Overview

Combines high-quality munis with a tax-efficient inflation hedge for a distinctive structure that can bolster after-tax returns and outperform during rising inflation periods.

About this Fund

  • Seeks to generate income and manage volatility, while providing full inflation protection by using tax-efficient instruments
  • Strategy’s distinctive structure aims to bolster after-tax returns versus other inflation protection options, such as TIPS
  • Leverages the strength of AB's award-winning, fixed-income platform

Investment Approach

  • Invests in high-quality short- and intermediate-term bonds municipal bonds
  • Provides inflation protection by entering inflation swap agreements or investing in other inflation-protected instruments

Meet the Team

“

Our systematic, data-driven approach allows us to be nimbler and more flexible, focusing our time and effort on investible ideas where we disagree with the market.

Andrew Potter, CFA—Portfolio Manager-Municipal Bond

 
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Municipal Bonds

Looking for more information about municipal bond strategies? Explore our other products and thought leadership. 

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Additional Information

Understanding Sales Charges and Expenses 
Statement of Policies and Procedures for Proxy Voting 
 

Investment Definitions

Alpha is the risk-adjusted measurement of "excess return" over a benchmark. Beta is a measure of an investment’s volatility in comparison to the market as a whole. Duration is a measure of the sensitivity of an asset or portfolio’s price to interest rate movements. Information ratio is a measurement of portfolio returns beyond the returns of a benchmark, compared to the volatility of those returns. R-squared is the percentage of a portfolio’s price movements that can be explained by movements in a benchmark index. Sharpe ratio is a measure of the fund’s return relative to the investment risk it has taken. A higher Sharpe ratio means the fund’s returns have been better given the level of risk the fund has taken. Standard deviation is a measure of the dispersion of a portfolio’s return from its mean. Tracking error is the difference in actual performance between a portfolio and its corresponding benchmark. Up capture measures the percentage of market gains captured when markets are up. Down capture measures the percentage of market losses endured when markets are down. Yield-to-Worst (YTW) is a measure of the lowest possible yield that can be received on a bond that fully operates within the terms of its contract without defaulting. YTW is based on the underlying bonds held by the fund/account at the time it is calculated.

Risks To Consider

  • Credit Risk: A bond’s credit rating reflects the issuer’s ability to make timely payments of interest or principal—the lower the rating, the higher the risk of default. If the issuer’s financial strength deteriorates, the issuer’s rating may be lowered, and the bond’s value may decline.

  • Derivatives Risk: Derivatives may be more sensitive to changes in market conditions and may amplify risks.

  • Inflation Risk: Prices for goods and services tend to rise over time, which may erode the purchasing power of investments.

  • Interest Rate Risk: As interest rates rise, bond prices fall and vice versa, long-term securities tend to rise and fall more than short-term securities.

  • 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.

  • Liquidity Risk: The difficulty of purchasing or selling a security at an advantageous time or price.

  • Local Economy Risk: This portfolio may contain municipal securities issued by the Commonwealth of Puerto Rico as well as other local governments whose current economic conditions could exacerbate the risks associated with investing in these securities.

  • Market Risk: The market values of the portfolio’s holdings rise and fall from day to day, so investments may lose value. 

  • Municipal Market Risk: 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 may negatively impact the yield or value of a municipal security.

  • Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit our Literature Center or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

    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 manager of the funds. 

    AB mutual funds may be offered only to persons in the United States and by way of a prospectus. This website should not be considered a solicitation or offering of any investment products or services to investors residing outside of the United States.

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

    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..

 

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