other inflation-protected instruments.

The Fund may purchase municipal securities that are insured under policies issued by certain insurance companies. Historically, insured municipal securities typically received a higher credit rating, which meant that the issuer of the securities paid a lower interest rate. As a result of declines in the credit quality and associated downgrades of most bond insurers, insurance has less value than it did in the past. The market now values insured municipal securities primarily based on the credit quality of the issuer of the security with little value given to the insurance feature. In

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    3

purchasing such insured securities, the Adviser evaluates the risk and return of municipal securities through its own research. If an insurance company’s rating is downgraded or the company becomes insolvent, the prices of municipal securities insured by the insurance company may decline. As of October 31, 2020, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity were 2.73% and 0.00%, respectively.

INVESTMENT POLICIES

The Fund seeks real after-tax return for investors subject to federal income taxes. Real return is the rate of return after adjusting for inflation. The Fund 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 Fund will invest at least 80% of its net assets in municipal securities. These securities may be subject to the federal alternative minimum tax for some taxpayers.

The Fund 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 Fund 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 Fund 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.

The Fund may invest in fixed-income securities with any maturity and duration.

To provide inflation protection, the Fund will typically enter into inflation swaps. The Fund may use other inflation-indexed instruments. Payments to the Fund 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 Fund’s primary use of derivatives will be for the purpose of inflation protection.

The Fund may also invest in forward commitments; zero-coupon municipal securities and variable, floating and inverse floating-rate municipal securities; certain types of mortgage-related securities; and derivatives, such as options, futures contracts, forwards and swaps.

(continued on next page)

4    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

The Fund may utilize leverage for investment purposes through the use of tender option bond transactions (“TOBs”). The Adviser considers the impact of TOBs, swaps and other derivatives in making its assessments of the Fund’s risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    5

DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays 1-10 Year TIPS Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Barclays 1-10 Year TIPS Index represents the performance of inflation-protected securities issued by the US Treasury. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

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 Fund’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 Fund invests more of its assets in a particular state’s municipal securities, the Fund is vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters. The Fund’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.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the US federal income tax treatment of certain types of municipal securities.

6    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

DISCLOSURES AND RISKS (continued)

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

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.

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk.

Leverage Risk: To the extent the Fund uses leveraging techniques, such as TOBs, 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 Fund’s investments.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally go down.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    7

DISCLOSURES AND RISKS (continued)

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com. For Class 1 shares visit www.bernstein.com, click on “Investments”, then “Mutual Fund and Money Market Information—Mutual Fund Performance at a Glance.”

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 3.00% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Class 1 and 2 shares do not carry sales charges. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

8    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

10/31/2010 TO 10/31/2020

This chart illustrates the total value of an assumed $10,000 investment in AB Municipal Bond Inflation Strategy Class A shares (from 10/31/2010 to 10/31/2020) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 3.00% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    9

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS 1 SHARES2						0.88%
1 Year		3.04%		3.04%
5 Years		2.58%		2.58%
10 Years		2.16%		2.16%
CLASS 2 SHARES2						0.98%
1 Year		3.14%		3.14%
5 Years		2.66%		2.66%
10 Years		2.26%		2.26%
CLASS A SHARES						0.69%
1 Year		2.85%		-0.27%
5 Years		2.41%		1.80%
10 Years		1.98%		1.68%
CLASS C SHARES						-0.02%
1 Year		2.16%		1.16%
5 Years		1.65%		1.65%
10 Years		1.24%		1.24%
ADVISOR CLASS SHARES3						0.96%
1 Year		3.19%		3.19%
5 Years		2.69%		2.69%
10 Years		2.26%		2.26%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 0.67%, 0.57%, 0.86%, 1.61% and 0.61% for Class 1, Class 2, Class A, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios exclusive of extraordinary expenses, interest expense, and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest to 0.60%, 0.50%, 0.75%, 1.50% and 0.50% for Class 1, Class 2, Class A, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated prior to January 31, 2021 and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2020.

2 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

3 This share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

10    ^|    AB  MUNICIPAL BOND INFLATION STRATEGY abfunds.com

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2020 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS 1 SHARES1
1 Year		2.96%
5 Years		2.71%
10 Years		2.18%
CLASS 2 SHARES1
1 Year		3.15%
5 Years		2.83%
10 Years		2.28%
CLASS A SHARES
1 Year		-0.26%
5 Years		1.97%
10 Years		1.70%
CLASS C SHARES
1 Year		1.17%
5 Years		1.82%
10 Years		1.27%
ADVISOR CLASS SHARES2
1 Year		3.10%
5 Years		2.82%
10 Years		2.29%

1 Class 1 shares are only available to Bernstein Global Wealth Management private client accounts. Class 2 shares are only available to large Bernstein Global Wealth Management private client accounts and the Adviser’s institutional clients or through other limited arrangements.

2 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    11

EXPENSE EXAMPLE

(unaudited)

As a shareholder of a mutual fund, you may incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

12    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

EXPENSE EXAMPLE (continued)

	Beginning Account Value May 1, 2020		Ending Account Value October 31, 2020		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,084.90	$	3.93		0.75	%
Hypothetical**	$	1,000	$	1,021.37	$	3.81		0.75	%
Class C
Actual	$	1,000	$	1,080.80	$	7.85		1.50	%
Hypothetical**	$	1,000	$	1,017.60	$	7.61		1.50	%
Advisor Class
Actual	$	1,000	$	1,087.20	$	2.62		0.50	%
Hypothetical**	$	1,000	$	1,022.62	$	2.54		0.50	%
Class 1
Actual	$	1,000	$	1,086.30	$	3.15		0.60	%
Hypothetical**	$	1,000	$	1,022.12	$	3.05		0.60	%
Class 2
Actual	$	1,000	$	1,086.80	$	2.62		0.50	%
Hypothetical**	$	1,000	$	1,022.62	$	2.54		0.50	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    13

PORTFOLIO SUMMARY

October 31, 2020 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $991.3

1 All data are as of October 31, 2020. The Fund’s quality rating breakdown is expressed as a percentage of the Fund’s total investments in municipal securities and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). The quality ratings are determined by using the S&P Global Ratings (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Ltd. (“Fitch”). The Fund considers the credit ratings issued by S&P, Moody’s and Fitch and uses the highest rating issued by the agencies. These ratings are a measure of the quality and safety of a bond or portfolio, based on the issuer’s financial condition. AAA is the highest (best) and D is the lowest (worst). If applicable, the pre-refunded category includes bonds which are secured by U.S. Government securities and therefore are deemed high-quality investment-grade by the Adviser. If applicable, Not Applicable (N/A) includes non-creditworthy investments, such as equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a nationally recognized statistical rating organization. The Adviser evaluates the creditworthiness of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment.

14    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS

October 31, 2020

	Principal Amount (000)		U.S. $ Value
MUNICIPAL OBLIGATIONS – 105.2%
Long-Term Municipal Bonds – 102.0%
Alabama – 2.1%
Alabama Special Care Facilities Financing Authority-Birmingham AL (Children’s Hospital of Alabama Obligated Group (The)) Series 2015 5.00%, 06/01/2028	$	3,905	$	4,539,250
Infirmary Health System Special Care Facilities Financing Authority of Mobile (Infirmary Health System Obligated Group) Series 2016A 5.00%, 02/01/2025		2,110		2,447,242
Special Care Facilities Financing Authority of the City of Pell City Alabama (Noland Obligated Group) Series 2016A 5.00%, 12/01/2031		11,235		11,646,201
Tuscaloosa County Industrial Development Authority (Hunt Refining Co.) Series 2019A 4.50%, 05/01/2032(a)		1,810		1,929,677
				20,562,370
American Samoa – 0.2%
American Samoa Economic Development Authority (Territory of American Samoa) 6.50%, 09/01/2028(a)		295		355,006
7.125%, 09/01/2038(a)		280		348,695
Series 2015A 6.625%, 09/01/2035		1,335		1,537,039
				2,240,740
Arizona – 2.7%
Arizona Industrial Development Authority (Equitable School Revolving Fund LLC Obligated Group) 4.00%, 11/01/2030		935		1,129,817
5.00%, 11/01/2031-11/01/2033		2,350		3,018,110
Arizona State University (Arizona State University COP) Series 2013A 5.00%, 09/01/2021-09/01/2022		7,260		7,690,081
City of Phoenix Civic Improvement Corp. Series 2011 5.00%, 07/01/2026		3,330		3,430,566

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Salt River Project Agricultural Improvement & Power District Series 2011A 5.00%, 12/01/2024	$	3,140	$	3,299,041
State of Arizona Lottery Revenue 5.00%, 07/01/2028(b)		5,000		6,522,500
Tempe Industrial Development Authority (Mirabella at ASU, Inc.) Series 2017B 4.00%, 10/01/2023(a)		1,200		1,195,404
				26,285,519
California – 4.1%
California Pollution Control Financing Authority (Rialto Bioenergy Facility LLC) 7.50%, 12/01/2040(a)		250		241,450
California State Public Works Board (California State Public Works Board Lease) Series 2021A 5.00%, 02/01/2023(c)		10,000		10,532,900
Golden State Tobacco Securitization Corp. Series 2018A 3.50%, 06/01/2036		1,580		1,600,114
Los Angeles Unified School District/CA Series 2020A 5.00%, 07/01/2027		6,935		8,783,594
State of California 5.00%, 11/01/2030		10,870		14,783,852
Series 2014 5.00%, 08/01/2022-05/01/2025		4,250		4,832,798
				40,774,708
Colorado – 5.3%
Centerra Metropolitan District No. 1 Series 2017 5.00%, 12/01/2029(a)		1,510		1,585,092
City & County of Denver CO Airport System Revenue (Denver Intl Airport)
Series 2010A 5.00%, 11/15/2023		375		375,596
Series 2012A 5.00%, 11/15/2024-11/15/2025		13,395		14,485,120
Series 2018A 5.00%, 12/01/2028-12/01/2029		16,555		20,747,246
Colorado Health Facilities Authority (CommonSpirit Health) Series 2019A 5.00%, 08/01/2032-08/01/2033		2,890		3,562,412

16    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Colorado Health Facilities Authority (Sanford Obligated Group) Series 2019A 5.00%, 11/01/2033	$	1,525	$	1,902,956
Denver City & County School District No. 1 Series 2014B 5.00%, 12/01/2023		4,730		5,403,174
Denver Urban Renewal Authority (Stapleton Development Corp.) Series 2013A 5.00%, 12/01/2022		1,640		1,752,160
Plaza Metropolitan District No. 1 Series 2013 5.00%, 12/01/2020(a)		1,310		1,312,502
Regional Transportation District (Denver Transit Partners LLC) Series 2010 5.25%, 07/15/2024		440		440,506
Sterling Ranch Community Authority Board (Sterling Ranch Colorado Metropolitan District No. 2) Series 2020A 3.75%, 12/01/2040(c)		1,050		1,049,979
Vauxmont Metropolitan District AGM 5.00%, 12/15/2024		260		302,598
				52,919,341
Connecticut – 4.3%
City of New Haven CT Series 2018A 5.50%, 08/01/2035		1,920		2,257,728
Connecticut State Health & Educational Facilities Authority (Yale University) 1.10%, 07/01/2048		10,105		10,261,830
State of Connecticut
Series 2013A 5.00%, 10/15/2024		5,035		5,710,898
Series 2014A 5.00%, 03/01/2028		2,230		2,530,604
Series 2014F 5.00%, 11/15/2026		1,275		1,489,825
Series 2015B 5.00%, 06/15/2025-06/15/2028		7,170		8,566,621
Series 2016A 5.00%, 03/15/2032		2,160		2,561,026
Series 2018B 5.00%, 04/15/2028		1,440		1,845,922

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
State of Connecticut Clean Water Fund—State Revolving Fund Series 2013A 5.00%, 03/01/2024	$	4,360	$	4,837,115
State of Connecticut Special Tax Revenue 5.00%, 05/01/2035		1,960		2,487,769
				42,549,338
District of Columbia – 1.0%
Metropolitan Washington Airports Authority Series 2018A 5.00%, 10/01/2025(b)		5,500		6,604,235
5.00%, 10/01/2026		3,065		3,760,571
				10,364,806
Florida – 9.1%
Capital Trust Agency, Inc. (Franklin Academy Palm Beach Gardens/Franklin Academy Pembroke Pines K-12) 4.00%, 12/15/2025(a)		300		315,288
Central Florida Expressway Authority Series 2019B 5.00%, 07/01/2032		6,000		7,692,180
5.00%, 07/01/2034(b)		7,255		9,222,266
Citizens Property Insurance, Inc. Series 2012A 5.00%, 06/01/2022		7,315		7,850,897
City of Jacksonville FL
Series 2012A 5.00%, 10/01/2023 (Pre-refunded/ETM)(b)		6,140		6,689,530
5.00%, 10/01/2026 (Pre-refunded/ETM)		4,050		4,412,475
City of South Miami Health Facilities Authority, Inc. (Baptist Health South Florida Obligated Group) Series 2017 5.00%, 08/15/2025		4,500		5,382,090
City of Tampa FL Water & Wastewater System Revenue Series 2011 5.00%, 10/01/2026 (Pre-refunded/ETM)		1,565		1,633,046
County of Miami-Dade FL (County of Miami-Dade FL Non-Ad Valorem) Series 2015A 5.00%, 06/01/2023-06/01/2027		18,500		21,305,823

18    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
County of Miami-Dade FL (County of Miami-Dade FL Spl Tax) Series 2012A 5.00%, 10/01/2023	$	1,500	$	1,625,985
County of Osceola FL Transportation Revenue
Series 2020A Zero Coupon, 10/01/2030-10/01/2034		595		422,554
Florida Development Finance Corp. 0.55%, 01/01/2049 (Pre-refunded/ETM)		6,455		6,453,773
Florida Municipal Power Agency
Series 2011B 5.00%, 10/01/2023		2,890		3,010,918
Series 2015B 5.00%, 10/01/2023		1,500		1,699,755
Greater Orlando Aviation Authority Series 2017A 5.00%, 10/01/2033		4,000		4,724,760
Martin County Industrial Development Authority (Indiantown Cogeneration LP) Series 2013 4.20%, 12/15/2025(a)		1,900		1,900,988
Mid-Bay Bridge Authority Series 2015A 5.00%, 10/01/2028		1,000		1,152,230
Palm Beach County Health Facilities Authority (Federation CCRC Operations Corp. Obligated Group) 2.625%, 06/01/2025		375		374,756
Polk County Industrial Development Authority (Mineral Development LLC) 5.875%, 01/01/2033(a)		1,000		1,000,860
State Board of Administration Finance Corp.
Series 2020A 1.258%, 07/01/2025		2,205		2,228,020
1.705%, 07/01/2027		1,515		1,521,105
				90,619,299
Georgia – 3.1%
Augusta Development Authority (AU Health System Obligated Group) Series 2018 5.00%, 07/01/2034-07/01/2035		9,555		10,962,090
Cobb County Kennestone Hospital Authority (WellStar Health System Obligated Group) 5.00%, 04/01/2025(c)		1,650		1,921,029

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Main Street Natural Gas, Inc. (Royal Bank of Canada)
Series 2018A 4.00%, 04/01/2048	$	9,370	$	10,214,987
Series 2018C 4.00%, 08/01/2048		6,850		7,516,025
				30,614,131
Guam – 0.5%
Territory of Guam 5.00%, 11/15/2031		155		164,664
Territory of Guam (Territory of Guam Business Privilege Tax) Series 2015D 5.00%, 11/15/2023-11/15/2031		3,970		4,409,016
				4,573,680
Illinois – 6.9%
Chicago Board of Education
Series 2010 6.319%, 11/01/2029		2,050		2,113,079
Series 2018A 5.00%, 12/01/2027		1,200		1,342,368
Series 2019A 5.00%, 12/01/2029-12/01/2030		525		585,540
Series 2019B 5.00%, 12/01/2030-12/01/2033		500		552,116
Chicago Housing Authority
Series 2018A 5.00%, 01/01/2034-01/01/2038		3,500		4,190,050
5.00%, 01/01/2037(b)		5,260		6,261,557
Chicago O’Hare International Airport
Series 2015B 5.00%, 01/01/2029		5,000		5,804,800
Series 2016C 5.00%, 01/01/2033		5,000		5,752,100
Series 2017B 5.00%, 01/01/2035		1,475		1,720,012
Chicago O’Hare International Airport (Chicago O’Hare International Airport Customer Facility Charge)
Series 2013 5.25%, 01/01/2023		2,500		2,663,325
5.50%, 01/01/2025		2,250		2,405,858
Illinois Finance Authority (Ascension Health Credit Group) Series 2016C 5.00%, 02/15/2024		1,630		1,865,584

20    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Illinois Finance Authority (Illinois Institute of Technology) 5.00%, 09/01/2022-09/01/2034	$	800	$	882,927
State of Illinois
Series 2013 5.00%, 07/01/2023		1,670		1,777,030
Series 2014 5.00%, 05/01/2030		4,180		4,356,312
Series 2017B 5.00%, 12/01/2024		5,050		5,472,079
Series 2017D 5.00%, 11/01/2021-11/01/2027		14,515		15,348,176
Series 2018A 5.00%, 10/01/2023		2,785		2,973,962
Series 2018B 5.00%, 10/01/2023		1,730		1,847,381
				67,914,256
Indiana – 0.4%
Indiana Finance Authority (RES Polyflow Indiana LLC) 7.00%, 03/01/2039(a)		2,380		2,232,940
Indiana Municipal Power Agency Series 2011A 5.00%, 01/01/2023 (Pre-refunded/ETM)		2,105		2,170,423
				4,403,363
Iowa – 0.2%
Iowa Finance Authority (Iowa Fertilizer Co. LLC) Series 2013B 5.25%, 12/01/2050		2,250		2,367,945
Kentucky – 4.8%
City of Ashland KY (Ashland Hospital Corp. Obligated Group) 5.00%, 02/01/2026-02/01/2031		650		760,856
Kentucky Municipal Power Agency NATL Series 2015A 5.00%, 09/01/2022-09/01/2023		4,875		5,330,584
Kentucky Public Energy Authority (BP PLC) Series 2020A 4.00%, 12/01/2050		7,260		8,353,937
Kentucky Public Energy Authority (Morgan Stanley) Series 2018C 1.986% (CPI + 1.05%), 12/01/2049(d)		20,000		20,045,400
Series 2019C 4.00%, 02/01/2050		9,015		10,520,325

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Kentucky Turnpike Authority Series 2012A 5.00%, 07/01/2025 (Pre-refunded/ETM)	$	2,275	$	2,452,040
				47,463,142
Louisiana – 1.3%
Jefferson Sales Tax District AGM Series 2017B 5.00%, 12/01/2034		1,800		2,187,090
Parish of St. James LA (NuStar Logistics LP) 5.85%, 08/01/2041(a)		340		370,811
6.10%, 06/01/2038-12/01/2040(a)		845		993,839
State of Louisiana Gasoline & Fuels Tax Revenue
Series 2012A 5.00%, 05/01/2027 (Pre-refunded/ETM)		2,860		3,060,743
5.00%, 05/01/2027(b)		6,225		6,650,354
				13,262,837
Maryland – 1.4%
County of Montgomery MD Series 2019A 5.00%, 11/01/2026(b)		5,925		7,487,067
State of Maryland Series 2017B 5.00%, 08/01/2024(b)		5,790		6,801,976
				14,289,043
Massachusetts – 2.4%
Commonwealth of Massachusetts Series 2020B 5.00%, 07/01/2024		7,380		8,647,810
Massachusetts Clean Water Trust (The) (Massachusetts Water Pollution Abatement Trust (The) SRF)
Series 2006 2.421% (CPI + 0.99%), 08/01/2022(d)		3,240		3,282,574
3.90% (CPI + 0.99%), 08/01/2023(d)		2,275		2,317,383
Massachusetts Development Finance Agency (Broad Institute, Inc. (The)) Series 2017 5.00%, 04/01/2028		1,655		2,117,540
Massachusetts School Building Authority (Massachusetts School Building Authority Sales Tax) Series 2012A 5.00%, 08/15/2023		2,475		2,683,395

22    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Metropolitan Boston Transit Parking Corp. Series 2011 5.00%, 07/01/2022-07/01/2025	$	5,025	$	5,173,781
				24,222,483
Michigan – 3.4%
City of Detroit MI 5.00%, 04/01/2035-04/01/2036		1,055		1,131,737
City of Detroit MI Sewage Disposal System Revenue (Great Lakes Water Authority Sewage Disposal System Revenue) Series 2012A 5.00%, 07/01/2021		3,750		3,863,512
Michigan Finance Authority (City of Detroit MI) Series 2016C 5.00%, 04/01/2026-04/01/2027		2,735		3,357,476
Michigan Finance Authority (Great Lakes Water Authority Water Supply System Revenue) AGM Series 2014D2 5.00%, 07/01/2024		10,545		12,280,918
Michigan Finance Authority (Henry Ford Health System Obligated Group) Series 2016 5.00%, 11/15/2031		1,785		2,146,730
Michigan Strategic Fund (Michigan Strategic Fund—I 75 Improvement Project) Series 2018 5.00%, 12/31/2028-06/30/2029		9,090		11,063,578
				33,843,951
Minnesota – 0.0%
City of Minneapolis MN/St. Paul Housing & Redevelopment Authority (Allina Health Obligated Group) NATL 0.12%, 08/01/2028(e)		75		72,844
Mississippi – 0.2%
Mississippi Hospital Equipment & Facilities Authority (Baptist Memorial Health Care Obligated Group) Series 2016A 5.00%, 09/01/2036		1,500		1,719,405

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Missouri – 0.2%
Howard Bend Levee District XLCA 5.75%, 03/01/2025-03/01/2027	$	255	$	285,951
Lee’s Summit Industrial Development Authority (John Knox Village Obligated Group) Series 2016A 5.00%, 08/15/2036		1,675		1,727,444
				2,013,395
Montana – 0.4%
Montana Facility Finance Authority (Benefis Health System Obligated Group) Series 2016 5.00%, 02/15/2031-02/15/2033		3,275		3,924,137
Nebraska – 1.7%
Central Plains Energy Project (Goldman Sachs Group, Inc. (The)) Series 2018 5.00%, 03/01/2050		15,000		16,804,050
Nevada – 0.9%
City of Sparks NV (City of Sparks NV Sales Tax) Series 2019A 2.50%, 06/15/2024(a)		465		460,541
State of Nevada Department of Business & Industry 0.50%, 01/01/2050 (Pre-refunded/ETM)(a)		1,000		999,470
Tahoe-Douglas Visitors Authority 4.00%, 07/01/2027(c)		1,200		1,288,200
5.00%, 07/01/2029-07/01/2035(c)		5,465		6,141,392
				8,889,603
New Jersey – 9.1%
Federal Home Loan Mortgage Corp. Enhanced Receipt Series 2019F 3.87%, 11/15/2035		12,375		14,412,090
New Jersey Economic Development Authority (New Jersey Economic Development Authority State Lease)
Series 2014P 5.00%, 06/15/2029		1,150		1,254,593
Series 2017B 5.00%, 11/01/2020		1,000		1,000,000

24    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New Jersey Economic Development Authority (Port Newark Container Terminal LLC) Series 2017 5.00%, 10/01/2026-10/01/2027	$	3,810	$	4,318,450
New Jersey Economic Development Authority (United Airlines, Inc.) Series 1999 5.25%, 09/15/2029		1,365		1,393,952
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Fed Hwy Grant)
Series 2016 5.00%, 06/15/2029		4,390		5,054,207
Series 2018A 5.00%, 06/15/2028-06/15/2029		21,670		24,987,369
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Trust Fund Authority State Lease)
Series 2012A 5.00%, 06/15/2021		10,000		10,258,400
Series 2014C 5.25%, 06/15/2032		2,960		3,264,140
New Jersey Turnpike Authority
Series 2013A 5.00%, 01/01/2023 (Pre-refunded/ETM)		1,600		1,762,960
5.00%, 01/01/2023		200		219,234
Series 2014A 5.00%, 01/01/2028		4,785		5,478,729
Series 2014C 5.00%, 01/01/2023		1,590		1,742,910
Series 2017A 5.00%, 01/01/2033		7,300		8,696,782
Tobacco Settlement Financing Corp/NJ Series 2018A 5.00%, 06/01/2030		4,750		5,918,547
				89,762,363
New York – 9.6%
City of New York NY
Series 2011A 5.00%, 08/01/2023 (Pre-refunded/ETM)		1,030		1,066,998
5.00%, 08/01/2023		3,220		3,325,552
Series 2014J 5.00%, 08/01/2021		6,100		6,311,121
Series 2020B 5.00%, 11/01/2027		3,000		3,783,330

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2020C 5.00%, 08/01/2033	$	3,645	$	4,671,067
Metropolitan Transportation Authority 5.00%, 11/15/2028		4,000		4,378,800
Series 2012C 5.00%, 11/15/2024 (Pre-refunded/ETM)		4,065		4,458,126
5.00%, 11/15/2025 (Pre-refunded/ETM)		5,000		5,483,550
Series 2012F 5.00%, 11/15/2026		3,635		3,740,269
Series 2013A 5.00%, 11/15/2026 (Pre-refunded/ETM)		2,300		2,576,345
Series 2013E 5.00%, 11/15/2025 (Pre-refunded/ETM)		8,510		9,727,951
Series 2016B 5.00%, 11/15/2027		1,370		1,475,874
Series 2017B 5.00%, 11/15/2026		555		599,572
Series 2017C 5.00%, 11/15/2027		1,745		1,899,555
New York City Municipal Water Finance Authority Series 2011HH 5.00%, 06/15/2026		3,875		3,986,639
New York City Transitional Finance Authority Future Tax Secured Revenue Series 2012B 5.00%, 11/01/2026(b)		6,830		7,439,509
New York State Dormitory Authority (State of New York Pers Income Tax)
Series 2011C 5.00%, 03/15/2025		3,000		3,051,060
Series 2014A 5.00%, 02/15/2028(b)		6,565		7,483,837
New York State Environmental Facilities Corp. (New York City Municipal Water Finance Authority) Series 2011 5.00%, 06/15/2025		3,000		3,087,360
New York Transportation Development Corp. (Delta Air Lines, Inc.) 4.00%, 10/01/2030		1,500		1,537,020
Series 2018 5.00%, 01/01/2027-01/01/2029		9,255		10,115,573
New York Transportation Development Corp. (Laguardia Gateway Partners LLC) Series 2016A 5.00%, 07/01/2046		345		369,157

26    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Triborough Bridge & Tunnel Authority Series 2013B 5.00%, 11/15/2020	$	4,100	$	4,106,437
				94,674,702
North Carolina – 0.8%
State of North Carolina (State of North Carolina Fed Hwy Grant) Series 2015 5.00%, 03/01/2026		6,710		7,990,738
North Dakota – 0.1%
County of Grand Forks ND (Red River Biorefinery LLC) 6.375%, 12/15/2043		1,000		852,120
Ohio – 3.7%
American Municipal Power, Inc. Series 2016A 5.00%, 02/15/2036		5,000		5,867,250
Buckeye Tobacco Settlement Financing Authority 1.85%, 06/01/2029		3,005		2,987,301
Series 2020A 4.00%, 06/01/2039		1,000		1,158,410
City of Chillicothe OH (Adena Health System Obligated Group) Series 2017 5.00%, 12/01/2037		3,385		4,000,596
City of Cleveland OH Airport System Revenue
AGM Series 2016B 5.00%, 01/01/2023-01/01/2024		2,585		2,865,852
City of Cleveland OH Income Tax Revenue
Series 2017B-1 5.00%, 10/01/2027-10/01/2030		7,585		9,575,479
Series 2017B-2 5.00%, 10/01/2029		1,485		1,872,837
County of Cuyahoga OH (MetroHealth System (The)) Series 2017 5.00%, 02/15/2037		5,600		6,400,352
Ohio Air Quality Development Authority (Energy Harbor Nuclear Generation LLC) Series 2009A 4.375%, 06/01/2033		235		236,763

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Ohio Water Development Authority Water Pollution Control Loan Fund (Energy Harbor Nuclear Generation LLC)
Series 2016A 4.375%, 06/01/2033	$	420	$	423,150
Series 2016B 4.375%, 06/01/2033		825		831,188
				36,219,178
Oklahoma – 0.1%
Oklahoma Development Finance Authority (Gilcrease Expressway West) 1.625%, 07/06/2023		500		498,205
Oregon – 0.8%
Deschutes County Hospital Facilities Authority (St. Charles Health System, Inc.) Series 2016A 4.00%, 01/01/2033		1,000		1,102,030
Tri-County Metropolitan Transportation District of Oregon
Series 2011A 5.00%, 10/01/2025 (Pre-refunded/ETM)		4,605		4,803,061
Series 2018A 5.00%, 10/01/2029		1,910		2,416,551
				8,321,642
Other – 0.4%
Federal Home Loan Mortgage Corp. Multifamily VRD Certificates 2.65%, 06/15/2036(a)		3,860		4,184,472
Pennsylvania – 5.2%
City of Philadelphia PA Series 2017 5.00%, 08/01/2028		12,990		16,139,685
City of Philadelphia PA Water & Wastewater Revenue Series 2017A 5.00%, 10/01/2032-10/01/2033		2,135		2,644,125
Montgomery County Higher Education and Health Authority (Thomas Jefferson University Obligated Group) Series 2018 5.00%, 09/01/2034		1,500		1,785,570
Moon Industrial Development Authority (Baptist Homes Society) Series 2015 5.125%, 07/01/2025		2,060		2,149,528

28    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Pennsylvania Turnpike Commission
Series 2017B 5.00%, 06/01/2034-06/01/2036	$	7,580	$	9,043,555
Series 2017S 5.00%, 12/01/2028-12/01/2029		3,005		3,756,624
Series 2019 5.00%, 12/01/2023		4,250		4,861,915
School District of Philadelphia (The) Series 2016F 5.00%, 09/01/2034		5,000		5,961,250
State Public School Building Authority
Series 2012 5.00%, 04/01/2023 (Pre-refunded/ETM)		2,400		2,559,072
5.00%, 04/01/2026 (Pre-refunded/ETM)		2,750		2,932,270
				51,833,594
Puerto Rico – 0.6%
Puerto Rico Electric Power Authority AGM Series 2007V 5.25%, 07/01/2031		970		1,109,699
NATL Series 2007V 5.25%, 07/01/2029-07/01/2035		320		332,059
Puerto Rico Highway & Transportation Authority
AGC Series 2007N 5.25%, 07/01/2034-07/01/2036		2,105		2,427,020
AGC Series 2005L 5.25%, 07/01/2041		790		904,597
AGM Series 2007C 5.25%, 07/01/2036		100		115,259
NATL Series 2007N 5.25%, 07/01/2032		205		213,110
Puerto Rico Public Buildings Authority (Commonwealth of Puerto Rico) NATL Series 2007 6.00%, 07/01/2025		100		105,298
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue Series 2018A
Zero Coupon, 07/01/2024		1,144		1,055,271
				6,262,313
South Carolina – 1.3%
Renewable Water Resources Series 2012 5.00%, 01/01/2024 (Pre-refunded/ETM)		2,570		2,711,761
South Carolina Public Service Authority
Series 2016A 5.00%, 12/01/2034-12/01/2036		2,535		2,985,969

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2016B 5.00%, 12/01/2037	$	5,040	$	5,983,639
Series 2016C 5.00%, 12/01/2035		930		1,109,974
				12,791,343
Tennessee – 0.4%
Bristol Industrial Development Board (Bristol Industrial Development Board Sales Tax) Series 2016A 5.00%, 12/01/2035(a)		1,410		1,366,487
Metropolitan Government of Nashville & Davidson County TN
Series 2012 5.00%, 07/01/2023 (Pre-refunded/ETM)		455		490,408
5.00%, 07/01/2023		1,930		2,080,791
				3,937,686
Texas – 5.3%
Birdville Independent School District Series 2015B 5.00%, 02/15/2022		3,825		4,058,669
City of Houston TX Airport System Revenue (United Airlines, Inc.) Series 2014 5.00%, 07/01/2029		2,465		2,520,832
City of Houston TX Combined Utility System Revenue
Series 2014C 5.00%, 05/15/2024		1,100		1,280,422
Series 2020C 5.00%, 11/15/2022		4,330		4,745,030
Dallas Area Rapid Transit (Dallas Area Rapid Transit Sales Tax) Series 2020B 5.00%, 12/01/2021-12/01/2023		6,425		7,182,864
Lewisville Independent School District 5.00%, 08/15/2023-08/15/2024		4,725		5,447,474
New Hope Cultural Education Facilities Finance Corp. (Westminster Manor) Series 2016 5.00%, 11/01/2031		1,000		1,113,400
North Texas Tollway Authority Series 2011D 5.25%, 09/01/2026 (Pre-refunded/ETM)		3,625		3,774,459

30    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
North Texas Tollway Authority (North Texas Tollway System) Series 2017A 5.00%, 01/01/2038	$	3,000	$	3,230,460
Port Beaumont Navigation District (Jefferson Railport Terminal II LLC) 3.625%, 01/01/2035(a)		240		236,458
Tarrant County Cultural Education Facilities Finance Corp. (Buckingham Senior Living Community, Inc.) Series 2015I 5.25%, 11/15/2035(f) (g)		900		585,000
Tarrant County Cultural Education Facilities Finance Corp. (CHRISTUS Health Obligated Group) Series 2018A 5.00%, 07/01/2030-07/01/2031		13,405		16,853,984
Tarrant County Cultural Education Facilities Finance Corp. (Edgemere Retirement Senior Quality Lifestyles Corp.)
Series 2015A 4.00%, 11/15/2020		50		49,981
5.00%, 11/15/2025		1,105		1,080,966
				52,159,999
Virginia – 0.4%
Fairfax County Economic Development Authority (County of Fairfax VA Lease) 5.00%, 08/01/2022-08/01/2034		3,040		3,924,432
Washington – 4.1%
Central Puget Sound Regional Transit Authority Series 2012P 5.00%, 02/01/2023-02/01/2025		7,815		8,267,491
Chelan County Public Utility District No. 1 Series 2011B 5.50%, 07/01/2025		3,305		3,408,744
City of Seattle WA Water System Revenue Series 2017 5.00%, 08/01/2023		4,020		4,539,183
Port of Seattle WA 5.00%, 04/01/2033-04/01/2034		3,000		3,655,270
Series 2013 5.00%, 07/01/2024		4,820		5,323,304

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
State of Washington Series 2015R 5.00%, 07/01/2026(b)	$	13,325	$	15,877,803
				41,071,795
West Virginia – 0.3%
Tobacco Settlement Finance Authority/WV 4.875%, 06/01/2049		2,600		2,592,200
Wisconsin – 3.2%
State of Wisconsin Series 20212 5.00%, 05/01/2026-05/01/2029(c)		11,850		15,073,396
UMA Education, Inc. 5.00%, 10/01/2022-10/01/2029(a)		2,535		2,729,070
Wisconsin Department of Transportation
Series 20131 5.00%, 07/01/2023(b)		5,500		6,188,930
5.00%, 07/01/2024 (Pre-refunded/ETM)		2,480		2,787,297
5.00%, 07/01/2024		4,020		4,509,837
				31,288,530
Total Long-Term Municipal Bonds (cost $964,790,204)				1,011,059,698
Short-Term Municipal Notes – 3.2%
Pennsylvania – 1.1%
School District of Philadelphia/The
Series 2020A 4.00%, 06/30/2021		11,335		11,613,274
Texas – 2.1%
City of Houston TX 3.00%, 06/30/2021		10,200		10,383,804
State of Texas 4.00%, 08/26/2021		10,000		10,306,600
				20,690,404
Total Short-Term Municipal Notes (cost $32,281,864)				32,303,678
Total Municipal Obligations (cost $997,072,068)				1,043,363,376
GOVERNMENTS – TREASURIES – 0.6%
United States – 0.6%
U.S. Treasury Notes 2.625%, 02/15/2029(b) (cost $4,999,146)		5,000		5,756,250

32    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
COLLATERALIZED MORTGAGE OBLIGATIONS – 0.3%
Risk Share Floating Rate – 0.3%
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes
Series 2013-DN2, Class M2 4.399% (LIBOR 1 Month + 4.25%), 11/25/2023(d)	$	186	$	170,920
Series 2014-DN3, Class M3 4.149% (LIBOR 1 Month + 4.00%), 08/25/2024(d)		116		116,886
Series 2014-HQ2, Class M3 3.899% (LIBOR 1 Month + 3.75%), 09/25/2024(d)		250		255,203
Series 2015-HQ1, Class M3 3.949% (LIBOR 1 Month + 3.80%), 03/25/2025(d)		39		38,835
Series 2016-DNA4, Class M3 3.949% (LIBOR 1 Month + 3.80%), 03/25/2029(d)		240		248,789
Series 2017-DNA3, Class M2 2.649% (LIBOR 1 Month + 2.50%), 03/25/2030(d)		270		272,869
Federal National Mortgage Association Connecticut Avenue Securities
Series 2014-C03, Class 2M2 3.049% (LIBOR 1 Month + 2.90%), 07/25/2024(d)		184		182,851
Series 2015-C02, Class 1M2 4.149% (LIBOR 1 Month + 4.00%), 05/25/2025(d)		151		152,272
Series 2016-C03, Class 2M2 6.049% (LIBOR 1 Month + 5.90%), 10/25/2028(d)		181		191,340
Series 2017-C01, Class 1M2 3.699% (LIBOR 1 Month + 3.55%), 07/25/2029(d)		317		326,061
Series 2017-C02, Class 2M2 3.799% (LIBOR 1 Month + 3.65%), 09/25/2029(d)		151		152,468
Series 2017-C03, Class 1M2 3.149% (LIBOR 1 Month + 3.00%), 10/25/2029(d)		458		461,126
Total Collateralized Mortgage Obligations (cost $2,453,710)				2,569,620

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
SHORT-TERM INVESTMENTS – 2.1%
U.S. Treasury Bills – 1.6%
US Treasury Bills
Zero Coupon, 12/17/2020(b) (cost $15,996,606)	$	16,000	$	15,998,200
	Shares
Investment Companies – 0.5%
AB Fixed Income Shares, Inc. – AB Government Money Market Portfolio –Class AB, 0.03%(h)(i)(j) (cost $4,637,256)		4,637,256		4,637,256
Total Short-Term Investments (cost $20,633,862)				20,635,456
Total Investments – 108.2% (cost $1,025,158,786)				1,072,324,702
Other assets less liabilities – (8.2)%				(81,068,574	)
Net Assets – 100.0%			$	991,256,128

CENTRALLY CLEARED INFLATION (CPI) SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund			Payments received by the Fund			Payment Frequency Paid/ Received		Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	19,310		01/15/2028		1.230	%		CPI	#		Maturity	$	909,450		$	—	$	909,450
USD	14,770		01/15/2028		0.735	%		CPI	#		Maturity		1,301,911			—		1,301,911
USD	12,000		08/29/2029		1.748	%		CPI	#		Maturity		161,635			—		161,635
USD	15,000		12/23/2029		1.979	%		CPI	#		Maturity		(175,745	)		—		(175,745	)
USD	4,825		01/15/2030		1.572	%		CPI	#		Maturity		156,612			—		156,612
USD	4,825		01/15/2030		1.587	%		CPI	#		Maturity		148,742			—		148,742
USD	1,670		01/15/2030		1.714	%		CPI	#		Maturity		28,274			—		28,274
USD	1,670		01/15/2030		1.731	%		CPI	#		Maturity		25,148			—		25,148
												$	2,556,027		$	—	$	2,556,027

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

34    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund			Payment Frequency Paid/ Received	Market Value		Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	45,150		06/17/2021	3 Month LIBOR		1.907	%	Quarterly/Semi-Annual	$	783,156	$	—	$	783,156
USD	32,000		09/10/2024	3 Month LIBOR		1.341	%	Quarterly/Semi-Annual		1,276,210		—		1,276,210
USD	11,180		01/15/2025	3 Month LIBOR		1.566	%	Quarterly/Semi-Annual		608,091		—		608,091
USD	3,172		02/05/2025	3 Month LIBOR		1.361	%	Quarterly/Semi-Annual		140,511		—		140,511
USD	7,128		02/06/2025	3 Month LIBOR		1.419	%	Quarterly/Semi-Annual		334,063		—		334,063
USD	8,235		10/09/2029	3 Month LIBOR		1.470	%	Quarterly/Semi-Annual		485,836		—		485,836
USD	8,235		10/09/2029	3 Month LIBOR		1.473	%	Quarterly/ Semi-Annual		488,023		—		488,023
									$	4,115,890	$	—	$	4,115,890

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		25.00	%		USD	598	$	(193,513	)	$	(75,490	)	$	(118,023	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	69		(22,329	)		(6,752	)		(15,577	)
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	40		(12,944	)		(4,897	)		(8,047	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	38		(12,297	)		(3,753	)		(8,544	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	471		(152,377	)		(46,569	)		(105,808	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	708		(229,108	)		(68,203	)		(160,905	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	1,216		(393,497	)		(147,881	)		(245,616	)

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		25.00	%		USD	231	$	(74,752	)	$	(29,039	)	$	(45,713	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	614		(198,691	)		(57,411	)		(141,280	)
												$	(1,289,508	)	$	(439,995	)	$	(849,513	)

* Termination date

INFLATION (CPI) SWAPS (see Note D)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund			Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
Bank of America, N.A.		USD	25,000		02/02/2032		2.403	%	CPI#	Maturity	$	(2,052,855	)	$	—	$	(2,052,855	)
Barclays Bank PLC		USD	2,000		11/10/2020		2.500	%	CPI#	Maturity		(178,424	)		—		(178,424	)
Barclays Bank PLC		USD	1,000		05/04/2021		2.845	%	CPI#	Maturity		(146,937	)		—		(146,937	)
Barclays Bank PLC		USD	3,000		05/12/2021		2.815	%	CPI#	Maturity		(434,682	)		—		(434,682	)
Barclays Bank PLC		USD	14,000		04/03/2022		2.663	%	CPI#	Maturity		(1,931,942	)		—		(1,931,942	)
Barclays Bank PLC		USD	16,700		10/05/2022		2.765	%	CPI#	Maturity		(2,466,736	)		—		(2,466,736	)
Barclays Bank PLC		USD	25,000		08/07/2024		2.573	%	CPI#	Maturity		(3,121,783	)		—		(3,121,783	)
Barclays Bank PLC		USD	19,000		05/05/2025		2.125	%	CPI#	Maturity		(804,697	)		—		(804,697	)
Barclays Bank PLC		USD	5,400		03/06/2027		2.695	%	CPI#	Maturity		(1,092,640	)		—		(1,092,640	)
Barclays Bank PLC		USD	20,000		06/06/2032		2.145	%	CPI#	Maturity		(655,575	)		—		(655,575	)
Barclays Bank PLC		USD	14,000		09/01/2032		2.128	%	CPI#	Maturity		(365,775	)		—		(365,775	)
Barclays Bank PLC		USD	22,000		08/29/2033		2.368	%	CPI#	Maturity		(1,712,144	)		—		(1,712,144	)
Citibank, NA		USD	15,600		12/14/2020		1.548	%	CPI#	Maturity		218,576			—		218,576
Citibank, NA		USD	35,000		07/03/2021		2.283	%	CPI#	Maturity		(805,238	)		—		(805,238	)
Citibank, NA		USD	9,000		06/29/2022		2.398	%	CPI#	Maturity		(990,523	)		—		(990,523	)
Citibank, NA		USD	5,400		07/19/2022		2.400	%	CPI#	Maturity		(584,855	)		—		(584,855	)
Citibank, NA		USD	4,000		08/10/2022		2.550	%	CPI#	Maturity		(498,175	)		—		(498,175	)
Citibank, NA		USD	15,500		12/07/2022		2.748	%	CPI#	Maturity		(2,376,039	)		—		(2,376,039	)
Citibank, NA		USD	47,000		05/24/2023		2.533	%	CPI#	Maturity		(5,837,470	)		—		(5,837,470	)
Citibank, NA		USD	30,000		10/29/2023		2.524	%	CPI#	Maturity		(3,536,375	)		—		(3,536,375	)
Citibank, NA		USD	30,000		09/19/2024		2.070	%	CPI#	Maturity		(632,711	)		—		(632,711	)
Citibank, NA		USD	25,000		07/03/2025		2.351	%	CPI#	Maturity		(1,278,133	)		—		(1,278,133	)
Citibank, NA		USD	15,800		02/08/2028		2.940	%	CPI#	Maturity		(3,938,487	)		—		(3,938,487	)
Citibank, NA		USD	12,000		11/05/2033		2.273	%	CPI#	Maturity		(693,802	)		—		(693,802	)
Deutsche Bank AG		USD	11,000		06/20/2021		2.655	%	CPI#	Maturity		(1,446,177	)		—		(1,446,177	)

36    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund			Payments received by the Fund		Payment Frequency Paid/ Received		Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
Deutsche Bank AG		USD	9,800		09/07/2021		2.400	%		CPI#		Maturity	$	(1,004,734	)	$	—	$	(1,004,734	)
Deutsche Bank AG		USD	25,000		09/02/2025		1.880	%		CPI#		Maturity		(462,772	)		—		(462,772	)
JPMorgan Chase Bank, NA		USD	19,000		08/17/2022		2.523	%		CPI#		Maturity		(2,286,870	)		—		(2,286,870	)
JPMorgan Chase Bank, NA		USD	1,400		06/30/2026		2.890	%		CPI#		Maturity		(348,396	)		—		(348,396	)
JPMorgan Chase Bank, NA		USD	3,300		07/21/2026		2.935	%		CPI#		Maturity		(860,320	)		—		(860,320	)
JPMorgan Chase Bank, NA		USD	2,400		10/03/2026		2.485	%		CPI#		Maturity		(387,795	)		—		(387,795	)
JPMorgan Chase Bank, NA		USD	5,400		11/14/2026		2.488	%		CPI#		Maturity		(882,274	)		—		(882,274	)
JPMorgan Chase Bank, NA		USD	4,850		12/23/2026		2.484	%		CPI#		Maturity		(777,733	)		—		(777,733	)
JPMorgan Chase Bank, NA		USD	13,000		03/01/2027		2.279	%		CPI#		Maturity		(680,700	)		—		(680,700	)
JPMorgan Chase Bank, NA		USD	21,350		02/20/2028		2.899	%		CPI#		Maturity		(5,114,547	)		—		(5,114,547	)
JPMorgan Chase Bank, NA		USD	12,000		03/26/2028		2.880	%		CPI#		Maturity		(2,806,088	)		—		(2,806,088	)
JPMorgan Chase Bank, NA		USD	10,000		07/03/2028		2.356	%		CPI#		Maturity		(610,442	)		—		(610,442	)
JPMorgan Chase Bank, NA		USD	25,000		11/05/2028		2.234	%		CPI#		Maturity		(1,144,847	)		—		(1,144,847	)
JPMorgan Chase Bank, NA		USD	18,000		04/17/2030		2.378	%		CPI#		Maturity		(1,277,052	)		—		(1,277,052	)
JPMorgan Chase Bank, NA		USD	24,000		11/17/2032		2.183	%		CPI#		Maturity		(921,607	)		—		(921,607	)
Morgan Stanley Capital Services LLC		USD	13,000		05/23/2021		2.680	%		CPI#		Maturity		(1,690,056	)		—		(1,690,056	)
Morgan Stanley Capital Services LLC		USD	10,000		04/16/2023		2.690	%		CPI#		Maturity		(1,425,978	)		—		(1,425,978	)
Morgan Stanley Capital Services LLC		USD	5,000		08/15/2026		2.885	%		CPI#		Maturity		(1,244,195	)		—		(1,244,195	)
													$	(61,290,005	)	$	—	$	(61,290,005	)

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

INTEREST RATE SWAPS (see Note D)

						Rate Type
Swap Counterparty	Notional Amount (000)			Termination Date		Payments made by the Fund			Payments received by the Fund		Payment Frequency Paid/ Received		Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
Citibank, NA		USD	11,075		10/09/2029		1.120	%		SIFMA*		Quarterly/ Quarterly	$	(464,760	)	$	—	$	(464,760	)
Citibank, NA		USD	11,075		10/09/2029		1.125	%		SIFMA*		Quarterly/ Quarterly		(470,156	)		—		(470,156	)
													$	(934,916	)	$	—	$	(934,916	)

* Variable interest rate based on the Securities Industry & Financial Markets Association (SIFMA) Municipal Swap Index.

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2020, the aggregate market value of these securities amounted to $23,759,050 or 2.4% of net assets.

(b) Position, or a portion thereof, has been segregated to collateralize OTC derivatives outstanding.

(c) When-Issued or delayed delivery security.

(d) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2020.

(e) An auction rate security whose interest rate resets at each auction date. Auctions are typically held every week or month. The rate shown is as of October 31, 2020 and the aggregate market value of this security amounted to $72,844 or 0.01% of net assets.

(f) Non-income producing security.

(g) Defaulted.

(h) Affiliated investments.

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

(j) 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.

As of October 31, 2020, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity are 2.7% and 0.0%, respectively.

Glossary:

AGC – Assured Guaranty Corporation

AGM – Assured Guaranty Municipal

CCRC – Congregate Care Retirement Center

CDX-CMBX. NA – North American Commercial Mortgage-Backed Index

COP – Certificate of Participation

CPI – Consumer Price Index

ETM – Escrowed to Maturity

LIBOR – London Interbank Offered Rate

NATL – National Interstate Corporation

SRF – State Revolving Fund

XLCA – XL Capital Assurance Inc.

See notes to financial statements.

38    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

STATEMENT OF ASSETS & LIABILITIES

October 31, 2020

Assets
Investments in securities, at value
Unaffiliated issuers (cost $1,020,521,530)	$	1,067,687,446
Affiliated issuers (cost $4,637,256)		4,637,256
Cash		323,500
Cash collateral due from broker		6,802,882
Interest receivable		12,645,173
Receivable for investment securities sold		6,129,221
Receivable for capital stock sold		582,717
Unrealized appreciation on inflation swaps		218,576
Affiliated dividends receivable		459
Total assets		1,099,027,230
Liabilities
Unrealized depreciation on inflation swaps		61,508,581
Payable for investment securities purchased		40,233,815
Payable for capital stock redeemed		3,100,115
Market value on credit default swaps (net premiums received $439,995)		1,289,508
Unrealized depreciation on interest rate swaps		934,916
Advisory fee payable		377,998
Distribution fee payable		72,942
Payable for variation margin on centrally cleared swaps		70,077
Administrative fee payable		25,674
Transfer Agent fee payable		10,668
Directors’ fees payable		2,649
Accrued expenses		144,159
Total liabilities		107,771,102
Net Assets	$	991,256,128
Composition of Net Assets
Capital stock, at par	$	96,538
Additional paid-in capital		1,023,571,119
Accumulated loss		(32,411,529	)
	$	991,256,128

Net Asset Value Per Share—30 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	138,454,132		13,440,188	$	10.30	*
C	$	6,709,562		651,883	$	10.29
Advisor	$	185,828,848		18,027,493	$	10.31
1	$	444,500,748		43,377,314	$	10.25
2	$	215,762,838		21,041,278	$	10.25

* The maximum offering price per share for Class A shares was $10.62 which reflects a sales charge of 3.00%.

See notes to financial statements.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    39

STATEMENT OF OPERATIONS

Year Ended October 31, 2020

Investment Income
Interest	$	28,661,809
Dividends—Affiliated issuers		229,075		$	28,890,884
Expenses
Advisory fee (see Note B)		4,938,717
Distribution fee—Class A		231,028
Distribution fee—Class C		70,303
Distribution fee—Class 1		469,202
Transfer agency—Class A		38,045
Transfer agency—Class C		3,059
Transfer agency—Advisor Class		81,235
Transfer agency—Class 1		23,018
Transfer agency—Class 2		11,062
Custody and accounting		188,737
Registration fees		104,777
Audit and tax		88,411
Administrative		77,318
Legal		38,201
Printing		37,111
Directors’ fees		29,250
Miscellaneous		50,142
Total expenses		6,479,616
Less: expenses waived and reimbursed by the Adviser (see Note B)		(776,967	)
Net expenses					5,702,649
Net investment income					23,188,235
Realized and Unrealized Gain (Loss) on Investment Transactions
Net realized gain (loss) on:
Investment transactions					702,686
Swaps					(8,664,335	)
Net change in unrealized appreciation/depreciation of:
Investments					(4,529,066	)
Swaps					7,717,323
Net loss on investment transactions					(4,773,392	)
Net Increase in Net Assets from Operations				$	18,414,843

See notes to financial statements.

40    ^|    AB  MUNICIPAL BOND INFLATION STRATEGY abfunds.com

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2020			Year Ended October 31, 2019
Increase (Decrease) in Net Assets from Operations
Net investment income	$	23,188,235		$	25,207,711
Net realized loss on investment transactions		(7,961,649	)		(2,507,015	)
Net change in unrealized appreciation/depreciation of investments		3,188,257			23,007,434
Net increase in net assets from operations		18,414,843			45,708,130
Distributions to Shareholders
Class A		(2,027,901	)		(1,289,741	)
Class C		(102,182	)		(137,912	)
Advisor Class		(4,764,682	)		(5,312,312	)
Class 1		(11,346,428	)		(12,623,500	)
Class 2		(5,676,606	)		(6,307,648	)
Capital Stock Transactions
Net decrease		(7,977,474	)		(43,748,072	)
Total decrease		(13,480,430	)		(23,711,055	)
Net Assets
Beginning of period		1,004,736,558			1,028,447,613
End of period	$	991,256,128		$	1,004,736,558

See notes to financial statements.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    41

NOTES TO FINANCIAL STATEMENTS

October 31, 2020

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Municipal Bond Inflation Strategy (the “Fund”), a diversified portfolio. The Fund offers Class A, Class C, Advisor Class, Class 1 and Class 2 shares. Class 1 shares are sold only to the private clients of Sanford C. Bernstein & Co. LLC by its registered representatives. Class B, Class R, Class K, Class I and Class T shares have been authorized but currently are not offered. Class A shares are sold with a front-end sales charge of up to 3.0% for purchases not exceeding $500,000. With respect to purchases of $500,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Advisor Class and Class 2 shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. Class 1 shares are sold without an initial or contingent deferred sales charge, but are subject to ongoing distribution expenses. All ten classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

42    ^|    AB  MUNICIPAL BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (the “Adviser”) will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    43

NOTES TO FINANCIAL STATEMENTS (continued)

contacting the issuer, analysts, analysis of the issuer’s financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

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

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

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rates, coupon rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which is then

44    ^|    AB  MUNICIPAL BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

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

Investments in Securities:	Level 1			Level 2			Level 3			Total
Assets:
Long-Term Municipal Bonds	$	– 0	–	$	1,011,059,698		$	– 0	–	$	1,011,059,698
Short-Term Municipal Notes		– 0	–		32,303,678			– 0	–		32,303,678
Governments – Treasuries		– 0	–		5,756,250			– 0	–		5,756,250
Collateralized Mortgage Obligations		– 0	–		2,569,620			– 0	–		2,569,620
Short-Term Investments:
U.S. Treasury Bills		– 0	–		15,998,200			– 0	–		15,998,200
Investment Companies		4,637,256			– 0	–		– 0	–		4,637,256
Total Investments in Securities		4,637,256			1,067,687,446			– 0	–		1,072,324,702
Other Financial Instruments(a):
Assets:
Centrally Cleared Inflation (CPI) Swaps		– 0	–		2,731,772			– 0	–		2,731,772	(b)
Centrally Cleared Interest Rate Swaps		– 0	–		4,115,890			– 0	–		4,115,890	(b)
Inflation (CPI) Swaps		– 0	–		218,576			– 0	–		218,576
Liabilities:
Centrally Cleared Inflation (CPI) Swaps		—			(175,745	)		– 0	–		(175,745	)(b)
Credit Default Swaps		—			(1,289,508	)		– 0	–		(1,289,508	)
Inflation (CPI) Swaps		—			(61,508,581	)		– 0	–		(61,508,581	)
Interest Rate Swaps		—			(934,916	)		– 0	–		(934,916	)
Total	$	4,637,256		$	1,010,844,934		$	– 0	–	$	1,015,482,190

(a) 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.

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    45

NOTES TO FINANCIAL STATEMENTS (continued)

3. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

4. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes original issue and market discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

5. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

6. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

46    ^|    AB  MUNICIPAL BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .50% of the first $2.5 billion, .45% of the next $2.5 billion and .40% in excess of $5 billion, of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding extraordinary expenses, interest expense, and acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest) on an annual basis (the “Expense Caps”) to .75%, 1.50%, .50%, .60% and .50% of the daily average net assets for the Class A, Class C, Advisor Class, Class 1 and Class 2 shares, respectively. This fee waiver and/or expense reimbursement agreement will remain in effect until January 31, 2021 and then may be extended by the Adviser for additional one-year terms. For the year ended October 31, 2020, such reimbursements/waivers amounted to $749,918.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2020, the reimbursement for such services amounted to $77,318.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $57,188 for the year ended October 31, 2020.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $0 from the sale of Class A shares and received $86,323 and $257 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2020.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2021. In connection with the

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    47

NOTES TO FINANCIAL STATEMENTS (continued)

investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2020, such waiver amounted to $27,049.

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

Fund	Market Value 10/31/19 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/20 (000)		Dividend Income (000)
Government Money Market Portfolio	$	3,714	$	424,147	$	423,224	$	4,637	$	229

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (now named Equitable Holdings, Inc.)(“Equitable”), through an initial public offering. Equitable is the holding company for a diverse group of financial services companies, including an approximate 65% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns less than 10% of the outstanding shares of common stock of Equitable, and no longer owns a controlling interest in Equitable. AXA previously announced its intention to sell its entire interest in Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of Equitable common stock.

Sales under the Plan that were completed on November 13, 2019 resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and may have been deemed to have been an “assignment” causing a termination of the Fund’s investment advisory and administration agreements. In order to ensure that investment advisory and administration services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved new investment advisory and administration agreements with the Adviser, and shareholders of the Fund subsequently approved the new investment advisory agreement. These agreements became effective on November 13, 2019.

48    ^|    AB  MUNICIPAL BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund’s average daily net assets attributable to Class A shares, 1% of the Fund’s average daily net assets attributable to Class C shares and .10% of the Fund’s average daily net assets attributable to Class 1 shares. There are no distribution and servicing fees on the Advisor Class and Class 2 shares. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $431,867 and $1,798,478 for Class C and Class 1 shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2020 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	270,533,474	$	274,022,678
U.S. government securities		21,382,324		15,015,000

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	1,025,158,786
Gross unrealized appreciation	$	56,452,996
Gross unrealized depreciation		(65,273,094	)
Net unrealized depreciation	$	(8,820,098	)

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    49

NOTES TO FINANCIAL STATEMENTS (continued)

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The principal type of derivative utilized by the Fund, as well as the methods in which they may be used are:

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates or credit risk. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

50    ^|    AB  MUNICIPAL BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    51

NOTES TO FINANCIAL STATEMENTS (continued)

a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended October 31, 2020, the Fund held interest rate swaps for hedging purposes.

Inflation (CPI) Swaps:

Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.

During the year ended October 31, 2020, the Fund held inflation (CPI) swaps for hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

52    ^|    AB  MUNICIPAL BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

During the year ended October 31, 2020, the Fund held credit default swaps for non-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    53

NOTES TO FINANCIAL STATEMENTS (continued)

terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended October 31, 2020, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps	$	6,847,662	*	Receivable/Payable for variation margin on centrally cleared swaps	$	175,745	*
Interest rate contracts					Unrealized depreciation on interest rate swaps		934,916
Interest rate contracts	Unrealized appreciation on inflation swaps		218,576		Unrealized depreciation on inflation swaps		61,508,581
Credit contracts					Market value on credit default swaps		1,289,508
Total		$	7,066,238			$	63,908,750

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps	$	(8,796,246	)	$	8,677,716
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		131,911			(960,393	)
Total		$	(8,664,335	)	$	7,717,323

54    ^|    AB  MUNICIPAL BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2020:

Interest Rate Swaps:
Average notional amount	$	22,150,000
Inflation Swaps:
Average notional amount	$	795,710,308
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	124,515,385
Centrally Cleared Inflation Swaps:
Average notional amount	$	91,983,308
Credit Default Swaps:
Average notional amount of sale contracts	$	3,985,000

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2020. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

Counterparty	Derivative Assets Subject to a MA		Derivatives Available for Offset			Cash Collateral Received*			Security Collateral Received*			Net Amount of Derivative Assets
Citibank, NA/Citigroup Global Markets, Inc.	$	218,576	$	(218,576	)	$	– 0	–	$	– 0	–	$	– 0	–
Total	$	218,576	$	(218,576	)	$	– 0	–	$	– 0	–	$	– 0	–
Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Bank of America, N.A.	$	2,052,855	$	– 0	–	$	(1,956,384	)	$	(57,563	)	$	38,908
Barclays Bank PLC		12,911,335		– 0	–		– 0	–		(12,911,335	)		– 0	–
Citibank, NA/Citigroup Global Markets, Inc.		22,322,566		(218,576	)		– 0	–		(22,103,990	)		– 0	–
Credit Suisse International		800,223		– 0	–		– 0	–		(674,624	)		125,599
Deutsche Bank AG		2,913,683		– 0	–		– 0	–		(2,913,683	)		– 0	–
Goldman Sachs International		273,443		– 0	–		– 0	–		(273,443	)		– 0	–
JPMorgan Chase Bank, NA		18,098,671		– 0	–		– 0	–		(18,098,671	)		– 0	–

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    55

NOTES TO FINANCIAL STATEMENTS (continued)

Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Morgan Stanley Capital Services LLC	$	4,360,229	$	– 0	–	$	– 0	–	$	(4,360,229	)	$	– 0	–
Total	$	63,733,005	$	(218,576	)	$	(1,956,384	)	$	(61,393,538	)	$	164,507	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for Class A, Class C, Advisor Class, Class 1 and Class 2 were as follows:

	Shares						Amount
	Year Ended October 31, 2020			Year Ended October 31, 2019			Year Ended October 31, 2020			Year Ended October 31, 2019
Class A
Shares sold		11,006,167			1,771,451		$	112,859,024		$	18,033,736
Shares issued in reinvestment of dividends		137,840			86,462			1,399,084			879,985
Shares converted from Class C		103,132			133,994			1,038,373			1,380,472
Shares redeemed		(3,113,475	)		(4,179,787	)		(30,512,727	)		(42,207,147	)
Net increase (decrease)		8,133,664			(2,187,880	)	$	84,783,754		$	(21,912,954	)
Class C
Shares sold		124,879			177,607		$	1,270,546		$	1,807,733
Shares issued in reinvestment of dividends		8,149			10,536			82,474			107,230
Shares converted to Class A		(103,270	)		(134,210	)		(1,038,373	)		(1,380,472	)
Shares redeemed		(132,691	)		(366,478	)		(1,341,016	)		(3,715,959	)
Net decrease		(102,933	)		(312,545	)	$	(1,026,369	)	$	(3,181,468	)

56    ^|    AB  MUNICIPAL BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

	Shares						Amount
	Year Ended October 31, 2020			Year Ended October 31, 2019			Year Ended October 31, 2020			Year Ended October 31, 2019
Advisor Class
Shares sold		10,882,277			9,621,301		$	111,180,666		$	98,239,600
Shares issued in reinvestment of dividends		347,975			371,721			3,533,343			3,789,340
Shares redeemed		(13,275,084	)		(12,466,466	)		(129,905,882	)		(126,710,398	)
Net decrease		(2,044,832	)		(2,473,444	)	$	(15,191,873	)	$	(24,681,458	)
Class 1
Shares sold		5,864,797			7,527,585		$	59,213,283		$	76,245,783
Shares issued in reinvestment of dividends		844,734			996,866			8,522,724			10,112,533
Shares redeemed		(12,308,849	)		(8,166,935	)		(121,433,030	)		(82,786,584	)
Net increase (decrease)		(5,599,318	)		357,516		$	(53,697,023	)	$	3,571,732
Class 2
Shares sold		2,839,197			3,121,484		$	28,434,563		$	31,553,791
Shares issued in reinvestment of dividends		411,526			483,312			4,153,907			4,906,067
Shares redeemed		(5,591,380	)		(3,357,173	)		(55,434,433	)		(34,003,782	)
Net increase (decrease)		(2,340,657	)		247,623		$	(22,845,963	)	$	2,456,076

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of the Fund’s investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    57

NOTES TO FINANCIAL STATEMENTS (continued)

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 Fund’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 Fund invests more of its assets in a particular state’s municipal securities, the Fund is vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters. The Fund’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.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the U.S. federal income tax treatment of certain types of municipal securities.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

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.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in

58    ^|    AB  MUNICIPAL BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments are or become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally go down.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR is underway but remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR,

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    59

NOTES TO FINANCIAL STATEMENTS (continued)

increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2020.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2020 and October 31, 2019 were as follows:

	2020		2019
Distributions paid from:
Ordinary income	$	1,229,449	$	927,242
Total taxable distributions		1,229,449		927,242
Tax-exempt distributions		22,688,350		24,743,871
Total distributions paid	$	23,917,799	$	25,671,113

60    ^|    AB  MUNICIPAL BOND INFLATION STRATEGY abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

As of October 31, 2020, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Accumulated capital and other losses	$	(23,591,743	)(a)
Unrealized appreciation/(depreciation)		(8,819,786	)(b)
Total accumulated earnings/(deficit)	$	(32,411,529	)

(a) As of October 31, 2020, the Fund had a net capital loss carryforward of $23,591,743.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the tax treatment of swaps.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2020, the Fund had a net short-term capital loss carryforward of $8,055,266 and a net long-term capital loss carryforward of $15,536,477, which may be carried forward for an indefinite period.

During the current fiscal year, permanent differences primarily due to the tax treatment of swaps and taxable overdistributions resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE I

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Fund has adopted ASU 2017-08, which did not have a material impact on the Fund’s financial position or the results of its operations, and had no impact on the Fund’s net assets.

NOTE J

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    61

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.24			$  10.02			$  10.28			$  10.29			$  10.14
Income From Investment Operations
Net investment income(a)(b)		.22			.24			.22			.19			.18
Net realized and unrealized gain (loss) on investment transactions		.07	(c)		.21			(.26	)		(.01	)		.16
Net increase (decrease) in net asset value from operations		.29			.45			(.04	)		.18			.34
Less: Dividends
Dividends from net investment income		(.23	)		(.23	)		(.22	)		(.19	)		(.19	)
Net asset value, end of period		$  10.30			$  10.24			$  10.02			$  10.28			$  10.29
Total Return
Total investment return based on net asset value(d)		2.85	%		4.58	%		(.42	)%		1.75	%		3.38	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$138,454			$54,316			$75,127			$58,270			$37,345
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.75	%		.75	%		.75	%		.75	%		.75	%
Expenses, before waivers/reimbursements		.85	%		.86	%		.86	%		.86	%		.86	%
Net investment income(b)		2.14	%		2.32	%		2.13	%		1.90	%		1.78	%
Portfolio turnover rate		29	%		12	%		15	%		9	%		9	%

See footnote summary on page 66.

62    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.22			$  10.01			$  10.26			$  10.27			$  10.12
Income From Investment Operations
Net investment income(a)(b)		.14			.16			.14			.12			.10
Net realized and unrealized gain (loss) on investment transactions		.08	(c)		.20			(.25	)		(.02	)		.16
Net increase (decrease) in net asset value from operations		.22			.36			(.11	)		.10			.26
Less: Dividends
Dividends from net investment income		(.15	)		(.15	)		(.14	)		(.11	)		(.11	)
Net asset value, end of period		$  10.29			$  10.22			$  10.01			$  10.26			$  10.27
Total Return
Total investment return based on net asset value(d)		2.16	%		3.63	%		(1.09	)%		.99	%		2.61	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$6,710			$7,717			$10,681			$12,693			$10,805
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Expenses, before waivers/reimbursements		1.61	%		1.61	%		1.61	%		1.61	%		1.61	%
Net investment income(b)		1.43	%		1.57	%		1.37	%		1.15	%		1.03	%
Portfolio turnover rate		29	%		12	%		15	%		9	%		9	%

See footnote summary on page 66.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    63

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.24			$  10.03			$  10.29			$  10.30			$  10.14
Income From Investment Operations
Net investment income(a)(b)		.25			.26			.24			.22			.21
Net realized and unrealized gain (loss) on investment transactions		.07	(c)		.21			(.26	)		(.02	)		.17
Net increase (decrease) in net asset value from operations		.32			.47			(.02	)		.20			.38
Less: Dividends
Dividends from net investment income		(.25	)		(.26	)		(.24	)		(.21	)		(.22	)
Net asset value, end of period		$  10.31			$  10.24			$  10.03			$  10.29			$  10.30
Total Return
Total investment return based on net asset value(d)		3.19	%		4.76	%		(.17	)%		2.00	%		3.74	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$185,829			$205,541			$226,145			$199,635			$152,275
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Expenses, before waivers/reimbursements		.60	%		.61	%		.61	%		.61	%		.61	%
Net investment income(b)		2.43	%		2.57	%		2.37	%		2.15	%		2.03	%
Portfolio turnover rate		29	%		12	%		15	%		9	%		9	%

See footnote summary on page 66.

64    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 1
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.19			$  9.98			$  10.25			$  10.26			$  10.11
Income From Investment Operations
Net investment income(a)(b)		.23			.25			.23			.21			.20
Net realized and unrealized gain (loss) on investment transactions		.07	(c)		.22			(.26	)		(.01	)		.16
Net increase (decrease) in net asset value from operations		.30			.47			(.03	)		.20			.36
Less: Dividends
Dividends from net investment income		(.24	)		(.26	)		(.24	)		(.21	)		(.21	)
Net asset value, end of period		$  10.25			$  10.19			$  9.98			$  10.25			$  10.26
Total Return
Total investment return based on net asset value(d)		3.04	%		4.72	%		(.32	)%		1.94	%		3.58	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$444,500			$498,857			$485,386			$424,291			$333,311
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.60	%		.60	%		.60	%		.60	%		.60	%
Expenses, before waivers/reimbursements		.67	%		.67	%		.67	%		.67	%		.68	%
Net investment income(b)		2.33	%		2.47	%		2.27	%		2.05	%		1.93	%
Portfolio turnover rate		29	%		12	%		15	%		9	%		9	%

See footnote summary on page 66.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    65

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class 2
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  10.19			$  9.99			$  10.25			$  10.26			$  10.12
Income From Investment Operations
Net investment income(a)(b)		.24			.26			.24			.22			.21
Net realized and unrealized gain (loss) on investment transactions		.07	(c)		.21			(.25	)		(.01	)		.15
Net increase (decrease) in net asset value from operations		.31			.47			(.01	)		.21			.36
Less: Dividends
Dividends from net investment income		(.25	)		(.27	)		(.25	)		(.22	)		(.22	)
Net asset value, end of period		$  10.25			$  10.19			$  9.99			$  10.25			$  10.26
Total Return
Total investment return based on net asset value(d)		3.14	%		4.73	%		(.12	)%		2.04	%		3.58	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$215,763			$238,306			$231,109			$213,880			$170,155
Ratio to average net assets of:
Expenses, net of waivers/reimbursements		.50	%		.50	%		.50	%		.50	%		.50	%
Expenses, before waivers/reimbursements		.57	%		.57	%		.57	%		.57	%		.58	%
Net investment income(b)		2.43	%		2.57	%		2.37	%		2.14	%		2.03	%
Portfolio turnover rate.		29	%		12	%		15	%		9	%		9	%

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Due to timing of sales and repurchase of capital shares, the net realized and unrealized gain (loss) per share is not in accordance with the Fund’s change in net realized and unrealized gain (loss) on investment transactions for the period.

(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or the redemption of portfolio shares. Total investment return calculated for a period of less than one year is not annualized.

See notes to financial statements.

66    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB Municipal Bond Inflation Strategy

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Municipal Bond Inflation Strategy (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2020, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    67

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 23, 2020

68    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

BOARD OF DIRECTORS

Marshall C. Turner, Jr⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith, President and Chief Executive Officer Jeanette Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

R.B. (Guy) Davidson III⁽²⁾,* Vice President Terrance T. Hults⁽²⁾, Vice President Matthew J. Norton⁽²⁾, Vice President Andrew D. Potter⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Analyst Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Vincent S. Noto, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210 Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105 Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036 Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s Municipal Bond Investment Team. Messrs. Davidson, Hults, Norton and Potter are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

* Mr. Davidson is expected to retire from the Adviser effective December 30, 2020.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    69

MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,# 1345 Avenue of the Americas New York, NY 10105 60 (2010)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and the head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business with which he had been associated since prior to 2004.		77	None

70    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 79 (2005)	Private Investor since prior to 2015. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		77	None

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    71

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Jorge A. Bermudez,## 69 (2020)	Private Investor since prior to 2015. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		77	Moody’s Corporation since April 2011
Michael J. Downey,## 76 (2005)	Private Investor since prior to 2015. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2015 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		77	None

72    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Nancy P. Jacklin,## 72 (2006)	Private Investor since prior to 2015. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		77	None
Jeanette Loeb,## 68 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		77	Apollo Investment Corp. (business development company) since August 2011

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    73

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Carol C. McMullen,## 65 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		77	None

74    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Garry L. Moody,## 68 (2008)	Private Investor since prior to 2015. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		77	None

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    75

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Earl D. Weiner,## 81 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		77	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Keith is an “interested person” of the Fund as defined in the “40 Act,” due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

76    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Robert M. Keith 60	President and Chief Executive Officer	See biography above.
R.B. (Guy) Davidson III^ 59	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also Chief Investment Officer—Municipal Business.
Terrance T. Hults 54	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also Co-Head—Municipal Portfolio Management.
Matthew J. Norton 37	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also Co-Head—Municipal Portfolio Management.
Andrew D. Potter 35	Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2015.
Emilie D. Wrapp 65	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2015.
Michael B. Reyes 44	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2015.
Joseph J. Mantineo 61	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2015.
Phyllis J. Clarke 59	Controller	Vice President of ABIS**, with which she has been associated since prior to 2015.
Vincent S. Noto 56	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2015.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

^ Mr. Davidson is expected to retire from the Adviser effective December 30, 2020.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    77

Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”). Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2020, which covered the period December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner. Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, taking into account any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP. The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended, and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP, and there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

78    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Municipal Bond Inflation Strategy (the “Fund”) at a meeting held on November 4-6, 2019 (the “Meeting”).*

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the underlying fund advised by the Adviser in which the Fund invests.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

* Following transactions completed on November 13, 2019 that may have been deemed to have been an “assignment” causing termination of the Fund’s investment advisory agreement, a new investment advisory agreement, having the same terms as the prior one, was entered into by the Fund and the Adviser.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    79

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2017 and 2018 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors concluded that the Adviser’s level of profitability from its relationship with the Fund was not unreasonable.

80    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the underlying fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3- and 5-year periods ended July 31, 2019 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median and noted that it was above the median. The directors took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

The Adviser informed the directors that there were no institutional products managed by the Adviser that utilize investment strategies similar to those of the Fund.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    81

in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. The directors noted that the Fund’s expense ratio was above the medians. After reviewing and discussing the Adviser’s explanations of the reasons for this, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also previously discussed economies of scale with an independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

82    ^|    AB MUNICIPAL BOND INFLATION STRATEGY abfunds.com

This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL EQUITY (continued)

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio¹

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

FIXED INCOME (continued)

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to February 5, 2020, Tax-Aware Fixed Income Opportunities Portfolio was named Tax-Aware Fixed Income Portfolio.

abfunds.com AB MUNICIPAL BOND INFLATION STRATEGY    ^|    83

NOTES

84    ^|    AB  MUNICIPAL BOND INFLATION STRATEGY abfunds.com

AB MUNICIPAL BOND INFLATION STRATEGY

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

MBIS-0151-1020                

OCT    ^10.31.20

ANNUAL REPORT

AB SHORT DURATION INCOME PORTFOLIO

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Short Duration Income Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    1

ANNUAL REPORT

December 9, 2020

This report provides management’s discussion of fund performance for AB Short Duration Income Portfolio for the annual reporting period ended October 31, 2020.

The Fund’s investment objective is to seek high current income consistent with preservation of capital.

NAV RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	6 Months		12 Months
AB SHORT DURATION INCOME PORTFOLIO
Class A Shares		7.21%		1.17%
Class C Shares		5.22%		0.51%
Advisor Class Shares1		5.86%		1.34%
Bloomberg Barclays 1-5 Year US Government/Credit Index		1.22%		4.47%

1 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays 1-5 Year US Government/Credit Index, for the six- and 12-month periods ended October 31, 2020.

During the 12-month period, all share classes of the Fund underperformed the benchmark, before sales charges. Sector allocation was the primary detractor, relative to the benchmark, mostly from exposure to commercial mortgage-backed securities (“CMBS”), high-yield corporate bonds and credit default swaps, as well as agency risk-sharing transactions that were partially offset by exposure to investment-grade corporate bonds. Security selection in investment-grade and high-yield corporate bonds contributed to returns. Country allocation to a variety of emerging markets also contributed, while allocation to eurozone countries detracted. Yield-curve positioning and currency decisions did not materially impact performance during the period.

During the six-month period, all share classes of the Fund outperformed the benchmark, before sales charges. Sector allocation contributed most, due to exposure in agency risk-sharing transactions, high-yield corporate bonds and credit default swaps, and CMBS that more than offset losses in investment-grade corporate bonds and US agency mortgages. Security

2    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

selection in investment-grade corporate bonds also contributed, as did country allocation to the eurozone. Yield-curve positioning in the US detracted, while currency decisions did not have a meaningful impact on results.

During both periods, the Fund utilized derivatives in the form of futures, interest rate swaps and interest rate swaptions to manage and hedge duration risk and to take active yield-curve positioning. Currency forwards were used to hedge foreign currency exposure and to take active currency risk. Credit default swaps, both single name and index, were used to take active exposure and to hedge investment-grade and high-yield credit risk. Total return swaps were used to create synthetic high-yield exposure in the Fund. The utilization of government-agency-related To Be Announced mortgage short-term positions was a significant contributor to the Fund’s turnover rate of 336%.

MARKET REVIEW AND INVESTMENT STRATEGY

Global fixed-income market returns were positive over the 12-month period ended October 31, 2020. Central banks and governments enacted an unprecedented amount of monetary and fiscal stimulus to combat market illiquidity and cushion the negative economic impact of COVID-19, which set the stage for a rebound in risk assets following the sell-off that started in March. Government bonds rallied as interest rates were slashed. Emerging- and developed-market investment-grade corporate bonds led gains, followed by developed-market high-yield corporate bonds, as investors searched for higher yields in a period of falling interest rates. Corporate bonds in the US outperformed their European counterparts. Securitized assets also advanced, while emerging-market sovereign bonds were slightly positive and emerging-market local bonds fell during the period. The US dollar declined against most major developed-market currencies and gained against a majority of emerging-market currencies. Brent crude oil prices fell almost 34% as demand slowed sharply and the oil industry outlook was uncertain.

The Fund’s Senior Investment Management Team (the “Team”) continues to pursue high income, while preserving capital by investing primarily in government bonds from both US and non-US issuers as well as corporate bonds, with scope to invest a select amount in below investment-grade bonds. The Team manages the Fund with a core fixed-income strategy through a global, multi-sector approach that seeks an attractive risk/return profile.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    3

INVESTMENT POLICIES

The Fund pursues its objective by investing, under normal circumstances, primarily in income-producing securities. The Fund also normally invests at least 65% of its total assets in securities of US and foreign governments and their agencies and instrumentalities (including mortgage-backed securities), derivatives related to such securities, and repurchase agreements relating to US government securities. Under normal circumstances, the Fund will maintain a dollar-weighted average duration of less than three years, although it may invest in securities of any duration or maturity.

The Fund may invest in non-government fixed-income securities, including corporate debt securities, non-government mortgage-backed and other asset-backed securities, certificates of deposit and commercial paper. The Fund may invest up to 35% of its net assets in below investment-grade securities (commonly known as “junk bonds”). The Fund’s investments in foreign securities may include both government and corporate securities, and securities of emerging-market countries or of issuers in emerging markets.

The Adviser selects securities for purchase or sale based on its assessment of the securities’ risks and return characteristics as well as the securities’ impact on the overall risks and return characteristics of the Fund. 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 Fund’s other holdings.

The Fund may utilize derivatives, such as options, futures contracts, forwards and swaps. The Fund may, for example, use interest rate futures contracts and swaps to establish exposure to the fixed-income markets or particular fixed-income securities. Derivatives may provide a more efficient and economical exposure to market segments than direct investments, and may also be a more efficient way to alter the Fund’s exposure. The Fund may also enter into transactions such as reverse repurchase agreements that are similar to borrowings for investment purposes. The Fund’s use of derivatives and these borrowing transactions may create aggregate exposure that is substantially in excess of its net assets, effectively leveraging the Fund.

The Adviser may hedge the foreign currency exposure resulting from the Fund’s security positions, and may take long or short positions in currencies, through the use of currency-related derivatives. The Fund is “non-diversified”.

4    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays 1-5 Year US Government/Credit Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Barclays 1-5 Year US Government/Credit Index is a broad-based benchmark that measures the nonsecuritized component of the Bloomberg Barclays US Aggregate Index. It includes investment-grade, US dollar-denominated, fixed-rate Treasuries and government-related and corporate securities that have a remaining maturity of greater than or equal to one year and less than five years. An investor cannot invest directly in an index or average, and their results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and less may be more difficult to trade than other types of securities.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    5

DISCLOSURES AND RISKS (continued)

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.

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Foreign (Non-US) Risk: Investments in securities of non-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

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

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

Leverage Risk: To the extent the Fund 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 Fund’s investments.

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

Illiquid Investments Risk: Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest-rate environment, when the value and liquidity of fixed-income securities generally decline.

6    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

DISCLOSURES AND RISKS (continued)

Non-Diversification Risk: The Fund may have more risk because it is “non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s NAV.

Mortgage-Related and/or Other Asset-Backed Securities Risk: Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions for the Fund, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

These risks are fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com. The Fund has been in operation only for a short period of time, and therefore has a very limited historical performance period. This limited performance period is unlikely to be representative of the performance the Portfolio will achieve over a longer period.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    7

DISCLOSURES AND RISKS (continued)

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

8    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

12/12/2018¹ TO 10/31/2020

This chart illustrates the total value of an assumed $10,000 investment in AB Short Duration Income Portfolio Class A shares (from 12/12/2018¹ to 10/31/2020) as compared to the performance of the Fund’s benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 12/12/2018.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    9

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)		SEC Yields1
CLASS A SHARES						1.15%
1 Year		1.17%		-3.13%
Since Inception2		4.34%		1.98%
CLASS C SHARES						0.40%
1 Year		0.51%		-0.45%
Since Inception2		3.54%		3.54%
ADVISOR CLASS SHARES3						1.40%
1 Year		1.34%		1.34%
Since Inception2		4.52%		4.52%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 3.18%, 4.02% and 2.99% for Class A, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios exclusive of acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses and brokerage commissions and other transaction costs to 0.65%, 1.45% and 0.45% for Class A, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated before January 31, 2021. Any fees waived and expenses borne by the Adviser may be reimbursed by the Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne, provided that no reimbursement payment will be made that would cause the Fund’s total operating expenses to exceed the applicable expense limitations. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 SEC yields are calculated based on SEC guidelines for the 30-day period ended October 31, 2020.

2 Inception date: 12/12/2018.

3 This share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of and certain other persons associated with, the Adviser and its affiliates or the Fund.

10    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2020 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-2.51%
Since Inception1		2.18%
CLASS C SHARES
1 Year		0.10%
Since Inception1		3.85%
ADVISOR CLASS SHARES2
1 Year		1.99%
Since Inception1		4.83%

1 Inception date: 12/12/2018.

2 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of and certain other persons associated with, the Adviser and its affiliates or the Fund.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    11

EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

	Beginning Account Value May 1, 2020		Ending Account Value October 31, 2020		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,072.10	$	3.49		0.67	%
Hypothetical**	$	1,000	$	1,021.77	$	3.40		0.67	%
Class C
Actual	$	1,000	$	1,052.20	$	7.58		1.47	%
Hypothetical**	$	1,000	$	1,017.75	$	7.46		1.47	%
Advisor Class
Actual	$	1,000	$	1,058.60	$	2.43		0.47	%
Hypothetical**	$	1,000	$	1,022.77	$	2.39		0.47	%

* Expenses are equal to the Fund’s annualized expense ratio (interest expense incurred) multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period). The Fund’s operating expenses are borne by the Adviser or its affiliates.

** Assumes 5% annual return before expenses.

12    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO SUMMARY

October 31, 2020 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $42.8

1 All data are as of October 31, 2020. The Fund’s security type breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” security type weightings represent 0.2% or less in the following security types: Emerging Markets–Corporate Bonds and Emerging Markets–Treasuries.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    13

PORTFOLIO OF INVESTMENTS

October 31, 2020

		Principal Amount (000)		U.S. $ Value
GOVERNMENTS – TREASURIES – 54.0%
Indonesia – 0.2%
Indonesia Treasury Bond
Series FR56 8.375%, 09/15/2026	IDR		227,000	$	17,330
Series FR77 8.125%, 05/15/2024			168,000		12,498
Series FR78 8.25%, 05/15/2029			916,000		69,146
					98,974
Mexico – 0.4%
Mexican Bonos Series M 20 7.50%, 06/03/2027	MXN		3,550		183,889
Peru – 0.7%
Peru Government Bond 5.70%, 08/12/2024	PEN		950		308,419
United States – 52.7%
U.S. Treasury Bonds 1.125%, 08/15/2040	U.S.$		155		147,444
1.25%, 05/15/2050			147		133,450
6.125%, 11/15/2027(a)			859		1,184,872
U.S. Treasury Notes 0.625%, 05/15/2030-08/15/2030			3,285		3,215,975
1.125%, 02/28/2022(b)			335		339,648
1.50%, 10/31/2024(a)			1,118		1,172,223
1.625%, 10/31/2026			1,427		1,520,201
1.625%, 08/15/2029(b)			4,477		4,800,291
2.00%, 05/31/2024			2,060		2,188,428
2.125%, 05/31/2026			1,245		1,359,190
2.25%, 11/15/2024			791		853,044
2.875%, 08/15/2028(a)			435		506,057
3.125%, 11/15/2028(a)			4,298		5,105,099
					22,525,922
Total Governments – Treasuries (cost $22,537,895)					23,117,204
MORTGAGE PASS-THROUGHS – 28.0%
Agency Fixed Rate 30-Year – 28.0%
Federal National Mortgage Association Series 2020 2.50%, 09/01/2050			1,491		1,580,804
Government National Mortgage Association Series 2020 3.00%, 11/01/2050, TBA			652		680,870

14    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Uniform Mortgage-Backed Security Series 2020 2.00%, 11/01/2050, TBA	U.S.$		490	$	505,587
3.00%, 11/01/2050, TBA			1,927		2,014,426
3.50%, 11/01/2050, TBA			6,830		7,211,320
Total Mortgage Pass-Throughs (cost $12,000,153)					11,993,007
COLLATERALIZED MORTGAGE OBLIGATIONS – 15.6%
Risk Share Floating Rate – 14.9%
Bellemeade Re Ltd. Series 2019-1A, Class M1B 1.899% (LIBOR 1 Month + 1.75%), 03/25/2029(c)(d)			150		149,824
Series 2019-1A, Class M2 2.849% (LIBOR 1 Month + 2.70%), 03/25/2029(c)(d)			152		142,739
Series 2019-3A, Class M1B 1.749% (LIBOR 1 Month + 1.60%), 07/25/2029(c)(d)			150		146,968
Series 2019-4A, Class M2 2.999% (LIBOR 1 Month + 2.85%), 10/25/2029(c)(d)			150		140,321
Series 2020-2A, Class M1C 4.149% (LIBOR 1 Month + 4.00%), 08/26/2030(c)(d)			150		150,750
Connecticut Avenue Securities Trust Series 2019-R02, Class 1M2 2.449% (LIBOR 1 Month + 2.30%), 08/25/2031(c)(d)			16		16,081
Series 2019-R03, Class 1M2 2.299% (LIBOR 1 Month + 2.15%), 09/25/2031(c)(d)			25		24,868
Series 2019-R05, Class 1M2 2.149% (LIBOR 1 Month + 2.00%), 07/25/2039(c)(d)			21		21,064
Series 2019-R06, Class 2M2 2.249% (LIBOR 1 Month + 2.10%), 09/25/2039(c)(d)			43		42,761
Series 2020-R02, Class 2M1 0.899% (LIBOR 1 Month + 0.75%), 01/25/2040(c)(d)			39		39,125
Eagle RE Ltd. Series 2020-2, Class M1B 4.148% (LIBOR 1 Month + 4.00%), 10/25/2030(c)(d)			150		150,089

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Federal Home Loan Mortgage Corp. Series 2019-DNA3, Class M2 2.199% (LIBOR 1 Month + 2.05%), 07/25/2049(c)(d)	U.S.$		10	$	10,240
Series 2019-DNA4, Class M2 2.099% (LIBOR 1 Month + 1.95%), 10/25/2049(c)(d)			28		28,256
Series 2019-HQA1, Class M2 2.499% (LIBOR 1 Month + 2.35%), 02/25/2049(c)(d)			14		13,916
Series 2020-DNA1, Class M2 1.849% (LIBOR 1 Month + 1.70%), 01/25/2050(c)(d)			145		141,383
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes Series 2014-DN4, Class M3 4.699% (LIBOR 1 Month + 4.55%), 10/25/2024(c)			157		159,664
Series 2015-DNA3, Class M3 4.849% (LIBOR 1 Month + 4.70%), 04/25/2028(c)			235		244,696
Series 2015-HQA1, Class M3 4.849% (LIBOR 1 Month + 4.70%), 03/25/2028(c)			184		191,209
Series 2016-DNA4, Class M3 3.949% (LIBOR 1 Month + 3.80%), 03/25/2029(c)			240		248,789
Series 2017-DNA1, Class M2 3.399% (LIBOR 1 Month + 3.25%), 07/25/2029(c)			242		248,840
Series 2017-DNA2, Class M2 3.599% (LIBOR 1 Month + 3.45%), 10/25/2029(c)			400		411,035
Series 2018-DNA1, Class M2 1.949% (LIBOR 1 Month + 1.80%), 07/25/2030(c)			77		74,753
Series 2018-HQA1, Class M2 2.449% (LIBOR 1 Month + 2.30%), 09/25/2030(c)			112		109,429
Federal National Mortgage Association Connecticut Avenue Securities Series 2014-C04, Class 1M2 5.049% (LIBOR 1 Month + 4.90%), 11/25/2024(c)			203		210,727
Series 2015-C02, Class 1M2 4.149% (LIBOR 1 Month + 4.00%), 05/25/2025(c)			49		49,108

16    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2015-C02, Class 2M2 4.149% (LIBOR 1 Month + 4.00%), 05/25/2025(c)	U.S.$		30	$	30,123
Series 2015-C03, Class 1M2 5.149% (LIBOR 1 Month + 5.00%), 07/25/2025(c)			60		60,600
Series 2015-C04, Class 2M2 5.699% (LIBOR 1 Month + 5.55%), 04/25/2028(c)			4		3,848
Series 2016-C01, Class 1M2 6.899% (LIBOR 1 Month + 6.75%), 08/25/2028(c)			118		125,449
Series 2016-C01, Class 2M2 7.099% (LIBOR 1 Month + 6.95%), 08/25/2028(c)			15		16,608
Series 2016-C04, Class 1M2 4.399% (LIBOR 1 Month + 4.25%), 01/25/2029(c)			265		273,672
Series 2016-C05, Class 2M2 4.599% (LIBOR 1 Month + 4.45%), 01/25/2029(c)			115		119,819
Series 2017-C02, Class 2B1 5.649% (LIBOR 1 Month + 5.50%), 09/25/2029(c)			24		24,728
Series 2017-C02, Class 2M2 3.799% (LIBOR 1 Month + 3.65%), 09/25/2029(c)			356		359,061
Series 2017-C04, Class 2M2 2.999% (LIBOR 1 Month + 2.85%), 11/25/2029(c)			63		63,296
Series 2017-C05, Class 1M2 2.349% (LIBOR 1 Month + 2.20%), 01/25/2030(c)			55		54,370
Series 2017-C07, Class 2M2 2.649% (LIBOR 1 Month + 2.50%), 05/25/2030(c)			107		106,356
Series 2018-C01, Class 1B1 3.699% (LIBOR 1 Month + 3.55%), 07/25/2030(c)			180		166,475
Series 2018-C04, Class 2M2 2.699% (LIBOR 1 Month + 2.55%), 12/25/2030(c)			106		104,130
Home Re Ltd. Series 2018-1, Class M1 1.749% (LIBOR 1 Month + 1.60%), 10/25/2028(c)(d)			44		43,829

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2020-1, Class M2 5.394% (LIBOR 1 Month + 5.25%), 10/25/2030(c)(d)	U.S.$		150	$	149,998
Mortgage Insurance-Linked Notes Series 2019-1, Class M1 2.049% (LIBOR 1 Month + 1.90%), 11/26/2029(c)(d)			160		158,718
Series 2019-1, Class M2 3.049% (LIBOR 1 Month + 2.90%), 11/26/2029(c)(d)			150		135,804
Oaktown Re II Ltd. Series 2018-1A, Class M1 1.699% (LIBOR 1 Month + 1.55%), 07/25/2028(c)(d)			31		30,892
Oaktown Re III Ltd. Series 2019-1A, Class M1B 2.099% (LIBOR 1 Month + 1.95%), 07/25/2029(c)(d)			150		148,170
PMT Credit Risk Transfer Trust Series 2019-3R, Class A 2.852% (LIBOR 1 Month + 2.70%), 10/27/2022(c)(e)			57		50,734
Radnor Re Ltd. Series 2019-1, Class M1B 2.099% (LIBOR 1 Month + 1.95%), 02/25/2029(c)(d)			96		95,738
Series 2019-2, Class M1B 1.899% (LIBOR 1 Month + 1.75%), 06/25/2029(c)(d)			305		302,661
Series 2020-1, Class M1A 1.099% (LIBOR 1 Month + 0.95%), 02/25/2030(c)(d)			150		149,449
Series 2020-1, Class M1B 1.599% (LIBOR 1 Month + 1.45%), 02/25/2030(c)(d)			150		145,280
Series 2020-1, Class M1C 1.899% (LIBOR 1 Month + 1.75%), 02/25/2030(c)(d)			150		140,642
Traingle Re Ltd. Series 2020-1, Class M1C 4.647% (LIBOR 1 Month + 4.50%), 10/25/2030(c)(d)			150		149,890
					6,376,975
Agency Fixed Rate – 0.4%
Federal Home Loan Mortgage Corp. REMICs Series 4913, Class IO 6.00%, 04/15/2041(f)			127		27,352

18    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Federal National Mortgage Association REMICs Series 2012-120, Class CI 3.50%, 12/25/2031(f)	U.S.$		359	$	19,144
Series 2016-26, Class IO 5.00%, 05/25/2046(f)			284		49,597
Series 2016-31, Class IO 5.00%, 06/25/2046(f)			357		59,738
Series 2016-64, Class BI 5.00%, 09/25/2046(f)			47		8,027
					163,858
Agency Floating Rate – 0.3%
Federal Home Loan Mortgage Corp. REMICs Series 4372, Class JS 5.952% (6.10% – LIBOR 1 Month), 08/15/2044(c)(g)			169		34,185
Series 4906, Class SA 5.902% (6.05% – LIBOR 1 Month), 09/25/2049(c)(g)			166		32,841
Federal National Mortgage Association REMICs Series 2010-129, Class PS 6.551% (6.70% – LIBOR 1 Month), 11/25/2038(c)(g)			122		1,799
Series 2012-17, Class ES 6.401% (6.55% – LIBOR 1 Month), 03/25/2041(c)(g)			145		20,514
Series 2012-17, Class SE 5.801% (5.95% – LIBOR 1 Month), 03/25/2042(c)(g)			94		23,993
Series 2019-25, Class SA 5.901% (6.05% – LIBOR 1 Month), 06/25/2049(c)(g)			80		18,079
Series 2019-42, Class SQ 5.901% (6.05% – LIBOR 1 Month), 08/25/2049(c)(g)			95		15,968
					147,379
Total Collateralized Mortgage Obligations (cost $6,755,008)					6,688,212
CORPORATES – INVESTMENT GRADE – 9.4%
Financial Institutions – 5.1%
Banking – 4.0%
AIB Group PLC 4.75%, 10/12/2023(d)			200		217,276
Banco de Credito del Peru 3.125%, 07/01/2030(d)			39		39,390

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand 5.375%, 04/17/2025(d)	U.S.$		150	$	167,813
Banco Santander SA 5.179%, 11/19/2025			200		227,860
Bank of America Corp. 2.738%, 01/23/2022			33		33,171
CIT Group, Inc. 3.929%, 06/19/2024			15		15,624
Danske Bank A/S 5.375%, 01/12/2024(d)			200		224,494
ING Groep NV 6.875%, 04/16/2022(d)(h)			200		207,046
Morgan Stanley Series G 4.00%, 07/23/2025			125		142,106
Nationwide Building Society 3.622%, 04/26/2023(d)			200		207,818
Santander Holdings USA, Inc. 3.244%, 10/05/2026			98		105,526
4.40%, 07/13/2027			12		13,360
Truist Financial Corp. Series P 4.95%, 09/01/2025(h)			107		114,306
					1,715,790
Finance – 0.7%
AerCap Ireland Capital DAC/AerCap Global Aviation Trust 4.875%, 01/16/2024			150		156,919
Aircastle Ltd. 4.125%, 05/01/2024			8		7,875
4.40%, 09/25/2023			13		13,079
5.00%, 04/01/2023			3		3,059
5.25%, 08/11/2025(d)			52		51,600
Synchrony Financial 2.85%, 07/25/2022			23		23,725
4.375%, 03/19/2024			15		16,417
4.50%, 07/23/2025			21		23,356
					296,030
Insurance – 0.4%
Centene Corp. 4.75%, 01/15/2025			40		41,105
Voya Financial, Inc. 5.65%, 05/15/2053			101		104,066
					145,171

20    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
REITS – 0.0%
Sabra Health Care LP 4.80%, 06/01/2024	U.S.$		11	$	11,620
					2,168,611
Industrial – 4.3%
Basic – 0.0%
Arconic Corp. 6.00%, 05/15/2025(d)			15		15,871
Vale Overseas Ltd. 3.75%, 07/08/2030			2		2,091
					17,962
Capital Goods – 0.4%
General Electric Co. 3.45%, 05/01/2027			133		140,896
Westinghouse Air Brake Technologies Corp. 3.20%, 06/15/2025			7		7,431
4.40%, 03/15/2024			8		8,730
					157,057
Communications - Media – 0.4%
Charter Communications Operating LLC/Charter Communications Operating Capital 4.464%, 07/23/2022			130		137,750
ViacomCBS, Inc. 3.70%, 08/15/2024			26		28,341
					166,091
Consumer Cyclical - Automotive – 0.8%
General Motors Financial Co., Inc. 3.25%, 01/05/2023			75		77,768
3.70%, 05/09/2023			84		88,275
Harley-Davidson Financial Services, Inc. 3.35%, 06/08/2025(d)			18		18,978
Hyundai Capital America 5.875%, 04/07/2025(d)			121		141,126
Nissan Motor Acceptance Corp. 2.60%, 09/28/2022(d)			7		7,077
2.80%, 01/13/2022(d)			4		4,055
3.45%, 03/15/2023(d)			6		6,166
					343,445
Consumer Cyclical - Other – 0.0%
Marriott International, Inc./MD Series EE 5.75%, 05/01/2025			14		15,588
Consumer Cyclical - Retailers – 0.1%
Ross Stores, Inc. 4.70%, 04/15/2027			26		30,558

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Consumer Non-Cyclical – 0.2%
BAT Capital Corp. 4.70%, 04/02/2027	U.S.$		32	$	36,672
Cigna Corp. 3.00%, 07/15/2023			60		63,694
					100,366
Energy – 0.9%
Cenovus Energy, Inc. 5.375%, 07/15/2025			28		29,538
Ecopetrol SA 5.875%, 05/28/2045			4		4,341
6.875%, 04/29/2030			45		54,090
Energy Transfer Operating LP 5.50%, 06/01/2027			80		88,723
ONEOK, Inc. 2.20%, 09/15/2025			17		16,774
5.85%, 01/15/2026			73		83,118
PBF Holding Co. LLC/PBF Finance Corp. 9.25%, 05/15/2025(d)			40		35,741
Plains All American Pipeline LP/PAA Finance Corp. 4.50%, 12/15/2026			16		16,990
4.65%, 10/15/2025			41		43,750
Sunoco Logistics Partners Operations LP 3.90%, 07/15/2026			8		8,278
					381,343
Services – 0.1%
Booking Holdings, Inc. 4.10%, 04/13/2025			31		34,742
Expedia Group, Inc. 6.25%, 05/01/2025(d)			8		8,797
					43,539
Technology – 0.7%
Broadcom, Inc. 4.25%, 04/15/2026			80		89,980
4.70%, 04/15/2025			59		67,049
NXP BV/NXP Funding LLC/NXP USA, Inc. 3.875%, 06/18/2026(d)			120		135,288
					292,317
Transportation - Airlines – 0.4%
Delta Air Lines, Inc. 7.00%, 05/01/2025(d)			42		45,829
Delta Air Lines, Inc./SkyMiles IP Ltd. 4.50%, 10/20/2025(d)			24		24,364

22    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Southwest Airlines Co. 5.25%, 05/04/2025	U.S.$		92	$	102,077
					172,270
Transportation - Services – 0.3%
Aviation Capital Group LLC 3.50%, 11/01/2027(d)			4		3,534
3.875%, 05/01/2023(d)			11		11,002
4.125%, 08/01/2025(d)			16		15,401
4.375%, 01/30/2024(d)			26		26,184
5.50%, 12/15/2024(d)			77		80,183
					136,304
					1,856,840
Total Corporates – Investment Grade (cost $3,719,101)					4,025,451
COMMERCIAL MORTGAGE-BACKED SECURITIES – 9.1%
Non-Agency Fixed Rate CMBS – 8.2%
BAMLL Commercial Mortgage Securities Trust Series 2013-WBRK, Class D 3.534%, 03/10/2037(d)			100		88,441
Barclays Commercial Mortgage Trust Series 2019-C3, Class XA 1.345%, 05/15/2052(f)			996		91,338
Bbcms Mortgage Trust Series 2017-C1, Class XA 1.488%, 02/15/2050(f)			1,526		107,416
CD Mortgage Trust Series 2016-CD1, Class XA 1.391%, 08/10/2049(f)			1,773		105,492
CFCRE Commercial Mortgage Trust Series 2016-C4, Class XA 1.686%, 05/10/2058(f)			95		6,704
Citigroup Commercial Mortgage Trust Series 2015-GC29, Class XA 1.045%, 04/10/2048(f)			2,512		99,888
Series 2016-P3, Class XA 1.70%, 04/15/2049(f)			1,096		73,344
Series 2017-P7, Class XA 1.117%, 04/14/2050(f)			983		53,086
Commercial Mortgage Trust Series 2012-CR5, Class C 4.32%, 12/10/2045(d)			100		97,437
Series 2013-CR6, Class C 3.777%, 03/10/2046(d)			112		108,374

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2014-CR16, Class D 4.927%, 04/10/2047(d)	U.S.$		100	$	88,193
Series 2015-CR27, Class XA 0.938%, 10/10/2048(f)			1,323		50,451
Series 2016-DC2, Class XA 0.985%, 02/10/2049(f)			3,151		128,092
CSAIL Commercial Mortgage Trust Series 2015-C1, Class D 3.768%, 04/15/2050(d)			100		66,300
GS Mortgage Securities Trust Series 2012-GC6, Class D 5.651%, 01/10/2045(d)			85		68,101
Series 2013-GC13, Class D 4.084%, 07/10/2046(d)			100		77,963
Series 2014-GC22, Class D 4.692%, 06/10/2047(d)			40		26,786
Series 2016-GS3, Class XA 1.236%, 10/10/2049(f)			1,506		78,117
Series 2017-GS5, Class XA 0.808%, 03/10/2050(f)			1,580		68,957
Series 2017-GS7, Class XA 1.123%, 08/10/2050(f)			3,426		195,295
Series 2019-GC39, Class XA 1.14%, 05/10/2052(f)			4,690		335,531
JP Morgan Chase Commercial Mortgage Securities Trust Series 2010-C2, Class A3 4.07%, 11/15/2043(d)			235		234,641
Series 2012-C8, Class E 4.67%, 10/15/2045(d)			100		58,691
Series 2012-LC9, Class G 4.418%, 12/15/2047(d)			100		64,795
Series 2013-LC11, Class B 3.499%, 04/15/2046			110		107,247
JPMBB Commercial Mortgage Securities Trust
Series 2013-C14, Class D 4.702%, 08/15/2046(d)			75		53,729
Series 2014-C21, Class D 4.657%, 08/15/2047(d)			100		87,743
Morgan Stanley Bank of America Merrill Lynch Trust Series 2013-C9, Class B 3.708%, 05/15/2046			110		112,594
UBS Commercial Mortgage Trust Series 2012-C1, Class D 5.569%, 05/10/2045(d)			125		91,710
Series 2017-C1, Class XA 1.548%, 06/15/2050(f)			1,366		103,901

24    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Series 2017-C2, Class XA 1.082%, 08/15/2050(f)	U.S.$		2,784	$	142,140
UBS-Barclays Commercial Mortgage Trust Series 2013-C6, Class D 4.307%, 04/10/2046(d)			81		52,665
Wells Fargo Commercial Mortgage Trust Series 2016-C32, Class XA 1.264%, 01/15/2059(f)			930		46,023
Series 2016-C35, Class XA 1.932%, 07/15/2048(f)			1,227		100,163
Series 2016-LC24, Class XA 1.668%, 10/15/2049(f)			928		67,394
Series 2019-C52, Class XA 1.619%, 08/15/2052(f)			993		106,350
WF-RBS Commercial Mortgage Trust Series 2011-C4, Class D 5.221%, 06/15/2044(d)			60		51,623
WFRBS Commercial Mortgage Trust Series 2011-C4, Class E 5.221%, 06/15/2044(d)			25		15,039
					3,511,754
Non-Agency Floating Rate CMBS – 0.9%
BFLD Series 2019-DPLO, Class D 1.988% (LIBOR 1 Month + 1.84%), 10/15/2034(c)(d)			59		54,675
Series 2019-DPLO, Class E 2.388% (LIBOR 1 Month + 2.24%), 10/15/2034(c)(d)			10		9,012
CLNY Trust Series 2019-IKPR, Class D 2.173% (LIBOR 1 Month + 2.03%), 11/15/2038(c)(d)			120		108,726
Great Wolf Trust Series 2019-WOLF, Class D 2.081% (LIBOR 1 Month + 1.93%), 12/15/2036(c)(d)			45		40,780
Morgan Stanley Capital I Trust Series 2019-BPR, Class D 4.148% (LIBOR 1 Month + 4.00%), 05/15/2036(c)(d)			133		105,212
Starwood Retail Property Trust Series 2014-STAR, Class A 1.618% (LIBOR 1 Month + 1.47%), 11/15/2027(c)(d)			89		65,614
					384,019
Total Commercial Mortgage-Backed Securities (cost $4,167,802)					3,895,773

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
CORPORATES – NON-INVESTMENT GRADE – 7.0%
Industrial – 6.2%
Basic – 0.4%
Arconic Corp. 6.125%, 02/15/2028(d)	U.S.$		6	$	6,322
Cleveland-Cliffs, Inc. 9.875%, 10/17/2025(d)			35		40,020
Graphic Packaging International LLC 4.75%, 07/15/2027(d)			6		6,518
Hecla Mining Co. 7.25%, 02/15/2028			29		31,175
Kaiser Aluminum Corp. 6.50%, 05/01/2025(d)			11		11,684
United States Steel Corp. 12.00%, 06/01/2025(d)			54		59,933
WR Grace & Co-Conn 4.875%, 06/15/2027(d)			19		19,801
					175,453
Capital Goods – 0.5%
Bombardier, Inc. 7.50%, 12/01/2024-03/15/2025(d)			28		20,572
Cleaver-Brooks, Inc. 7.875%, 03/01/2023(d)			7		6,782
Energizer Holdings, Inc. 4.75%, 06/15/2028(d)			16		16,524
Gates Global LLC/Gates Corp. 6.25%, 01/15/2026(d)			23		23,805
GFL Environmental, Inc. 3.75%, 08/01/2025(d)			10		10,046
5.125%, 12/15/2026(d)			2		2,099
7.00%, 06/01/2026(d)			7		7,309
Mauser Packaging Solutions Holding Co. 5.50%, 04/15/2024(d)			12		12,012
SPX FLOW, Inc. 5.875%, 08/15/2026(d)			35		36,542
TransDigm, Inc. 8.00%, 12/15/2025(d)			35		37,897
Triumph Group, Inc. 8.875%, 06/01/2024(d)			17		18,098
Wesco Distribution, Inc. 7.125%, 06/15/2025(d)			16		17,263
					208,949
Communications - Media – 0.2%
DISH DBS Corp. 5.00%, 03/15/2023			8		8,062

26    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Meredith Corp. 6.875%, 02/01/2026	U.S.$		10	$	8,289
TEGNA, Inc. 4.75%, 03/15/2026(d)			25		25,818
Univision Communications, Inc. 5.125%, 02/15/2025(d)			4		3,932
9.50%, 05/01/2025(d)			20		21,843
					67,944
Consumer Cyclical - Automotive – 0.8%
Adient US LLC 9.00%, 04/15/2025(d)			40		43,977
Clarios Global LP/Clarios US Finance Co. 6.25%, 05/15/2026(d)			3		3,123
8.50%, 05/15/2027(d)			8		8,350
Ford Motor Co. 8.50%, 04/21/2023			90		99,325
9.00%, 04/22/2025			27		31,809
Jaguar Land Rover Automotive PLC 5.875%, 11/15/2024(d)	EUR		116		124,088
Meritor, Inc. 6.25%, 06/01/2025(d)	U.S.$		5		5,117
Truck Hero, Inc. 8.50%, 04/21/2024(d)			5		5,276
					321,065
Consumer Cyclical - Entertainment – 1.0%
Carnival Corp. 11.50%, 04/01/2023(d)			88		96,853
Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp./Millennium Op 5.50%, 05/01/2025(d)			89		90,105
Royal Caribbean Cruises Ltd. 10.875%, 06/01/2023(d)			47		51,267
11.50%, 06/01/2025(d)			78		89,226
SeaWorld Parks & Entertainment, Inc. 8.75%, 05/01/2025(d)			20		21,010
9.50%, 08/01/2025(d)			32		33,588
Six Flags Theme Parks, Inc. 7.00%, 07/01/2025(d)			21		22,236
Vail Resorts, Inc. 6.25%, 05/15/2025(d)			11		11,611
Viking Cruises Ltd. 5.875%, 09/15/2027(d)			12		9,268
					425,164
Consumer Cyclical - Other – 0.3%
Adams Homes, Inc. 7.50%, 02/15/2025(d)			13		13,096

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Boyd Gaming Corp. 8.625%, 06/01/2025(d)	U.S.$		6	$	6,563
Caesars Entertainment, Inc. 6.25%, 07/01/2025(d)			18		18,515
Five Point Operating Co. LP/Five Point Capital Corp. 7.875%, 11/15/2025(d)			10		9,988
Forterra Finance LLC/FRTA Finance Corp. 6.50%, 07/15/2025(d)			11		11,641
Hilton Domestic Operating Co., Inc. 5.375%, 05/01/2025(d)			7		7,272
Marriott Ownership Resorts, Inc. 6.125%, 09/15/2025(d)			24		25,017
Shea Homes LP/Shea Homes Funding Corp. 4.75%, 02/15/2028(d)			11		11,176
Taylor Morrison Communities, Inc. 5.875%, 06/15/2027(d)			15		16,635
Wyndham Destinations, Inc. 6.625%, 07/31/2026(d)			20		21,285
					141,188
Consumer Cyclical - Restaurants – 0.2%
1011778 BC ULC/New Red Finance, Inc. 5.75%, 04/15/2025(d)			25		26,659
IRB Holding Corp. 7.00%, 06/15/2025(d)			26		27,723
Yum! Brands, Inc. 7.75%, 04/01/2025(d)			41		45,028
					99,410
Consumer Cyclical - Retailers – 0.6%
Burlington Coat Factory Warehouse Corp. 6.25%, 04/15/2025(d)			6		6,304
Dufry One BV 2.50%, 10/15/2024(d)	EUR		100		105,281
L Brands, Inc. 6.875%, 07/01/2025(d)	U.S.$		7		7,501
9.375%, 07/01/2025(d)			10		11,605
Penske Automotive Group, Inc. 3.50%, 09/01/2025			20		20,057
Rite Aid Corp. 7.50%, 07/01/2025(d)			15		15,004
Specialty Building Products Holdings LLC/SBP Finance Corp. 6.375%, 09/30/2026(d)			30		30,666
Staples, Inc. 7.50%, 04/15/2026(d)			15		14,007

28    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
William Carter Co. (The) 5.50%, 05/15/2025(d)	U.S.$		22	$	23,105
					233,530
Consumer Non-Cyclical – 0.4%
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC 3.50%, 02/15/2023(d)			21		21,336
CD&R Smokey Buyer, Inc. 6.75%, 07/15/2025(d)			5		5,315
CHS/Community Health Systems, Inc. 6.25%, 03/31/2023			8		7,929
6.625%, 02/15/2025(d)			11		10,792
Legacy LifePoint Health LLC 6.75%, 04/15/2025(d)			25		26,465
LifePoint Health, Inc. 4.375%, 02/15/2027(d)			23		22,772
Par Pharmaceutical, Inc. 7.50%, 04/01/2027(d)			24		25,421
Providence Service Corp. (The) 5.875%, 11/15/2025(d)			9		9,160
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc. 9.75%, 12/01/2026(d)			7		7,541
Tenet Healthcare Corp. 4.875%, 01/01/2026(d)			9		9,127
7.50%, 04/01/2025(d)			29		31,242
					177,100
Energy – 0.7%
Apache Corp. 4.625%, 11/15/2025			6		5,681
4.875%, 11/15/2027			12		11,246
CITGO Petroleum Corp. 6.25%, 08/15/2022(d)			28		26,947
7.00%, 06/15/2025(d)			33		30,564
EnLink Midstream Partners LP 4.40%, 04/01/2024			5		4,559
EQT Corp. 8.75%, 02/01/2030			31		38,508
Genesis Energy LP/Genesis Energy Finance Corp. 7.75%, 02/01/2028			15		12,454
Nabors Industries Ltd. 7.25%, 01/15/2026(d)			15		6,239
New Fortress Energy, Inc. 6.75%, 09/15/2025(d)			60		61,861

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Occidental Petroleum Corp. 2.70%, 02/15/2023	U.S.$		40	$	35,837
5.875%, 09/01/2025			10		8,797
8.00%, 07/15/2025			18		17,555
Range Resources Corp. 5.00%, 03/15/2023			3		2,915
Transocean, Inc. 8.00%, 02/01/2027(d)			23		6,341
Western Midstream Operating LP 3.95%, 06/01/2025			5		4,631
4.75%, 08/15/2028			24		22,512
5.05%, 02/01/2030			20		18,970
					315,617
Other Industrial – 0.1%
Avient Corp. 5.75%, 05/15/2025(d)			16		16,807
IAA, Inc. 5.50%, 06/15/2027(d)			5		5,248
					22,055
Services – 0.3%
Allied Universal Holdco LLC/Allied Universal Finance Corp. 6.625%, 07/15/2026(d)			24		25,134
APX Group, Inc. 6.75%, 02/15/2027(d)			30		31,418
Aramark Services, Inc. 6.375%, 05/01/2025(d)			42		44,079
Sabre GLBL, Inc. 9.25%, 04/15/2025(d)			18		19,924
TripAdvisor, Inc. 7.00%, 07/15/2025(d)			12		12,480
					133,035
Technology – 0.4%
Boxer Parent Co., Inc. 7.125%, 10/02/2025(d)			6		6,428
CDW LLC/CDW Finance Corp. 4.125%, 05/01/2025			14		14,519
CommScope, Inc. 5.50%, 03/01/2024(d)			20		20,424
Dell International LLC/EMC Corp. 7.125%, 06/15/2024(d)			36		37,308
Microchip Technology, Inc. 4.25%, 09/01/2025(d)			9		9,329
NCR Corp. 8.125%, 04/15/2025(d)			18		19,791

30    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Presidio Holdings, Inc. 4.875%, 02/01/2027(d)	U.S.$		2	$	2,054
8.25%, 02/01/2028(d)			2		2,122
Science Applications International Corp. 4.875%, 04/01/2028(d)			4		4,190
Veritas US, Inc./Veritas Bermuda Ltd. 7.50%, 09/01/2025(d)			60		60,812
					176,977
Transportation - Airlines – 0.2%
Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd. 8.00%, 09/20/2025(d)			68		71,568
Transportation - Services – 0.1%
Avis Budget Car Rental LLC/Avis Budget Finance, Inc. 5.75%, 07/15/2027(d)			2		1,886
10.50%, 05/15/2025(d)			38		43,784
XPO Logistics, Inc. 6.75%, 08/15/2024(d)			10		10,576
					56,246
					2,625,301
Financial Institutions – 0.8%
Banking – 0.3%
Alliance Data Systems Corp. 4.75%, 12/15/2024(d)			35		32,584
7.00%, 01/15/2026(d)			16		16,053
HSBC Finance Corp. 6.676%, 01/15/2021			61		61,584
					110,221
Brokerage – 0.0%
NFP Corp. 7.00%, 05/15/2025(d)			18		19,127
Finance – 0.3%
Navient Corp. 6.50%, 06/15/2022			14		14,379
SLM Corp. 4.20%, 10/29/2025			103		104,495
					118,874
Insurance – 0.0%
Acrisure LLC/Acrisure Finance, Inc. 8.125%, 02/15/2024(d)			7		7,329
Other Finance – 0.0%
Tempo Acquisition LLC/Tempo Acquisition Finance Corp. 6.75%, 06/01/2025(d)			8		8,120

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
REITS – 0.2%
Diversified Healthcare Trust 9.75%, 06/15/2025	U.S.$		36	$	39,556
MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer, Inc. 4.625%, 06/15/2025(d)			31		31,564
					71,120
					334,791
Utility – 0.0%
Electric – 0.0%
Calpine Corp. 5.125%, 03/15/2028(d)			8		8,251
Talen Energy Supply LLC 7.25%, 05/15/2027(d)			5		4,940
					13,191
Total Corporates – Non-Investment Grade (cost $2,854,639)					2,973,283
COLLATERALIZED LOAN OBLIGATIONS – 1.5%
CLO - Floating Rate – 1.5%
Ballyrock CLO Ltd. Series 2019-2A, Class A1A 1.503% (LIBOR 3 Month + 1.25%), 11/20/2030(c)(d)			250		248,011
Signal Peak Clo 2 LLC Series 2015-1A, Class AR2 1.198% (LIBOR 3 Month + 0.98%), 04/20/2029(c)(d)			390		386,163
Total Collateralized Loan Obligations (cost $612,550)					634,174
ASSET-BACKED SECURITIES – 1.4%
Other ABS - Fixed Rate – 1.0%
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-43, Class PT 6.564%, 11/15/2044(e)			9		8,740
Series 2019-HP1, Class B
3.48%, 12/15/2026(d)			100		100,611
Consumer Loan Underlying Bond CLUB Credit Trust Series 2020-P1, Class B 2.92%, 03/15/2028(d)			100		99,595

32    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Marlette Funding Trust Series 2018-3A, Class C 4.63%, 09/15/2028(d)	U.S.$		100	$	101,298
SoFi Consumer Loan Program Trust Series 2020-1, Class D 2.94%, 01/25/2029(d)			100		99,645
					409,889
Autos - Fixed Rate – 0.4%
Exeter Automobile Receivables Trust Series 2018-4A, Class E 5.38%, 07/15/2025(d)			115		119,521
Series 2019-1A, Class E
5.20%, 01/15/2026(d)			40		41,935
Series 2019-2A, Class E
4.68%, 05/15/2026(d)			15		15,617
Westlake Automobile Receivables Trust Series 2019-2A, Class E 4.02%, 04/15/2025(d)			14		14,283
					191,356
Total Asset-Backed Securities (cost $597,462)					601,245
GOVERNMENTS – SOVEREIGN AGENCIES – 1.4%
Canada – 1.4%
Canada Housing Trust No. 1 2.65%, 12/15/2028(d) (cost $559,708)	CAD		690		588,165
BANK LOANS – 1.0%
Industrial – 0.8%
Basic – 0.1%
Illuminate Buyer, LLC 4.148% (LIBOR 1 Month + 4.00%), 06/30/2027(i)	U.S.$		50		49,102
Capital Goods – 0.1%
BWay Holding Company 3.480% (LIBOR 3 Month + 3.25%), 04/03/2024(i)			28		25,843
Garrett Motion SARL (fka Garrett Motion Inc.) 5.750% (PRIME 2 Month + 2.50%), 09/27/2025(i)(j)			23		22,141
					47,984

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Communications - Media – 0.0%
Nielsen Finance LLC 4.750% (LIBOR 1 Month + 3.75%), 06/04/2025(i)	U.S.$		10	$	9,910
Univision Communications Inc. 3.750% (LIBOR 1 Month + 2.75%), 03/15/2024(i)			9		8,496
					18,406
Consumer Cyclical - Automotive – 0.1%
Navistar, Inc. 3.650% (LIBOR 1 Month + 3.50%), 11/06/2024(i)			23		22,510
Consumer Cyclical - Other – 0.1%
Playtika Holding Corp. 7.000% (LIBOR 3 Month + 6.00%), 12/10/2024(i)			22		22,122
Consumer Cyclical - Retailers – 0.0%
PetSmart, Inc. 4.500% (LIBOR 3 Month + 3.50%), 03/11/2022(i)			17		17,213
Consumer Non-Cyclical – 0.1%
Froneri International Limited 5.898% (LIBOR 1 Month + 5.75%), 01/31/2028(i)(j)			8		7,693
U.S. Renal Care, Inc. 5.188% (LIBOR 1 Month + 5.00%), 06/26/2026(i)			28		26,602
					34,295
Other Industrial – 0.0%
Rockwood Service Corporation 4.398% (LIBOR 1 Month + 4.25%), 01/23/2027(i)(j)			3		3,100
Services – 0.1%
Amentum Government Services Holdings LLC 3.648% (LIBOR 1 Month + 3.50%), 01/29/2027(i)			3		2,866
Parexel International Corporation 2.898% (LIBOR 1 Month + 2.75%), 09/27/2024(i)			13		11,983
Team Health Holdings, Inc. 3.750% (LIBOR 1 Month + 2.75%), 02/06/2024(i)			20		16,001
					30,850

34    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Technology – 0.2%
athenahealth, Inc. 4.750% (LIBOR 3 Month + 4.50%), 02/11/2026(i)(j)	U.S.$		19	$	18,381
Avaya Inc. 4.398% (LIBOR 1 Month + 4.25%), 12/15/2024(i)			1		879
Boxer Parent Company Inc. (fka BMC Software, Inc.) 4.398% (LIBOR 1 Month + 4.25%), 10/02/2025(i)			28		26,896
Pitney Bowes Inc. 5.650% (LIBOR 1 Month + 5.50%), 01/07/2025(i)			11		10,559
Presidio Holdings Inc. 3.720% (LIBOR 3 Month + 3.50%), 01/22/2027(i)			9		9,255
Solera, LLC (Solera Finance, Inc.) 2.916% (LIBOR 2 Month + 2.75%), 03/03/2023(i)			23		22,116
					88,086
Transportation - Airlines – 0.0%
Delta Air Lines, Inc. 4.964% (LIBOR 3 Month + 4.75%), 04/29/2023(i)			10		9,919
					343,587
Financial Institutions – 0.1%
Finance – 0.0%
Jefferies Finance LLC 3.188% (LIBOR 1 Month + 3.00%), 06/03/2026(i)			8		7,695
Insurance – 0.1%
Cross Financial Corp. 5.500% (LIBOR 1 Month + 4.50%), 09/15/2027(i)(j)			50		49,750
Sedgwick Claims Management Services, Inc. (Lightning Cayman Merger Sub, Ltd.) 4.148% (LIBOR 1 Month + 4.00%), 09/03/2026(i)			11		10,519
					60,269
					67,964
Utility – 0.1%
Electric – 0.1%
Granite Generation LLC 4.750% (LIBOR 1 Month + 3.75%), 11/09/2026(i)			23		22,580

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
4.750% (LIBOR 3 Month + 3.75%), 11/09/2026(i)	U.S.$		4	$	4,151
					26,731
Total Bank Loans (cost $445,800)					438,282
EMERGING MARKETS – SOVEREIGNS – 0.6%
Egypt – 0.5%
Egypt Government International Bond 5.75%, 05/29/2024(d)			212		216,902
Lebanon – 0.0%
Lebanon Government International Bond 6.10%, 10/04/2022(d)(k)(l)			16		2,195
Nigeria – 0.1%
Nigeria Government International Bond 5.625%, 06/27/2022			40		40,575
Total Emerging Markets – Sovereigns (cost $266,117)					259,672
GOVERNMENTS – SOVEREIGN BONDS – 0.5%
United Arab Emirates – 0.5%
Abu Dhabi Government International Bond 2.50%, 04/16/2025(d) (cost $198,573)			200		211,800
QUASI-SOVEREIGNS – 0.4%
Quasi-Sovereign Bonds – 0.4%
Mexico – 0.4%
Petroleos Mexicanos 5.35%, 02/12/2028			101		86,273
5.95%, 01/28/2031			53		44,305
6.49%, 01/23/2027			22		20,466
Total Quasi-Sovereigns (cost $153,120)					151,044
EMERGING MARKETS – CORPORATE BONDS – 0.3%
Industrial – 0.3%
Basic – 0.0%
Eldorado Gold Corp. 9.50%, 06/01/2024(d)			15		16,389

36    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

		Principal Amount (000)		U.S. $ Value
Capital Goods – 0.2%
Embraer Netherlands Finance BV 5.40%, 02/01/2027	U.S.$		91	$	86,167
Energy – 0.1%
Leviathan Bond Ltd. 6.125%, 06/30/2025(d)			23		23,578
Total Emerging Markets – Corporate Bonds (cost $120,299)					126,134
EMERGING MARKETS –TREASURIES – 0.2%
Brazil – 0.2%
Brazil Notas do Tesouro Nacional Series F 10.00%, 01/01/2023 (cost $128,415)	BRL		487		92,975
		Shares
SHORT-TERM INVESTMENTS – 1.1%
Investment Companies – 1.0%
AB Fixed Income Shares, Inc. – AB Government Money Market Portfolio – Class AB, 0.03%(m)(n)(o) (cost $430,320)			430,320		430,320
		Principal Amount (000)
Governments – Treasuries – 0.1%
Egypt – 0.1%
Egypt Treasury Bills Series 182D Zero Coupon, 03/23/2021	EGP		125		7,566
Series 273D Zero Coupon, 11/17/2020			200		12,670
Total Governments – Treasuries (cost $20,030)					20,236
Total Short-Term Investments (cost $450,350)					450,556
Total Investments – 131.5% (cost $55,566,992)					56,246,977
Other assets less liabilities – (31.5)%					(13,465,266	)
Net Assets – 100.0%				$	42,781,711

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    37

PORTFOLIO OF INVESTMENTS (continued)

FUTURES (see Note D)

Description	Number of Contracts		Expiration Month	Current Notional		Value and Unrealized Appreciation/ (Depreciation)
Purchased Contracts
U.S. 10 Yr Ultra Futures		2	December 2020	$	314,562	$	(5,878	)
Sold Contracts
10 Yr Canadian Bond Futures		4	December 2020		453,472		2,606
10 Yr Mini Japan Government Bond Futures		3	December 2020		435,207		(723	)
Euro-Schatz Futures		3	December 2020		392,946		(702	)
U.S. T-Note 2 Yr (CBT) Futures		3	December 2020		662,531		200
U.S. T-Note 5 Yr (CBT) Futures		4	December 2020		502,407		1,089
U.S. T-Note 10 Yr (CBT) Futures		104	December 2020		14,374,750		117,785
						$	114,377

FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)

Counterparty	Contracts to Deliver (000)			In Exchange For (000)			Settlement Date		Unrealized Appreciation/ (Depreciation)
BNP Paribas SA		BRL	597		USD	108		11/04/2020	$	3,675
BNP Paribas SA		USD	103		BRL	597		11/04/2020		610
BNP Paribas SA		CAD	841		USD	633		12/10/2020		1,774
Citibank, NA		BRL	597		USD	103		11/04/2020		(610	)
Citibank, NA		USD	104		BRL	597		11/04/2020		(90	)
Citibank, NA		BRL	597		USD	104		12/02/2020		141
Deutsche Bank AG		PEN	1,109		USD	313		11/13/2020		6,032
Goldman Sachs Bank USA		IDR	1,234,755		USD	82		01/15/2021		(519	)
State Street Bank & Trust Co.		JPY	2,145		USD	20		12/11/2020		(183	)
State Street Bank & Trust Co.		MXN	3,565		USD	166		12/11/2020		(1,165	)
State Street Bank & Trust Co.		EUR	260		USD	306		12/18/2020		3,075
									$	12,740

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
CDX-NAHY Series 34, 5 Year Index, 06/20/2025*		(5.00	)%		Quarterly		3.96	%		USD	186	$	(8,990	)	$	(172	)	$	(8,818	)
Sale Contracts
CDX-NAHY Series 33, 5 Year Index, 12/20/2024*		5.00			Quarterly		3.70			USD	698		37,874			(59,174	)		97,048
CDX-NAHY Series 35, 5 Year Index, 12/20/2025*		5.00			Quarterly		4.23			USD	1,537		61,463			86,359			(24,896	)

38    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value		Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
Ford Motor Company 4.346% 12/08/2026, 6/20/2024*		5.00	%		Quarterly		2.87	%		USD	40	$	3,094	$	4,087	$	(993	)
iTraxx -Xover Series 34, 5 Year Index, 12/20/2025*		5.00			Quarterly		3.67			EUR	1,560		119,677		113,268		6,409
												$	213,118	$	144,368	$	68,750

* Termination date

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	670		05/24/2021	2.288%	3 Month LIBOR	Semi-Annual/Quarterly	$	(14,136	)	$	—	$	(14,136	)
CAD	680		05/22/2024	3 Month CDOR	1.985%	Semi-Annual/ Semi-Annual		27,262			—		27,262
USD	260		05/24/2024	2.206%	3 Month LIBOR	Semi-Annual/Quarterly		(19,769	)		—		(19,769	)
							$	(6,643	)	$	—	$	(6,643	)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		25.00	%		USD	500	$	(161,800	)	$	(184,899	)	$	23,099
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	10		(3,237	)		(2,666	)		(571	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	18		(5,826	)		(4,443	)		(1,383	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	19		(6,150	)		(4,643	)		(1,507	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	26		(8,416	)		(6,354	)		(2,062	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	24		(7,765	)		(2,049	)		(5,716	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	36		(11,647	)		(3,058	)		(8,589	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	53		(17,146	)		(3,289	)		(13,857	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	79		(25,557	)		(4,867	)		(20,690	)

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    39

PORTFOLIO OF INVESTMENTS (continued)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)			Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Credit Suisse International
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00	%		Monthly		9.67	%		USD	360	$	(44,932	)	$	(11,407	)	$	(33,525	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	555		(179,552	)		(76,453	)		(103,099	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	24		(7,764	)		(2,039	)		(5,725	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	156		(50,469	)		(33,834	)		(16,635	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	400		(129,407	)		(49,793	)		(79,614	)
JPMorgan Chase Bank, NA
Rolls-Royce PLC, 2.125%,06/18/2021, 06/20/2025*		1.00			Quarterly		4.32			EUR	15		(2,389	)		(2,780	)		391
Rolls-Royce PLC, 2.125%,06/18/2021, 06/20/2025*		1.00			Quarterly		4.32			EUR	15		(2,389	)		(2,764	)		375
JPMorgan Securities, LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	12		(3,882	)		(1,019	)		(2,863	)
CDX-CMBX.NA.BB Series 6, 05/11/2063*		5.00			Monthly		25.00			USD	196		(98,123	)		(38,301	)		(59,822	)
Morgan Stanley Capital Services LLC
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00			USD	3		(971	)		(183	)		(788	)
												$	(767,422	)	$	(434,841	)	$	(332,581	)

* Termination date

TOTAL RETURN SWAPS (see Note D)

Counterparty & Referenced Obligation	Rate Paid/ Received		Payment Frequency		Current Notional (000)			Maturity Date		Unrealized Appreciation/ (Depreciation)
Receive Total Return on Reference Obligation
Goldman Sachs International Markit iBoxx USD Contingent Convertible Liquid Developed Markets AT1 Index TRI		3 Month LIBOR		Maturity		USD	209		12/20/2020	$	58,659

REVERSE REPURCHASE AGREEMENTS (see Note D)

Broker	Interest Rate			Maturity		U.S. $ Value at October 31, 2020
HSBC Bank USA†		0.14	%		—	$	847,192
HSBC Bank USA†		0.14	%		—		1,289,871
HSBC Bank USA†		0.14	%		—		1,213,215
						$	3,350,278

† The reverse repurchase agreement matures on demand. Interest rate resets daily and the rate shown is the rate in effect on October 31, 2020

40    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

The type of underlying collateral and the remaining maturity of open reverse repurchase agreements on the statements of assets and liabilities is as follows:

	Overnight and Continuous		Up to 30 Days		31-90 Days		Greater than 90 Days		Total
Governments – Treasuries	$	3,350,278	$	0	$	0	$	0	$	3,350,278

(a) Position, or a portion thereof, has been segregated to collateralize reverse repurchase agreements.

(b) Position, or a portion thereof, has been segregated to collateralize OTC derivatives outstanding.

(c) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2020.

(d) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2020, the aggregate market value of these securities amounted to $10,914,886 or 25.5% of net assets.

(e) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 0.14% of net assets as of October 31, 2020, are considered illiquid and restricted. Additional information regarding such securities follows:

144A/Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Consumer Loan Underlying Bond Certificate Issuer Trust I Series 2019-43, Class PT 6.564%, 11/15/2044		10/09/2019	$	9,246	$	8,740		0.02	%
PMT Credit Risk Transfer Trust Series 2019-3R, Class A 2.852%, 10/27/2022		10/11/2019		56,642		50,734		0.12	%

(f) IO – Interest Only.

(g) Inverse interest only security.

(h) Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the next call date.

(i) The stated coupon rate represents the greater of the LIBOR or the LIBOR floor rate plus a spread at October 31, 2020.

(j) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(k) Non-income producing security.

(l) Defaulted.

(m) Affiliated investments.

(n) 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.

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

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    41

PORTFOLIO OF INVESTMENTS (continued)

Currency Abbreviations:

BRL – Brazilian Real

CAD – Canadian Dollar

EGP – Egyptian Pound

EUR – Euro

IDR – Indonesian Rupiah

JPY – Japanese Yen

MXN – Mexican Peso

PEN – Peruvian Sol

USD – United States Dollar

Glossary:

ABS – Asset-Backed Securities

CBT – Chicago Board of Trade

CDOR – Canadian Dealer Offered Rate

CDX-CMBX.NA – North American Commercial Mortgage-Backed Index

CDX-NAHY – North American High Yield Credit Default Swap Index

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

LIBOR – London Interbank Offered Rate

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

TBA – To Be Announced

See notes to financial statements.

42    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

STATEMENT OF ASSETS & LIABILITIES

October 31, 2020

Assets
Investments in securities, at value
Unaffiliated issuers (cost $55,136,672)	$	55,816,657
Affiliated issuers (cost $430,320)		430,320
Cash		41,056
Cash collateral due from broker		511,446
Foreign currencies, at value (cost $16,406)		16,317
Unaffiliated interest and dividends receivable		352,938
Receivable for variation margin on futures		114,549
Receivable for capital stock sold		101,816
Unrealized appreciation on total return swaps		58,659
Receivable for investment securities sold		37,645
Receivable due from Adviser		16,034
Unrealized appreciation on forward currency exchange contracts		15,307
Affiliated dividends receivable		12
Total assets		57,512,756
Liabilities
Payable for investment securities purchased		10,439,080
Payable for reverse repurchase agreements		3,350,278
Market value on credit default swaps (net premiums received $434,841)		767,422
Dividends payable		56,394
Payable for capital stock redeemed		26,124
Unrealized depreciation on forward currency exchange contracts		2,567
Payable for variation margin on centrally cleared swaps		1,976
Directors’ fees payable		1,512
Transfer Agent fee payable		1,452
Distribution fee payable		534
Accrued expenses and other liabilities		83,706
Total liabilities		14,731,045
Net Assets	$	42,781,711
Composition of Net Assets
Capital stock, at par	$	4,300
Additional paid-in capital		42,638,291
Distributable earnings		139,120
	$	42,781,711

Net Asset Value Per Share—33 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	371,181		37,295	$	9.95	*
C	$	730,333		73,376	$	9.95
Advisor	$	41,680,197		4,189,822	$	9.95

* The maximum offering price per share for Class A shares was $10.39 which reflects a sales charge of 4.25%.

See notes to financial statements.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    43

STATEMENT OF OPERATIONS

Year Ended October 31, 2020

Investment Income
Interest (net of foreign taxes withheld of $1,158)	$	836,101
Dividends—Affiliated issuers		1,965		$	838,066
Expenses
Advisory fee (see Note B)		112,090
Distribution fee—Class A		403
Distribution fee—Class C		3,074
Transfer agency—Class A		125
Transfer agency—Class C		204
Transfer agency—Advisor Class		20,824
Custody and accounting		111,789
Administrative		75,556
Registration fees		72,277
Audit and tax		62,385
Legal		26,420
Directors’ fees		16,413
Printing		12,740
Amortization of offering expenses		7,032
Miscellaneous		7,862
Total expenses before interest expense		529,194
Interest expense		11,241
Total expenses		540,435
Less: expenses waived and reimbursed by the Adviser (see Note B)		(381,984	)
Net expenses					158,451
Net investment income					679,615
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions(a)					759,388
Securities sold short					1,310
Forward currency exchange contracts					59,629
Futures					(551,079	)
Swaps					(298,724	)
Foreign currency transactions					(45,740	)
Net change in unrealized appreciation/depreciation of:
Investments(b)					404,345
Securities sold short					(377	)
Forward currency exchange contracts					23,002
Futures					101,512
Swaps					(280,043	)
Foreign currency denominated assets and liabilities					499
Net gain on investment and foreign currency transactions					173,722
Net Increase in Net Assets from Operations				$	853,337

(a) Net of foreign capital gains taxes of $2,692.

(b) Net of increase in accrued foreign capital gains taxes of $545.

See notes to financial statements.

44    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2020			December 12, 2018(a) to October 31, 2019
Increase (Decrease) in Net Assets from Operations
Net investment income	$	679,615		$	448,633
Net realized gain (loss) on investment and foreign currency transactions		(75,216	)		271,185
Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities		248,938			345,304
Net increase in net assets from operations		853,337			1,065,122
Distributions to Shareholders
Class A		(7,576	)		(349	)
Class C		(8,867	)		(277	)
Advisor Class		(1,417,004	)		(546,416	)
Capital Stock Transactions
Net increase		27,840,328			15,000,000
Capital Contributions
Proceeds from third party vendor (see Note E)		3,413			– 0	–
Total increase		27,263,631			15,518,080
Net Assets
Beginning of period		15,518,080			– 0	–
End of period	$	42,781,711		$	15,518,080

(a) Commencement of operations.

See notes to financial statements.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    45

NOTES TO FINANCIAL STATEMENTS

October 31, 2020

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Short Duration Income Portfolio (the “Fund”), a non-diversified portfolio. The Fund commenced operations on December 12, 2018. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares. Class B, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares have not been issued. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Advisor Class shares are sold without any initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All eleven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national

46    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (the “Adviser”) will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    47

NOTES TO FINANCIAL STATEMENTS (continued)

or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

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

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

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows

48    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

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

Options are valued using market-based inputs to models, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency, where such inputs and models are available. Alternatively, the values may be obtained through unobservable management determined inputs and/or management’s proprietary models. Where models are used, the selection of a particular model to value an option depends upon the contractual terms of, and specific risks inherent in, the option as well as the availability of pricing information in the market. Valuation models require a variety of inputs, including contractual terms, market prices, measures of volatility and correlations of such inputs. Exchange traded options generally will be classified as Level 2. For options that do not trade on exchange but trade in liquid markets, inputs can generally be verified and model selection does not involve significant management judgment. Options are classified within Level 2 on the fair value hierarchy when all of the significant inputs can be corroborated to market evidence. Otherwise such instruments are classified as Level 3.

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    49

NOTES TO FINANCIAL STATEMENTS (continued)

data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

Bank loan prices are provided by third party pricing services and consist of a composite of the quotes received by the vendor into a consensus price. Certain bank loans are classified as Level 3, as a significant input used in the fair value measurement of these instruments is the market quotes that are received by the vendor and these inputs are not observable.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

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

Investments in Securities:	Level 1			Level 2		Level 3			Total
Assets:
Governments – Treasuries	$	– 0	–	$	23,117,204	$	–0	–	$	23,117,204
Mortgage Pass – Throughs		– 0	–		11,993,007		– 0	–		11,993,007
Collateralized Mortgage Obligations		– 0	–		6,688,212		– 0	–		6,688,212
Corporates – Investment Grade		– 0	–		4,025,451		– 0	–		4,025,451
Commercial Mortgage-Backed Securities		– 0	–		3,895,773		– 0	–		3,895,773
Corporates – Non-Investment Grade		– 0	–		2,973,283		– 0	–		2,973,283
Collateralized Loan Obligations		– 0	–		634,174		– 0	–		634,174
Asset-Backed Securities		– 0	–		601,245		– 0	–		601,245
Governments – Sovereign Agencies		– 0	–		588,165		– 0	–		588,165
Bank Loans		– 0	–		337,217		101,065			438,282
Emerging Markets – Sovereigns		– 0	–		259,672		– 0	–		259,672
Governments – Sovereign Bonds		– 0	–		211,800		– 0	–		211,800
Quasi-Sovereigns		– 0	–		151,044		– 0	–		151,044
Emerging Markets – Corporate Bonds		– 0	–		126,134		– 0	–		126,134

50    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities:

Level 1

Level 2

Level 3

Total

Emerging Markets –Treasuries

$

– 0

–

$

92,975

$

– 0

–

$

92,975

Short-Term Investments:

Investment Companies

430,320

– 0

–

– 0

–

430,320

Governments – Treasuries

– 0

–

20,236

– 0

–

20,236

Total Investments in Securities

430,320

55,715,592

101,065

56,246,977

Other Financial Instruments(a):

Assets:

Futures

121,680

– 0

–

– 0

–

121,680

(b)

Forward Currency Exchange Contracts

– 0

–

15,307

– 0

–

15,307

Centrally Cleared Credit Default Swaps

– 0

–

222,108

– 0

–

222,108

(b)

Centrally Cleared Interest Rate Swaps

– 0

–

27,262

– 0

–

27,262

(b)

Total Return Swaps

– 0

–

58,659

– 0

–

58,659

Liabilities:

Futures

(7,303

)

– 0

–

– 0

–

(7,303

)(b)

Forward Currency Exchange Contracts

– 0

–

(2,567

)

– 0

–

(2,567

)

Centrally Cleared Credit Default Swaps

– 0

–

(8,990

)

– 0

–

(8,990

)(b)

Centrally Cleared Interest Rate Swaps

– 0

–

(33,905

)

– 0

–

(33,905

)(b)

Credit Default Swaps

– 0

–

(767,422

)

– 0

–

(767,422

)

Reverse Repurchase Agreements

(3,350,278

)

– 0

–

– 0

–

(3,350,278

)

Total

$

(2,805,581

)

$

55,226,044

$

101,065

$

52,521,528

^(a)   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.

^(b)  Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    51

NOTES TO FINANCIAL STATEMENTS (continued)

income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for the current tax year and has concluded that no provision for income tax is required in the Fund’s financial statements.

5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and

52    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

8. Repurchase Agreements

It is the Fund’s policy that its custodian or designated subcustodian take control of securities as collateral under repurchase agreements and to determine on a daily basis that the value of such securities are sufficient to cover the value of the repurchase agreements. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of collateral by the Fund may be delayed or limited.

9. Offering Expenses

Offering expenses of $61,122 were deferred and amortized on a straight line basis over a one year period starting from December 12, 2018 (commencement of operations).

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .35% of the first $2.5 billion of the Fund’s average daily net assets and .30% of the excess over $2.5 billion of the Fund’s average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs), on an annual basis (the “Expense Caps”) to .65%, 1.45% and .45% of daily average net assets for Class A, Class C, and Advisor Class shares, respectively. For the year ended October 31, 2020, such reimbursement/waivers amounted to $306,046. The Expense Caps may not be terminated by the Adviser before January 31, 2021. Any fees waived and expenses borne by the Adviser through January 20, 2021 may be reimbursed by Fund until the end of the third fiscal year after the fiscal period in which the fee was waived or the expense was borne; such

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    53

NOTES TO FINANCIAL STATEMENTS (continued)

waivers that are subject to repayment amounted to $265,740 and $306,046 for the years ended October 31, 2019 and October 31, 2020, respectively. In any case, no reimbursement payment will be made that would cause the Fund’s total annual operating expenses to exceed the Expense Caps’ net fee percentage set forth above.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2020, the Adviser voluntarily agreed to waive such fees in the amount of $75,556.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $17,574 for the year ended October 31, 2020.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $0 from the sale of Class A shares and received $0 and $0 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2020.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2021. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2020, such waiver amounted to $382.

54    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

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

Fund	Market Value 10/31/19 (000)		Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/20 (000)		Dividend Income (000)
Government Money Market Portfolio	$	57	$	33,617	$	33,244	$	430	$	2

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (now named Equitable Holdings, Inc.)(“Equitable”), through an initial public offering. Equitable is the holding company for a diverse group of financial services companies, including an approximate 65% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns less than 10% of the outstanding shares of common stock of Equitable, and no longer owns a controlling interest in Equitable. AXA previously announced its intention to sell its entire interest in Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of Equitable common stock.

Sales under the Plan that were completed on November 13, 2019 resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and may have been deemed to have been an “assignment” causing a termination of the Fund’s investment advisory and administration agreements. In order to ensure that investment advisory and administration services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved new investment advisory and administration agreements with the Adviser, and shareholders of the Fund subsequently approved the new investment advisory agreement. These agreements became effective on November 13, 2019.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    55

NOTES TO FINANCIAL STATEMENTS (continued)

fees to the Distributor at an annual rate of up to .25% of the Fund’s average daily net assets attributable to Class A shares and 1% of the Fund’s average daily net assets attributable to Class C shares. There are no distribution and servicing fees on the Advisor Class shares. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .20% of Class A shares’ average daily net assets. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $-0- for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2020 were as follows:

	Purchases		Sales		Securities Sold Short			Covers on Securities Sold Short
Investment securities (excluding U.S. government securities)	$	16,234,246	$	5,896,423	$	– 0	–	$	– 0	–
U.S. government securities		160,043,905		134,341,133		– 0	–		781,924

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	55,571,427
Gross unrealized appreciation	$	1,943,038
Gross unrealized depreciation		(1,203,157	)
Net unrealized appreciation	$	739,881

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

56    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Futures

The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon for non-hedging purposes as a means of making direct investment in foreign currencies, as described below under “Currency Transactions”.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day’s settlement price, which could effectively prevent liquidation of unfavorable positions.

During the year ended October 31, 2020, the Fund held futures for hedging and non-hedging purposes.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    57

NOTES TO FINANCIAL STATEMENTS (continued)

• Forward Currency Exchange Contracts

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions”.

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended October 31, 2020, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.

• Option Transactions

For hedging and investment purposes, the Fund may purchase and write (sell) put and call options on U.S. and foreign securities, including government securities, and foreign currencies that are traded on U.S. and foreign securities exchanges and over-the-counter markets. Among other things, the Fund may use options transactions for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under “Currency Transactions” and may use options strategies involving the purchase and/or writing of various combinations of call and/or put options, for hedging and investment purposes.

The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of the premium and change in market value should the counterparty not perform under the contract. If a put or call option purchased by the Fund were permitted to expire without being sold or exercised, its premium would represent a loss to the Fund. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

58    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. The Fund’s maximum payment for written put options equates to the number of shares multiplied by the strike price. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract. Premiums received from written options which expire unexercised are recorded by the Fund on the expiration date as realized gains from options written. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium received is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium received is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium received reduces the cost basis of the security or currency purchased by the Fund. In writing an option, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a security or currency at a price different from the current market value.

The Fund may also invest in options on swap agreements, also called “swaptions”. A swaption is an option that gives the buyer the right, but not the obligation, to enter into a swap on a future date in exchange for paying a market-based “premium”. A receiver swaption gives the owner the right to receive the total return of a specified asset, reference rate, or index. A payer swaption gives the owner the right to pay the total return on a specified asset, reference rate, or index. Swaptions also include options that allow an existing swap to be terminated or extended by one of the counterparties. The Fund’s maximum payment for written put swaptions equates to the notional amount of the underlying swap. In certain circumstances maximum payout amounts may be partially offset by recovery values of the respective referenced assets and upfront premium received upon entering into the contract.

During the year ended October 31, 2020, the Fund held purchased swaptions for hedging and non-hedging purposes.

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk, equity markets or currencies. The Fund may also enter into swaps for non-hedging purposes as a means of gaining

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    59

NOTES TO FINANCIAL STATEMENTS (continued)

market exposures, making direct investments in foreign currencies, as described below under “Currency Transactions.” A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on

60    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended October 31, 2020, the Fund held interest rate swaps for hedging and non-hedging purposes.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    61

NOTES TO FINANCIAL STATEMENTS (continued)

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and

62    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

During the year ended October 31, 2020, the Fund held credit default swaps for hedging and non-hedging purposes.

Total Return Swaps:

The Fund may enter into total return swaps in order to take a “long” or “short” position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the year ended October 31, 2020, the Fund held total return swaps for non-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    63

NOTES TO FINANCIAL STATEMENTS (continued)

During the year ended October 31, 2020, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Interest rate contracts	Receivable/Payable for variation margin on futures	$	121,680	*	Receivable/Payable for variation margin on futures	$	7,303	*
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps		103,457	*	Receivable/Payable for variation margin on centrally cleared swaps		34,707	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		27,262	*	Receivable/Payable for variation margin on centrally cleared swaps		33,905	*
Foreign currency contracts	Unrealized appreciation on forward currency exchange contracts		15,307		Unrealized depreciation on forward currency exchange contracts		2,567
Credit contracts					Market value on credit default swaps		767,422
Credit contracts	Unrealized appreciation on total return swaps		58,659
Total		$	326,365			$	845,904

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures	$	(551,079	)	$	101,512
Foreign currency contracts	Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts		59,629			23,002

64    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on investment transactions; Net change in unrealized appreciation/depreciation of investments	$	(3,773	)	$	– 0	–
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(5,988	)		9,264
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		(292,736	)		(289,307	)
Total		$	(793,947	)	$	(155,529	)

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2020:

Futures:
Average notional amount of buy contracts	$	437,303	(a)
Average notional amount of sale contracts	$	11,301,981
Forward Currency Exchange Contracts:
Average principal amount of buy contracts	$	501,803
Average principal amount of sale contracts	$	2,501,800
Purchased Swaptions:
Average notional amount	$	760,000	(b)
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	1,446,068
Credit Default Swaps:
Average notional amount of sale contracts	$	1,922,458
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	927,628	(c)
Average notional amount of sale contracts	$	4,706,343
Total Return Swaps:
Average notional amount	$	150,000

(a) Positions were open for six months during the year.

(b) Positions were open for three months during the year.

(c) Positions were open for eight months during the year.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    65

NOTES TO FINANCIAL STATEMENTS (continued)

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2020. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

Counterparty

Derivative Assets Subject to a MA

Derivatives Available for Offset

Cash Collateral Received*

Security Collateral Received*

Net Amount of Derivative Assets

BNP Paribas SA

$

6,059

$

– 0

–

$

– 0

–

$

– 0

–

$

6,059

Citibank, NA/Citigroup Global Markets, Inc.

141

(141

)

– 0

–

– 0

–

– 0

–

Deutsche Bank AG

6,032

– 0

–

– 0

–

– 0

–

6,032

Goldman Sachs Bank USA/Goldman Sachs International

58,659

(58,659

)

– 0

–

– 0

–

– 0

–

State Street Bank & Trust Co.

3,075

(1,348

)

– 0

–

– 0

–

1,727

Total

$

73,966

$

(60,148

)

$

– 0

–

$

– 0

–

$

13,818

^

Counterparty

Derivative Liabilities Subject to a MA

Derivatives Available for Offset

Cash Collateral Pledged*

Security Collateral Pledged*

Net Amount of Derivative Liabilities

Citibank, NA/Citigroup Global Markets, Inc.

248,244

(141

)

– 0

–

(248,103

)

– 0

–

Credit Suisse International

224,484

– 0

–

– 0

–

(224,484

)

– 0

–

Goldman Sachs Bank USA/Goldman Sachs International

188,159

(58,659

)

– 0

–

– 0

–

129,500

JPMorgan Chase Bank, NA/JPMorgan Securities, LLC

106,783

– 0

–

– 0

–

– 0

–

106,783

Morgan Stanley Capital Services LLC

971

– 0

–

– 0

–

– 0

–

971

State Street Bank & Trust Co.

1,348

(1,348

)

– 0

–

– 0

–

– 0

–

Total

$

769,989

$

(60,148

)

$

– 0

–

$

(472,587

)

$

237,254

^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

66    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

2. Currency Transactions

The Fund may invest in non-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund may seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives, including forward currency exchange contracts, futures and options on futures, swaps, and other options. The Fund may enter into transactions for investment opportunities when it anticipates that a foreign currency will appreciate or depreciate in value but securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. The Fund may also conduct currency exchange contracts on a spot basis (i.e., for cash at the spot rate prevailing in the currency exchange market for buying or selling currencies).

3. Short Sales

The Fund may sell securities short. A short sale is a transaction in which the Fund sells securities it does not own, but has borrowed, in anticipation of a decline in the market price of the securities. The Fund is obligated to replace the borrowed securities at their market price at the time of settlement. The Fund’s obligation to replace the securities borrowed in connection with a short sale will be fully secured by collateral deposited with the broker. The Fund is liable to the buyer for any dividends/interest payable on securities while those securities are in a short position. These dividends/interest are recorded as an expense of the Fund. Short sales by the Fund involve certain risks and special considerations. Possible losses from short sales differ from losses that could be incurred from a purchase of a security because losses from short sales may be unlimited, whereas losses from purchases cannot exceed the total amount invested.

4. TBA and Dollar Rolls

The Fund may invest in TBA mortgage-backed securities. A TBA, or “To Be Announced”, trade represents a contract for the purchase or sale of mortgage-backed securities to be delivered at a future agree-upon date; however, the specific mortgage pool numbers or the number of pools that will be delivered to fulfill the trade obligation or terms of the contract are unknown at the time of the trade. Mortgage pools (including fixed-rate or variable-rate mortgages) guaranteed by the Government National Mortgage Association, or GNMA, the Federal National Mortgage Association, or FNMA, or the Federal Home Loan Mortgage Corporation, or FHLMC, are subsequently allocated to the TBA transactions.

The Fund may enter into certain TBA transactions known as dollar rolls. Dollar rolls involve sales by the Fund of securities for delivery in the current month

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    67

NOTES TO FINANCIAL STATEMENTS (continued)

and the Fund’s simultaneously contracting to repurchase substantially similar (same type and coupon) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by the difference between the current sales price and the lower forward price for the future purchase (often referred to as the “drop”) as well as by the interest earned on the cash proceeds of the initial sale. Dollar rolls involve the risk that the market value of the securities the Fund is obligated to repurchase under the agreement may decline below the repurchase price. Dollar rolls are speculative techniques. For the year ended October 31, 2020, the Fund earned drop income of $32,940 which is included in interest income in the accompanying statement of operations.

5. Reverse Repurchase Agreements

The Fund may enter into reverse repurchase transactions (“RVP”) in accordance with the terms of a Master Repurchase Agreement (“MRA”), under which the Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. At the time the Fund enters into a reverse repurchase agreement, it will establish a segregated account with the custodian containing liquid assets having a value comparable to the repurchase price. Under the MRA and other Master Agreements, the Fund is permitted to offset payables and/or receivables with collateral held and/or posted to the counterparty and create one single net payment due to or from the Fund in the event of a default. In the event of a default by a MRA counterparty, the Fund may be considered an unsecured creditor with respect to any excess collateral (collateral with a market value in excess of the repurchase price) held by and/or posted to the counterparty, and as such the return of such excess collateral may be delayed or denied. For the year ended October 31, 2020, the average amount of reverse repurchase agreements outstanding was $1,759,618.94 and the daily weighted average interest rate was 0.38%. At October 31, 2020, the Fund had reverse repurchase agreements outstanding in the amount of $3,350,278 as reported on the statement of assets and liabilities.

The following table presents the Fund’s RVP liabilities by counterparty net of the related collateral pledged by the Fund as of October 31, 2020:

Counterparty	RVP Liabilities Subject to a MRA		Securities Collateral Pledged†*			Net Amount of RVP Liabilities
HSBC Bank USA	$	3,350,278	$	(3,318,807	)	$	31,471

† Including accrued interest.

* The actual collateral pledged may be more than the amount reported due to overcollateralization.

68    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2020			December 12, 2018(a) to October 31, 2019			Year Ended October 31, 2020			December 12, 2018(a) to October 31, 2019
Class A
Shares sold		73,345			1,000		$	720,666		$	10,000
Shares issued in reinvestment of dividends		271			– 0	–		2,684			– 0	–
Shares redeemed		(37,321	)		– 0	–		(372,260	)		– 0	–
Net increase		36,295			1,000		$	351,090		$	10,000
Class C
Shares sold		74,937			1,000		$	734,576		$	10,000
Shares issued in reinvestment of dividends		845			– 0	–		8,352			– 0	–
Shares redeemed		(3,406	)		– 0	–		(34,020	)		– 0	–
Net increase		72,376			1,000		$	708,908		$	10,000
Advisor Class
Shares sold		3,398,430			1,498,000		$	33,761,871		$	14,980,000
Shares issued in reinvestment of dividends		13,829			– 0	–		136,589			– 0	–
Shares redeemed		(720,437	)		– 0	–		(7,118,130	)		– 0	–
Net increase		2,691,822			1,498,000		$	26,780,330		$	14,980,000

(a) Commencement of operations.

At October 31, 2020, the Adviser owns approximately 58% of the Fund’s outstanding shares. Significant transactions by such shareholder, if any, may impact the Fund’s performance.

During the year ended October 31, 2020, a third party vendor reimbursed the Fund $3,413 for losses incurred due to a pricing error. This amount is presented in the Fund’s statement of changes in net assets.

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The market value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    69

NOTES TO FINANCIAL STATEMENTS (continued)

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment Grade Securities Risk—Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

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 the 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.

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Foreign (Non-U.S.) Risk—Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

Emerging Market Risk—Investments in emerging market countries may have more risk because the markets are less developed and less liquid as well as being subject to increased economic, political, regulatory or other uncertainties.

70    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

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

Illiquid Investments Risk—Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes, large positions and heavy redemptions of Fund shares. Illiquid investments risk may be higher in a rising interest rate environment, when the value and liquidity of fixed-income securities generally decline.

Non-Diversification Risk—The Fund may have more risk because it is “non-diversified”, meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund’s net asset value, or NAV.

Mortgage-Related and/or Other Asset-Backed Securities Risk—Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include “extension risk”, which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and “prepayment risk”, which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    71

NOTES TO FINANCIAL STATEMENTS (continued)

reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from LIBOR is underway but remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

72    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2020.

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal year ended October 31, 2020 and the period ended October 31, 2019 were as follows:

	2020		2019
Distributions paid from:
Ordinary income	$	1,419,417	$	547,042
Net long-term capital gains		14,030		– 0	–
Total taxable distributions paid	$	1,433,447	$	547,042

As of October 31, 2020, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Accumulated capital and other losses	$	(538,834	)(a)
Unrealized appreciation/(depreciation)		738,836	(b)
Total accumulated earnings/(deficit)	$	200,002	(c)

(a) As of October 31, 2020, the cumulative deferred loss on straddles was $538,834.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the recognition for tax purposes of unrealized gains/losses on certain derivative instruments, the tax treatment of swaps, the tax deferral of losses on wash sales, and the amortization on callable bonds.

(c) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to the accrual of foreign capital gains tax, the tax treatment of defaulted securities, and dividends payable.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward realized

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    73

NOTES TO FINANCIAL STATEMENTS (continued)

capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2020, the Fund did not have any capital loss carryforwards.

During the current fiscal year, permanent differences primarily due to non-deductible excise tax paid and the tax treatment of swaps resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE I

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Fund has adopted ASU 2017-08, which did not have a material impact on the Fund’s financial position or the results of its operations, and had no impact on the Fund’s net assets.

NOTE J

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

74    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31, 2020			December 12, 2018(a) to October 31, 2019
Net asset value, beginning of period		$  10.35			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.23			.28
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.28	)(d)		.42
Capital Contributions		.16			– 0	–
Net increase in net asset value from operations		.11			.70
Less: Dividends and Distributions
Dividends from net investment income		(.38	)		(.35	)
Distributions from net realized gain on investment transactions		(.13	)		– 0	–
Total dividends and distributions		(.51	)		(.35	)
Net asset value, end of period		$  9.95			$  10.35
Total Return
Total investment return based on net asset value(e)		1.17	%		7.09	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$371			$10
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.68	%		.70	%^
Expenses, before waivers/reimbursements(f)		1.77	%		3.18	%^
Net investment income(c)		2.28	%		3.14	%^
Portfolio turnover rate**		336	%		178	%
Portfolio turnover rate (including securities sold short)**		336	%		181	%

See footnote summary on page 78.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    75

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31, 2020			December 12, 2018(a) to October 31, 2019
Net asset value, beginning of period		$  10.34			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.09			.21
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.04	)(d)		.41
Net increase in net asset value from operations		.05			.62
Less: Dividends and Distributions
Dividends from net investment income		(.31	)		(.28	)
Distributions from net realized gain on investment transactions		(.13	)		– 0	–
Total dividends and distributions		(.44	)		(.28	)
Net asset value, end of period		$  9.95			$  10.34
Total Return
Total investment return based on net asset value(e)		.51	%		6.23	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$730			$10
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		1.48	%		1.49	%^
Expenses, before waivers/reimbursements(f)		2.57	%		4.02	%^
Net investment income(c)		.93	%		2.34	%^
Portfolio turnover rate**		336	%		178	%
Portfolio turnover rate (including securities sold short)**		336	%		181	%

See footnote summary on page 78.

76    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31, 2020			December 12, 2018(a) to October 31, 2019
Net asset value, beginning of period		$  10.35			$  10.00
Income From Investment Operations
Net investment income(b)(c)		.21			.30
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.08	)(d)		.41
Net increase in net asset value from operations		.13			.71
Less: Dividends and Distributions
Dividends from net investment income		(.40	)		(.36	)
Distributions from net realized gain on investment transactions		(.13	)		– 0	–
Total dividends and distributions		(.53	)		(.36	)
Net asset value, end of period		$  9.95			$  10.35
Total Return
Total investment return based on net asset value(e)		1.34	%		7.25	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$41,681			$15,498
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(f)		.48	%		.49	%^
Expenses, before waivers/reimbursements(f)		1.68	%		2.99	%^
Net investment income(c)		2.13	%		3.31	%^
Portfolio turnover rate**		336	%		178	%
Portfolio turnover rate (including securities sold short)**		336	%		181	%

See footnote summary on page 78.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    77

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Commencement of operations.

(b) Based on average shares outstanding.

(c) Net of expenses waived/reimbursed by the Adviser.

(d) Due to timing of sales and repurchase of capital shares, the net realized and unrealized gain (loss) per share is not in accordance with the Fund’s change in net realized and unrealized gain (loss) on investment transactions for the period.

(e) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

(f) The expense ratios presented below exclude interest expense:

	Year Ended October 31, 2020			December 12, 2018(a) to October 31, 2019
Class A
Net of waivers/reimbursements		.65	%		.65	%^
Before waivers/reimbursements		1.73	%		3.13	%^
Class C
Net of waivers/reimbursements		1.45	%		1.45	%^
Before waivers/reimbursements		2.54	%		3.97	%^
Advisor Class
Net of waivers/reimbursements		.45	%		.45	%^
Before waivers/reimbursements		1.64	%		2.95	%

^ Annualized.

** The Fund accounts for dollar roll transactions as purchases and sales.

See notes to financial statements.

78    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB Short Duration Income Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Short Duration Income Portfolio (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2020, and the related statement of operations for the year then ended, the statements of changes in net assets and the financial highlights for the year ended October 31, 2020 and the period from December 12, 2018 (commencement of operations) through October 31, 2019 and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2020, the results of its operations for the year then ended, the changes in its net assets and its financial highlights for the year ended October 31, 2020 and the period from December 12, 2018 (commencement of operations) through October 31, 2019, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    79

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 23, 2020

80    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

2020 FEDERAL TAX INFORMATION

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable period ended October 31, 2020. For foreign shareholders, 79.42% of ordinary income dividends paid may be considered to be qualifying to be taxed as interest-related dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2021.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    81

BOARD OF DIRECTORS

Marshall C. Turner, Jr⁽¹⁾, Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith, President and Chief Executive Officer Jeanette Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

Scott A. DiMaggio⁽²⁾, Vice President Gershon M. Distenfeld⁽²⁾,
Vice President Douglas J. Peebles⁽²⁾,^* Vice President Matthew S. Sheridan⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Analyst Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller
Vincent S. Noto,
Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210 Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105 Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public
Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036 Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund’s portfolio are made by the Adviser’s Short Duration Income Investment team. Messrs. DiMaggio, Distenfeld, Peebles and Sheridan are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

* Mr. Peebles is expected to retire from the Adviser effective December 30, 2020.

82    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,# 60 (2018)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and the head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business with which he had been associated since prior to 2004.		77	None

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    83

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 79 (2018)	Private Investor since prior to 2015. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		77	None

84    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Jorge A. Bermudez,## 69 (2020)	Private Investor since prior to 2015. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		77	Moody’s Corporation since April 2011
Michael J. Downey,## 76 (2018)	Private Investor since prior to 2015. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2015 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		77	None

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    85

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Nancy P. Jacklin,## 72 (2018)	Private Investor since prior to 2015. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		77	None
Jeanette Loeb,## 68 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		77	Apollo Investment Corp. (business development company) since August 2011

86    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Carol C. McMullen,## 65 (2018)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		77	None

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    87

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Garry L. Moody,## 68 (2018)	Private Investor since prior to 2015. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		77	None

88    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
DISINTERESTED DIRECTORS (continued)
Earl D. Weiner,## 81 (2018)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		77	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal & Compliance Dept.—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Keith is an “interested person” of the Fund as defined in the “40 Act”, due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    89

MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is set forth below.

NAME, ADDRESS* AND AGE	PRINCIPAL POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST FIVE YEARS
Robert M. Keith 60	President and Chief Executive Officer	See biography above.
Scott A. DiMaggio 49	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also co-Head of Fixed-Income.
Gershon M. Distenfeld 45	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also co-Head of Fixed-Income.
Douglas J. Peebles^ 55	Senior Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also Chief Investment Officer of Fixed Income.
Matthew S. Sheridan 45	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015.
Emilie D. Wrapp 65	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2015.
Michael B. Reyes 44	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2015.
Joseph J. Mantineo 61	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”**), with which he has been associated since prior to 2015.
Phyllis J. Clarke 59	Controller	Vice President of ABIS**, with which she has been associated since prior to 2015.
Vincent S. Noto 56	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2015.

* The address for each of the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

^{^}  Mr. Peebles is expected to retire from the Adviser effective December 30, 2020.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com for a free prospectus or SAI.

90    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”). Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2020, which covered the period December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner. Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, taking into account any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP. The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended, and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP, and there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    91

Information Regarding the Review and Approval of the Fund’s Advisory Agreement and New Advisory Agreements

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the Company’s Advisory Agreement with the Adviser in respect of AB Short Duration Income Portfolio (the “Fund”) for an initial two-year period at a meeting held on July 31-August 2, 2018 (the “Meeting”), as well as new Advisory Agreements with the same terms (together with the Advisory Agreement, the “Advisory Agreements”) in connection with the plans of AXA S.A. to sell its remaining interest in AXA Equitable Holdings, Inc. (the indirect holder of a majority of the partnership interests in the Adviser and the indirect parent of AllianceBernstein Corporation, the general partner of the Adviser), subject to market conditions, in one or more transactions that may be deemed to involve an “assignment” of one or more advisory agreements between the Adviser and the Company in respect of the Fund.*

Prior to approval of the Advisory Agreements, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed Advisory Agreements with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including materials from an outside consultant, who acted as their independent fee consultant, and comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed approval in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services to be provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the AB Funds.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their

* Following transactions completed on November 13, 2019 that may have been deemed to have been an “assignment” causing termination of the Fund’s investment advisory agreement, a new investment advisory agreement, having the same terms as the prior one, was entered into by the Fund and the Adviser.

92    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

deliberations, the directors evaluated, among other things, the reasonableness of the proposed advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreements, including the proposed advisory fee, were fair and reasonable in light of the services to be performed, expenses to be incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services to be Provided

The directors considered the scope and quality of services to be provided by the Adviser under the Advisory Agreements, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the AB Funds. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreements provide that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements will be subject to the directors’ approval on a quarterly basis and, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreements. The directors noted that the methodology to be used to determine the reimbursement amounts had been reviewed by an independent consultant retained by the Company’s former Senior Officer/Independent Compliance Officer. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services to be provided to the Fund under the Advisory Agreements.

Costs of Services to be Provided and Profitability

Because the Fund had not yet commenced operations, the directors were unable to consider historical information about the profitability of the Fund. However, the Adviser agreed to provide the directors with profitability information in connection with future proposed continuances of the Advisory Agreements. They also considered the costs to be borne by the Adviser in providing services to the Fund and that the Fund was unlikely to be profitable to the Adviser unless it achieves a material level of net assets.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    93

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their proposed relationships with the Fund, including, but not limited to, benefits relating to 12b-1 fees and sales charges to be received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees to be paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser’s future profitability would be somewhat lower without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

Since the Fund had not yet commenced operations, no performance or other historical information for the Fund was available. Based on the Adviser’s written and oral presentations regarding the proposed management of the Fund and their general knowledge and confidence in the Adviser’s expertise in managing mutual funds, the directors concluded that they were satisfied that the Adviser was capable of providing high quality Fund management services to the Fund.

Advisory Fees and Other Expenses

The directors considered the proposed advisory fee rate payable by the Fund to the Adviser and information prepared by an independent service provider (the “15(c) service provider”), concerning advisory fee rates payable by other funds in the same category as the Fund, based on the Fund’s projected net assets of $250 million. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees paid by other funds. The directors considered the Fund’s proposed contractual effective advisory fee rate against a peer group median.

The directors recognized that the Adviser’s total compensation from the Fund pursuant to the Advisory Agreements would be increased by amounts paid pursuant to the expense reimbursement provision in the Advisory Agreements, and that the impact of such expense reimbursement would depend on the size of the Fund and the extent to which the Adviser requests reimbursements pursuant to this provision.

The directors also considered the Adviser’s fee schedule for other clients pursuing a similar investment style. For this purpose, they reviewed the relevant advisory fee information from the Adviser’s Form ADV and in a report from the Fund’s Senior Analyst and noted the differences between the Fund’s proposed fee schedule, on the one hand, and the Adviser’s institutional fee schedule, on the other. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had

94    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

previously discussed with the Adviser its policies in respect of such arrangements. The directors also discussed these matters with their independent fee consultant.

The Adviser reviewed with the directors the significantly greater scope of the services it will provide to the Fund relative to institutional clients. In this regard, the Adviser noted, among other things, that, compared to institutional accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional clients as compared to the Fund, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

The directors noted that the Fund may invest in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the Investment Company Act of 1940 as these may be varied as a result of exemptive orders issued by the SEC. The directors also noted that ETFs pay advisory fees pursuant to their advisory contracts. The directors concluded, based on the Adviser’s explanation of how it may use ETFs when they are the most cost-effective way to obtain desired exposures, in some cases pending purchases of underlying securities, that the proposed advisory fee would be for services in addition to, rather than duplicative of, the services provided under the advisory contracts of the ETFs.

The directors also considered the projected total expense ratio of the Class A shares of the Fund in comparison to a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”) selected by the 15(c) service provider. The directors also considered the Adviser’s proposed expense cap for the Fund for a one year period. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view the projected expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s projected expense ratio was acceptable.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    95

Economies of Scale

The directors noted that the proposed advisory fee schedule for the Fund contains a breakpoint that reduces the fee rate on assets above a specified level. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and by the Adviser concerning certain of its views on economies of scale. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed the breakpoint in the future.

96    ^|    AB SHORT  DURATION INCOME PORTFOLIO abfunds.com

This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL EQUITY (continued)

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio¹

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

FIXED INCOME (continued)

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to February 5, 2020, Tax-Aware Fixed Income Opportunities Portfolio was named Tax-Aware Fixed Income Portfolio.

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    97

NOTES

98    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

NOTES

abfunds.com AB SHORT DURATION INCOME PORTFOLIO    ^|    99

NOTES

100    ^|    AB SHORT DURATION INCOME PORTFOLIO abfunds.com

AB SHORT DURATION INCOME PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

SDI-0151-1020                

OCT    ^10.31.20

ANNUAL REPORT

AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO

Beginning January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically at any time by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling the Fund at (800) 221 5672.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

Investment Products Offered •  Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund’s prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB’s website at www.abfunds.com, or go to the Securities and Exchange Commission’s (the “Commission”) website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-PORT may also be reviewed and copied at the Commission’s Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC 0330. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

AllianceBernstein Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AllianceBernstein L.P., the Adviser of the funds.

The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein^® is a registered service mark used by permission of the owner, AllianceBernstein L.P.

FROM THE PRESIDENT

Dear Shareholder,

We are pleased to provide this report for AB Tax-Aware Fixed Income Opportunities Portfolio (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.

As always, AB strives to keep clients ahead of what’s next by:

⁺  Transforming uncommon insights into uncommon knowledge with a global research scope

⁺  Navigating markets with seasoned investment experience and sophisticated solutions

⁺  Providing thoughtful investment insights and actionable ideas

Whether you’re an individual investor or a multi-billion-dollar institution, we put knowledge and experience to work for you.

AB’s global research organization connects and collaborates across platforms and teams to deliver impactful insights and innovative products. Better insights lead to better opportunities—anywhere in the world.

For additional information about AB’s range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in the AB Mutual Funds.

Sincerely,

Robert M. Keith

President and Chief Executive Officer, AB Mutual Funds

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    1

ANNUAL REPORT

December 11, 2020

This report provides management’s discussion of fund performance for AB Tax-Aware Fixed Income Opportunities Portfolio for the annual reporting period ended October 31, 2020. Prior to February 5, 2020, the Fund was named AB Tax-Aware Fixed Income Portfolio.

The investment objective of the Fund is to seek to maximize after-tax return and income.

NAV RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	6 Months		12 Months
AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO
Class A Shares		11.84%		0.63%
Class C Shares1		11.42%		-0.13%
Advisor Class Shares2		12.08%		0.97%
Bloomberg Barclays Municipal Bond Index		4.99%		3.59%

1 The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the Financial Highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.

2 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

INVESTMENT RESULTS

The table above shows the Fund’s performance compared to its benchmark, the Bloomberg Barclays Municipal Bond Index, for the six- and 12-month periods ended October 31, 2020.

All share classes of the Fund underperformed the benchmark during the 12-month period, before sales charges. Credit positioning detracted, relative to the benchmark, as credit spreads widened in a flight to quality. An overweight to the securitized sector detracted, while an overweight to consumer price index (“CPI”) swaps contributed. An overweight to municipals also contributed.

All share classes of the Fund outperformed the benchmark during the six-month period, before sales charges. Credit positioning contributed, as credit spreads tightened. An overweight to the securitized sector detracted, while an overweight to CPI swaps contributed. An underweight to interest rate swaps and an overweight to municipals also contributed. There were no other noteworthy detractors over the six-month period.

2    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

The Fund utilized derivatives in the form of credit default swaps for hedging and investment purposes, which detracted from absolute performance for both periods. CPI swaps were utilized for hedging purposes and added over both periods. Interest rate swaps were utilized for hedging purposes and detracted from performance over the 12-month period and had no material impact over the six-month period.

MARKET REVIEW AND INVESTMENT STRATEGY

Despite record volatility across most financial markets as the COVID-19 pandemic developed last spring, municipal performance was positive over both the six- and 12-month periods ended October 31, 2020. Following the onset of the virus, the US economy quickly contracted; however, according to the Federal Reserve Bank of New York, the US economy stopped contracting in early May and began a steady recovery through the rest of the summer. With respect to monetary policy, the US Federal Reserve (“the Fed”) Board of Governors stated that short-term interest rates were likely to be held at current low levels for the next few years. Consistent with the improving economy and steady monetary policy, municipals have continued to perform well following the sharp sell-off in March.

While outflows from open-end municipal bond funds and a general lack of liquidity across most markets sparked the sell-off in March, these themes have since largely abated, as investors have taken comfort in the significant federal support provided to state and local governments. On the monetary side, the Fed established the Municipal Liquidity Facility, which can purchase as much as $500 billion in short-term notes directly from municipalities, helping alleviate near-term liquidity concerns for eligible municipalities. The fiscal side brought issuers additional support in the form of the CARES Act, which included $150 billion to state and local governments, $120 billion to hospitals, $31 billion for education, $25 billion for transportation and $10 billion to airports.

The Fund’s Senior Investment Management Team (the “Team”) continues to seek investments in attractive after-tax returns such as municipal and taxable fixed-income and selective below investment-grade bonds. The Team seeks to manage interest-rate exposure by focusing on lower-rated municipal and corporate bonds.

The Fund may purchase municipal securities that are insured under policies issued by certain insurance companies. Historically, insured municipal securities typically received a higher credit rating, which meant that the issuer of the securities paid a lower interest rate. As a result of declines in the credit quality and associated downgrades of most bond insurers, insurance has less value than it did in the past. The market now values insured municipal securities primarily based on the credit quality of the issuer of the security with little value given to the insurance feature. In purchasing such insured securities, the Adviser evaluates the risk and

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    3

return of municipal securities through its own research. If an insurance company’s rating is downgraded or the company becomes insolvent, the prices of municipal securities insured by the insurance company may decline. As of October 31, 2020, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity were 2.59% and 0.00%, respectively.

INVESTMENT POLICIES

The Fund pursues its objective by investing principally in a national portfolio of both municipal and taxable fixed-income securities. The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities. The Fund also invests, under normal circumstances, at least 65% of its total assets in municipal securities that pay interest that is exempt from federal income tax. These securities may pay interest that is subject to the federal alternative minimum tax for certain taxpayers. The income earned and distributed to shareholders on non-municipal securities would not be exempt from federal income tax. The Fund may invest in fixed-income securities rated below investment-grade (commonly known as “junk bonds”), although such securities are not expected to be the Fund’s primary focus.

The Adviser selects securities for the Fund based on a variety of factors, including credit quality, maturity, diversification benefits, and the relative expected after-tax returns of taxable and municipal securities (considering federal tax rates and without regard to state and local income taxes). As the objective is to increase the after-tax return of the Fund, an investor in the Fund may incur a tax liability that will generally be greater than the same investor would have in a fund investing exclusively in municipal securities, and that will be higher if the investor is in a higher tax bracket. In addition, the tax implications of the Fund’s trading activity, such as realizing taxable gains, are considered in making purchase and sale decisions for the Fund. The Fund may invest in fixed-income securities of any maturity from short- to long-term.

The Fund may also invest in forward commitments, zero-coupon municipal securities and variable, floating and inverse floating-rate municipal securities.

The Fund may use derivatives, such as swaps, options, futures contracts and forwards, to achieve its investment strategies. For example, the Fund may enter into tender option bonds and credit default and interest rate swaps relating to municipal and taxable fixed-income securities or securities indices. Derivatives may provide more efficient and economical exposure to fixed-income securities markets than direct investments.

4    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

DISCLOSURES AND RISKS

Benchmark Disclosure

The Bloomberg Barclays Municipal Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Barclays Municipal Bond Index represents the performance of the long-term tax-exempt bond market consisting of investment-grade bonds. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

A Word About Risk

Market Risk: The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that, including public health crises (including the occurrence of a contagious disease or illness), affect large portions of the market.

Credit Risk: An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment-Grade Securities Risk: Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific municipal or corporate developments and negative performance of the junk bond market generally and may be more difficult to trade than other types of securities.

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 Fund’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 Fund invests more of its assets in a particular state’s municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism and catastrophic natural disasters, such as hurricanes or earthquakes. The Fund’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

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    5

DISCLOSURES AND RISKS (continued)

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.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the US federal income tax treatment of certain types of municipal securities.

The Fund may invest in the municipal securities of Puerto Rico or other US territories and their governmental agencies and municipalities, which are exempt from federal, state, and, where applicable, local income taxes. These municipal securities may have more risks than those of other US issuers of municipal securities. Like many US states and municipalities, Puerto Rico experienced a significant downturn during the recent recession. Puerto Rico’s downturn was particularly severe, and Puerto Rico continues to face a very challenging economic and fiscal environment. If the general economic situation in Puerto Rico continues to persist or worsens, the volatility and credit quality of Puerto Rican municipal securities could continue to be adversely affected, and the market for such securities may experience continued volatility.

Tax Risk: From time to time, the US government and the US Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund’s net asset value (“NAV”) could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax-exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund’s yield.

Interest-Rate Risk: Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations.

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.

6    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

DISCLOSURES AND RISKS (continued)

Inflation Risk: This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Illiquid Investments Risk: Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes and large positions. Municipal securities may have more illiquid investments risk than other fixed-income securities because they trade less frequently and the market for municipal securities is generally smaller than many other markets.

Leverage Risk: To the extent the Fund 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 Fund’s investments.

Derivatives Risk: Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk.

Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

These and other risks are more fully discussed in the Fund’s prospectus. As with all investments, you may lose money by investing in the Fund.

An Important Note About Historical Performance

The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. Performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by visiting www.abfunds.com.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    7

DISCLOSURES AND RISKS (continued)

All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund’s quoted performance would be lower. SEC returns and the Fund’s returns shown in the line graphs reflect the applicable sales charges for each share class: a 3% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to their different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.

8    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

HISTORICAL PERFORMANCE

GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)

12/11/2013¹ TO 10/31/2020

This chart illustrates the total value of an assumed $10,000 investment in AB Tax-Aware Fixed Income Opportunities Portfolio Class A shares (from 12/11/2013¹ to 10/31/2020) as compared to the performance of its benchmark. The chart reflects the deduction of the maximum 3.00% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 12/11/2013.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    9

HISTORICAL PERFORMANCE (continued)

AVERAGE ANNUAL RETURNS AS OF OCTOBER 31, 2020 (unaudited)

	NAV Returns		SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		0.63%		-2.37%
5 Years		2.94%		2.31%
Since Inception1		3.45%		2.99%
CLASS C SHARES
1 Year		-0.13%		-1.10%
5 Years		2.17%		2.17%
Since Inception1		2.69%		2.69%
ADVISOR CLASS SHARES2
1 Year		0.97%		0.97%
5 Years		3.22%		3.22%
Since Inception1		3.73%		3.73%

The Fund’s current prospectus fee table shows the Fund’s total annual operating expense ratios as 1.30%, 2.06% and 1.05% for Class A, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements limit the Fund’s annual operating expense ratios exclusive of expenses associated with securities sold short, acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, brokerage commissions and other transaction costs to 0.75%, 1.50% and 0.50% for Class A, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated prior to January 31, 2021 and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.

1 Inception date: 12/11/2013.

2 This share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

10    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

HISTORICAL PERFORMANCE (continued)

SEC AVERAGE ANNUAL RETURNS

AS OF THE MOST RECENT CALENDAR QUARTER-END

SEPTEMBER 30, 2020 (unaudited)

	SEC Returns (reflects applicable sales charges)
CLASS A SHARES
1 Year		-2.65%
5 Years		2.35%
Since Inception1		2.98%
CLASS C SHARES
1 Year		-1.39%
5 Years		2.19%
Since Inception1		2.68%
ADVISOR CLASS SHARES2
1 Year		0.58%
5 Years		3.22%
Since Inception1		3.71%

1 Inception date: 12/11/2013.

2 Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    11

EXPENSE EXAMPLE

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

Actual Expenses

The table below provides information about actual account values and actual expenses. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

12    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

EXPENSE EXAMPLE (continued)

	Beginning Account Value May 1, 2020		Ending Account Value October 31, 2020		Expenses Paid During Period*		Annualized Expense Ratio*
Class A
Actual	$	1,000	$	1,118.40	$	4.21		0.79	%
Hypothetical**	$	1,000	$	1,021.17	$	4.01		0.79	%
Class C
Actual	$	1,000	$	1,114.20	$	8.18		1.54	%
Hypothetical**	$	1,000	$	1,017.39	$	7.81		1.54	%
Advisor Class
Actual	$	1,000	$	1,120.80	$	2.88		0.54	%
Hypothetical**	$	1,000	$	1,022.42	$	2.75		0.54	%

* Expenses are equal to the classes’ annualized expense ratios, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).

** Assumes 5% annual return before expenses.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    13

PORTFOLIO SUMMARY

October 31, 2020 (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $75.4

1 All data are as of October 31, 2020. The Fund’s quality rating and state breakdowns are expressed as a percentage of the Fund’s total investments in municipal securities and may vary over time. The quality ratings are determined by using the S&P Global Ratings (“S&P”), Moody’s Investors Services, Inc. (“Moody’s”) and Fitch Ratings, Ltd. (“Fitch”). The Fund considers the credit ratings issued by S&P, Moody’s and Fitch and uses the highest rating issued by the agencies. These ratings are a measure of the quality and safety of a bond or portfolio, based on the issuer’s financial condition. AAA is the highest (best) and D is the lowest (worst). If applicable, the Pre-refunded category includes bonds which are secured by U.S. Government securities and therefore are deemed high-quality investment-grade by the Adviser. If applicable, Not Applicable (N/A) includes non-creditworthy investments, such as equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a nationally recognized statistical rating organization. The Adviser evaluates the creditworthiness of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment.

2 “Other” represents less than 2.3% in 23 different states, American Samoa, District of Columbia and Guam.

14    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS

October 31, 2020

	Principal Amount (000)		U.S. $ Value
MUNICIPAL OBLIGATIONS – 96.1%
Long-Term Municipal Bonds – 96.1%
Alabama – 1.0%
County of Jefferson AL Sewer Revenue Series 2013D 6.00%, 10/01/2042	$	110	$	127,413
Tuscaloosa County Industrial Development Authority (Hunt Refining Co.) Series 2019A 5.25%, 05/01/2044(a)		595		652,156
				779,569
American Samoa – 0.2%
American Samoa Economic Development Authority (Territory of American Samoa) 7.125%, 09/01/2038(a)		135		168,121
Arizona – 0.8%
Arizona Industrial Development Authority Series 20192 – Class A 3.625%, 05/20/2033		202		210,291
Arizona Industrial Development Authority (Legacy Cares, Inc.) Series 2020 7.75%, 07/01/2050(a)		200		200,910
Arizona Industrial Development Authority (Pinecrest Academy of Nevada) Series 2020A 4.00%, 07/15/2050(a)		100		95,637
Industrial Development Authority of the City of Phoenix (The) (GreatHearts Arizona Obligated Group) Series 2014 5.00%, 07/01/2044		100		105,337
				612,175
California – 3.4%
Alameda Corridor Transportation Authority Series 2016B 5.00%, 10/01/2037		175		201,047
California Housing Finance Series 20192 4.00%, 03/20/2033		158		173,654
California Municipal Finance Authority (CHF-Riverside II LLC) 5.00%, 05/15/2040		250		294,625

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    15

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
California Pollution Control Financing Authority (Poseidon Resources Channelside LP) Series 2012 5.00%, 11/21/2045(a)	$	250	$	259,105
California Statewide Communities Development Authority (Loma Linda University Medical Center) Series 2018A 5.50%, 12/01/2058(a)		250		282,535
Golden State Tobacco Securitization Corp. Series 2018A 5.00%, 06/01/2047		1,305		1,342,140
				2,553,106
Colorado – 3.4%
City & County of Denver CO (United Airlines, Inc.) Series 2017 5.00%, 10/01/2032		615		622,810
Colorado Health Facilities Authority (CommonSpirit Health) Series 2019A 5.00%, 08/01/2044		540		638,528
Colorado Health Facilities Authority (Parkview Medical Center, Inc. Obligated Group) Series 2015B 5.00%, 09/01/2030		200		227,292
Copper Ridge Metropolitan District 5.00%, 12/01/2039		500		469,545
Vauxmont Metropolitan District AGM 5.00%, 12/15/2028-12/01/2050		480		566,760
				2,524,935
Connecticut – 1.0%
City of New Haven CT Series 2018A 5.50%, 08/01/2038		615		716,432
District of Columbia – 0.2%
District of Columbia (Friendship Public Charter School, Inc.) Series 2016A 5.00%, 06/01/2041		100		109,827
Florida – 6.3%
Bexley Community Development District Series 2016 4.875%, 05/01/2047		100		103,579

16    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Citizens Property Insurance, Inc. Series 2015A 5.00%, 06/01/2022	$	310	$	325,528
City of Tampa FL (State of Florida Cigarette Tax Revenue) Series 2020A Zero Coupon, 09/01/2053		1,000		278,980
County of Lake FL (Waterman Communities, Inc.) 3.375%, 08/15/2026		100		100,090
County of Miami-Dade FL (County of Miami-Dade FL Non-Ad Valorem) Series 2015A 5.00%, 06/01/2028		780		914,269
County of Miami-Dade FL Aviation Revenue Series 2015A 5.00%, 10/01/2031		265		303,067
County of Osceola FL Transportation Revenue Series 2020A
Zero Coupon, 10/01/2036		230		139,017
North Broward Hospital District Series 2017B 5.00%, 01/01/2037-01/01/2048		270		305,704
Pinellas County Industrial Development Authority 5.00%, 07/01/2039		505		567,736
State Board of Administration Finance Corp.
Series 2020A 1.258%, 07/01/2025		175		176,827
1.705%, 07/01/2027		120		120,484
Town of Davie FL (Nova Southeastern University, Inc.) Series 2018 5.00%, 04/01/2048		655		739,574
Village Community Development District No. 13 3.55%, 05/01/2039		635		653,840
				4,728,695
Georgia – 1.7%
City of Atlanta GA Department of Aviation Series 2012A 5.00%, 01/01/2031		310		324,226
Main Street Natural Gas, Inc. (Royal Bank of Canada) Series 2018A 4.00%, 04/01/2048		760		828,537
Municipal Electric Authority of Georgia 5.00%, 01/01/2038		100		121,497
				1,274,260

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    17

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Guam – 0.3%
Territory of Guam 5.00%, 11/15/2031	$	225	$	239,029
Illinois – 10.5%
Chicago Board of Education
Series 2010 6.319%, 11/01/2029		325		335,000
Series 2012A 5.00%, 12/01/2042		240		242,868
Series 2019A 5.00%, 12/01/2029-12/01/2030		200		222,991
Series 2019B 5.00%, 12/01/2033		100		109,255
Chicago O’Hare International Airport
Series 2015C 5.00%, 01/01/2034		335		380,560
Series 2017B 5.00%, 01/01/2035		725		845,430
Illinois Finance Authority (Illinois Institute of Technology) 4.00%, 09/01/2035		100		102,389
Illinois Finance Authority (Park Place of Elmhurst Obligated Group)
Series 2016A 6.33%, 05/15/2048		85		72,250
Series 2016C 2.00%, 05/15/2055(b)(c)		15		750
Illinois Finance Authority (Plymouth Place, Inc.) Series 2015 5.25%, 05/15/2050		100		101,934
Illinois Finance Authority (Silver Cross Hospital Obligated Group) Series 2015C 5.00%, 08/15/2035		250		281,550
Metropolitan Pier & Exposition Authority
5.00%, 06/15/2050		640		701,952
Series 2015B 5.00%, 12/15/2045		600		637,734
State of Illinois
Series 2013 5.50%, 07/01/2025		270		287,769
Series 2016 5.00%, 02/01/2024		375		401,719
Series 2017D 5.00%, 11/01/2026-11/01/2027		930		1,008,111

18    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2018A 5.00%, 10/01/2027	$	1,000	$	1,097,370
Series 2019B 5.00%, 11/01/2031		1,000		1,078,350
				7,907,982
Indiana – 0.9%
Indiana Finance Authority (Marquette Manor) Series 2015A 5.00%, 03/01/2030		190		204,269
Indiana Finance Authority (Ohio River Bridges) Series 2013A 5.00%, 07/01/2040		100		106,483
Indiana Finance Authority (RES Polyflow Indiana LLC) 7.00%, 03/01/2039(a)		350		328,373
				639,125
Iowa – 0.5%
Iowa Finance Authority (Lifespace Communities, Inc. Obligated Group) Series 2018A 5.00%, 05/15/2048		325		342,755
Kentucky – 3.0%
City of Ashland KY (Ashland Hospital Corp. Obligated Group) 4.00%, 02/01/2034		385		407,676
Kentucky Economic Development Finance Authority (Baptist Healthcare System Obligated Group) Series 2017B 5.00%, 08/15/2037		175		205,749
Kentucky Economic Development Finance Authority (CommonSpirit Health) Series 2019A 4.00%, 08/01/2039		160		178,477
Kentucky Economic Development Finance Authority (Masonic Homes of Kentucky, Inc. Obligated Group) Series 2012 5.375%, 11/15/2042		65		65,005

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    19

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Kentucky Economic Development Finance Authority (Owensboro Health, Inc. Obligated Group) Series 2017A 5.00%, 06/01/2037	$	425	$	466,395
Kentucky Public Energy Authority (BP PLC) Series 2020A 4.00%, 12/01/2050		600		690,408
Louisville/Jefferson County Metropolitan Government (Norton Healthcare Obligated Group) Series 2016 5.00%, 10/01/2033		225		263,642
				2,277,352
Louisiana – 3.7%
City of New Orleans LA Water System Revenue Series 2014 5.00%, 12/01/2034		100		114,281
Louisiana Local Government Environmental Facilities & Community Development Auth (Woman’s Hospital Foundation) Series 2017 5.00%, 10/01/2036		675		799,936
Louisiana Public Facilities Authority (Louisiana Pellets, Inc.) Series 2014A 7.50%, 07/01/2023(c)(d)		250		2
Louisiana Public Facilities Authority (Louisiana State University & Agricultural & Mechanical College Auxiliary Revenue) 5.00%, 07/01/2059		1,335		1,528,815
New Orleans Aviation Board Series 2017B 5.00%, 01/01/2043		215		241,540
Parish of St. James LA (NuStar Logistics LP) Series 20202 6.35%, 07/01/2040(a)		100		118,280
				2,802,854
Maine – 0.4%
Finance Authority of Maine (Casella Waste Systems, Inc.) Series 2017 5.25%, 01/01/2025(a)		100		110,301

20    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Maine Health & Higher Educational Facilities Authority (MaineGeneral Health Obligated Group) Series 2011 7.50%, 07/01/2032	$	165	$	169,734
				280,035
Maryland – 2.5%
City of Baltimore MD (East Baltimore Research Park Project) Series 2017A 5.00%, 09/01/2038		150		156,960
Maryland Economic Development Corp. (Air Cargo Obligated Group) 4.00%, 07/01/2044		600		649,494
Maryland Economic Development Corp. (Bowie State University) 5.00%, 07/01/2055		1,000		1,060,410
				1,866,864
Massachusetts – 1.4%
Massachusetts Development Finance Agency (Merrimack College) Series 2014 5.125%, 07/01/2044		620		652,568
Massachusetts Development Finance Agency (Zero Waste Solutions LLC)
Series 2017 8.00%, 12/01/2022(a)		325		277,365
Series 2017A 7.75%, 12/01/2044(a)		140		118,559
				1,048,492
Michigan – 0.3%
City of Detroit MI 5.00%, 04/01/2038		75		80,043
City of Detroit MI Sewage Disposal System Revenue (Great Lakes Water Authority Sewage Disposal System Revenue) Series 2012A 5.00%, 07/01/2022		115		123,788
Michigan Finance Authority (Michigan Finance Authority Tobacco Settlement Revenue) Series 2020B Zero Coupon, 06/01/2065		100		11,386
				215,217

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    21

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Minnesota – 0.7%
City of Minneapolis MN/St. Paul Housing & Redevelopment Authority (Allina Health Obligated Group) NATL 0.135%, 08/01/2028(e)	$	400	$	388,500
City of Wayzata MN (Wayzata Bay Senior Housing, Inc.) 5.00%, 08/01/2049		105		109,569
				498,069
Mississippi – 0.4%
Mississippi Hospital Equipment & Facilities Authority (Baptist Memorial Health Care Obligated Group) Series 2016A 5.00%, 09/01/2036		250		286,568
Missouri – 0.2%
Kansas City Industrial Development Authority 5.00%, 07/01/2040(a)		190		178,541
Nebraska – 0.1%
Central Plains Energy Project (Goldman Sachs Group, Inc. (The)) Series 2012 5.00%, 09/01/2042		100		107,131
New Hampshire – 0.5%
New Hampshire Business Finance Authority Series 20201 4.125%, 01/20/2034		213		231,771
New Hampshire Health and Education Facilities Authority Act (Southern New Hampshire University) Series 2012 5.00%, 01/01/2042		115		118,821
				350,592
New Jersey – 5.0%
New Jersey Economic Development Authority (New Jersey Economic Development Authority State Lease) Series 2014P 5.00%, 06/15/2029		200		218,190
New Jersey Economic Development Authority (United Airlines, Inc.) Series 1999 5.25%, 09/15/2029		210		214,454

22    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New Jersey Educational Facilities Authority (Stevens Institute of Technology) Series 2020A 5.00%, 07/01/2045	$	100	$	114,956
New Jersey Health Care Facilities Financing Authority (Inspira Health Obligated Group) Series 2017A 5.00%, 07/01/2036		280		335,151
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Fed Hwy Grant) Series 2016 5.00%, 06/15/2029		550		633,215
New Jersey Transportation Trust Fund Authority (New Jersey Transportation Trust Fund Authority State Lease) Series 2018A 5.00%, 12/15/2035		340		386,604
New Jersey Turnpike Authority Series 2017B 5.00%, 01/01/2032		540		660,960
Tobacco Settlement Financing Corp./NJ Series 2018B 5.00%, 06/01/2046		1,045		1,181,916
				3,745,446
New York – 7.8%
Metropolitan Transportation Authority 4.00%, 11/15/2026		1,155		1,185,330
Series 2020C 5.00%, 11/15/2050		1,000		1,080,250
Monroe County Industrial Development Corp./NY (St Ann’s of Greater Rochester Obligated Group) 5.00%, 01/01/2040		550		570,482
New York City Transitional Finance Authority Building Aid Revenue (New York City Transitional Finance Authority Building Aid Revenue State Lease) Series 2018S 5.00%, 07/15/2032		865		1,077,479
New York Counties Tobacco Trust V Zero Coupon, 06/01/2050		350		41,643
New York State Dormitory Authority (Orange Regional Medical Center Obligated Group) Series 2017 5.00%, 12/01/2034(a)		200		229,426

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    23

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
New York State Dormitory Authority (State of New York Pers Income Tax) Series 2014A 5.00%, 02/15/2028	$	425	$	484,483
New York State Thruway Authority (New York State Thruway Authority Ded Tax) Series 2012A 5.00%, 04/01/2026		365		387,652
New York Transportation Development Corp. (Delta Air Lines, Inc.) 4.00%, 10/01/2030-01/01/2036		575		581,463
New York Transportation Development Corp. (Laguardia Gateway Partners LLC) Series 2016A 5.00%, 07/01/2041		150		161,060
Ulster County Capital Resource Corp. (Woodland Pond at New Paltz) Series 2017 5.00%, 09/15/2037		120		112,200
				5,911,468
North Carolina – 0.8%
North Carolina Turnpike Authority Series 2017 5.00%, 01/01/2032		500		587,855
North Dakota – 0.1%
County of Grand Forks ND (Red River Biorefinery LLC) 6.375%, 12/15/2043		100		85,212
Ohio – 8.3%
Buckeye Tobacco Settlement Financing Authority 1.85%, 06/01/2029		300		298,233
Series 2020B 5.00%, 06/01/2055		3,045		3,257,693
City of Akron OH (City of Akron OH Income Tax) Series 2012A 5.00%, 12/01/2031		445		475,260
City of Chillicothe/OH (Adena Health System Obligated Group) Series 2017 5.00%, 12/01/2047		175		202,653
County of Cuyahoga OH (County of Cuyahoga OH Lease) Series 2014 5.00%, 12/01/2028		365		403,442

24    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
County of Cuyahoga/OH (MetroHealth System (The)) Series 2017 5.00%, 02/15/2042	$	205	$	230,922
County of Marion OH (United Church Homes, Inc. Obligated Group) 5.125%, 12/01/2049		100		101,702
County of Montgomery OH (Trousdale Foundation Obligated Group) Series 2018A 6.25%, 04/01/2049(a)		100		44,210
Dayton-Montgomery County Port Authority (StoryPoint Troy Project) Series 20151 7.00%, 01/15/2040		100		84,143
Ohio Air Quality Development Authority (Energy Harbor Generation LLC) Series 2009D 4.25%, 08/01/2029		145		146,088
Ohio Air Quality Development Authority (Energy Harbor Nuclear Generation LLC) Series 2009A 4.375%, 06/01/2033		100		100,750
Ohio Air Quality Development Authority (Ohio Valley Electric Corp.) 3.25%, 09/01/2029		580		584,744
Ohio Air Quality Development Authority (Pratt Paper OH, Inc.) Series 2017 4.25%, 01/15/2038(a)		185		197,029
Ohio Water Development Authority Water Pollution Control Loan Fund (Energy Harbor Nuclear Generation LLC) Series 2016A 4.375%, 06/01/2033		140		141,050
				6,267,919
Oklahoma – 2.4%
Norman Regional Hospital Authority (Norman Regional Hospital Authority Obligated Group) 3.25%, 09/01/2039		505		513,408
Oklahoma Development Finance Authority (Oklahoma City University Obligated Group) 5.00%, 08/01/2049		1,180		1,286,283
				1,799,691

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    25

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Other – 0.5%
Federal Home Loan Mortgage Corp. Multifamily VRD Certificates 2.65%, 06/15/2036(a)	$	375	$	406,522
Pennsylvania – 3.7%
Beaver County Industrial Development Authority (Energy Harbor Nuclear Generation LLC) Series 2016A 4.375%, 01/01/2035		130		130,975
Lancaster County Hospital Authority/PA (St. Anne’s Retirement Community Obligated Group) 5.00%, 03/01/2040		100		104,566
Moon Industrial Development Authority (Baptist Homes Society) Series 2015 5.75%, 07/01/2035		100		103,454
Pennsylvania Economic Development Financing Authority (Covanta Holding Corp.) Series 2019A 3.25%, 08/01/2039(a)		510		471,322
Pennsylvania Economic Development Financing Authority (PA Bridges Finco LP) Series 2015 5.00%, 12/31/2038		100		112,966
Pennsylvania Turnpike Commission Series 2017B 5.00%, 06/01/2036		200		236,818
School District of Philadelphia (The) Series 2019A 5.00%, 09/01/2044(f)		1,350		1,629,896
				2,789,997
Puerto Rico – 6.8%
Commonwealth of Puerto Rico Series 2006A 5.25%, 07/01/2023		30		20,475
Series 2011A 5.75%, 07/01/2041(b)(c)		40		25,700
Series 2012A 5.75%, 07/01/2028(b)(c)		100		62,125
Series 2014A 8.00%, 07/01/2035(b)(c)		135		80,663

26    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
GDB Debt Recovery Authority of Puerto Rico
Series 2018 7.50%, 08/20/2040	$	149	$	102,706
Puerto Rico Commonwealth Aqueduct & Sewer Authority
Series 2008A 6.00%, 07/01/2038-07/01/2044		175		177,188
6.125%, 07/01/2024		120		126,900
Series 2012A 5.00%, 07/01/2022-07/01/2033		215		222,462
5.125%, 07/01/2037		25		25,750
5.25%, 07/01/2029-07/01/2042		200		207,000
5.50%, 07/01/2028		75		78,469
5.75%, 07/01/2037		50		52,063
6.00%, 07/01/2047		50		52,313
Puerto Rico Electric Power Authority
Series 2007T 5.00%, 07/01/2032		85		58,863
5.00%, 07/01/2037(b)(c)		245		169,662
Series 2010A 5.25%, 07/01/2029(b)(c)		100		69,375
5.25%, 07/01/2030		15		10,406
Series 2010C 5.00%, 07/01/2024(b)(c)		25		17,313
Series 2010D 5.00%, 07/01/2021(b)(c)		15		10,388
Series 2010X 5.25%, 07/01/2040(b)(c)		150		104,062
5.75%, 07/01/2036(b)(c)		125		87,656
Series 2010Z 5.25%, 07/01/2024		40		27,750
Series 2012A 5.00%, 07/01/2029		50		34,625
5.00%, 07/01/2042(b)(c)		10		6,925
AGM Series 2007V 5.25%, 07/01/2031		375		429,007
NATL Series 2007V 5.25%, 07/01/2035		100		103,714
Puerto Rico Highway & Transportation Authority
AGC Series 2005L 5.25%, 07/01/2041		125		143,132
AGC Series 2007N 5.25%, 07/01/2036		110		126,758
NATL Series 2007N 5.25%, 07/01/2032		100		103,956

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    27

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Auth (AES Puerto Rico LP)
Series 2000 6.625%, 06/01/2026	$	390	$	402,675
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue
Series 2018A
Zero Coupon, 07/01/2024-07/01/2046		2,154		643,342
Series 2019A 4.329%, 07/01/2040		440		451,563
5.00%, 07/01/2058		867		921,491
				5,156,477
South Carolina – 1.2%
South Carolina Public Service Authority
Series 2014A 5.00%, 12/01/2049		220		243,280
Series 2014C 5.00%, 12/01/2046		325		364,601
Series 2016A 5.00%, 12/01/2036		265		311,407
				919,288
Tennessee – 2.2%
Bristol Industrial Development Board (Bristol Industrial Development Board Sales Tax)
Series 2016A 5.00%, 12/01/2035(a)		370		358,582
Chattanooga Health Educational & Housing Facility Board (CommonSpirit Health)
Series 2019A 4.00%, 08/01/2037-08/01/2038		130		145,838
5.00%, 08/01/2044-08/01/2049		740		873,456
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Trousdale Foundation Obligated Group)
Series 2018A 6.25%, 04/01/2049(a)		135		59,684
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Vanderbilt University Medical Center Obligated Group)
Series 2016 5.00%, 07/01/2035		215		251,010
				1,688,570

28    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Texas – 6.1%
Austin Convention Enterprises, Inc.
Series 2017A 5.00%, 01/01/2034	$	500	$	507,810
Central Texas Regional Mobility Authority
Series 2013 5.00%, 01/01/2042 (Pre-refunded/ETM)		100		109,842
City of Houston TX (City of Houston TX Hotel Occupancy Tax)
Series 2015 5.00%, 09/01/2031		160		166,717
Dallas Area Rapid Transit (Dallas Area Rapid Transit Sales Tax)
Series 2014A 5.00%, 12/01/2025		580		686,703
Dallas County Flood Control District No. 1
Series 2015 5.00%, 04/01/2028(a)		100		104,710
Love Field Airport Modernization Corp. (Dallas Love Field)
Series 2015 5.00%, 11/01/2032		500		571,070
Mission Economic Development Corp. (Natgasoline LLC)
Series 2018 4.625%, 10/01/2031(a)		450		476,712
New Hope Cultural Education Facilities Finance Corp. (Morningside Ministries Obligated Group)
5.00%, 01/01/2055		100		101,533
North Texas Tollway Authority (North Texas Tollway System)
Series 2015B 5.00%, 01/01/2034		250		288,912
Port Beaumont Navigation District (Jefferson Railport Terminal II LLC)
4.00%, 01/01/2050(a)		100		99,825
Tarrant County Cultural Education Facilities Finance Corp. (Edgemere Retirement Senior Quality Lifestyles Corp.)
Series 2015A 5.00%, 11/15/2025		675		660,319
Tarrant County Cultural Education Facilities Finance Corp. (Stayton at Museum Way)
Series 2020A 5.75%, 12/01/2054		456		469,875

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    29

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Tarrant County Cultural Education Facilities Finance Corp. (Trinity Terrace Project)
Series 2014A-1 5.00%, 10/01/2044	$	100	$	104,062
Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners Segments 3 LLC)
5.00%, 06/30/2058		235		267,139
				4,615,229
Utah – 1.5%
Salt Lake City Corp. Airport Revenue
Series 2018A 5.00%, 07/01/2048(f)		1,000		1,154,870
Virginia – 0.2%
Tobacco Settlement Financing Corp./VA
Series 2007B1 5.00%, 06/01/2047		165		165,696
Washington – 2.1%
Pend Oreille County Public Utility District No. 1 Box Canyon
Series 2018 5.00%, 01/01/2044		280		304,447
Port of Seattle WA
Series 2015C 5.00%, 04/01/2033		510		570,216
State of Washington
5.00%, 06/01/2037-06/01/2040(g)		200		257,211
Washington Health Care Facilities Authority (CommonSpirit Health)
Series 2019A 5.00%, 08/01/2044		205		242,404
Washington State Housing Finance Commission (Mirabella)
Series 2012A 6.75%, 10/01/2047(a)		100		102,214
Washington State Housing Finance Commission (Rockwood Retirement Communities)
Series 2014A 7.375%, 01/01/2044(a)		100		106,555
				1,583,047
West Virginia – 2.2%
Tobacco Settlement Finance Authority/WV
3.00%, 06/01/2035		1,000		999,210

30    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Series 2007A 7.467%, 06/01/2047	$	640	$	692,384
				1,691,594
Wisconsin – 1.8%
UMA Education, Inc.
5.00%, 10/01/2025-10/01/2029(a)		330		357,139
Wisconsin Health & Educational Facilities Authority (St. Camillus Health System Obligated Group)
5.00%, 11/01/2054		100		99,836
Wisconsin Public Finance Authority (Roseman University of Health Sciences)
5.00%, 04/01/2030(a)		260		284,120
Wisconsin Public Finance Authority (21st Century Public Academy)
3.75%, 06/01/2030(a)		350		334,211
Wisconsin Public Finance Authority (Celanese US Holdings LLC)
Series 2016C 4.30%, 11/01/2030		100		108,866
Wisconsin Public Finance Authority (Mary’s Woods at Marylhurst, Inc.)
Series 2017A 5.25%, 05/15/2042(a)		130		136,891
				1,321,063
Total Municipal Obligations (cost $71,391,900)				72,397,670
COLLATERALIZED MORTGAGE OBLIGATIONS – 2.8%
Risk Share Floating Rate – 2.8%
Bellemeade Re Ltd.
Series 2019-3A, Class M1B 1.749% (LIBOR 1 Month + 1.60%), 07/25/2029(a)(h)		252		246,416
Federal Home Loan Mortgage Corp.
Series 2019-DNA3, Class M2 2.199% (LIBOR 1 Month + 2.05%), 07/25/2049(a)(h)		36		35,065
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes
Series 2016-DNA4, Class M3 3.949% (LIBOR 1 Month + 3.80%), 03/25/2029(h)		259		268,692

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    31

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Federal National Mortgage Association Connecticut Avenue Securities
Series 2014-C01, Class M2 4.549% (LIBOR 1 Month + 4.40%), 01/25/2024(h)	$	184	$	174,713
Series 2014-C03, Class 2M2 3.049% (LIBOR 1 Month + 2.90%), 07/25/2024(h)		112		111,223
Series 2015-C01, Class 2M2 4.699% (LIBOR 1 Month + 4.55%), 02/25/2025(h)		22		22,451
Series 2015-C02, Class 1M2 4.149% (LIBOR 1 Month + 4.00%), 05/25/2025(h)		95		95,170
Series 2016-C01, Class 1M2 6.899% (LIBOR 1 Month + 6.75%), 08/25/2028(h)		172		183,059
Series 2016-C02, Class 1M2 6.149% (LIBOR 1 Month + 6.00%), 09/25/2028(h)		235		247,641
Series 2016-C04, Class 1M2 4.399% (LIBOR 1 Month + 4.25%), 01/25/2029(h)		119		123,153
Series 2017-C01, Class 1M2 3.699% (LIBOR 1 Month + 3.55%), 07/25/2029(h)		176		181,145
Series 2017-C02, Class 2M2 3.799% (LIBOR 1 Month + 3.65%), 09/25/2029(h)		189		190,585
Series 2017-C04, Class 2M2 2.999% (LIBOR 1 Month + 2.85%), 11/25/2029(h)		243		242,781
				1,875,678
Total Collateralized Mortgage Obligations (cost $2,101,414)				2,122,094
COMMERCIAL MORTGAGE-BACKED SECURITIES – 0.7%
Non-Agency Fixed Rate CMBS – 0.0%
Citigroup Commercial Mortgage Trust
Series 2015-GC29, Class A2 2.674%, 04/10/2048		1		763

32    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
Non-Agency Floating Rate CMBS – 0.7%
BAMLL Commercial Mortgage Securities Trust
Series 2017-SCH, Class AF 1.148% (LIBOR 1 Month + 1.00%), 11/15/2033(a)(h)	$	250	$	236,246
DBWF Mortgage Trust
Series 2018-GLKS, Class A 1.177% (LIBOR 1 Month + 1.03%), 12/19/2030(a)(h)		275		267,264
				503,510
Total Commercial Mortgage-Backed Securities (cost $523,366)				504,273
ASSET-BACKED SECURITIES – 0.5%
Credit Cards - Fixed Rate – 0.4%
World Financial Network Credit Card Master Trust
Series 2018-B, Class A 3.46%, 07/15/2025		335		343,441
Other ABS - Fixed Rate – 0.1%
SoFi Consumer Loan Program Trust
Series 2018-3, Class A2 3.67%, 08/25/2027(a)		75		75,527
Total Asset-Backed Securities (cost $409,785)				418,968
CORPORATES – INVESTMENT GRADE – 0.4%
Financial Institutions – 0.3%
Insurance – 0.3%
Centene Corp.
4.25%, 12/15/2027		232		244,134
Industrial – 0.1%
Transportation - Services – 0.1%
Aviation Capital Group LLC
3.50%, 11/01/2027(a)		55		48,588
Total Corporates – Investment Grade (cost $266,800)				292,722
COLLATERALIZED LOAN OBLIGATIONS – 0.3%
CLO - Floating Rate – 0.3%
THL Credit Wind River CLO Ltd.
Series 2014-2A, Class AR 1.377% (LIBOR 3 Month + 1.14%), 01/15/2031(a)(h) (cost $250,000)		250		245,985

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    33

PORTFOLIO OF INVESTMENTS (continued)

	Principal Amount (000)		U.S. $ Value
CORPORATES – NON-INVESTMENT GRADE – 0.2%
Industrial – 0.2%
Communications - Telecommunications – 0.2%
Intelsat Jackson Holdings SA
5.50%, 08/01/2023(b)(c) (cost $244,297)	$	275	$	161,807
	Shares
SHORT-TERM INVESTMENTS – 0.6%
Investment Companies – 0.6%
AB Fixed Income Shares, Inc. – AB Government Money Market Portfolio – Class AB, 0.03%(i)(j)(k) (cost $456,179)		456,179		456,179
Total Investments – 101.6% (cost $75,643,741)				76,599,698
Other assets less liabilities – (1.6)%				(1,233,072	)
Net Assets – 100.0%			$	75,366,626

CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)

Description	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Buy Contracts
CDX-NAHY Series 35, 5 Year Index, 12/20/2025*		(5.00	)%		Quarterly		4.23	%	USD	1,630	$	(65,276	)	$	(66,075	)	$	799
CDX-NAIG Series 34, 5 Year Index, 06/20/2025*		(1.00	)		Quarterly		0.91		USD	2,000		(10,583	)		3,862			(14,445	)
											$	(75,859	)	$	(62,213	)	$	(13,646	)

* Termination date

34    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

CENTRALLY CLEARED INFLATION (CPI) SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value		Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
USD	650		01/15/2028	0.735%	CPI#	Maturity	$	57,295	$	—	$	57,295
USD	1,110		01/15/2028	1.230%	CPI#	Maturity		52,278		—		52,278
USD	525		01/15/2030	1.572%	CPI#	Maturity		17,041		—		17,041
USD	1,600		01/15/2030	1.585%	CPI#	Maturity		49,672		—		49,672
USD	525		01/15/2030	1.587%	CPI#	Maturity		16,184		—		16,184
USD	3,315		01/15/2030	1.714%	CPI#	Maturity		56,125		—		56,125
USD	3,315		01/15/2030	1.731%	CPI#	Maturity		49,919		—		49,919
							$	298,514	$	—	$	298,514

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)

				Rate Type
Notional Amount (000)		Termination Date		Payments made by the Fund	Payments received by the Fund	Payment Frequency Paid/ Received	Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
USD	7,720		04/01/2022	3 Month LIBOR	1.863%	Quarterly/Semi-Annual	$	190,426		$	—		$	190,426
USD	1,195		02/05/2025	3 Month LIBOR	1.361%	Quarterly/Semi-Annual		52,935			—			52,935
USD	2,685		02/06/2025	3 Month LIBOR	1.419%	Quarterly/Semi-Annual		125,836			—			125,836
USD	2,020		02/07/2030	3 Month LIBOR	1.624%	Quarterly/Semi-Annual		150,707			—			150,707
USD	1,200		04/01/2039	0.780%	3 Month LIBOR	Semi-Annual/ Quarterly		87,247			(47	)		87,294
USD	1,000		04/01/2039	0.774%	3 Month LIBOR	Semi-Annual/ Quarterly		73,828			—			73,828
USD	1,100		04/01/2039	0.932%	3 Month LIBOR	Semi-Annual/ Quarterly		51,183			—			51,183
USD	5,500		04/01/2044	3 Month LIBOR	2.013%	Quarterly/Semi-Annual		875,350			—			875,350
USD	3,850		04/01/2054	1.583%	3 Month LIBOR	Semi-Annual/ Quarterly		(311,800	)		—			(311,800	)
							$	1,295,712		$	(47	)	$	1,295,759

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    35

PORTFOLIO OF INVESTMENTS (continued)

CREDIT DEFAULT SWAPS (see Note D)

Swap Counterparty & Referenced Obligation	Fixed Rate (Pay) Receive			Payment Frequency		Implied Credit Spread at October 31, 2020			Notional Amount (000)		Market Value			Upfront Premiums Paid (Received)			Unrealized Appreciation/ (Depreciation)
Sale Contracts
Citigroup Global Markets, Inc.
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00	%		Monthly		25.00	%	USD	17	$	(5,501	)	$	(1,663	)	$	(3,838	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD	515		(166,610	)		(60,252	)		(106,358	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD	1,000		(323,600	)		(128,525	)		(195,075	)
Credit Suisse International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD	9		(2,913	)		(889	)		(2,024	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD	114		(36,880	)		(11,271	)		(25,609	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD	171		(55,336	)		(16,473	)		(38,863	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD	1,000		(323,600	)		(130,764	)		(192,836	)
Goldman Sachs International
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD	149		(48,216	)		(13,932	)		(34,284	)
CDX-CMBX.NA.BBB- Series 6, 05/11/2063*		3.00			Monthly		25.00		USD	750		(242,637	)		(71,060	)		(171,577	)
JP Morgan Securities, LLC
CDX-CMBX.NA.A Series 6, 05/11/2063*		2.00			Monthly		9.67		USD	2,750		(343,536	)		44,738			(388,274	)
											$	(1,548,829	)	$	(390,091	)	$	(1,158,738	)

* Termination date

INTEREST RATE SWAPS (see Note D)

					Rate Type
Swap Counterparty	Notional Amount (000)		Termination Date		Payments made by the Fund		Payments received by the Fund		Payment Frequency Paid Received		Market Value			Upfront Premiums Paid (Received)		Unrealized Appreciation/ (Depreciation)
Citibank, NA	USD	2,220		10/09/2029		1.120%		SIFMA*		Quarterly/ Quarterly	$	(93,196	)	$	—	$	(93,196	)
Citibank, NA	USD	2,220		10/09/2029		1.125%		SIFMA*		Quarterly/ Quarterly		(94,278	)		—		(94,278	)
											$	(187,474	)	$	—	$	(187,474	)

* Variable interest rate based on the Securities Industry & Financial Markets Association (SIFMA) Municipal Swap Index.

36    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

PORTFOLIO OF INVESTMENTS (continued)

(a) Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2020, the aggregate market value of these securities amounted to $7,714,126 or 10.2% of net assets.

(b) Non-income producing security.

(c) Defaulted.

(d) Restricted and illiquid security.

Restricted & Illiquid Securities	Acquisition Date		Cost		Market Value		Percentage of Net Assets
Louisiana Public Facilities Authority (Louisiana Pellets, Inc.) Series 2014A 7.50%, 07/01/2023		07/31/2014	$	173,773	$	2		0.00	%

(e) An auction rate security whose interest rate resets at each auction date. Auctions are typically held every week or month. The rate shown is as of October 31, 2020 and the aggregate market value of this security amounted to $388,500 or 0.52% of net assets.

(f) Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund (see Note I).

(g) When-Issued or delayed delivery security.

(h) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at October 31, 2020.

(i) Affiliated investments.

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

(k) 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.

As of October 31, 2020, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity are 2.6% and 0.0%, respectively.

Glossary:

ABS – Asset-Backed Securities

AGC – Assured Guaranty Corporation

AGM – Assured Guaranty Municipal

CDX-CMBX.NA – North American Commercial Mortgage-Backed Index

CDX-NAHY – North American High Yield Credit Default Swap Index

CDX-NAIG – North American Investment Grade Credit Default Swap Index

CLO – Collateralized Loan Obligations

CMBS – Commercial Mortgage-Backed Securities

CPI – Consumer Price Index

ETM – Escrowed to Maturity

LIBOR – London Interbank Offered Rate

NATL – National Interstate Corporation

See notes to financial statements.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    37

STATEMENT OF ASSETS & LIABILITIES

October 31, 2020

Assets
Investments in securities, at value
Unaffiliated issuers (cost $75,187,562)	$	76,143,519
Affiliated issuers (cost $456,179)		456,179
Cash collateral due from broker		2,718,948
Interest receivable		1,005,172
Receivable for investment securities sold		15,000
Receivable for capital stock sold		11,035
Receivable due from Adviser		9,972
Receivable for variation margin on centrally cleared swaps		5,086
Affiliated dividends receivable		21
Total assets		80,364,932
Liabilities
Payable for floating rate notes issued(a)		1,600,000
Market value on credit default swaps (net premiums received $390,091)		1,548,829
Payable for investment securities purchased		1,417,060
Unrealized depreciation on interest rate swaps		187,474
Payable for capital stock redeemed		121,646
Distribution fee payable		5,035
Directors’ fees payable		1,560
Transfer Agent fee payable		1,452
Other liabilities		3,582
Accrued expenses		111,668
Total liabilities		4,998,306
Net Assets	$	75,366,626
Composition of Net Assets
Capital stock, at par	$	6,962
Additional paid-in capital		74,819,388
Distributable earnings		540,276
	$	75,366,626

Net Asset Value Per Share—21 billion shares of capital stock authorized, $.001 par value

Class	Net Assets		Shares Outstanding		Net Asset Value
A	$	16,462,900		1,520,847	$	10.82	*
C	$	1,793,949		165,718	$	10.83
Advisor	$	57,109,777		5,275,367	$	10.83

(a) Represents short-term floating rate certificates issued by tender option bond trusts (see Note I).

* The maximum offering price per share for Class A shares was $11.15 which reflects a sales charge of 3.00%.

See notes to financial statements.

38    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

STATEMENT OF OPERATIONS

Year Ended October 31, 2020

Investment Income
Interest	$	2,833,636
Dividends
Affiliated issuers		20,209
Unaffiliated issuers		9,712		$	2,863,557
Expenses
Advisory fee (see Note B)		378,391
Distribution fee—Class A		41,055
Distribution fee—Class C		16,597
Transfer agency—Class A		8,763
Transfer agency—Class C		873
Transfer agency—Advisor Class		32,969
Custody and accounting		100,871
Administrative		73,172
Audit and tax		62,553
Registration fees		60,196
Legal		45,686
Printing		23,410
Directors’ fees		17,987
Miscellaneous		10,062
Total expenses before interest/bank overdraft expense		872,585
Interest/bank overdraft expense		18,693
Total expenses		891,278
Less: expenses waived and reimbursed by the Adviser (see Note B)		(396,568	)
Net expenses					494,710
Net investment income					2,368,847
Realized and Unrealized Loss on Investment Transactions
Net realized loss on:
Investment transactions					(405,896	)
Swaps					(73,782	)
Net change in unrealized appreciation/depreciation of:
Investments(a)					(2,566,640	)
Swaps					(595,745	)
Net loss on investment transactions					(3,642,063	)
Net Decrease in Net Assets from Operations				$	(1,273,216	)

(a) Net of decrease in accrued foreign capital gains taxes of $4,129.

See notes to financial statements.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    39

STATEMENT OF CHANGES IN NET ASSETS

	Year Ended October 31, 2020			Year Ended October 31, 2019
Increase (Decrease) in Net Assets from Operations
Net investment income	$	2,368,847		$	2,028,913
Net realized loss on investment transactions		(479,678	)		(480,905	)
Net change in unrealized appreciation/depreciation of investments		(3,162,385	)		4,204,994
Net increase (decrease) in net assets from operations		(1,273,216	)		5,753,002
Distributions to Shareholders
Class A		(516,141	)		(220,518	)
Class C		(38,826	)		(24,277	)
Advisor Class		(2,154,981	)		(1,854,885	)
Capital Stock Transactions
Net increase (decrease)		(1,296,763	)		13,126,054
Total increase (decrease)		(5,279,927	)		16,779,376
Net Assets
Beginning of period		80,646,553			63,867,177
End of period	$	75,366,626		$	80,646,553

See notes to financial statements.

40    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS

October 31, 2020

NOTE A

Significant Accounting Policies

AB Bond Fund, Inc. (the “Company”) is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 10 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Tax-Aware Fixed Income Opportunities Portfolio (the “Fund”) (formerly known as AB Tax-Aware Fixed Income Portfolio), a diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class T, Class 1 and Class 2 shares. Class B, Class T, Class 1 and Class 2 shares have not been issued. Class A shares are sold with a front-end sales charge of up to 3.0% for purchases not exceeding $500,000. With respect to purchases of $500,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Class C shares will automatically convert to Class A shares ten years after the end of the calendar month of purchase. Advisor Class shares are sold without any initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All seven classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

1. Security Valuation

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at “fair value” as determined in accordance with procedures established by and under the general supervision of the Company’s Board of Directors (the “Board”).

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    41

NOTES TO FINANCIAL STATEMENTS (continued)

securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. (“NASDAQ”)) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter (“OTC”) market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (the “Adviser”) will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the “Committee”) must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Such factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer’s financial statements

42    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund values its securities at 4:00 p.m., Eastern Time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

2. Fair Value Measurements

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

• Level 1—quoted prices in active markets for identical investments

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

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

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    43

NOTES TO FINANCIAL STATEMENTS (continued)

which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

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

Investments in Securities:

Level 1

Level 2

Level 3

Total

Assets:

Long-Term Municipal Bonds

$

– 0

–

$

72,397,670

$

– 0

–

$

72,397,670

Collateralized Mortgage Obligations

– 0

–

2,122,094

– 0

–

2,122,094

Commercial Mortgage-Backed Securities

– 0

–

504,273

– 0

–

504,273

Asset-Backed Securities

– 0

–

418,968

– 0

–

418,968

Corporates – Investment Grade

– 0

–

292,722

– 0

–

292,722

Collateralized Loan Obligations

– 0

–

245,985

– 0

–

245,985

Corporates – Non-Investment Grade

– 0

–

161,807

– 0

–

161,807

Short-Term Investments

456,179

– 0

–

– 0

–

456,179

Liabilities:

Floating Rate Notes(a)

(1,600,000

)

– 0

–

– 0

–

(1,600,000

)

Total Investments in Securities

(1,143,821

)

76,143,519

– 0

–

74,999,698

44    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Investments in Securities:	Level 1			Level 2			Level 3			Total
Other Financial Instruments(b):
Assets:
Centrally Cleared Inflation (CPI) Swaps	$	– 0	–	$	298,514		$	– 0	–	$	298,514	(c)
Centrally Cleared Interest Rate Swaps		– 0	–		1,607,512			– 0	–		1,607,512	(c)
Liabilities:
Centrally Cleared Credit Default Swaps		– 0	–		(75,859	)		– 0	–		(75,859	)(c)
Centrally Cleared Interest Rate Swaps		– 0	–		(311,800	)		– 0	–		(311,800	)(c)
Credit Default Swaps		– 0	–		(1,548,829	)		– 0	–		(1,548,829	)
Interest Rate Swaps		– 0	–		(187,474	)		– 0	–		(187,474	)
Total	$	(1,143,821	)	$	75,925,583		$	– 0	–	$	74,781,762

(a) The Fund may hold liabilities in which the fair value approximates the carrying amount for financial statement purposes.

(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.

(c) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

3. Currency Translation

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    45

NOTES TO FINANCIAL STATEMENTS (continued)

4. Taxes

It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund’s tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund’s financial statements.

5. Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

6. Class Allocations

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each fund or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

7. Dividends and Distributions

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital

46    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

NOTE B

Advisory Fee and Other Transactions with Affiliates

Under the terms of the investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .45% of the first $2.5 billion, .40% of the excess over $2.5 billion up to $5 billion and .35% in excess of $5 billion of the Fund’s average daily net assets. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding expenses associated with securities sold short, acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs), on an annual basis (the “Expense Caps”) to .75%, 1.50% and .50%, of average daily net assets for Class A, Class C and Advisor Class shares, respectively. For the year ended October 31, 2020, such reimbursements/waivers amounted to $321,326. The Expense Caps may not be terminated before January 31, 2021.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended October 31, 2020, the Adviser voluntarily agreed to waive such fees in the amount of $73,172.

The Fund compensates AllianceBernstein Investor Services, Inc. (“ABIS”), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $17,956 for the year ended October 31, 2020.

AllianceBernstein Investments, Inc. (the “Distributor”), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund’s shares. The Distributor has advised the Fund that it has retained front-end sales charges of $35 from the sale of Class A shares and received $7,538 and $783 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended October 31, 2020.

The Fund may invest in AB Government Money Market Portfolio (the “Government Money Market Portfolio”) which has a contractual annual advisory fee rate of .20% of the portfolio’s average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    47

NOTES TO FINANCIAL STATEMENTS (continued)

.10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2021. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund’s pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended October 31, 2020, such waiver amounted to $2,070.

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

Fund	Market Value 10/31/19 (000)			Purchases at Cost (000)		Sales Proceeds (000)		Market Value 10/31/20 (000)		Dividend Income (000)
Government Money Market Portfolio	$	– 0	–	$	61,517	$	61,061	$	456	$	20

During the second quarter of 2018, AXA S.A. (“AXA”), a French holding company for the AXA Group, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (now named Equitable Holdings, Inc.)(“Equitable”), through an initial public offering. Equitable is the holding company for a diverse group of financial services companies, including an approximate 65% economic interest in the Adviser and a 100% interest in AllianceBernstein Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently during the fourth quarter of 2019. As a result, AXA currently owns less than 10% of the outstanding shares of common stock of Equitable, and no longer owns a controlling interest in Equitable. AXA previously announced its intention to sell its entire interest in Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into Equitable shares and maturing in May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of Equitable common stock.

Sales under the Plan that were completed on November 13, 2019 resulted in the indirect transfer of a “controlling block” of voting securities of the Adviser (a “Change of Control Event”) and may have been deemed to have been an “assignment” causing a termination of the Fund’s investment advisory and administration agreements. In order to ensure that investment advisory and administration services could continue uninterrupted in the event of a Change of Control Event, the Board previously approved new investment advisory and administration agreements with the Adviser, and

48    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

shareholders of the Fund subsequently approved the new investment advisory agreement. These agreements became effective on November 13, 2019.

NOTE C

Distribution Services Agreement

The Fund has adopted a Distribution Services Agreement (the “Agreement”) pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to 0.30% of the Fund’s average daily net assets attributable to Class A shares and 1% of the Fund’s average daily net assets attributable to Class C shares. The fees are accrued daily and paid monthly. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares’ average daily net assets. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund’s operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $15,872 for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund’s shares.

NOTE D

Investment Transactions

Purchases and sales of investment securities (excluding short-term investments) for the year ended October 31, 2020 were as follows:

	Purchases		Sales
Investment securities (excluding U.S. government securities)	$	42,407,278	$	38,665,920
U.S. government securities		8,906,710		12,353,489

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

Cost	$	74,051,260
Gross unrealized appreciation	$	5,682,845
Gross unrealized depreciation		(3,358,463	)
Net unrealized appreciation	$	2,324,382

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    49

NOTES TO FINANCIAL STATEMENTS (continued)

1. Derivative Financial Instruments

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, “investment purposes”), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

• Swaps

The Fund may enter into swaps to hedge its exposure to interest rates or credit risk. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund’s exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for OTC swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

50    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants (“FCMs”) that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Interest Rate Swaps:

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed rate payments) computed based on

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    51

NOTES TO FINANCIAL STATEMENTS (continued)

a contractually-based principal (or “notional”) amount. Interest rate swaps are entered into on a net basis (i.e., the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended October 31, 2020, the Fund held interest rate swaps for hedging purposes.

Inflation (CPI) Swaps:

Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.

During the year ended October 31, 2020, the Fund held inflation (CPI) swaps for hedging purposes.

Credit Default Swaps:

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection (“Buy Contract”) or provide credit protection (“Sale Contract”) on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the “Maximum Payout Amount”) and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

52    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation’s credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced obligation.

During the year ended October 31, 2020, the Fund held credit default swaps for hedging and non-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreement”) with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund’s net liability, held by the defaulting party, may be delayed or denied.

The Fund’s ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels (“net asset contingent features”). If these levels are triggered, the Fund’s OTC counterparty has the right to

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    53

NOTES TO FINANCIAL STATEMENTS (continued)

terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended October 31, 2020, the Fund had entered into the following derivatives:

	Asset Derivatives				Liability Derivatives
Derivative Type	Statement of Assets and Liabilities Location	Fair Value			Statement of Assets and Liabilities Location	Fair Value
Credit contracts	Receivable/Payable for variation margin on centrally cleared swaps	$	799	*	Receivable/Payable for variation margin on centrally cleared swaps	$	14,445	*
Interest rate contracts	Receivable/Payable for variation margin on centrally cleared swaps		1,906,073	*	Receivable/Payable for variation margin on centrally cleared swaps		311,800	*
Interest rate contracts					Unrealized depreciation on interest rate swaps		187,474
Credit contracts					Market value on credit default swaps		1,548,829
Total		$	1,906,872			$	2,062,548

* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

Derivative Type	Location of Gain or (Loss) on Derivatives Within Statement of Operations	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation)
Interest rate contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps	$	(339,264	)	$	660,873
Credit contracts	Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps		265,482			(1,256,618	)
Total		$	(73,782	)	$	(595,745	)

54    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended October 31, 2020:

Interest Rate Swaps:
Average notional amount	$	4,440,000
Inflation Swaps:
Average notional amount	$	9,804,100	(a)
Centrally Cleared Interest Rate Swaps:
Average notional amount	$	36,463,077
Centrally Cleared Inflation Swaps:
Average notional amount	$	18,970,769
Credit Default Swaps:
Average notional amount of sale contracts	$	5,840,385
Centrally Cleared Credit Default Swaps:
Average notional amount of buy contracts	$	3,372,035

(a) Positions were open for nine months during the year.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund’s derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements (“MA”) and net of the related collateral received/pledged by the Fund as of October 31, 2020. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

Counterparty	Derivative Liabilities Subject to a MA		Derivatives Available for Offset			Cash Collateral Pledged*			Security Collateral Pledged*			Net Amount of Derivative Liabilities
Citibank, NA/Citigroup Global Markets, Inc.	$	683,185	$	– 0	–	$	(683,185	)	$	– 0	–	$	– 0	–
Credit Suisse International		418,729		– 0	–		(256,000	)		– 0	–		162,729
Goldman Sachs International		290,853		– 0	–		(256,000	)		– 0	–		34,853
JP Morgan Securities, LLC		343,536		– 0	–		(343,536	)		– 0	–		– 0	–
Total	$	1,736,303	$	– 0	–	$	(1,538,721	)	$	– 0	–	$	197,582	^

* The actual collateral received/pledged may be more than the amount reported due to over-collateralization.

^ Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    55

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE E

Capital Stock

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

	Shares						Amount
	Year Ended October 31, 2020			Year Ended October 31, 2019			Year Ended October 31, 2020			Year Ended October 31, 2019
Class A
Shares sold		1,063,656			640,376		$	11,231,752		$	7,042,277
Shares issued in reinvestment of dividends		20,938			8,294			223,947			90,705
Shares converted from Class C		16,357			0	(a)		166,789			1
Shares redeemed		(656,125	)		(114,410	)		(6,848,767	)		(1,235,112	)
Net increase		444,826			534,260		$	4,773,721		$	5,897,871
Class C
Shares sold		63,704			70,443		$	708,055		$	764,808
Shares issued in reinvestment of dividends		2,452			1,618			26,233			17,669
Shares converted to Class A		(16,357	)		0	(a)		(166,789	)		(1	)
Shares redeemed		(27,959	)		(1,705	)		(286,256	)		(18,666	)
Net increase		21,840			70,356		$	281,243		$	763,810
Advisor Class
Shares sold		6,370,236			4,278,940		$	68,728,672		$	46,722,768
Shares issued in reinvestment of dividends		83,044			68,832			891,901			750,101
Shares redeemed		(7,230,083	)		(3,786,542	)		(75,972,300	)		(41,008,496)
Net increase (decrease)		(776,803	)		561,230		$	(6,351,727	)	$	6,464,373

(a) Amount is less than one share.

NOTE F

Risks Involved in Investing in the Fund

Market Risk—The value of the Fund’s assets will fluctuate as the bond market fluctuates. The value of its investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness), that affect large portions of the market.

56    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Credit Risk—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

Below Investment Grade Securities Risk—Investments in fixed-income securities with lower ratings (commonly known as “junk bonds”) are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific municipal or corporate developments and negative performance of the junk bond market generally and may be more difficult to trade than other types of securities.

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 Fund’s investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state’s municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer’s ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may continue or worsen, adversely affecting the performance of the Fund. The Fund’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.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    57

NOTES TO FINANCIAL STATEMENTS (continued)

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the U.S. federal income tax treatment of certain types of municipal securities

The Fund may invest in the municipal securities of Puerto Rico or other U.S. territories and their governmental agencies and municipalities, which are exempt from federal, state, and, where applicable, local income taxes. These municipal securities may have more risks than those of other U.S. issuers of municipal securities. Like many U.S. states and municipalities, Puerto Rico experienced a significant downturn during the recent recession. Puerto Rico’s downturn was particularly severe, and Puerto Rico continues to face a very challenging economic and fiscal environment. If the general economic situation in Puerto Rico continues to persist or worsens, the volatility and credit quality of Puerto Rican municipal securities could continue to be adversely affected, and the market for such securities may experience continued volatility.

Tax Risk—From time to time, the U.S. Government and the U.S. Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund’s NAV could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund’s yield.

Interest Rate Risk—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations.

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.

58    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

Inflation Risk—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund’s assets can decline as can the value of the Fund’s distributions. This risk is significantly greater for fixed-income securities with longer maturities.

Illiquid Investments Risk—Illiquid investments risk exists when certain investments become difficult to purchase or sell. Difficulty in selling such investments may result in sales at disadvantageous prices affecting the value of your investment in the Fund. Causes of illiquid investments risk may include low trading volumes and large positions. Municipal securities may have more illiquid investments risk than other fixed-income securities because they trade less frequently and the market for municipal securities is generally smaller than many other markets.

Leverage Risk—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund’s investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

Derivatives Risk—The Fund may enter into derivative transactions such as forwards, options, futures and swaps. Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses for the Fund, and subject to counterparty risk to a greater degree than more traditional investments. Derivatives may result in significant losses, including losses that are far greater than the value of the derivatives reflected on the statement of assets and liabilities.

LIBOR Risk—The Fund may invest in certain debt securities, derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority, which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry working groups have suggested alternative reference rates, such as European Interbank Offer Rate (“EURIBOR”), Sterling Overnight Interbank Average Rate (“SONIA”) and Secured Overnight Financing Rate (“SOFR”), global consensus on alternative rates is lacking and the process for amending existing contracts or instruments to transition away from

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    59

NOTES TO FINANCIAL STATEMENTS (continued)

LIBOR is underway but remains unclear. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021.

Indemnification Risk—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

Management Risk—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

NOTE G

Joint Credit Facility

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the “Facility”) intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended October 31, 2020.

60    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE H

Distributions to Shareholders

The tax character of distributions paid during the fiscal years ended October 31, 2020 and October 31, 2019 were as follows:

	2020		2019
Distributions paid from:
Ordinary income	$	526,813	$	563,591
Total taxable distributions		526,813		563,591
Tax-exempt distributions		2,183,135		1,536,089
Total distributions paid	$	2,709,948	$	2,099,680

As of October 31, 2020, the components of accumulated earnings/(deficit) on a tax basis were as follows:

Accumulated capital and other losses	$	(1,779,558	)(a)
Unrealized appreciation/(depreciation)		2,324,382	(b)
Total accumulated earnings/(deficit)	$	544,824	(c)

(a) As of October 31, 2020, the Fund had a net capital loss carryforward of $1,779,558.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the tax treatment of swaps, the tax deferral of losses on wash sales, and the tax treatment of tender option bonds.

(c) The difference between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to dividends payable.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of October 31, 2020, the Fund had a net short-term capital loss carryforward of $1,631,007 and a net long-term capital loss carryforward of $148,551, which may be carried forward for an indefinite period.

During the current fiscal year, permanent differences primarily due to the tax treatment of swaps resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

NOTE I

Floating Rate Notes Issued in Connection with Securities Held

The Fund may engage in tender option bond (“TOB”) transactions in which the Fund transfers a fixed rate bond (“Fixed Rate Bond”) into a Special Purpose Vehicle (the “SPV”, which is generally organized as a trust). The Fund buys a residual interest in the assets and cash flows of the SPV, often referred to as an inverse floating rate obligation (“Inverse Floater”). The SPV also issues floating rate notes (“Floating Rate Notes”) which are sold to third parties. The Floating Rate Notes pay interest at rates that generally reset weekly and their holders have the option to tender their

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    61

NOTES TO FINANCIAL STATEMENTS (continued)

notes to a liquidity provider for redemption at par. The Inverse Floater held by the Fund gives the Fund the right (1) to cause the holders of the Floating Rate Notes to tender their notes at par, and (2) to have the trustee transfer the Fixed Rate Bond held by the SPV to the Fund, thereby collapsing the SPV. The SPV may also be collapsed in certain other circumstances. In accordance with U.S. GAAP requirements regarding accounting for transfers and servicing of financial assets and extinguishments of liabilities, the Fund accounts for the transaction described above as a secured borrowing by including the Fixed Rate Bond in its portfolio of investments and the Floating Rate Notes as a liability under the caption “Payable for floating rate notes issued” in its statement of assets and liabilities. Interest expense related to the Fund’s liability with respect to Floating Rate Notes is recorded as incurred. The interest expense is also included in the Fund’s expense ratio. At October 31, 2020, the amount of the Fund’s Floating Rate Notes outstanding was $1,600,000 and the related interest rate was 0.16% to 0.39%. For the year ended October 31, 2020, the average amount of Floating Rate Notes outstanding and the daily weighted average interest rate were $307,377 and 2.33%, respectively.

The Fund may also purchase Inverse Floaters in the secondary market without first owning the underlying bond. Such an Inverse Floater is included in the Fund’s portfolio of investments but is not required to be treated as a secured borrowing and reflected in the Fund’s financial statements as a secured borrowing.

NOTE J

Recent Accounting Pronouncements

In March 2017, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. ASU 2017-08 does not require any accounting change for debt securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Fund has adopted ASU 2017-08, which did not have a material impact on the Fund’s financial position or the results of its operations, and had no impact on the Fund’s net assets.

62    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

NOTES TO FINANCIAL STATEMENTS (continued)

NOTE K

Subsequent Events

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund’s financial statements through this date.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    63

FINANCIAL HIGHLIGHTS

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class A
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  11.09			$  10.46			$  10.77			$  10.87			$  10.59
Income From Investment Operations
Net investment income(a)(b)		.29			.30			.24			.21			.22
Net realized and unrealized gain (loss) on investment transactions		(.23	)		.65			(.30	)		(.10	)(c)		.28
Net increase (decrease) in net asset value from operations		.06			.95			(.06	)		.11			.50
Less: Dividends
Dividends from net investment income		(.33	)		(.32	)		(.25	)		(.21	)		(.22	)
Net asset value, end of period		$  10.82			$  11.09			$  10.46			$  10.77			$  10.87
Total Return
Total investment return based on net asset value(d)		.63	%		9.15	%		(.55	)%		1.09	%		4.69	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$16,463			$11,932			$5,666			$8,065			$6,385
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		.77	%		.76	%		.75	%		.75	%		.80	%
Expenses, before waivers/reimbursements(e)(f)		1.26	%		1.30	%		1.27	%		1.40	%		1.72	%
Net investment income(b)		2.68	%		2.78	%		2.26	%		2.01	%		1.98	%
Portfolio turnover rate		63	%		52	%		68	%		34	%		36	%

See footnote summary on page 67.

64    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Class C
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  11.09			$  10.46			$  10.77			$  10.87			$  10.59
Income From Investment Operations
Net investment income(a)(b)		.20			.22			.16			.13			.13
Net realized and unrealized gain (loss) on investment transactions		(.21	)		.65			(.30	)		(.10	)(c)		.28
Net increase (decrease) in net asset value from operations		(.01	)		.87			(.14	)		.03			.41
Less: Dividends
Dividends from net investment income		(.25	)		(.24	)		(.17	)		(.13	)		(.13	)
Net asset value, end of period		$  10.83			$  11.09			$  10.46			$  10.77			$  10.87
Total Return
Total investment return based on net asset value(d)		(.03	)%+		8.33	%		(1.29	)%		.33	%		3.91	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$1,794			$1,596			$769			$1,056			$2,022
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		1.52	%		1.51	%		1.50	%		1.50	%		1.55	%
Expenses, before waivers/reimbursements(e)(f)		2.00	%		2.06	%		2.02	%		2.18	%		2.47	%
Net investment income(b)		1.91	%		2.05	%		1.52	%		1.25	%		1.23	%
Portfolio turnover rate		63	%		52	%		68	%		34	%		36	%

See footnote summary on page 67.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    65

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

	Advisor Class
	Year Ended October 31,
	2020			2019			2018			2017			2016
Net asset value, beginning of period		$  11.09			$  10.46			$  10.77			$  10.87			$  10.59
Income From Investment Operations
Net investment income(a)(b)		.31			.33			.27			.24			.24
Net realized and unrealized gain (loss) on investment transactions		(.21	)		.64			(.30	)		(.10	)(c)		.28
Net increase (decrease) in net asset value from operations		.10			.97			(.03	)		.14			.52
Less: Dividends
Dividends from net investment income		(.36	)		(.34	)		(.28	)		(.24	)		(.24	)
Net asset value, end of period		$  10.83			$  11.09			$  10.46			$  10.77			$  10.87
Total Return
Total investment return based on net asset value(d)		.97	%		9.42	%		(.30	)%		1.34	%		4.96	%
Ratios/Supplemental Data
Net assets, end of period (000’s omitted)		$57,110			$67,119			$57,432			$59,782			$33,667
Ratio to average net assets of:
Expenses, net of waivers/reimbursements(e)(f)		.52	%		.51	%		.50	%		.50	%		.55	%
Expenses, before waivers/reimbursements(e)(f)		.99	%		1.05	%		1.02	%		1.15	%		1.47	%
Net investment income(b)		2.87	%		3.04	%		2.52	%		2.26	%		2.24	%
Portfolio turnover rate		63	%		52	%		68	%		34	%		36	%

See footnote summary on page 67.

66    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

FINANCIAL HIGHLIGHTS (continued)

Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Due to timing of sales and repurchase of capital shares, the net realized and unrealized gain (loss) per share is not in accordance with the Fund’s change in net realized and unrealized gain (loss) on investment transactions for the period.

(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total investment return. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

+ The net asset value and total return include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes. As such, the net asset value and total return for shareholder transactions may differ from financial statements.

(e) In connection with the Fund’s investments in affiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund’s pro rata share of certain acquired fund fees and expenses, and for the year ended October 31, 2017, such waiver amounted to .01%.

(f) The expense ratios presented below exclude interest/bank overdraft:

	Year Ended October 31,
	2020		2019		2018		2017		2016
Class A
Net of waivers/reimbursements		.75%		.75%		N/A		N/A		N/A
Before waivers/reimbursements		1.23%		1.29%		N/A		N/A		N/A
Class C
Net of waivers/reimbursements		1.50%		1.50%		N/A		N/A		N/A
Before waivers/reimbursements		1.98%		2.04%		N/A		N/A		N/A
Advisor Class
Net of waivers/reimbursements		.50%		.50%		N/A		N/A		N/A
Before waivers/reimbursements		.96%		1.04%		N/A		N/A		N/A

See notes to financial statements.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    67

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of

AB Tax-Aware Fixed Income Opportunities Portfolio

Opinion on the Financial Statements

We have audited the accompanying statement of assets and liabilities of AB Tax-Aware Fixed Income Opportunities Portfolio, formerly known as AB Tax-Aware Fixed Income Portfolio (the “Fund”) (one of the portfolios constituting AB Bond Fund, Inc. (the “Company”)), including the portfolio of investments, as of October 31, 2020, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the portfolios constituting AB Bond Fund, Inc.) at October 31, 2020, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of the Company’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in

68    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

REPORT OF INDEPENDENT REGISTERED

PUBLIC ACCOUNTING FIRM (continued)

the financial statements. Our procedures included confirmation of securities owned as of October 31, 2020, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

December 23, 2020

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO     ^|    69

BOARD OF DIRECTORS

Marshall C. Turner, Jr⁽¹⁾,
Chairman Jorge A. Bermudez⁽¹⁾ Michael J. Downey⁽¹⁾ Nancy P. Jacklin⁽¹⁾ Robert M. Keith, President and Chief Executive Officer Jeanette Loeb⁽¹⁾ Carol C. McMullen⁽¹⁾ Garry L. Moody⁽¹⁾ Earl D. Weiner⁽¹⁾

OFFICERS

R.B. (Guy) Davidson III⁽²⁾,*, Vice President Terrance T. Hults⁽²⁾, Vice President Shawn E. Keegan⁽²⁾, Vice President Matthew J. Norton⁽²⁾, Vice President Andrew D. Potter⁽²⁾, Vice President Emilie D. Wrapp, Secretary Michael B. Reyes, Senior Analyst Joseph J. Mantineo, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Vincent S. Noto, Chief Compliance Officer

Custodian and Accounting Agent State Street Bank and Trust Company State Street Corporation CCB/5 1 Iron Street Boston, MA 02210 Principal Underwriter AllianceBernstein Investments, Inc. 1345 Avenue of the Americas New York, NY 10105 Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278-6003 Toll-Free (800) 221-5672 Independent Registered Public Accounting Firm Ernst & Young LLP 5 Times Square New York, NY 10036 Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund are made by its Tax-Aware Investment Team. Messrs. Davidson, Hults, Keegan, Norton and Potter are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio.

* Mr. Davidson is expected to retire from the Adviser effective December 30, 2020.

70    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND

Board of Directors Information

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund’s Directors is set forth below.

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INTERESTED DIRECTOR
Robert M. Keith,# 1345 Avenue of the Americas New York, NY 10105 60 (2010)	Senior Vice President of AllianceBernstein L.P. (the “Adviser”) and the head of AllianceBernstein Investments, Inc. (“ABI”) since July 2008; Director of ABI and President of the AB Mutual Funds. Previously, he served as Executive Managing Director of ABI from December 2006 to June 2008. Prior to joining ABI in 2006, Executive Managing Director of Bernstein Global Wealth Management, and prior thereto, Senior Managing Director and Global Head of Client Service and Sales of the Adviser’s institutional investment management business since 2004. Prior thereto, he was Managing Director and Head of North American Client Service and Sales in the Adviser’s institutional investment management business with which he had been associated since prior to 2004.		77	None

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    71

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS
Marshall C. Turner, Jr.,## Chairman of the Board 79 (2005)	Private Investor since prior to 2015. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of such AB Funds since February 2014.		77	None

72    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Jorge A. Bermudez,## 69 (2020)	Private Investor since prior to 2015. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup’s Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020.		77	Moody’s Corporation since April 2011
Michael J. Downey,## 76 (2005)	Private Investor since prior to 2015. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2015 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005.		77	None

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    73

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Nancy P. Jacklin,## 72 (2006)	Private Investor since prior to 2015. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014.		77	None
Jeanette Loeb,## 68 (2020)	Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as director or trustee of the AB Funds since April 2020.		77	Apollo Investment Corp. (business development company) since August 2011

74    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Carol C. McMullen,## 65 (2016)	Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016.		77	None

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    75

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Garry L. Moody,## 68 (2008)	Private Investor since prior to 2015. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008.		77	None

76    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

MANAGEMENT OF THE FUND (continued)

NAME, ADDRESS*, AGE, (YEAR FIRST ELECTED**)	PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND INFORMATION***	PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR		OTHER PUBLIC COMPANY DIRECTORSHIPS CURRENTLY HELD BY DIRECTOR
INDEPENDENT DIRECTORS (continued)
Earl D. Weiner,## 81 (2007)	Senior Counsel since 2017, Of Counsel from 2007 to 2016, and Partner prior to then, of the law firm Sullivan & Cromwell LLP. He is a former member of the ABA Federal Regulation of Securities Committee Task Force to draft editions of the Fund Director’s Guidebook. He also serves as a director or trustee of various non-profit organizations and has served as Chairman or Vice Chairman of a number of them. He has served as a director or trustee of the AB Funds since 2007 and served as Chairman of the Governance and Nominating Committees of the AB Funds from 2007 until August 2014.		77	None

* The address for each of the Fund’s disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

** There is no stated term of office for the Fund’s Directors.

*** The information above includes each Director’s principal occupation during the last five years and other information relating to the experience, attributes and skills relevant to each Director’s qualifications to serve as a Director, which led to the conclusion that each Director should serve as a Director for the Fund.

# Mr. Keith is an “interested person” of the Fund, as defined in the 1940 Act, due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    77

MANAGEMENT OF THE FUND (continued)

Officer Information

Certain information concerning the Fund’s Officers is listed below.

NAME, ADDRESS* AND AGE	POSITION(S) HELD WITH FUND	PRINCIPAL OCCUPATION DURING PAST 5 YEARS
Robert M. Keith 60	President and Chief Executive Officer	See biography above.
R.B. (Guy) III^ Davidson 59	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also Chief Investment Officer – Municipal Business.
Terrance T. Hults 54	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also Co-Head – Municipal Portfolio Management.
Shawn E. Keegan 49	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015.
Matthew Norton 37	Vice President	Senior Vice President of the Adviser**, with which he has been associated since prior to 2015. He is also Co-Head –Municipal Portfolio Management.
Andrew D. Potter 35	Vice President	Vice President of the Adviser**, with which he has been associated since prior to 2015.
Emilie D. Wrapp 65	Secretary	Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI**, with which she has been associated since prior to 2015.
Michael B. Reyes 44	Senior Analyst	Vice President of the Adviser**, with which he has been associated since prior to 2015.
Joseph J. Mantineo 61	Treasurer and Chief Financial Officer	Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”)**, with which he has been associated since prior to 2015.
Phyllis J. Clarke 59	Controller	Vice President of ABIS**, with which she has been associated since prior to 2015.
Vincent S. Noto 56	Chief Compliance Officer	Senior Vice President since 2015 and Mutual Fund Chief Compliance Officer of the Adviser** since prior to 2015.

* The address for the Fund’s Officers is 1345 Avenue of the Americas, New York, NY 10105.

** The Adviser, ABI and ABIS are affiliates of the Fund.

^ Mr. Davidson is expected to retire from the Adviser effective December 30, 2020.

The Fund’s Statement of Additional Information (“SAI”) has additional information about the Fund’s Directors and Officers and is available without charge upon request. Contact your financial representative or AB at (800) 227-4618, or visit www.abfunds.com, for a free prospectus of SAI.

78    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

Operation and Effectiveness of the Fund’s Liquidity Risk Management Program:

In October 2016, the Securities and Exchange Commission (“SEC”) adopted the open-end fund liquidity rule (the “Liquidity Rule”). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program (“LRMP”) in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund’s Liquidity Risk Management Program. The Administrator of the Fund’s LRMP is AllianceBernstein L.P., the Fund’s investment adviser (the “Adviser”). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the “Committee”). Another requirement of the Liquidity Rule is for the Fund’s Board of Directors (the “Fund Board”) to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the Fund’s LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2020, which covered the period December 1, 2018 through December 31, 2019 (the “Program Reporting Period”).

The LRMP’s principal objectives include supporting the Fund’s compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner. Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund’s strategy is appropriate for an open-end structure, taking into account any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP. The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum (“HLIM”). The Committee also incorporated the following information when determining the Fund’s reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund’s concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Fund’s LRMP is adequately designed, has been implemented as intended, and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP, and there were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    79

Information Regarding the Review and Approval of the Fund’s Advisory Agreement

The disinterested directors (the “directors”) of AB Bond Fund, Inc. (the “Company”) unanimously approved the continuance of the Company’s Advisory Agreement with the Adviser in respect of AB Tax-Aware Fixed Income Portfolio (the “Fund”) at a meeting held on November 4-6, 2019 (the “Meeting”).¹

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser’s integrity and competence they have gained from that experience, the Adviser’s initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the underlying fund advised by the Adviser in which the Fund invests.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters

¹  Following transactions completed on November 13, 2019 that may have been deemed to have been an “assignment” causing termination of the Fund’s investment advisory agreement, a new investment advisory agreement, having the same terms as the prior one, was entered into by the Fund and the Adviser. Effective February 5, 2020, the Fund was renamed AB Tax-Aware Fixed Income Opportunities Portfolio.

80    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors’ determinations included the following:

Nature, Extent and Quality of Services Provided

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund’s investment strategies and from time to time proposes changes intended to improve the Fund’s relative or absolute performance for the directors’ consideration. They also noted the professional experience and qualifications of the Fund’s portfolio management team and other senior personnel of the Adviser. The directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. The Adviser did not request any reimbursements from the Fund in the Fund’s latest fiscal year. The quality of administrative and other services, including the Adviser’s role in coordinating the activities of the Fund’s other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

Costs of Services Provided and Profitability

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2017 and 2018 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant retained by the Fund’s former Senior Officer/Independent Compliance Officer. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser’s relationship with the Fund, including those relating to its subsidiaries that provide transfer agency and distribution services to the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser’s relationship with the Fund before taxes and distribution expenses. The directors noted that the Fund was not profitable to the Adviser in the periods reviewed.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    81

Fall-Out Benefits

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the underlying fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to 12b-1 fees and sales charges received by the Fund’s principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund’s shares; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Fund’s unprofitability to the Adviser would be exacerbated without these benefits. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

Investment Results

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the “15(c) service provider”), showing the performance of the Class A Shares of the Fund against a group of similar funds (“peer group”) and a larger group of similar funds (“peer universe”), each selected by the 15(c) service provider, and information prepared by the Adviser showing performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3- and 5-year periods ended July 31, 2019 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund’s investment performance was acceptable.

Advisory Fees and Other Expenses

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds. The directors compared the Fund’s contractual effective advisory fee rate with a peer group median.

The Adviser informed the directors that there were no institutional products managed by the Adviser that utilize investment strategies similar to those of the Fund.

The directors noted that the Fund invests in shares of exchange-traded funds (“ETFs”), subject to the restrictions and limitations of the Investment Company Act of 1940 as these may be varied as a result of exemptive orders issued by the SEC. The directors also noted that ETFs pay advisory

82    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

fees pursuant to their advisory contracts, and that the Adviser had provided, and they had reviewed, information about the expense ratios of the relevant ETFs. The directors concluded, based on the Adviser’s explanation of how it uses ETFs when they are the most cost-effective way to obtain desired exposures, in some cases pending purchases of underlying securities, that the advisory fee for the Fund is for services that are in addition to, rather than duplicative of, the services provided under the advisory contracts of the ETFs.

In connection with their review of the Fund’s advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund’s latest fiscal year and the directors considered the Adviser’s expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund’s category were lowered by waivers or reimbursements by those funds’ investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser’s services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund’s expense ratio was acceptable.

Economies of Scale

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also previously discussed economies of scale with an independent fee consultant. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund’s adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund’s operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund’s shareholders would benefit from a sharing of economies of scale in the event the Fund’s net assets exceed a breakpoint in the future.

abfunds.com AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO    ^|    83

This page is not part of the Shareholder Report or the Financial Statements.

AB FAMILY OF FUNDS

US EQUITY

CORE

Core Opportunities Fund

FlexFee^™ US Thematic Portfolio

Select US Equity Portfolio

GROWTH

Concentrated Growth Fund

Discovery Growth Fund

FlexFee^™ Large Cap Growth Portfolio

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

VALUE

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

INTERNATIONAL/ GLOBAL EQUITY

CORE

Global Core Equity Portfolio

International Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Tax-Managed International Portfolio

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

INTERNATIONAL/ GLOBAL EQUITY (continued)

GROWTH

Concentrated International Growth Portfolio

Sustainable International Thematic Fund

VALUE

All China Equity Portfolio

International Value Fund

FIXED INCOME

MUNICIPAL

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio¹

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

FIXED INCOME (continued)

TAXABLE

Bond Inflation Strategy

FlexFee^™ High Yield Portfolio

Global Bond Fund

High Income Fund

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Total Return Bond Portfolio

ALTERNATIVES

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

MULTI-ASSET

All Market Income Portfolio

All Market Total Return Portfolio

Conservative Wealth Strategy

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Tax-Managed All Market Income Portfolio

CLOSED-END FUNDS

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

1 Prior to February 5, 2020, Tax-Aware Fixed Income Opportunities Portfolio was named Tax-Aware Fixed Income Portfolio.

84    ^|    AB  TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO abfunds.com

AB TAX-AWARE FIXED INCOME OPPORTUNITIES PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

TAFIO-0151-1020                

ITEM 2. CODE OF ETHICS.

(a)    The registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer and principal accounting officer. A copy of the registrant’s code of ethics is filed herewith as Exhibit 12(a)(1).

(b)    During the period covered by this report, no material amendments were made to the provisions of the code of ethics adopted in 2(a) above.

(c)    During the period covered by this report, no implicit or explicit waivers to the provisions of the code of ethics adopted in 2(a) above were granted.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant’s Board of Directors has determined that independent directors Garry L. Moody, Marshall C. Turner, Jr. and Jorge A. Bermudez qualify as audit committee financial experts.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) - (c) The following table sets forth the aggregate fees billed by the independent registered public accounting firm Ernst & Young LLP, for the Fund’s last two fiscal years for professional services rendered for: (i) the audit of the Fund’s annual financial statements included in the Fund’s annual report to stockholders; (ii) assurance and related services that are reasonably related to the performance of the audit of the Fund’s financial statements and are not reported under (i), which include advice and education related to accounting and auditing issues and quarterly press release review (for those Funds which issue press releases), and preferred stock maintenance testing (for those Funds that issue preferred stock); and (iii) tax compliance, tax advice and tax return preparation.

	Audit Fees				Audit-Related Fees		Tax Fees
AB Total Return Bond Portfolio		2019	$	84,906	$	-	$	19,659
		2020	$	84,906	$	1,020	$	11,114
AB Bond Inflation Strategy		2019	$	96,097	$	-	$	18,878
		2020	$	96,097	$	-	$	11,114
AB Municipal Bond Inflation Strategy		2019	$	69,532	$	-	$	19,707
		2020	$	69,532	$	-	$	9,367
						‘
AB All Market Real Return		2019	$	87,794	$	-	$	46,285
		2020	$	87,794	$	-	$	33,887
AB Short Duration Income		2019	$	30,961	$	-	$	11,484
		2020	$	30,961	$	-	$	9,445
AB Tax Aware Fixed Income		2019	$	36,060	$	-	$	24,944
		2020	$	36,060	$	-	$	15,550
AB Income		2019	$	121,160	$	-	$	26,671
		2020	$	121,160	$	-	$	16,391

(d)    Not applicable.

(e) (1) Beginning with audit and non-audit service contracts entered into on or after May 6, 2003, the Fund’s Audit Committee policies and procedures require the pre-approval of all audit and non-audit services provided to the Fund by the Fund’s independent registered public accounting firm. The Fund’s Audit Committee policies and procedures also require pre-approval of all audit and non-audit services provided to the Adviser and Service Affiliates to the extent that these services are directly related to the operations or financial reporting of the Fund.

(e) (2) All of the amounts for Audit Fees, Audit-Related Fees and Tax Fees in the table under Item 4 (a) – (c) are for services pre-approved by the Fund’s Audit Committee.

(f) Not applicable.

(g) The following table sets forth the aggregate non-audit services provided to the Fund, the Fund’s Adviser and entities that control, are controlled by or under common control with the Adviser that provide ongoing services to the Fund:

		All Fees for Non-Audit Services Provided to the Portfolio, the Adviser and Service Affiliates		Total Amount of Foregoing Column Pre- approved by the Audit Committee (Portion Comprised of Audit Related Fees) (Portion Comprised of Tax Fees)
AB Total Return Bond Portfolio	2019	$	757,414	$	19,659
				$	—
				$	(19,659	)
	2020	$	1,025,571	$	12,134
				$	(1,020	)
				$	(11,114	)
AB Bond Inflation Strategy	2019	$	756,633	$	18,878
				$	—
				$	(18,878	)
	2020	$	1,024,551	$	11,114
				$	—
				$	(11,114	)
AB Municipal Bond Inflation Strategy	2019	$	757,462	$	19,707
				$	—
				$	(19,707	)
	2020	$	1,022,804	$	9,367
				$	—
				$	(9,367	)
AB All Market Real Return	2019	$	784,040	$	46,285
				$	—
				$	(46,285	)
	2020	$	1,047,324	$	33,887
				$	—
				$	(33,887	)
AB Short Duration Income	2019	$	749,239	$	11,484
				$	—
				$	(11,484	)
	2020	$	1,022,882	$	9,445
				$	—
				$	(9,445	)
AB Tax Aware Fixed Income	2019	$	762,699	$	24,944
				$	—
				$	(24,944	)
	2020	$	1,028,987	$	15,550
				$	—
				$	(15,550	)
AB Income	2019	$	764,426	$	26,671
				$	—
				$	(26,671	)
	2020	$	1,029,828	$	16,391
				$	—
				$	(16,391	)

(h) The Audit Committee of the Fund has considered whether the provision of any non-audit services not pre-approved by the Audit Committee provided by the Fund’s independent registered public accounting firm to the Adviser and Service Affiliates is compatible with maintaining the auditor’s independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to the registrant.

ITEM 6. INVESTMENTS.

Please see Schedule of Investments contained in the Report to Shareholders included under Item 1 of this Form N-CSR.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable to the registrant.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund’s Board of Directors since the Fund last provided disclosure in response to this item.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3 (c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no changes in the registrant’s internal controls over financial reporting that occurred during the second fiscal quarter of the period that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to the registrant.

ITEM 13. EXHIBITS.

The following exhibits are attached to this Form N-CSR:

EXHIBIT     NO.	DESCRIPTION OF EXHIBIT
12 (a) (1)	Code of Ethics that is subject to the disclosure of Item 2 hereof
12 (b) (1)	Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
12 (b) (2)	Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
12 (c)	Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant): AB Bond Fund, Inc.
By:	/s/ Robert M. Keith
	Robert M. Keith
	President
Date:	December 30, 2020

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:	/s/ Robert M. Keith
	Robert M. Keith
	President
Date:	December 30, 2020
By:	/s/ Joseph J. Mantineo
	Joseph J. Mantineo
	Treasurer and Chief Financial Officer
Date:	December 30, 2020