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The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams. Views are subject to change over time.
Past performance does not guarantee future results.
This index uses the S&P Muni Bond Index from 1900 to 1949, the Moody's 10-Year AAA Muni Bond Index from 1950 to 1980 and the Bloomberg Barclays Municipal Index from 1980 to January 31, 2017. Any indices cited herein are used for comparison purposes only. An investor generally cannot invest in an index, and its performance does not represent the performance of any AllianceBernstein (AB) portfolio. An unmanaged index does not reflect any fees or expenses associated with the active management of any AB portfolio.
*After subtracting annualized inflation over the same time period
Through May 31, 2021
Source: Bloomberg Barclays, Moody’s Investors Service, S&P, US Bureau of Labor Statistics and AllianceBernstein (AB)
Core CPI through April 30, 2021; five-year inflation breakeven through May 31, 2021
Source: Federal Reserve Bank of St. Louis and AllianceBernstein (AB)
Past performance does not guarantee future results.
This is not, and you should not consider it to be, legal or tax advice. The tax rules are complicated and their impact on a particular individual may differ depending on the individual’s specific circumstances. Please consult with your legal or tax advisor regarding your specific situation.
These figures are for illustrative purposes only and do not include sales charges or operating expenses associated with an investment in a mutual fund. TIPS assume a 5-year TIPS is represented by 5-year TIPS bond with 0.034% real yield currency. Inflation and the real yield for TIPS is taxed at a 40.8% federal rate. Municipal + Inflation Protection return assumes a 5-year AA-rated municipal yield of 1.77% (consistent with the yield to worst on 5-year AAA MMD scale) with a 5-year CPI swap. The difference between CPI and the fixed rate on the swap (1.955%) is taxed at a capital gains rate of 23.8% for the inflation swap. Analysis assumes securities are held to maturity.
As of May 31, 2021
Source: J.P. Morgan, Municipal Market Data Corp. and AllianceBernstein (AB)
The views expressed herein do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AB portfolio-management teams. Views are subject to change over time.