Understanding Sales Charges & Expenses

Class A Shares

You can purchase Class A shares at their public offering price (or cost), which is NAV plus an initial sales charge of up to 4.25% of the offering price. The Funds may sell their Class A shares at NAV without an initial sales charge to some categories of investors, which are detailed in each Fund's prospectus.

Any applicable sales charge will be deducted directly from your investment. The initial sales charge you pay each time you buy Class A shares differs depending on the amount you invest, and may be reduced or eliminated for larger purchases, as indicated below.

Quantity Discounts

Shareholders investing more than $100,000 in Class A shares of a Fund may receive a reduced sales charge as, outlined in the chart below. Front-end sales charges are eliminated completely for purchases of $1 million for equity and taxable fixed income funds, and for purchases of over $500,000 for municipal fixed-income funds, although a 1% one-year contingent deferred sales charge(CDSC) may apply.

AB Municipal Fixed-Income Funds-Class A Shares^1,2,3,4

AB Taxable Short Duration Income and Bond Inflation Strategy-Class A Shares^1,2,4

All Other AB Funds-Class A Shares^2,4,5,6

1 For purchases under $500,000, the 0.25% trail is effective immediately. For purchases of $500,000 or more, a 1% Contingent Deferred Sales Charge (CDSC) may apply for the first year. The 0.25% annual trail will begin in the 13th month. Short Duration Income Portfolio, Short Duration Portfolio and Bond Inflation Strategy only: For purchases under $500,000, the 0.25% trail is effective immediately. For purchases of $500,000 or more, a 1% CDSC may apply for the first 18 months. The 0.25% annual trail will begin in the 13th month.
2 The minimum initial investment amount is $2,500, and the minimum subsequent investment amount is $50.
3 Class A shares that are received in exchange for Class A shares that were not subject to an initial sales charge when originally purchased are still subject to the CDSC schedule of the originally purchased fund.
4 Concessions for purchases of $500,000 or more for municipal, taxable short duration and inflation fixed-income funds: 1.00% on amounts over $500,000 but less than $5 million plus 0.50% on amounts over $5 million. Concessions for purchases of $1 million or more for taxable fixed-income funds: 1.00% on amounts over $1 million up to $5 million plus $0.50% on amounts over $5 million. Concessions for purchases of $1 million or more for equity and alternative funds: 1.00% on amounts over $1 million up to $3 million plus 0.75% on amounts over $3 million up to $5 million plus 0.50% on amounts over $5 million.
5 For purchases under $1 million, the 0.25% trail is effective immediately. For purchases of $1 million or more on Class A shares, a 1% CDSC may apply for the first year. The 0.25% annual trail will begin in the 13th month.
6 The maximum purchase for all municipal fixed-income funds Class C shares is $500,000.

Combined Privilege

In determining whether a Quantity Discount applies, AB mutual funds take into account the amount of a shareholder’s existing investments in the Fund, as well as investments by the investor’s spouse or children who are under the age of 21. AB mutual funds also take into account, amounts invested by a trustee or other fiduciary for the benefit of these individuals, even if more than one beneficiary is involved, as well as the employee benefit plans for these individuals or any company that has been in existence for at least six months or has a purpose other than the purchase of shares of the Fund.

Letter of Intent

A shareholder need not immediately invest a sufficient amount to reach a Quantity Discount, but may plan to make one or more additional investments over a period of time that, in the end, would qualify for a Quantity Discount. For these situations, the funds offer a Letter of Intent, which permits the shareholder to express the intention, in writing, to invest at least $100,000 in Class A shares of that Fund or any AB mutual fund within 13 months. The Sales Charge Fund will then apply the Quantity Discount to each of the shareholder’s purchases of Class A shares that would apply to the total amount stated in the Letter of Intent. In the event an existing shareholder chooses to initiate a Letter of Intent, the AB Mutual Funds will use the higher of the cost or current NAV of the shareholder’s existing investments and of those accounts with which investments are combined via the Combined Purchase Privilege toward the fulfillment of the Letter of Intent. For example, if the combined cost of purchases totaled $80,000 and the current NAV of all applicable accounts is $85,000 at the time a $100,000 Letter of Intent is initiated, the subsequent investment of an additional $15,000 would fulfill the Letter of Intent. If a shareholder fails to invest the total amount stated in the Letter of Intent, the Fund will retroactively collect the sales charges otherwise applicable by redeeming shares in the shareholder’s account at their then current NAV. Shareholders qualifying for a Combined Purchase Privilege may purchase shares under a single Letter of Intent.

Class B and C

Shareholders purchasing Class B or C shares of an AB Mutual Fund should be aware that CDSCs are not assessed on redemptions of either Class B or Class C shares which were purchased through the reinvestment of dividends or capital gains distributions. In addition, CDSCs are not assessed on any increase in the net asset value of shares above the initial purchase price. CDSCs may also be waived in certain circumstances as described below. Please consult the Fund’s Statement of Additional information for more information.

Systemic Withdrawal Plan

Under a Systematic Withdrawal Plan, up to 1% monthly, 2% bi-monthly or 3% quarterly of the value at the time of redemption of the Class B or Class C shares in a shareholder’s account may be redeemed free of any CDSC. Class B shares that are not subject to a CDSC (such as shares acquired with reinvested dividends or distributions) will be redeemed first and will count toward these limits. Remaining Class B shares that are held the longest will be redeemed next. Redemption of Class B shares in excess of these limits will be subject to any otherwise applicable CDSC. With respect to Class C shares, shares held the longest will be redeemed first and will count toward these limits. Redemptions in excess of these limits will be subject to any otherwise applicable CDSC.

Dividend Direction Plan

Shareholders may direct income dividends and/or capital gains on any class of shares of a Fund into the same class of another AB mutual fund without payment of any sales charges or CDSCs.

Reinstatement Privilege

A shareholder who has caused any or all of his or her Class B shares of a Fund to be redeemed may reinvest all or any portion of the redemption proceeds in Class A shares of the same Fund at NAV without any sales charge, provided that such reinvestment is made within 120 calendar days after the redemption date, and a CDSC has been paid and the Principal Underwriter has approved, at its discretion, the reinvestment of such shares.

Waiver of Class B CDSC

The CDSC on Class B shares is waived on redemptions in the following circumstances:

• Following the death or disability, as defined in the Internal Revenue Code of 1986, as amended (the "Code"), of a shareholder;
• To the extent that the redemption represents a minimum required distribution from an individual retirement account or other retirement plan to a shareholder who has attained the age of 72;
• When shares are purchased by present or former Directors or Trustees of the Fund; by the relative of any such person; by any trust, individual retirement account or retirement plan account for the benefit of any such person or relative; or by the estate of any such person or relative;
• Pursuant to, and in accordance with, a systematic withdrawal plan;
• When shares are sold through programs offered by financial intermediaries and approved by AB, where such programs offer only shares which are not subject to a contingent deferred sales charge, where the financial intermediary establishes a single omnibus account for each Fund, and where no advance commission is paid to any financial intermediary in connection with the purchase of shares; or
• To the extent that the redemption is necessary to meet a plan participant’s or beneficiary’s request for a distribution or loan from a group retirement plan.

Waiver of Class C CDSC

The CDSC on Class C shares is waived on redemptions in the following circumstances:

1. Following the death or disability, as defined in the Internal Revenue Code of 1986, as amended (the "Code"), of a shareholder;
2. To the extent that the redemption represents a minimum required distribution from an individual retirement account or other retirement plan to a shareholder who has attained the age of 72;
3. When shares are purchased by present or former Directors or Trustees of the Fund; by the relative of any such person; by any trust, individual retirement account or retirement plan account for the benefit of any such person or relative; or by the estate of any such person or relative;
4. Pursuant to, and in accordance with, a systematic withdrawal plan;
5. When shares are sold through programs offered by financial intermediaries and approved by AB, where such programs offer only shares which are not subject to a contingent deferred sales charge, where the financial intermediary establishes a single omnibus account for each Fund, and where no advance commission is paid to any financial intermediary in connection with the purchase of shares; or
6. To the extent that the redemption is necessary to meet a plan participant’s or beneficiary’s request for a distribution or loan from a group retirement plan or to accommodate a plan participant’s or beneficiary’s direction to reallocate his or her plan account among other investment alternatives available under a group retirement plan.

FINRA's Fund Analyzer

Information concerning the fees and  expenses  incurred  by  the mutual funds in which you have invested can be calculated with FINRA's Fund Analyzer.

This mutual fund fee calculator will enable an investor to calculate:

• The dollar amount of the actual fees and costs charged to you based upon your most recent quarterly closing balance, and
• The dollar amount of fees and costs that would be charged on a hypothetical investment of $10,000 held for the next 10 years and the impact of such fees and costs on fund returns for each year and cumulatively, assuming a 5% return for each year and the fund's current Net Management Fee rates.

The AB Sample Fund Class A (noted above) is shown as a hypothetical example of applied expenses to illustrate your Ending Value in the Class A Fund, after factoring in the appropriate rate of return (net of expenses) since the last statement.

Please note that the Annual Expense Ratio for the fund is 1.03%.

In reporting the figure in the 'Your Quarterly Fee' column, the Annual Expense Ratio is divided by 4 and multiplied by the 'Ending Valu'.

In this case, 1.03% (.0103) is divided by 4 = .002575 to determine the applicable Quarterly Rate.

The $25,000 (Ending Value) is then multiplied by .002575 (Quarterly Rate) which= $64.38 (Your Quarterly Fees).

Hypothetical Expense Summary Section

This section details a hypothetical investment, its hypothetical returns and the hypothetical investment results after expenses.

The following chart illustrates the estimated Fees and Expenses for AB Sample Fund Class A Shares

Mutual fund fees and expenses may fluctuate over time and actual expenses may be higher or lower than the estimates shown. You should carefully consider the investment objectives and policies, sales charges, expenses, risks and other matters of importance before investing in any AB mutual fund. For a free copy of any Fund’s prospectus, which contains this and other information, visit our literature page or call AB at (800) 227-4618 or your financial advisor. Please read the prospectus carefully before you invest.

FINRA's Fund Analyzer

Information concerning the fees and  expenses  incurred  by  the mutual funds in which you have invested can be calculated with FINRA's Fund Analyzer.

This mutual fund fee calculator will enable an investor to calculate:

• The dollar amount of the actual fees and costs charged to you based upon your most recent quarterly closing balance, and
• The dollar amount of fees and costs that would be charged on a hypothetical investment of $10,000 held for the next 10 years and the impact of such fees and costs on fund returns for each year and cumulatively, assuming a 5% return for each year and the fund's current Net Management Fee rates.