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: 811-06554
AB GLOBAL 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)
Stephen M. Woetzel
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: September 30, 2023
Date of reporting period: September 30, 2023
ITEM 1. REPORTS TO STOCKHOLDERS.
SEP 09.30.23
ANNUAL REPORT
AB GLOBAL BOND FUND
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. 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’re pleased to provide this report for the AB Global Bond Fund (the “Fund”). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund’s investment strategy.
At AB, we’re striving to help our clients achieve better outcomes by:
+ | Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets |
+ | Applying differentiated investment insights through a connected global research network |
+ | Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions |
Whether you’re an individual investor or a multibillion-dollar institution, we’re putting our knowledge and experience to work for you every day.
For more information about AB’s comprehensive range of products and shareholder resources, please log on to www.abfunds.com.
Thank you for your investment in AB mutual funds—and for placing your trust in our firm.
Sincerely,
Onur Erzan
President and Chief Executive Officer, AB Mutual Funds
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ANNUAL REPORT
November 6, 2023
This report provides management’s discussion of fund performance for the AB Global Bond Fund for the annual reporting period ended September 30, 2023.
The Fund’s investment objective is to generate current income consistent with preservation of capital.
NAV RETURNS AS OF SEPTEMBER 30, 2023 (unaudited)
6 Months | 12 Months | |||||||
AB GLOBAL BOND FUND | ||||||||
Class A Shares | -2.63% | 1.27% | ||||||
Class C Shares | -2.99% | 0.36% | ||||||
Advisor Class Shares1 | -2.51% | 1.38% | ||||||
Class R Shares1 | -3.15% | 0.50% | ||||||
Class K Shares1 | -2.85% | 0.97% | ||||||
Class I Shares1 | -2.66% | 1.36% | ||||||
Class Z Shares1 | -2.64% | 1.40% | ||||||
Bloomberg Global Aggregate Bond Index (USD hedged) | -1.76% | 2.10% |
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 with its benchmark, the Bloomberg Global Aggregate Bond Index (USD hedged), for the six- and 12-month periods ended September 30, 2023.
During both periods, all share classes underperformed the benchmark, before sales charges. Over the 12-month period, currency decisions detracted, from long positions in the Japanese yen, Norwegian krone and Chinese renminbi, along with shorts in the South Korean won and Swiss franc were more than gains from a long position in the Polish zloty and shorts in the Australian dollar and New Zealand dollar. Sector allocation contributed to performance, mostly from off-benchmark exposure to US and eurozone high-yield corporate bonds, collateralized loan obligations and emerging-market corporates bonds, along with underweights to US agency mortgages and agency risk-sharing transactions, and an overweight to investment-grade corporate bonds in the eurozone. Sector allocation gains were partially offset by an underweight to US investment-grade corporate bonds. Country allocation (a result of bottom-up security
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analysis combined with fundamental research) also contributed, from an underweight to Japan, overweights to South Korea, the US and Peru, and off-benchmark exposure to Brazil that added more to relative performance than an underweight to China and an overweight to Canada. Security selection among US and eurozone investment-grade corporate bonds, eurozone high-yield corporate bonds and emerging-market corporate bonds contributed more than losses from selection in US high-yields corporate bonds and commercial mortgage-backed securities (“CMBS”). Yield-curve positioning added to performance, from overall positioning in Canada, Australia and the eurozone that contributed more than losses from overall yield-curve positioning in the UK, US and New Zealand.
During the six-month period, currency decisions were the largest detractor to relative performance, as long positions in the Japanese yen, Norwegian krone and South African rand, and a short in the Chilean peso lost more than gains from short positions in the New Zealand dollar and Australian dollar. Country allocation also detracted, mostly from an underweight to China and an overweight to Canada that were partially offset by gains from off-benchmark country exposures in Brazil and Peru. Yield-curve positioning detracted as well, mainly from overall positioning in the UK and New Zealand that was offset by gains from overall positioning in South Korea, Canada and Australia. Sector allocation contributed, from off-benchmark exposures to agency risk-sharing transactions, emerging-market corporate bonds, US and eurozone high-yield corporates, and collateralized loan obligations. Security selection also added to performance, as selections in US and eurozone investment-grade and high-yield corporate bonds outweighed losses from selections among CMBS and emerging-market corporate bonds.
During both periods, the Fund used derivatives in the form of interest rate swaps and futures to manage and hedge duration risk and/or to take active yield-curve positioning. The Fund used currency forwards to hedge foreign currency exposure and to take active currency risk. Credit default swaps were used to hedge credit risk and as a tool to effectively gain exposure to specific sectors. Purchased options were not held during the six-month period.
MARKET REVIEW AND INVESTMENT STRATEGY
During the 12-month period ended September 30, 2023, fixed-income government bond market yields were extremely volatile in all major developed markets, falling in the first half of the period, then rising, particularly when the Fed adjusted its quarterly expectations of interest rates to be higher for longer. Other developed-market treasury yields rose in tandem. Government bond returns in aggregate were positive, as returns rose in Japan, Australia and the eurozone, and fell in the UK, Canada and the US. Most central banks raised interest rates significantly to combat inflation until the last reporting quarter. Overall, developed-market investment-grade corporate bonds significantly outperformed government bonds,
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including in the US and eurozone. High-yield corporate bonds advanced and materially outperformed government bonds—especially in the US and eurozone. Emerging-market local-currency sovereign bonds led risk asset returns, as the US dollar fell against most developed-market currencies and was mixed against emerging-market currencies. Emerging-market hard-currency sovereign and corporate bonds had strong relative positive returns, particularly among high-yield sovereigns and corporates.
The Fund’s Senior Investment Management Team (the “Team”) invests in fixed-income securities with no sector restrictions. The Fund holds debt securities from both developed and emerging markets. The Team’s core fixed-income strategy pursues an attractive risk/return profile by managing currency exposure. The Team utilizes a disciplined investment process, which draws on a rigorous quantitative research toolset with fundamental expertise across all regions and markets.
INVESTMENT POLICIES
The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities. Under normal market conditions, the Fund invests significantly in fixed-income securities of non-US companies. In addition, the Fund invests, under normal circumstances, in the fixed-income securities of companies located in at least three countries. The Fund may invest in a broad range of fixed-income securities in both developed and emerging markets. The Fund may invest across all fixed-income sectors, including US and non-US government and corporate debt securities. The Fund’s investments may be denominated in local currency or US dollar-denominated. The Fund may invest in debt securities with a range of maturities from short- to long-term. The Fund may use borrowings or other leverage for investment purposes.
The Adviser actively manages the Fund’s assets in relation to market conditions and general economic conditions and adjusts the Fund’s investments in an effort to best enable the Fund to achieve its investment objective. Thus, the percentage of the Fund’s assets invested in a particular country or denominated in a particular currency will vary in accordance with the Adviser’s assessment of the relative yield and appreciation potential of such securities and the relationship of the country’s currency to the US dollar.
Under normal circumstances, the Fund invests at least 75% of its net assets in fixed-income securities rated investment-grade at the time of investment and may invest up to 25% of its net assets in below investment-grade fixed-income securities (commonly known as “junk bonds”).
(continued on next page)
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The Fund may invest in mortgage-related and other asset-backed securities; loan participations and assignments; inflation-indexed securities; structured 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 in derivatives, such as options, futures contracts, forwards or swaps.
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DISCLOSURES AND RISKS
Benchmark Disclosure
The Bloomberg Global Aggregate Bond Index (USD hedged) is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio. The Bloomberg Global Aggregate Bond Index represents the performance of the global investment-grade developed fixed-income markets, hedged to the US dollar. 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) and regional and global conflicts, 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.
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.
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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 and are 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
abfunds.com | AB GLOBAL BOND FUND | 7 |
DISCLOSURES AND RISKS (continued)
the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.
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 redemption of Fund shares. 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 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.
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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.
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HISTORICAL PERFORMANCE
GROWTH OF A $10,000 INVESTMENT IN THE FUND (unaudited)
9/30/2013 TO 9/30/2023
This chart illustrates the total value of an assumed $10,000 investment in AB Global Bond Fund Class A shares (from 9/30/2013 to 9/30/2023) as compared with 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.
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HISTORICAL PERFORMANCE (continued)
AVERAGE ANNUAL RETURNS AS OF SEPTEMBER 30, 2023 (unaudited)
NAV Returns | SEC Returns (reflects applicable sales charges) | SEC Yields1 | ||||||||||
CLASS A SHARES | 3.83% | |||||||||||
1 Year | 1.27% | -2.97% | ||||||||||
5 Years | -0.26% | -1.11% | ||||||||||
10 Years | 1.37% | 0.92% | ||||||||||
CLASS C SHARES | 3.23% | |||||||||||
1 Year | 0.36% | -0.56% | ||||||||||
5 Years | -1.01% | -1.01% | ||||||||||
10 Years2 | 0.61% | 0.61% | ||||||||||
ADVISOR CLASS SHARES3 | 4.26% | |||||||||||
1 Year | 1.38% | 1.38% | ||||||||||
5 Years | -0.01% | -0.01% | ||||||||||
10 Years | 1.63% | 1.63% | ||||||||||
CLASS R SHARES3 | 1.69% | |||||||||||
1 Year | 0.50% | 0.50% | ||||||||||
5 Years | -0.74% | -0.74% | ||||||||||
10 Years | 0.93% | 0.93% | ||||||||||
CLASS K SHARES3 | 2.49% | |||||||||||
1 Year | 0.97% | 0.97% | ||||||||||
5 Years | -0.40% | -0.40% | ||||||||||
10 Years | 1.26% | 1.26% | ||||||||||
CLASS I SHARES3 | 4.22% | |||||||||||
1 Year | 1.36% | 1.36% | ||||||||||
5 Years | -0.02% | -0.02% | ||||||||||
10 Years | 1.64% | 1.64% | ||||||||||
CLASS Z SHARES3 | 4.27% | |||||||||||
1 Year | 1.40% | 1.40% | ||||||||||
5 Years | 0.03% | 0.03% | ||||||||||
Since Inception4 | 1.71% | 1.71% |
The Fund’s prospectus fee table shows the Fund’s total annual operating expense ratios as 0.80%, 1.56%, 0.56%, 1.25%, 0.94%, 0.57% and 0.51% 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. 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 September 30, 2023. |
2 | Assumes conversion of Class C shares into Class A shares after eight years. |
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: 10/15/2013. |
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HISTORICAL PERFORMANCE (continued)
SEC AVERAGE ANNUAL RETURNS
AS OF THE MOST RECENT CALENDAR QUARTER-END
SEPTEMBER 30, 2023 (unaudited)
SEC Returns (reflects applicable sales charges) | ||||
CLASS A SHARES | ||||
1 Year | -2.97% | |||
5 Years | -1.11% | |||
10 Years | 0.92% | |||
CLASS C SHARES | ||||
1 Year | -0.56% | |||
5 Years | -1.01% | |||
10 Years1 | 0.61% | |||
ADVISOR CLASS SHARES2 | ||||
1 Year | 1.38% | |||
5 Years | -0.01% | |||
10 Years | 1.63% | |||
CLASS R SHARES2 | ||||
1 Year | 0.50% | |||
5 Years | -0.74% | |||
10 Years | 0.93% | |||
CLASS K SHARES2 | ||||
1 Year | 0.97% | |||
5 Years | -0.40% | |||
10 Years | 1.26% | |||
CLASS I SHARES2 | ||||
1 Year | 1.36% | |||
5 Years | -0.02% | |||
10 Years | 1.64% | |||
CLASS Z SHARES2 | ||||
1 Year | 1.40% | |||
5 Years | 0.03% | |||
Since Inception3 | 1.71% |
1 | Assumes conversion of Class C shares into Class A shares after eight years. |
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: 10/15/2013. |
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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 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 second line of the table 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.
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EXPENSE EXAMPLE (continued)
Beginning Account Value April 1, 2023 | Ending Account Value September 30, 2023 | Expenses Paid During Period* | Annualized Expense Ratio* | |||||||||||||
Class A | ||||||||||||||||
Actual | $ | 1,000 | $ | 973.70 | $ | 3.91 | 0.79 | % | ||||||||
Hypothetical** | $ | 1,000 | $ | 1,021.11 | $ | 4.00 | 0.79 | % | ||||||||
Class C | ||||||||||||||||
Actual | $ | 1,000 | $ | 970.10 | $ | 7.61 | 1.54 | % | ||||||||
Hypothetical** | $ | 1,000 | $ | 1,017.35 | $ | 7.79 | 1.54 | % | ||||||||
Advisor Class | ||||||||||||||||
Actual | $ | 1,000 | $ | 974.90 | $ | 2.67 | 0.54 | % | ||||||||
Hypothetical** | $ | 1,000 | $ | 1,022.36 | $ | 2.74 | 0.54 | % | ||||||||
Class R | ||||||||||||||||
Actual | $ | 1,000 | $ | 968.50 | $ | 7.60 | 1.54 | % | ||||||||
Hypothetical** | $ | 1,000 | $ | 1,017.35 | $ | 7.79 | 1.54 | % | ||||||||
Class K | ||||||||||||||||
Actual | $ | 1,000 | $ | 971.50 | $ | 5.68 | 1.15 | % | ||||||||
Hypothetical** | $ | 1,000 | $ | 1,019.30 | $ | 5.82 | 1.15 | % | ||||||||
Class I | ||||||||||||||||
Actual | $ | 1,000 | $ | 973.40 | $ | 2.77 | 0.56 | % | ||||||||
Hypothetical** | $ | 1,000 | $ | 1,022.26 | $ | 2.84 | 0.56 | % | ||||||||
Class Z | ||||||||||||||||
Actual | $ | 1,000 | $ | 973.60 | $ | 2.57 | 0.52 | % | ||||||||
Hypothetical** | $ | 1,000 | $ | 1,022.46 | $ | 2.64 | 0.52 | % |
* | Expenses are equal to the classes’ annualized expense ratios multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). |
** | Assumes 5% annual return before expenses. |
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PORTFOLIO SUMMARY
September 30, 2023 (unaudited)
PORTFOLIO STATISTICS
Net Assets ($mil): $5,420.6
1 | 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 security types: Bank Loans, Common Stocks, Emerging Markets–Corporate Bonds, Emerging Markets–Treasuries, Local Governments–Provincial Bonds, Local Governments–Regional Bonds, Local Governments–US Municipal Bonds and Quasi-Sovereigns. |
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PORTFOLIO SUMMARY (continued)
September 30, 2023 (unaudited)
1 | 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 other investment purposes (see “Portfolio of Investments” section of the report for additional details). “Other” country weightings represent 1.4% or less in the following: Belgium, Brazil, Cayman Islands, Chile, Colombia, Czech Republic, Denmark, Hong Kong, Hungary, India, Indonesia, Ireland, Israel, Kazakhstan, Kuwait, Luxembourg, Malaysia, Mexico, Netherlands, New Zealand, Norway, Panama, Peru, Philippines, Poland, Portugal, Qatar, Romania, Saudi Arabia, Singapore, South Africa, Supranational, Sweden, Switzerland, Taiwan, Thailand, United Arab Emirates and Uruguay. |
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PORTFOLIO OF INVESTMENTS
September 30, 2023
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
GOVERNMENTS - TREASURIES – 44.2% | ||||||||||||
Australia – 0.7% | ||||||||||||
Australia Government Bond | AUD | 14,094 | $ | 6,752,868 | ||||||||
Series 166 | 57,221 | 32,469,594 | ||||||||||
|
| |||||||||||
39,222,462 | ||||||||||||
|
| |||||||||||
Austria – 2.1% | ||||||||||||
Republic of Austria Government Bond | EUR | 5,136 | 4,421,523 | |||||||||
0.50%, 02/20/2029(a) | 1,896 | 1,739,140 | ||||||||||
0.90%, 02/20/2032(a) | 121,364 | 105,474,869 | ||||||||||
2.90%, 05/23/2029(a) | 2,030 | 2,113,565 | ||||||||||
|
| |||||||||||
113,749,097 | ||||||||||||
|
| |||||||||||
Belgium – 0.4% | ||||||||||||
Kingdom of Belgium Government Bond | 25,528 | 20,534,291 | ||||||||||
|
| |||||||||||
Canada – 5.5% | ||||||||||||
Canadian Government Bond | CAD | 4,594 | 3,051,497 | |||||||||
2.50%, 12/01/2032 | 10,675 | 6,931,879 | ||||||||||
3.50%, 03/01/2028 | 403,835 | 287,625,350 | ||||||||||
|
| |||||||||||
297,608,726 | ||||||||||||
|
| |||||||||||
China – 2.9% | ||||||||||||
China Government Bond | CNY | 181,350 | 25,060,422 | |||||||||
2.80%, 11/15/2032 | 136,540 | 18,768,911 | ||||||||||
3.01%, 05/13/2028 | 396,870 | 55,488,295 | ||||||||||
3.81%, 09/14/2050 | 365,210 | 56,475,735 | ||||||||||
|
| |||||||||||
155,793,363 | ||||||||||||
|
| |||||||||||
Finland – 2.2% | ||||||||||||
Finland Government Bond | EUR | 116,758 | 121,261,418 | |||||||||
|
| |||||||||||
Germany – 2.0% | ||||||||||||
Bundesrepublik Deutschland Bundesanleihe | 27,974 | 22,669,581 | ||||||||||
1.80%, 08/15/2053(a) | 45,291 | 36,478,422 | ||||||||||
3.25%, 07/04/2042(a) | 44,510 | 48,487,107 | ||||||||||
|
| |||||||||||
107,635,110 | ||||||||||||
|
|
abfunds.com | AB GLOBAL BOND FUND | 17 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Indonesia – 0.5% | ||||||||||||
Indonesia Treasury Bond | IDR | 414,116,000 | $ | 26,125,079 | ||||||||
|
| |||||||||||
Italy – 2.1% | ||||||||||||
Italy Buoni Poliennali Del Tesoro | EUR | 23,001 | 23,859,594 | |||||||||
Series 13Y | 16,125 | 15,855,537 | ||||||||||
Series 8Y | 73,331 | 75,040,362 | ||||||||||
|
| |||||||||||
114,755,493 | ||||||||||||
|
| |||||||||||
Japan – 2.8% | ||||||||||||
Japan Government Ten Year Bond | JPY | 4,764,350 | 30,830,991 | |||||||||
Japan Government Thirty Year Bond | 604,000 | 3,002,694 | ||||||||||
Series 68 | 3,699,600 | 19,229,642 | ||||||||||
Japan Government Twenty Year Bond | 4,022,550 | 25,479,974 | ||||||||||
Series 169 | 1,984,250 | 11,547,407 | ||||||||||
Series 183 | 9,650,800 | 64,437,155 | ||||||||||
|
| |||||||||||
154,527,863 | ||||||||||||
|
| |||||||||||
Malaysia – 0.4% | ||||||||||||
Malaysia Government Bond | MYR | 101,778 | 22,409,694 | |||||||||
|
| |||||||||||
Mexico – 1.1% | ||||||||||||
Mexican Bonos | MXN | 170,038 | 8,055,494 | |||||||||
8.00%, 07/31/2053 | 587,393 | 27,580,076 | ||||||||||
8.50%, 05/31/2029 | 406,245 | 21,860,946 | ||||||||||
|
| |||||||||||
57,496,516 | ||||||||||||
|
| |||||||||||
South Korea – 7.8% | ||||||||||||
Korea Treasury Bond | KRW | 280,508,520 | 205,339,471 |
18 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Series 2703 | KRW | 226,023,900 | $ | 159,134,812 | ||||||||
Series 2709 | 80,708,500 | 58,026,857 | ||||||||||
|
| |||||||||||
422,501,140 | ||||||||||||
|
| |||||||||||
Spain – 0.9% | ||||||||||||
Spain Government Bond | EUR | 45,853 | 46,367,904 | |||||||||
|
| |||||||||||
Thailand – 0.3% | ||||||||||||
Thailand Government Bond | THB | 587,756 | 16,298,980 | |||||||||
|
| |||||||||||
United Kingdom – 2.9% | ||||||||||||
United Kingdom Gilt | GBP | 57,466 | 58,615,340 | |||||||||
0.875%, 01/31/2046(a) | 47,452 | 26,721,423 | ||||||||||
1.25%, 10/22/2041(a) | 15,625 | 10,987,249 | ||||||||||
1.25%, 07/31/2051(a) | 4,547 | 2,522,324 | ||||||||||
1.50%, 07/31/2053(a) | 15,172 | 8,834,580 | ||||||||||
1.75%, 09/07/2037(a) | 28,348 | 24,328,557 | ||||||||||
3.75%, 01/29/2038(a) | 22,999 | 25,247,071 | ||||||||||
|
| |||||||||||
157,256,544 | ||||||||||||
|
| |||||||||||
United States – 9.6% | ||||||||||||
U.S. Treasury Bonds | U.S.$ | 125,315 | 71,781,999 | |||||||||
1.125%, 08/15/2040 | 110,345 | 62,586,305 | ||||||||||
1.25%, 05/15/2050 | 118,464 | 55,752,214 | ||||||||||
1.75%, 08/15/2041 | 50,202 | 31,219,182 | ||||||||||
1.875%, 02/15/2051 | 7,363 | 4,119,772 | ||||||||||
2.00%, 08/15/2051 | 24,241 | 13,968,819 | ||||||||||
2.375%, 02/15/2042 | 41,182 | 28,428,587 | ||||||||||
U.S. Treasury Notes | 89,593 | 75,888,066 | ||||||||||
1.25%, 11/30/2026 | 58,060 | 52,099,781 | ||||||||||
2.75%, 04/30/2027 | 132,506 | 123,934,705 | ||||||||||
|
| |||||||||||
519,779,430 | ||||||||||||
|
| |||||||||||
Total Governments - Treasuries | 2,393,323,110 | |||||||||||
|
| |||||||||||
CORPORATES - INVESTMENT GRADE – 25.7% | ||||||||||||
Industrial – 12.0% | ||||||||||||
Basic – 0.4% | ||||||||||||
Air Products and Chemicals, Inc. | EUR | 205 | 210,335 | |||||||||
Series E | 175 | 158,859 |
abfunds.com | AB GLOBAL BOND FUND | 19 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Amcor UK Finance PLC | EUR | 103 | $ | 96,485 | ||||||
Anglo American Capital PLC | U.S.$ | 320 | 255,968 | |||||||
2.625%, 09/10/2030(a) | 260 | 207,975 | ||||||||
2.875%, 03/17/2031(a) | 316 | 251,332 | ||||||||
5.625%, 04/01/2030(a) | 260 | 250,751 | ||||||||
Series E | EUR | 506 | 510,253 | |||||||
4.75%, 09/21/2032(a) | 158 | 162,962 | ||||||||
BHP Billiton Finance Ltd. | 125 | 111,364 | ||||||||
Braskem Netherlands Finance BV | U.S.$ | 250 | 219,990 | |||||||
4.50%, 01/31/2030(a) | 805 | 652,251 | ||||||||
7.25%, 02/13/2033(a) | 11,300 | 10,391,333 | ||||||||
8.50%, 01/12/2031(a) | 350 | 347,418 | ||||||||
Celanese US Holdings LLC | 25 | 24,904 | ||||||||
6.35%, 11/15/2028 | 226 | 223,107 | ||||||||
6.55%, 11/15/2030 | 328 | 320,926 | ||||||||
6.70%, 11/15/2033 | 123 | 119,738 | ||||||||
Celulosa Arauco y Constitucion SA | 200 | 179,898 | ||||||||
5.50%, 04/30/2049(a) | 260 | 210,116 | ||||||||
Dow Chemical Co. (The) | 111 | 116,392 | ||||||||
EIDP, Inc. | 120 | 111,820 | ||||||||
FMC Corp. | 124 | 108,978 | ||||||||
Freeport Indonesia PT | 320 | 303,568 | ||||||||
5.315%, 04/14/2032(a) | 634 | 570,727 | ||||||||
Fresnillo PLC | 240 | 166,800 | ||||||||
GC Treasury Center Co., Ltd. | 310 | 244,227 | ||||||||
4.40%, 03/30/2032(a) | 200 | 170,364 | ||||||||
Glencore Capital Finance DAC | EUR | 451 | 411,433 | |||||||
Glencore Funding LLC | U.S.$ | 136 | 132,571 | |||||||
5.70%, 05/08/2033(a) | 660 | 625,015 | ||||||||
6.125%, 10/06/2028(a) | 121 | 120,746 |
20 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
6.375%, 10/06/2030(a) | U.S.$ | 121 | $ | 120,543 | ||||||||
6.50%, 10/06/2033(a) | 334 | 333,358 | ||||||||||
Gold Fields Orogen Holdings BVI Ltd. | 200 | 194,082 | ||||||||||
Industrias Penoles SAB de CV | 230 | 171,541 | ||||||||||
Inversiones CMPC SA | 210 | 166,499 | ||||||||||
LG Chem Ltd. | 510 | 396,581 | ||||||||||
LYB International Finance II BV | EUR | 214 | 203,964 | |||||||||
MEGlobal BV | U.S.$ | 760 | 655,447 | |||||||||
Nucor Corp. | 128 | 122,710 | ||||||||||
Orbia Advance Corp. SAB de CV | 280 | 216,941 | ||||||||||
POSCO | 200 | 198,758 | ||||||||||
Rio Tinto Finance USA PLC | 120 | 109,537 | ||||||||||
SABIC Capital I BV | 260 | 210,790 | ||||||||||
Southern Copper Corp. | 180 | 172,492 | ||||||||||
5.875%, 04/23/2045 | 170 | 158,232 | ||||||||||
7.50%, 07/27/2035 | 200 | 218,650 | ||||||||||
Suzano Austria GmbH | 300 | 229,950 | ||||||||||
UPL Corp., Ltd. | 240 | 207,259 | ||||||||||
4.625%, 06/16/2030(a) | 380 | 304,000 | ||||||||||
Vale Overseas Ltd. | 590 | 502,137 | ||||||||||
|
| |||||||||||
22,882,077 | ||||||||||||
|
| |||||||||||
Capital Goods – 0.1% | ||||||||||||
3M Co. | EUR | 268 | 228,870 | |||||||||
CNH Industrial Capital LLC | U.S.$ | 205 | 182,478 | |||||||||
5.50%, 01/12/2029 | 122 | 119,883 | ||||||||||
CNH Industrial Finance Europe SA | EUR | 261 | 239,355 | |||||||||
1.75%, 09/12/2025(a) | 210 | 212,839 |
abfunds.com | AB GLOBAL BOND FUND | 21 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
CRH SMW Finance DAC | EUR | 190 | $ | 200,421 | ||||||||
4.00%, 07/11/2031(a) | 100 | 103,043 | ||||||||||
Heidelberg Materials AG | 203 | 197,669 | ||||||||||
Heidelberg Materials Finance Luxembourg SA | 180 | 171,558 | ||||||||||
John Deere Capital Corp. | U.S.$ | 267 | 256,382 | |||||||||
4.75%, 01/20/2028 | 430 | 421,526 | ||||||||||
Lennox International, Inc. | 609 | 597,779 | ||||||||||
Lockheed Martin Corp. | 122 | 117,923 | ||||||||||
5.20%, 02/15/2055 | 314 | 290,453 | ||||||||||
5.70%, 11/15/2054 | 295 | 293,876 | ||||||||||
5.90%, 11/15/2063 | 521 | 529,726 | ||||||||||
Metso Oyj | EUR | 179 | 162,179 | |||||||||
nVent Finance SARL | U.S.$ | 123 | 114,840 | |||||||||
Otis Worldwide Corp. | 122 | 119,788 | ||||||||||
Regal Rexnord Corp. | 605 | 597,245 | ||||||||||
6.05%, 04/15/2028(a) | 408 | 396,679 | ||||||||||
6.30%, 02/15/2030(a) | 326 | 315,914 | ||||||||||
6.40%, 04/15/2033(a) | 74 | 71,237 | ||||||||||
Safran SA | EUR | 500 | 482,129 | |||||||||
Schneider Electric SE | 100 | 102,298 | ||||||||||
St. Marys Cement, Inc./Canada | U.S.$ | 440 | 427,974 | |||||||||
Trane Technologies Financing Ltd. | 586 | 541,060 | ||||||||||
5.25%, 03/03/2033 | 42 | 40,703 | ||||||||||
UltraTech Cement Ltd. | 410 | 321,907 | ||||||||||
|
| |||||||||||
7,857,734 | ||||||||||||
|
|
22 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Communications - Media – 0.9% | ||||||||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | U.S.$ | 330 | $ | 229,832 | ||||||||
5.375%, 05/01/2047 | 3,160 | 2,410,724 | ||||||||||
5.75%, 04/01/2048 | 245 | 195,686 | ||||||||||
6.484%, 10/23/2045 | 115 | 100,301 | ||||||||||
Comcast Corp. | 230 | 186,730 | ||||||||||
4.049%, 11/01/2052 | 300 | 223,015 | ||||||||||
4.65%, 07/15/2042 | 210 | 176,836 | ||||||||||
Cox Communications, Inc. | 155 | 115,688 | ||||||||||
5.45%, 09/15/2028(a) | 6,638 | 6,519,764 | ||||||||||
5.70%, 06/15/2033(a) | 3,750 | 3,608,202 | ||||||||||
Discovery Communications LLC | 5,866 | 4,435,215 | ||||||||||
Fox Corp. | 190 | 164,591 | ||||||||||
5.476%, 01/25/2039 | 240 | 207,379 | ||||||||||
Grupo Televisa SAB | 350 | 340,120 | ||||||||||
Informa PLC | EUR | 496 | 502,249 | |||||||||
Interpublic Group of Cos., Inc. (The) | U.S.$ | 105 | 69,419 | |||||||||
4.75%, 03/30/2030 | 175 | 162,219 | ||||||||||
5.375%, 06/15/2033 | 8,864 | 8,273,147 | ||||||||||
ITV PLC | EUR | 517 | 501,556 | |||||||||
JCDecaux SE | 100 | 86,373 | ||||||||||
2.625%, 04/24/2028(a) | 200 | 193,884 | ||||||||||
Meta Platforms, Inc. | U.S.$ | 160 | 126,616 | |||||||||
4.65%, 08/15/2062 | 92 | 72,844 | ||||||||||
5.60%, 05/15/2053 | 124 | 117,440 | ||||||||||
Paramount Global | 2,305 | 1,832,469 | ||||||||||
4.95%, 01/15/2031 | 9,590 | 8,233,942 | ||||||||||
Prosus NV | EUR | 166 | 160,238 | |||||||||
1.539%, 08/03/2028(a) | 230 | 198,192 | ||||||||||
3.257%, 01/19/2027(a) | U.S.$ | 250 | 221,563 | |||||||||
3.68%, 01/21/2030(a) | 970 | 780,588 | ||||||||||
3.832%, 02/08/2051(a) | 200 | 110,019 |
abfunds.com | AB GLOBAL BOND FUND | 23 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
TDF Infrastructure SASU | EUR | 300 | $ | 318,085 | ||||||||
Tencent Holdings Ltd. | U.S.$ | 510 | 408,928 | |||||||||
Time Warner Cable LLC | GBP | 100 | 96,427 | |||||||||
Warnermedia Holdings, Inc. | U.S.$ | 4,535 | 4,186,070 | |||||||||
4.279%, 03/15/2032 | 38 | 32,250 | ||||||||||
5.05%, 03/15/2042 | 190 | 146,972 | ||||||||||
Weibo Corp. | 290 | 283,072 | ||||||||||
|
| |||||||||||
46,028,645 | ||||||||||||
|
| |||||||||||
Communications -Telecommunications – 1.3% | ||||||||||||
America Movil SAB de CV | 340 | 283,703 | ||||||||||
AT&T, Inc. | 320 | 196,151 | ||||||||||
Bell Telephone Co. of Canada or Bell Canada (The) | CAD | 2,381 | 1,457,395 | |||||||||
4.55%, 02/09/2030 | 1,318 | 910,434 | ||||||||||
5.15%, 02/09/2053 | 3,297 | 2,144,062 | ||||||||||
5.85%, 11/10/2032 | 7,893 | 5,790,401 | ||||||||||
CK Hutchison Group Telecom Finance SA | EUR | 16,235 | 14,754,275 | |||||||||
Corning, Inc. | 12,766 | 13,375,459 | ||||||||||
Eutelsat SA | 300 | 235,535 | ||||||||||
HKT Capital No. 4 Ltd. | U.S.$ | 490 | 454,338 | |||||||||
Koninklijke KPN NV | EUR | 500 | 502,490 | |||||||||
NTT Finance Corp. | 521 | 507,062 | ||||||||||
0.399%, 12/13/2028(a) | 109 | 96,317 | ||||||||||
O2 Telefonica Deutschland Finanzierungs GmbH | 500 | 504,658 | ||||||||||
Ooredoo International Finance Ltd. | U.S.$ | 740 | 615,732 |
24 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Orange SA | EUR | 200 | $ | 201,178 | ||||||||
PLDT, Inc. | U.S.$ | 870 | 688,631 | |||||||||
SingTel Group Treasury Pte Ltd. | 290 | 246,355 | ||||||||||
T-Mobile USA, Inc. | 200 | 184,923 | ||||||||||
5.75%, 01/15/2034 | 10,322 | 10,069,518 | ||||||||||
TDC Net A/S | EUR | 237 | 244,508 | |||||||||
TELUS Corp. | CAD | 17,222 | 12,021,903 | |||||||||
Verizon Communications, Inc. | GBP | 355 | 336,938 | |||||||||
4.25%, 10/31/2030 | EUR | 250 | 262,910 | |||||||||
Vodafone Group PLC | AUD | 3,570 | 2,178,132 | |||||||||
5.125%, 06/19/2059 | U.S.$ | 250 | 199,180 | |||||||||
Series E | GBP | 100 | 65,215 | |||||||||
|
| |||||||||||
68,527,403 | ||||||||||||
|
| |||||||||||
Consumer Cyclical - Automotive – 0.9% | ||||||||||||
American Honda Finance Corp. | U.S.$ | 533 | 505,493 | |||||||||
5.00%, 05/23/2025 | 110 | 108,762 | ||||||||||
Series G | 123 | 121,110 | ||||||||||
5.25%, 07/07/2026 | 123 | 122,234 | ||||||||||
Aptiv PLC | EUR | 210 | 213,444 | |||||||||
Aptiv PLC/Aptiv Corp. | U.S.$ | 79 | 55,061 | |||||||||
BMW US Capital LLC | 123 | 120,351 | ||||||||||
5.15%, 08/11/2033(a) | 123 | 117,022 | ||||||||||
5.30%, 08/11/2025(a) | 123 | 122,344 | ||||||||||
Ford Motor Co. | 90 | 84,811 | ||||||||||
General Motors Co. | 265 | 252,468 | ||||||||||
5.40%, 10/15/2029 | 122 | 115,996 | ||||||||||
5.40%, 04/01/2048 | 676 | 533,359 | ||||||||||
5.60%, 10/15/2032 | 122 | 113,583 |
abfunds.com | AB GLOBAL BOND FUND | 25 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
General Motors Financial Co., Inc. | U.S.$ | 15 | $ | 11,481 | ||||||
2.75%, 06/20/2025 | 461 | 434,234 | ||||||||
5.40%, 04/06/2026 | 123 | 120,403 | ||||||||
5.80%, 06/23/2028 | 236 | 230,399 | ||||||||
5.85%, 04/06/2030 | 310 | 296,771 | ||||||||
6.00%, 01/09/2028 | 119 | 117,447 | ||||||||
6.40%, 01/09/2033 | 119 | 115,954 | ||||||||
Harley-Davidson Financial Services, Inc. | 14,185 | 12,651,075 | ||||||||
3.35%, 06/08/2025(a) | 335 | 317,684 | ||||||||
5.125%, 04/05/2026(a) | EUR | 228 | 243,803 | |||||||
6.50%, 03/10/2028(a) | U.S.$ | 613 | 605,888 | |||||||
Honda Motor Co., Ltd. | 657 | 597,602 | ||||||||
Hyundai Capital America | 365 | 328,818 | ||||||||
2.375%, 10/15/2027(a) | 590 | 511,193 | ||||||||
5.68%, 06/26/2028(a) | 6,331 | 6,188,468 | ||||||||
5.80%, 06/26/2025(a) | 100 | 99,573 | ||||||||
5.95%, 09/21/2026(a) | 122 | 121,654 | ||||||||
6.10%, 09/21/2028(a) | 86 | 85,426 | ||||||||
Hyundai Motor Manufacturing Indonesia PT | 250 | 223,387 | ||||||||
Kia Corp. | 290 | 262,345 | ||||||||
3.50%, 10/25/2027(a) | 230 | 210,108 | ||||||||
Lear Corp. | 1,102 | 935,979 | ||||||||
Mercedes-Benz Finance North America LLC | 220 | 216,116 | ||||||||
5.10%, 08/03/2028(a) | 619 | 606,188 | ||||||||
5.20%, 08/03/2026(a) | 150 | 148,487 | ||||||||
Nissan Motor Acceptance Co., LLC | 3,120 | 2,713,955 | ||||||||
2.00%, 03/09/2026(a) | 4,070 | 3,637,607 | ||||||||
2.45%, 09/15/2028(a) | 5,328 | 4,312,059 | ||||||||
2.75%, 03/09/2028(a) | 255 | 213,477 | ||||||||
6.95%, 09/15/2026(a) | 122 | 122,821 | ||||||||
7.05%, 09/15/2028(a) | 122 | 121,913 | ||||||||
RCI Banque SA | EUR | 521 | 514,952 |
26 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Stellantis NV | EUR | 300 | $ | 304,745 | ||||||||
Toyota Motor Credit Corp. | U.S.$ | 616 | 609,704 | |||||||||
5.25%, 09/11/2028 | 610 | 606,472 | ||||||||||
5.60%, 09/11/2025 | 122 | 122,225 | ||||||||||
Volkswagen Financial Services NV | GBP | 100 | 113,557 | |||||||||
Volkswagen International Finance NV | EUR | 8,100 | 7,390,131 | |||||||||
3.875%, 06/14/2027(a)(b) | 300 | 280,497 | ||||||||||
3.875%, 06/17/2029(a)(b) | 100 | 87,232 | ||||||||||
4.125%, 11/16/2038(a) | 100 | 94,853 | ||||||||||
Series 10Y | 100 | 96,687 | ||||||||||
Series E | 400 | 354,291 | ||||||||||
|
| |||||||||||
49,963,699 | ||||||||||||
|
| |||||||||||
Consumer Cyclical - Entertainment – 0.3% | ||||||||||||
CPUK Finance Ltd. | GBP | 275 | 317,578 | |||||||||
Hasbro, Inc. | U.S.$ | 16,941 | 15,760,752 | |||||||||
3.90%, 11/19/2029 | 300 | 265,467 | ||||||||||
|
| |||||||||||
16,343,797 | ||||||||||||
|
| |||||||||||
Consumer Cyclical - Other – 0.3% | ||||||||||||
GENM Capital Labuan Ltd. | 1,298 | 1,019,047 | ||||||||||
Gohl Capital Ltd. | 340 | 312,433 | ||||||||||
Hyatt Hotels Corp. | 123 | 122,277 | ||||||||||
Imerys SA | EUR | 500 | 483,381 | |||||||||
Marriott International, Inc./MD | U.S.$ | 298 | 284,036 | |||||||||
5.45%, 09/15/2026 | 611 | 605,357 | ||||||||||
5.55%, 10/15/2028 | 878 | 865,496 | ||||||||||
Series HH | 3,661 | 2,943,813 | ||||||||||
MDC Holdings, Inc. | 315 | 235,560 | ||||||||||
6.00%, 01/15/2043 | 8,502 | 7,123,328 |
abfunds.com | AB GLOBAL BOND FUND | 27 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Nissan Motor Co., Ltd. | EUR | 125 | $ | 125,971 | ||||||||
NVR, Inc. | U.S.$ | 699 | 582,514 | |||||||||
Owens Corning | 50 | 52,813 | ||||||||||
PulteGroup, Inc. | 182 | 182,746 | ||||||||||
Toll Brothers Finance Corp. | 185 | 171,649 | ||||||||||
|
| |||||||||||
15,110,421 | ||||||||||||
|
| |||||||||||
Consumer Cyclical - Restaurants – 0.0% | ||||||||||||
McDonald’s Corp. | 120 | 107,450 | ||||||||||
5.45%, 08/14/2053 | 123 | 115,194 | ||||||||||
|
| |||||||||||
222,644 | ||||||||||||
|
| |||||||||||
Consumer Cyclical - Retailers – 0.5% | ||||||||||||
Alimentation Couche-Tard, Inc. | EUR | 506 | 503,244 | |||||||||
AutoNation, Inc. | U.S.$ | 3,867 | 3,471,737 | |||||||||
3.85%, 03/01/2032 | 572 | 464,535 | ||||||||||
AutoZone, Inc. | 620 | 579,875 | ||||||||||
CK Hutchison Europe Finance 21 Ltd. | EUR | 245 | 208,000 | |||||||||
CK Hutchison International 21 Ltd. | U.S.$ | 790 | 632,872 | |||||||||
Dick’s Sporting Goods, Inc. | 688 | 528,994 | ||||||||||
4.10%, 01/15/2052 | 595 | 361,958 | ||||||||||
Dollarama, Inc. | CAD | 6,832 | 5,022,225 | |||||||||
Falabella SA | U.S.$ | 979 | 840,716 | |||||||||
Home Depot, Inc. (The) | 194 | 131,420 | ||||||||||
4.50%, 12/06/2048 | 370 | 310,065 | ||||||||||
4.95%, 09/15/2052 | 461 | 412,309 | ||||||||||
5.875%, 12/16/2036 | 507 | 521,765 | ||||||||||
Lowe’s Cos., Inc. | 360 | 265,038 | ||||||||||
5.625%, 04/15/2053 | 120 | 109,076 | ||||||||||
5.75%, 07/01/2053 | 122 | 113,858 | ||||||||||
5.80%, 09/15/2062 | 484 | 439,173 |
28 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
PVH Corp. | EUR | 100 | $ | 99,505 | ||||||||
3.625%, 07/15/2024(a) | 481 | 506,519 | ||||||||||
4.625%, 07/10/2025 | U.S.$ | 185 | 178,570 | |||||||||
TJX Cos., Inc. (The) | 591 | 543,029 | ||||||||||
Tractor Supply Co. | 124 | 116,752 | ||||||||||
VF Corp. | EUR | 100 | 87,278 | |||||||||
2.95%, 04/23/2030 | U.S.$ | 10,265 | 8,082,799 | |||||||||
Series E | EUR | 3,110 | 3,179,503 | |||||||||
Walmart, Inc. | U.S.$ | 270 | 262,715 | |||||||||
|
| |||||||||||
27,973,530 | ||||||||||||
|
| |||||||||||
Consumer Non-Cyclical – 1.6% | ||||||||||||
Altria Group, Inc. | EUR | 8,168 | 7,347,461 | |||||||||
3.70%, 02/04/2051 | U.S.$ | 467 | 288,540 | |||||||||
3.875%, 09/16/2046 | 160 | 103,924 | ||||||||||
4.00%, 02/04/2061 | 621 | 394,450 | ||||||||||
4.80%, 02/14/2029 | 135 | 128,374 | ||||||||||
American Medical Systems Europe BV | EUR | 180 | 169,958 | |||||||||
Amgen, Inc. | U.S.$ | 220 | 164,243 | |||||||||
4.40%, 05/01/2045 | 225 | 178,034 | ||||||||||
4.40%, 02/22/2062 | 195 | 144,593 | ||||||||||
4.663%, 06/15/2051 | 360 | 290,967 | ||||||||||
4.875%, 03/01/2053 | 720 | 600,486 | ||||||||||
Anheuser-Busch InBev SA/NV | EUR | 100 | 90,989 | |||||||||
9.75%, 07/30/2024(a) | GBP | 335 | 421,309 | |||||||||
Archer-Daniels-Midland Co. | U.S.$ | 91 | 76,952 | |||||||||
5.935%, 10/01/2032 | 190 | 196,148 | ||||||||||
Asahi Group Holdings Ltd. | EUR | 535 | 496,951 | |||||||||
0.541%, 10/23/2028(a) | 109 | 96,888 | ||||||||||
Astrazeneca Finance LLC | U.S.$ | 51 | 45,799 | |||||||||
1.75%, 05/28/2028 | 402 | 343,729 | ||||||||||
AstraZeneca PLC | 80 | 74,335 | ||||||||||
Avery Dennison Corp. | 602 | 588,533 |
abfunds.com | AB GLOBAL BOND FUND | 29 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
BAT Capital Corp. | U.S.$ | 21 | $ | 14,447 | ||||||
6.343%, 08/02/2030 | 124 | 122,125 | ||||||||
6.421%, 08/02/2033 | 147 | 142,603 | ||||||||
7.079%, 08/02/2043 | 428 | 410,416 | ||||||||
7.081%, 08/02/2053 | 124 | 117,020 | ||||||||
7.75%, 10/19/2032 | 115 | 121,469 | ||||||||
BAT International Finance PLC | 153 | 142,458 | ||||||||
Series E | EUR | 144 | 128,450 | |||||||
2.25%, 09/09/2052(a) | GBP | 110 | 52,468 | |||||||
Becton Dickinson Euro Finance SARL | EUR | 370 | 327,516 | |||||||
Biogen, Inc. | U.S.$ | 620 | 598,635 | |||||||
Boston Scientific Corp. | EUR | 310 | 286,630 | |||||||
Bristol-Myers Squibb Co. | U.S.$ | 570 | 399,420 | |||||||
Cardinal Health, Inc. | 582 | 536,597 | ||||||||
4.90%, 09/15/2045 | 250 | 200,431 | ||||||||
Cargill, Inc. | EUR | 14,639 | 15,197,042 | |||||||
4.375%, 04/22/2052(a) | U.S.$ | 311 | 251,554 | |||||||
Cencora, Inc. | 245 | 205,218 | ||||||||
Cencosud SA | 230 | 212,357 | ||||||||
Cia Cervecerias Unidas SA | 200 | 163,208 | ||||||||
Cigna Group (The) | 362 | 325,720 | ||||||||
3.40%, 03/15/2050 | 375 | 246,702 | ||||||||
4.50%, 02/25/2026 | 369 | 358,761 | ||||||||
4.80%, 08/15/2038 | 574 | 504,915 | ||||||||
4.80%, 07/15/2046 | 193 | 160,130 | ||||||||
4.90%, 12/15/2048 | 133 | 112,097 | ||||||||
5.40%, 03/15/2033 | 120 | 116,234 | ||||||||
Coca-Cola Co. (The) | EUR | 180 | 156,769 | |||||||
0.375%, 03/15/2033 | 119 | 91,515 | ||||||||
1.25%, 03/08/2031 | 109 | 96,787 | ||||||||
CVS Health Corp. | U.S.$ | 295 | 253,823 | |||||||
5.00%, 02/20/2026 | 265 | 260,847 |
30 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
5.00%, 01/30/2029 | U.S.$ | 5,256 | $ | 5,084,944 | ||||||
5.30%, 06/01/2033 | 122 | 115,583 | ||||||||
5.625%, 02/21/2053 | 122 | 109,067 | ||||||||
5.875%, 06/01/2053 | 122 | 112,935 | ||||||||
DH Europe Finance II SARL | 345 | 296,739 | ||||||||
Diageo Capital BV | EUR | 126 | 117,606 | |||||||
Diageo Finance PLC | 136 | 143,649 | ||||||||
1.875%, 03/27/2027(a) | 235 | 233,411 | ||||||||
Eli Lilly & Co. | 219 | 108,397 | ||||||||
4.95%, 02/27/2063 | U.S.$ | 600 | 541,980 | |||||||
Fresenius Medical Care US Finance III, Inc. | 190 | 161,840 | ||||||||
Fresenius SE & Co. KGaA | EUR | 262 | 246,318 | |||||||
5.00%, 11/28/2029(a) | 200 | 213,620 | ||||||||
GE HealthCare Technologies, Inc. | U.S.$ | 375 | 373,139 | |||||||
General Mills, Inc. | EUR | 519 | 506,010 | |||||||
Gilead Sciences, Inc. | U.S.$ | 145 | 86,903 | |||||||
4.80%, 04/01/2044 | 280 | 243,242 | ||||||||
5.55%, 10/15/2053 | 609 | 585,018 | ||||||||
HCA, Inc. | 267 | 204,138 | ||||||||
3.375%, 03/15/2029 | 7,106 | 6,227,924 | ||||||||
5.50%, 06/01/2033 | 179 | 169,279 | ||||||||
5.50%, 06/15/2047 | 366 | 312,314 | ||||||||
5.90%, 06/01/2053 | 124 | 111,158 | ||||||||
Indofood CBP Sukses Makmur Tbk PT | 490 | 392,186 | ||||||||
Ingredion, Inc. | 361 | 301,249 | ||||||||
JBS USA LUX SA/JBS USA Food Co./JBS USA Finance, Inc. | 689 | 608,387 | ||||||||
3.00%, 05/15/2032 | 73 | 54,913 | ||||||||
JBS USA LUX SA/JBS USA Food Co./JBS Luxembourg SARL | 221 | 214,549 |
abfunds.com | AB GLOBAL BOND FUND | 31 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Johnson & Johnson | U.S.$ | 187 | $ | 196,065 | ||||||
Kellogg Co. | EUR | 500 | 508,041 | |||||||
Kenvue, Inc. | U.S.$ | 130 | 116,962 | |||||||
Koninklijke Philips NV | EUR | 100 | 103,748 | |||||||
Loblaw Cos. Ltd. | CAD | 4,092 | 2,487,881 | |||||||
5.008%, 09/13/2032 | 3,472 | 2,446,376 | ||||||||
6.54%, 02/17/2033(a) | 3,182 | 2,437,811 | ||||||||
Mars, Inc. | U.S.$ | 123 | 119,087 | |||||||
McKesson Corp. | EUR | 226 | 227,098 | |||||||
3.125%, 02/17/2029 | GBP | 205 | 220,440 | |||||||
4.90%, 07/15/2028 | U.S.$ | 87 | 84,915 | |||||||
Merck & Co., Inc. | 608 | 538,477 | ||||||||
2.90%, 12/10/2061 | 562 | 322,703 | ||||||||
3.90%, 03/07/2039 | 543 | 450,403 | ||||||||
4.00%, 03/07/2049 | 170 | 133,153 | ||||||||
4.50%, 05/17/2033 | 260 | 243,255 | ||||||||
5.00%, 05/17/2053 | 124 | 112,994 | ||||||||
5.15%, 05/17/2063 | 191 | 174,772 | ||||||||
Metro Inc/CN | CAD | 11,382 | 7,812,351 | |||||||
Mondelez International Holdings Netherlands BV | U.S.$ | 270 | 256,970 | |||||||
Nestle Holdings, Inc. | 396 | 393,646 | ||||||||
5.00%, 09/12/2028(a) | 610 | 607,868 | ||||||||
5.00%, 09/12/2030(a) | 150 | 147,799 | ||||||||
5.00%, 09/12/2033(a) | 150 | 146,282 | ||||||||
PepsiCo, Inc. | GBP | 100 | 110,482 | |||||||
4.65%, 02/15/2053 | U.S.$ | 122 | 108,441 | |||||||
Pfizer Investment Enterprises Pte Ltd. | 123 | 120,131 | ||||||||
5.30%, 05/19/2053 | 420 | 388,682 | ||||||||
Pfizer, Inc. | 95 | 109,365 | ||||||||
Philip Morris International, Inc. | 257 | 252,640 |
32 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
4.875%, 02/15/2028 | U.S.$ | 122 | $ | 118,169 | ||||||||
5.375%, 02/15/2033 | 122 | 115,334 | ||||||||||
5.625%, 11/17/2029 | 32 | 31,613 | ||||||||||
5.625%, 09/07/2033 | 267 | 256,832 | ||||||||||
Pilgrim’s Pride Corp. | 253 | 195,849 | ||||||||||
5.875%, 09/30/2027(a) | 95 | 96,451 | ||||||||||
6.875%, 05/15/2034 | 775 | 760,950 | ||||||||||
Reynolds American, Inc. | 352 | 291,013 | ||||||||||
Saputo, Inc. | CAD | 6,857 | 4,930,797 | |||||||||
Sigma Finance Netherlands BV | U.S.$ | 350 | 332,063 | |||||||||
Smithfield Foods, Inc. | 315 | 226,400 | ||||||||||
Sudzucker International Finance BV | EUR | 200 | 216,025 | |||||||||
Sutter Health | U.S.$ | 3,533 | 3,388,599 | |||||||||
Takeda Pharmaceutical Co., Ltd. | 250 | 158,995 | ||||||||||
Thermo Fisher Scientific, Inc. | EUR | 169 | 175,945 | |||||||||
4.953%, 08/10/2026 | U.S.$ | 123 | 121,650 | |||||||||
4.977%, 08/10/2030 | 146 | 141,928 | ||||||||||
5.086%, 08/10/2033 | 123 | 118,840 | ||||||||||
Upjohn Finance BV | EUR | 361 | 294,531 | |||||||||
Viatris, Inc. | U.S.$ | 247 | 228,105 | |||||||||
Wyeth LLC | 188 | 192,279 | ||||||||||
Zoetis, Inc. | 128 | 127,466 | ||||||||||
|
| |||||||||||
86,332,197 | ||||||||||||
|
| |||||||||||
Energy – 2.3% | ||||||||||||
Aker BP ASA | 150 | 145,366 | ||||||||||
APA Infrastructure Ltd. | EUR | 502 | 487,474 | |||||||||
Apache Corp. | U.S.$ | 111 | 98,362 | |||||||||
5.10%, 09/01/2040 | 180 | 143,273 | ||||||||||
BG Energy Capital PLC | GBP | 365 | 442,436 |
abfunds.com | AB GLOBAL BOND FUND | 33 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Boardwalk Pipelines LP | U.S.$ | 150 | $ | 124,410 | ||||||
BP Capital Markets PLC | EUR | 3,699 | 3,656,568 | |||||||
3.625%, 03/22/2029(a)(b) | 12,390 | 11,410,642 | ||||||||
Canadian Natural Resources Ltd. | U.S.$ | 140 | 130,416 | |||||||
Cheniere Energy Partners LP | 133 | 128,285 | ||||||||
Columbia Pipelines Operating Co., LLC | 206 | 201,251 | ||||||||
6.497%, 08/15/2043(a) | 617 | 599,339 | ||||||||
ConocoPhillips Co. | 345 | 247,570 | ||||||||
5.05%, 09/15/2033 | 123 | 117,747 | ||||||||
5.55%, 03/15/2054 | 328 | 311,526 | ||||||||
5.70%, 09/15/2063 | 613 | 582,968 | ||||||||
Contemporary Ruiding Development Ltd. | 540 | 437,891 | ||||||||
Continental Resources, Inc./OK | 155 | 115,971 | ||||||||
4.375%, 01/15/2028 | 185 | 171,412 | ||||||||
4.90%, 06/01/2044 | 100 | 73,433 | ||||||||
COSL Singapore Capital Ltd. | 200 | 186,608 | ||||||||
Devon Energy Corp. | 622 | 680,887 | ||||||||
7.95%, 04/15/2032 | 7,650 | 8,460,889 | ||||||||
Diamondback Energy, Inc. | 138 | 98,110 | ||||||||
6.25%, 03/15/2033 | 115 | 115,134 | ||||||||
6.25%, 03/15/2053 | 119 | 113,525 | ||||||||
Ecopetrol SA | 914 | 697,793 | ||||||||
6.875%, 04/29/2030 | 1,505 | 1,368,045 | ||||||||
8.625%, 01/19/2029 | 3,987 | 3,991,386 | ||||||||
8.875%, 01/13/2033 | 1,480 | 1,441,853 | ||||||||
El Paso Natural Gas Co., LLC | 63 | 51,232 | ||||||||
Enbridge Pipelines, Inc. | CAD | 4,087 | 2,460,464 | |||||||
Enbridge, Inc. | 3,461 | 2,563,287 | ||||||||
Energy Transfer LP | U.S.$ | 235 | 222,771 | |||||||
6.125%, 12/15/2045 | 205 | 183,066 |
34 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Eni SpA | EUR | 170 | $ | 166,702 | ||||||
Series NC9 | 12,030 | 10,715,175 | ||||||||
EQT Corp. | U.S.$ | 2,688 | 2,635,202 | |||||||
Exxon Mobil Corp. | 215 | 182,823 | ||||||||
Hess Corp. | 230 | 218,462 | ||||||||
7.125%, 03/15/2033 | 9,699 | 10,221,578 | ||||||||
7.875%, 10/01/2029 | 289 | 312,708 | ||||||||
KazMunayGas National Co. JSC | 810 | 605,864 | ||||||||
4.75%, 04/19/2027(a) | 230 | 215,239 | ||||||||
5.375%, 04/24/2030(a) | 240 | 217,786 | ||||||||
Kinder Morgan Energy Partners LP | 175 | 141,055 | ||||||||
Kinder Morgan, Inc. | 123 | 104,265 | ||||||||
Series G | 70 | 75,887 | ||||||||
Marathon Oil Corp. | 90 | 84,628 | ||||||||
6.60%, 10/01/2037 | 190 | 184,312 | ||||||||
Marathon Petroleum Corp. | 143 | 141,192 | ||||||||
Midwest Connector Capital Co., LLC | 288 | 262,817 | ||||||||
MOL Hungarian Oil & Gas PLC | EUR | 539 | 496,882 | |||||||
MPLX LP | U.S.$ | 95 | 93,145 | |||||||
4.95%, 03/14/2052 | 516 | 401,630 | ||||||||
5.50%, 02/15/2049 | 287 | 242,988 | ||||||||
5.65%, 03/01/2053 | 271 | 232,815 | ||||||||
Oil India International Pte Ltd. | 470 | 440,225 | ||||||||
OMV AG | EUR | 217 | 234,306 | |||||||
ONEOK, Inc. | U.S.$ | 390 | 338,199 | |||||||
5.20%, 07/15/2048 | 588 | 480,881 | ||||||||
5.65%, 11/01/2028 | 101 | 99,683 | ||||||||
6.05%, 09/01/2033 | 2,142 | 2,105,054 | ||||||||
6.10%, 11/15/2032 | 25 | 24,689 | ||||||||
6.35%, 01/15/2031 | 7,429 | 7,460,545 |
abfunds.com | AB GLOBAL BOND FUND | 35 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Ovintiv, Inc. | U.S.$ | 34 | $ | 33,258 | ||||||
6.25%, 07/15/2033 | 3,048 | 2,950,705 | ||||||||
Pioneer Natural Resources Co. | 197 | 194,461 | ||||||||
Plains All American Pipeline LP/PAA Finance Corp. | 335 | 325,771 | ||||||||
PTTEP Treasury Center Co., Ltd. | 300 | 258,237 | ||||||||
Raizen Fuels Finance SA | 290 | 279,734 | ||||||||
Ras Laffan Liquefied Natural Gas Co., Ltd. 3 | 363 | 361,095 | ||||||||
Reliance Industries Ltd. | 300 | 190,989 | ||||||||
SA Global Sukuk Ltd. | 1,000 | 898,650 | ||||||||
Saudi Arabian Oil Co. | 1,100 | 879,659 | ||||||||
2.875%, 04/16/2024(a) | 483 | 473,272 | ||||||||
3.25%, 11/24/2050(a) | 410 | 256,353 | ||||||||
Schlumberger Finance BV | EUR | 568 | 458,717 | |||||||
Suncor Energy, Inc. | U.S.$ | 426 | 423,008 | |||||||
6.80%, 05/15/2038 | 40 | 40,465 | ||||||||
6.85%, 06/01/2039 | 374 | 375,808 | ||||||||
7.15%, 02/01/2032 | 75 | 78,799 | ||||||||
Sweihan PV Power Co. PJSC | 475 | 366,851 | ||||||||
Targa Resources Corp. | 454 | 415,146 | ||||||||
Tennessee Gas Pipeline Co., LLC | 250 | 208,892 | ||||||||
Thaioil Treasury Center Co., Ltd. | 530 | 413,167 | ||||||||
TotalEnergies Capital Canada Ltd. | EUR | 500 | 477,257 | |||||||
TotalEnergies Capital International SA | U.S.$ | 76 | 49,096 | |||||||
TotalEnergies SE | EUR | 11,880 | 10,983,978 | |||||||
Series NC7 | 5,033 | 4,450,833 |
36 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
TransCanada PipeLines Ltd. | CAD | 227 | $ | 158,781 | ||||||||
Transportadora de Gas del Peru SA | U.S.$ | 200 | 187,730 | |||||||||
Transportadora de Gas Internacional SA ESP | 410 | 384,445 | ||||||||||
Var Energi ASA | 269 | 255,045 | ||||||||||
7.50%, 01/15/2028(a) | 7,328 | 7,523,176 | ||||||||||
8.00%, 11/15/2032(a) | 5,514 | 5,769,368 | ||||||||||
Vier Gas Transport GmbH | EUR | 500 | 466,287 | |||||||||
Western Midstream Operating LP | U.S.$ | 603 | 604,852 | |||||||||
Williams Cos., Inc. (The) | 123 | 120,224 | ||||||||||
5.30%, 08/15/2052 | 123 | 104,652 | ||||||||||
Woodside Finance Ltd. | 123 | 118,657 | ||||||||||
3.70%, 09/15/2026(a) | 628 | 589,145 | ||||||||||
4.50%, 03/04/2029(a) | 531 | 490,582 | ||||||||||
|
| |||||||||||
124,015,272 | ||||||||||||
|
| |||||||||||
Other Industrial – 0.1% | ||||||||||||
Alfa Desarrollo SpA | 308 | 209,993 | ||||||||||
CITIC Ltd. | 250 | 211,163 | ||||||||||
Ferguson Finance PLC | 624 | 593,230 | ||||||||||
4.65%, 04/20/2032(a) | 624 | 562,019 | ||||||||||
LKQ Corp. | 115 | 112,357 | ||||||||||
6.25%, 06/15/2033(a) | 100 | 96,725 | ||||||||||
Massachusetts Institute of Technology | 245 | 243,297 | ||||||||||
Mitsubishi Corp. | 618 | 607,362 | ||||||||||
Swire Pacific Mtn Financing HK Ltd. | 340 | 286,487 | ||||||||||
Technip Energies NV | EUR | 565 | 516,247 |
abfunds.com | AB GLOBAL BOND FUND | 37 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Worley US Finance Sub Ltd. | EUR | 531 | $ | 506,307 | ||||||||
|
| |||||||||||
3,945,187 | ||||||||||||
|
| |||||||||||
Services – 0.9% | ||||||||||||
Alibaba Group Holding Ltd. | U.S.$ | 630 | 491,551 | |||||||||
Amazon.com, Inc. | 126 | 95,897 | ||||||||||
4.25%, 08/22/2057 | 360 | 287,936 | ||||||||||
4.55%, 12/01/2027 | 435 | 425,869 | ||||||||||
Automatic Data Processing, Inc. | 134 | 115,609 | ||||||||||
Booking Holdings, Inc. | EUR | 6,154 | 6,585,733 | |||||||||
4.625%, 04/13/2030 | U.S.$ | 613 | 581,258 | |||||||||
Chicago Parking Meters LLC | 16,500 | 15,712,915 | ||||||||||
Global Payments, Inc. | EUR | 8,837 | 9,097,480 | |||||||||
GTCR W-2 Merger Sub LLC | U.S.$ | 5,405 | 5,411,837 | |||||||||
ISS Global A/S | EUR | 106 | 101,944 | |||||||||
Mastercard, Inc. | 295 | 270,099 | ||||||||||
3.85%, 03/26/2050 | U.S.$ | 400 | 308,554 | |||||||||
4.875%, 03/09/2028 | 602 | 596,772 | ||||||||||
PayPal Holdings, Inc. | 11,698 | 9,551,153 | ||||||||||
Rentokil Initial PLC | EUR | 557 | 493,643 | |||||||||
Securitas Treasury Ireland DAC | 100 | 105,147 | ||||||||||
Verisk Analytics, Inc. | U.S.$ | 230 | 214,205 | |||||||||
5.75%, 04/01/2033 | 102 | 101,088 | ||||||||||
|
| |||||||||||
50,548,690 | ||||||||||||
|
| |||||||||||
Technology – 1.4% | ||||||||||||
AAC Technologies Holdings, Inc. | 290 | 199,091 | ||||||||||
Apple, Inc. | 604 | 543,955 |
38 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
2.00%, 09/17/2027 | EUR | 240 | $ | 240,037 | ||||||
2.45%, 08/04/2026 | U.S.$ | 575 | 534,373 | |||||||
2.80%, 02/08/2061 | 418 | 244,378 | ||||||||
2.85%, 08/05/2061 | 257 | 150,496 | ||||||||
4.10%, 08/08/2062 | 224 | 172,390 | ||||||||
Applied Materials, Inc. | 661 | 528,826 | ||||||||
Avnet, Inc. | 609 | 559,252 | ||||||||
6.25%, 03/15/2028 | 602 | 599,439 | ||||||||
Axiata SPV2 Bhd | 610 | 491,013 | ||||||||
Baidu, Inc. | 320 | 246,035 | ||||||||
CDW LLC/CDW Finance Corp. | 674 | 607,816 | ||||||||
Dell International LLC/EMC Corp. | 915 | 893,002 | ||||||||
6.02%, 06/15/2026 | 248 | 248,760 | ||||||||
8.35%, 07/15/2046 | 155 | 180,514 | ||||||||
DXC Capital Funding DAC | EUR | 457 | 402,895 | |||||||
DXC Technology Co. | 101 | 99,298 | ||||||||
Entegris Escrow Corp. | U.S.$ | 9,847 | 8,845,043 | |||||||
Fidelity National Information Services, Inc. | EUR | 791 | 710,486 | |||||||
4.50%, 07/15/2025 | U.S.$ | 161 | 157,092 | |||||||
Fiserv, Inc. | EUR | 6,152 | 5,450,521 | |||||||
2.25%, 07/01/2025 | GBP | 250 | 287,624 | |||||||
5.625%, 08/21/2033 | U.S.$ | 6,394 | 6,196,864 | |||||||
Foxconn Far East Ltd. | 200 | 160,222 | ||||||||
Hewlett Packard Enterprise Co. | 598 | 543,153 | ||||||||
Honeywell International, Inc. | EUR | 563 | 583,939 | |||||||
Series 4Y | 8,717 | 9,101,541 | ||||||||
HP, Inc. | U.S.$ | 64 | 49,905 | |||||||
4.20%, 04/15/2032 | 345 | 298,336 | ||||||||
5.50%, 01/15/2033 | 348 | 326,201 |
abfunds.com | AB GLOBAL BOND FUND | 39 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Intel Corp. | U.S.$ | 649 | $ | 601,084 | ||||||
3.25%, 11/15/2049 | 150 | 95,648 | ||||||||
4.75%, 03/25/2050 | 470 | 387,377 | ||||||||
4.90%, 08/05/2052 | 124 | 104,077 | ||||||||
4.95%, 03/25/2060 | 472 | 400,798 | ||||||||
5.625%, 02/10/2043 | 123 | 116,956 | ||||||||
International Business Machines Corp. | 616 | 539,299 | ||||||||
3.43%, 02/09/2052 | 135 | 88,112 | ||||||||
3.50%, 05/15/2029 | 100 | 90,379 | ||||||||
4.00%, 06/20/2042 | 150 | 116,360 | ||||||||
4.25%, 05/15/2049 | 100 | 77,238 | ||||||||
4.90%, 07/27/2052 | 284 | 239,914 | ||||||||
Intuit, Inc. | 611 | 604,228 | ||||||||
5.25%, 09/15/2026 | 611 | 609,536 | ||||||||
5.50%, 09/15/2053 | 311 | 298,072 | ||||||||
KLA Corp. | 314 | 208,858 | ||||||||
4.95%, 07/15/2052 | 119 | 103,970 | ||||||||
Kyndryl Holdings, Inc. | 10,101 | 8,803,114 | ||||||||
Lam Research Corp. | 225 | 211,376 | ||||||||
4.875%, 03/15/2049 | 563 | 490,555 | ||||||||
Lenovo Group Ltd. | 250 | 203,488 | ||||||||
6.536%, 07/27/2032(a) | 220 | 216,478 | ||||||||
Marvell Technology, Inc. | 122 | 120,888 | ||||||||
5.95%, 09/15/2033 | 122 | 119,759 | ||||||||
Micron Technology, Inc. | 124 | 119,650 | ||||||||
5.875%, 02/09/2033 | 135 | 129,014 | ||||||||
Microsoft Corp. | 256 | 237,787 | ||||||||
2.675%, 06/01/2060 | 873 | 513,042 | ||||||||
3.041%, 03/17/2062 | 779 | 491,966 | ||||||||
4.50%, 02/06/2057 | 595 | 522,149 | ||||||||
NXP BV/NXP Funding LLC | 445 | 439,090 | ||||||||
Oracle Corp. | 657 | 594,892 | ||||||||
2.30%, 03/25/2028 | 591 | 511,494 | ||||||||
2.50%, 04/01/2025 | 561 | 534,039 | ||||||||
3.65%, 03/25/2041 | 676 | 482,149 |
40 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
4.00%, 07/15/2046 | U.S.$ | 160 | $ | 112,908 | ||||||||
4.10%, 03/25/2061 | 551 | 366,365 | ||||||||||
4.30%, 07/08/2034 | 9,860 | 8,462,856 | ||||||||||
5.375%, 07/15/2040 | 377 | 334,276 | ||||||||||
Renesas Electronics Corp. | 410 | 362,294 | ||||||||||
SK Hynix, Inc. | 2,165 | 1,627,062 | ||||||||||
6.25%, 01/17/2026(a) | 1,473 | 1,471,836 | ||||||||||
Skyworks Solutions, Inc. | 213 | 165,921 | ||||||||||
Take-Two Interactive Software, Inc. | 124 | 121,626 | ||||||||||
Texas Instruments, Inc. | 165 | 135,619 | ||||||||||
4.10%, 08/16/2052 | 87 | 68,276 | ||||||||||
4.90%, 03/14/2033 | 120 | 115,953 | ||||||||||
5.00%, 03/14/2053 | 120 | 108,328 | ||||||||||
TSMC Arizona Corp. | 360 | 342,151 | ||||||||||
4.25%, 04/22/2032 | 380 | 349,406 | ||||||||||
4.50%, 04/22/2052 | 230 | 195,472 | ||||||||||
TSMC Global Ltd. | 540 | 410,821 | ||||||||||
2.25%, 04/23/2031(a) | 410 | 328,000 | ||||||||||
Tyco Electronics Group SA | EUR | 135 | 116,679 | |||||||||
Western Digital Corp. | U.S.$ | 138 | 110,604 | |||||||||
3.10%, 02/01/2032 | 2,758 | 2,017,278 | ||||||||||
4.75%, 02/15/2026 | 628 | 597,655 | ||||||||||
Wipro IT Services LLC | 250 | 223,163 | ||||||||||
Xiaomi Best Time International Ltd. | 460 | 341,302 | ||||||||||
|
| |||||||||||
77,561,184 | ||||||||||||
|
| |||||||||||
Transportation - Airlines – 0.1% | ||||||||||||
Alaska Airlines Pass Through Trust | 587 | 562,709 | ||||||||||
Delta Air Lines, Inc./SkyMiles IP Ltd. | 856 | 831,391 | ||||||||||
4.75%, 10/20/2028(a) | 592 | 563,062 | ||||||||||
easyJet FinCo BV | EUR | 226 | 209,579 |
abfunds.com | AB GLOBAL BOND FUND | 41 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd. | U.S.$ | 281 | $ | 279,154 | ||||||||
United Airlines Pass Through Trust | 573 | 567,491 | ||||||||||
|
| |||||||||||
3,013,386 | ||||||||||||
|
| |||||||||||
Transportation - Railroads – 0.0% | ||||||||||||
Burlington Northern Santa Fe LLC | 124 | 102,793 | ||||||||||
Canadian National Railway Co. | CAD | 355 | 199,643 | |||||||||
Canadian Pacific Railway Co. | U.S.$ | 235 | 227,277 | |||||||||
Indian Railway Finance Corp., Ltd. | 250 | 211,330 | ||||||||||
Lima Metro Line 2 Finance Ltd. | 426 | 368,695 | ||||||||||
5.875%, 07/05/2034(a) | 718 | 683,959 | ||||||||||
MTR Corp., Ltd. | 260 | 205,119 | ||||||||||
Norfolk Southern Corp. | 270 | 260,057 | ||||||||||
|
| |||||||||||
2,258,873 | ||||||||||||
|
| |||||||||||
Transportation - Services – 0.9% | ||||||||||||
Abertis Infraestructuras SA | EUR | 200 | 209,231 | |||||||||
Adani Ports & Special Economic Zone Ltd. | U.S.$ | 360 | 248,494 | |||||||||
3.828%, 02/02/2032(a) | 290 | 204,575 | ||||||||||
Aeroporti di Roma SpA | EUR | 300 | 305,928 | |||||||||
Ashtead Capital, Inc. | U.S.$ | 229 | 211,581 | |||||||||
5.95%, 10/15/2033(a) | 821 | 779,509 | ||||||||||
Autostrade per l’Italia SpA | EUR | 324 | 335,837 | |||||||||
East Japan Railway Co. | 282 | 278,608 | ||||||||||
Element Fleet Management Corp. | U.S.$ | 618 | 615,400 |
42 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
ENA Master Trust | U.S.$ | 1,716 | $ | 1,228,604 | ||||||||
ERAC USA Finance LLC | 8,427 | 8,076,064 | ||||||||||
4.90%, 05/01/2033(a) | 4,900 | 4,591,860 | ||||||||||
FedEx Corp. | EUR | 12,816 | 11,050,655 | |||||||||
Gatwick Funding Ltd. | GBP | 4,360 | 4,318,076 | |||||||||
Heathrow Funding Ltd. | 295 | 302,345 | ||||||||||
6.45%, 12/10/2031(a) | 3,638 | 4,531,869 | ||||||||||
Series E | EUR | 536 | 478,030 | |||||||||
2.75%, 10/13/2029(a) | GBP | 5,974 | 6,104,069 | |||||||||
HPHT Finance 21 Ltd. | U.S.$ | 250 | 227,935 | |||||||||
Penske Truck Leasing Co. LP/PTL Finance Corp. | 123 | 119,092 | ||||||||||
5.75%, 05/24/2026(a) | 609 | 599,989 | ||||||||||
6.05%, 08/01/2028(a) | 124 | 122,472 | ||||||||||
6.20%, 06/15/2030(a) | 369 | 363,551 | ||||||||||
Shanghai Port Group BVI Development 2 Co., Ltd. | 500 | 462,730 | ||||||||||
Transurban Finance Co. Pty Ltd. | EUR | 100 | 101,756 | |||||||||
TTX Co. | U.S.$ | 250 | 249,469 | |||||||||
United Parcel Service, Inc. | 175 | 168,754 | ||||||||||
|
| |||||||||||
46,286,483 | ||||||||||||
|
| |||||||||||
648,871,222 | ||||||||||||
|
| |||||||||||
Financial Institutions – 11.7% | ||||||||||||
Banking – 8.7% | ||||||||||||
AIB Group PLC | 514 | 512,769 | ||||||||||
Series E | EUR | 13,249 | 12,831,204 | |||||||||
Ally Financial, Inc. | U.S.$ | 127 | 124,271 | |||||||||
American Express Co. | 620 | 604,365 | ||||||||||
5.389%, 07/28/2027 | 620 | 611,012 |
abfunds.com | AB GLOBAL BOND FUND | 43 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
ANZ New Zealand Int’l Ltd./London | U.S.$ | 200 | $ | 196,828 | ||||||
Australia & New Zealand Banking Group Ltd. | 275 | 262,184 | ||||||||
Banco de Credito del Peru SA | 510 | 448,800 | ||||||||
Banco Santander Mexico SA Institucion de Banca Multiple Grupo Financiero Santand | 450 | 441,387 | ||||||||
Banco Santander SA | 17,400 | 16,114,589 | ||||||||
5.147%, 08/18/2025 | 200 | 195,858 | ||||||||
5.294%, 08/18/2027 | 1,000 | 967,199 | ||||||||
6.921%, 08/08/2033 | 200 | 192,089 | ||||||||
Bangkok Bank PCL/Hong Kong | 440 | 483,402 | ||||||||
Bank Hapoalim BM | 257 | 219,200 | ||||||||
Bank Leumi Le-Israel BM | 290 | 258,853 | ||||||||
7.129%, 07/18/2033(a) | 210 | 205,854 | ||||||||
Bank Mandiri Persero Tbk PT | 320 | 313,235 | ||||||||
Bank of America Corp. | 97 | 80,849 | ||||||||
3.194%, 07/23/2030 | 284 | 242,686 | ||||||||
3.384%, 04/02/2026 | 68 | 65,055 | ||||||||
3.559%, 04/23/2027 | 78 | 73,177 | ||||||||
3.824%, 01/20/2028 | 635 | 589,356 | ||||||||
3.846%, 03/08/2037 | 240 | 194,787 | ||||||||
3.97%, 03/05/2029 | 560 | 512,794 | ||||||||
3.974%, 02/07/2030 | 97 | 87,060 | ||||||||
5.819%, 09/15/2029 | 611 | 603,576 | ||||||||
5.933%, 09/15/2027 | 611 | 606,794 | ||||||||
6.204%, 11/10/2028 | 165 | 165,713 | ||||||||
Series B | 930 | 980,198 | ||||||||
Series E | EUR | 305 | 318,867 | |||||||
Series L | U.S.$ | 562 | 542,561 | |||||||
Series U | 4,156 | 4,154,999 |
44 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Bank of East Asia Ltd. (The) | U.S.$ | 250 | $ | 246,522 | ||||||
Bank of Ireland Group PLC | 200 | 198,624 | ||||||||
Series E | EUR | 8,095 | 7,675,968 | |||||||
5.00%, 07/04/2031(a) | 393 | 415,212 | ||||||||
Bank of Montreal | U.S.$ | 610 | 603,790 | |||||||
5.92%, 09/25/2025 | 122 | 121,727 | ||||||||
Bank of Nova Scotia (The) | EUR | 531 | 502,020 | |||||||
0.25%, 11/01/2028(a) | 111 | 96,161 | ||||||||
Banque Federative du Credit Mutuel SA | 9,800 | 9,779,213 | ||||||||
4.935%, 01/26/2026(a) | U.S.$ | 10,579 | 10,295,089 | |||||||
5.896%, 07/13/2026(a) | 200 | 198,761 | ||||||||
Series E | EUR | 100 | 90,754 | |||||||
0.625%, 11/03/2028(a) | 200 | 174,477 | ||||||||
Barclays PLC | U.S.$ | 1,006 | 900,806 | |||||||
6.125%, 12/15/2025(b) | 11,154 | 10,108,926 | ||||||||
6.224%, 05/09/2034 | 200 | 190,104 | ||||||||
6.49%, 09/13/2029 | 200 | 198,866 | ||||||||
6.496%, 09/13/2027 | 200 | 199,887 | ||||||||
6.692%, 09/13/2034 | 235 | 230,598 | ||||||||
7.119%, 06/27/2034 | 400 | 385,952 | ||||||||
Series E | EUR | 422 | 440,123 | |||||||
5.262%, 01/29/2034(a) | 232 | 241,594 | ||||||||
BBVA Bancomer SA/Texas | U.S.$ | 600 | 547,314 | |||||||
BDO Unibank, Inc. | 240 | 221,441 | ||||||||
Belfius Bank SA | EUR | 500 | 508,156 | |||||||
Berlin Hyp AG | 500 | 505,348 | ||||||||
BNP Paribas SA | U.S.$ | 475 | 443,098 | |||||||
7.375%, 08/19/2025(a)(b) | 2,734 | 2,673,759 | ||||||||
8.50%, 08/14/2028(a)(b) | 200 | 196,375 |
abfunds.com | AB GLOBAL BOND FUND | 45 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Series E | EUR | 100 | $ | 92,229 | ||||||
2.75%, 07/25/2028(a) | 100 | 98,901 | ||||||||
BPCE SA | U.S.$ | 14,189 | 10,615,784 | |||||||
4.50%, 03/15/2025(a) | 8,251 | 7,960,328 | ||||||||
4.625%, 07/11/2024(a) | 2,517 | 2,469,876 | ||||||||
Series E | EUR | 400 | 420,628 | |||||||
CaixaBank SA | U.S.$ | 10,380 | 10,150,002 | |||||||
6.84%, 09/13/2034(a) | 200 | 196,752 | ||||||||
Series E | GBP | 200 | 218,632 | |||||||
5.00%, 07/19/2029(a) | EUR | 300 | 316,134 | |||||||
5.125%, 07/19/2034(a) | 200 | 207,450 | ||||||||
Canadian Imperial Bank of Commerce | U.S.$ | 121 | 121,012 | |||||||
5.986%, 10/03/2028 | 121 | 120,678 | ||||||||
Capital One Financial Corp. | EUR | 2,460 | 2,530,137 | |||||||
1.65%, 06/12/2029 | 325 | 281,324 | ||||||||
4.166%, 05/09/2025 | U.S.$ | 2,878 | 2,820,314 | |||||||
5.817%, 02/01/2034 | 171 | 154,605 | ||||||||
6.377%, 06/08/2034 | 4,800 | 4,523,141 | ||||||||
CBQ Finance Ltd. | 450 | 406,017 | ||||||||
Ceska Sporitelna AS | EUR | 100 | 106,144 | |||||||
Ceska sporitelna AS | 400 | 425,014 | ||||||||
Citigroup, Inc. | U.S.$ | 838 | 833,674 | |||||||
6.715% (SOFR + 1.37%), 05/24/2025(e) | 2,712 | 2,718,778 | ||||||||
7.625%, 11/15/2028(b) | 2,615 | 2,553,361 | ||||||||
9.699% (SOFR + 4.33%), 10/30/2023(b)(e) | 568 | 568,535 | ||||||||
Series E | EUR | 440 | 414,772 | |||||||
Series P | U.S.$ | 2,793 | 2,673,507 | |||||||
Series W | 232 | 203,163 |
46 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Series Y | U.S.$ | 7,121 | $ | 5,687,066 | ||||||
Citizens Bank NA/Providence RI | 276 | 255,269 | ||||||||
Commonwealth Bank of Australia | 365 | 278,595 | ||||||||
6.084% (SOFR + 0.74%), 03/14/2025(a)(e) | 5,150 | 5,162,372 | ||||||||
Cooperatieve Rabobank UA | EUR | 200 | 187,011 | |||||||
Series E | GBP | 9,255 | 10,255,522 | |||||||
Credit Agricole SA | U.S.$ | 250 | 248,193 | |||||||
6.316%, 10/03/2029(a) | 1,647 | 1,649,844 | ||||||||
Series E | EUR | 300 | 315,709 | |||||||
Credit Suisse AG/London | 531 | 510,918 | ||||||||
0.25%, 09/01/2028(a) | 455 | 395,306 | ||||||||
Danske Bank A/S | U.S.$ | 441 | 402,260 | |||||||
3.244%, 12/20/2025(a) | 3,465 | 3,319,370 | ||||||||
4.298%, 04/01/2028(a) | 435 | 405,464 | ||||||||
6.466%, 01/09/2026(a) | 4,805 | 4,794,867 | ||||||||
Series E | EUR | 379 | 398,839 | |||||||
DBS Group Holdings Ltd. | U.S.$ | 240 | 227,460 | |||||||
Deutsche Bank AG | EUR | 9,600 | 9,446,620 | |||||||
5.375%, 01/11/2029(a) | 2,600 | 2,739,987 | ||||||||
Series E | 500 | 474,041 | ||||||||
1.75%, 11/19/2030(a) | 400 | 335,118 | ||||||||
1.875%, 02/23/2028(a) | 3,200 | 3,022,702 | ||||||||
Deutsche Bank AG/New York NY | U.S.$ | 995 | 960,740 | |||||||
7.079%, 02/10/2034 | 498 | 449,584 | ||||||||
Discover Bank | 569 | 516,217 | ||||||||
4.65%, 09/13/2028 | 595 | 530,628 | ||||||||
Discover Financial Services | 80 | 77,268 |
abfunds.com | AB GLOBAL BOND FUND | 47 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
DNB Bank ASA | EUR | 257 | $ | 240,835 | ||||||
1.625%, 05/31/2026(a) | 120 | 121,556 | ||||||||
Doha Finance Ltd. | U.S.$ | 590 | 537,685 | |||||||
Erste Group Bank AG | EUR | 200 | 168,115 | |||||||
Series E | 300 | 283,022 | ||||||||
1.625%, 09/08/2031(a) | 200 | 188,890 | ||||||||
Federation des Caisses Desjardins du Quebec | U.S.$ | 315 | 304,911 | |||||||
First Abu Dhabi Bank PJSC | 480 | 451,613 | ||||||||
Goldman Sachs Group, Inc. (The) | 32 | 29,532 | ||||||||
5.798%, 08/10/2026 | 615 | 610,489 | ||||||||
6.021% (SOFR + 0.70%), 01/24/2025(e) | 523 | 521,794 | ||||||||
6.875%, 01/18/2038 | GBP | 75 | 90,148 | |||||||
Series E | EUR | 249 | 215,154 | |||||||
4.25%, 01/29/2026(a) | GBP | 335 | 394,416 | |||||||
Series P | U.S.$ | 4,168 | 4,153,473 | |||||||
Series W | 75 | 74,273 | ||||||||
Hana Bank | 200 | 174,374 | ||||||||
HSBC Holdings PLC | 244 | 195,665 | ||||||||
3.973%, 05/22/2030 | 420 | 370,347 | ||||||||
4.25%, 08/18/2025 | 210 | 202,035 | ||||||||
4.292%, 09/12/2026 | 607 | 583,109 | ||||||||
4.755%, 06/09/2028 | 9,713 | 9,189,944 | ||||||||
4.762%, 03/29/2033 | 363 | 309,824 | ||||||||
5.887%, 08/14/2027 | 4,993 | 4,936,538 | ||||||||
6.161%, 03/09/2029 | 401 | 397,323 | ||||||||
6.364%, 11/16/2032(a) | EUR | 8,812 | 9,523,522 | |||||||
6.375%, 09/17/2024(b) | U.S.$ | 217 | 210,472 | |||||||
6.547%, 06/20/2034 | 413 | 393,576 | ||||||||
7.39%, 11/03/2028 | 200 | 207,057 | ||||||||
8.113%, 11/03/2033 | 656 | 692,019 | ||||||||
Series E | EUR | 484 | 474,515 |
48 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Huntington National Bank (The) | U.S.$ | 587 | $ | 573,621 | ||||||
ING Groep NV | EUR | 200 | 174,447 | |||||||
4.50%, 05/23/2029 | 100 | 104,689 | ||||||||
5.25%, 11/14/2033(a) | 200 | 217,907 | ||||||||
Series E | 200 | 194,558 | ||||||||
Intercorp Peru Ltd. | U.S.$ | 370 | 306,356 | |||||||
Intesa Sanpaolo SpA | 200 | 179,683 | ||||||||
5.017%, 06/26/2024(a) | 9,793 | 9,576,688 | ||||||||
5.71%, 01/15/2026(a) | 5,580 | 5,337,765 | ||||||||
6.625%, 06/20/2033(a) | 3,394 | 3,206,266 | ||||||||
7.00%, 11/21/2025(a) | 210 | 212,284 | ||||||||
Series E | EUR | 100 | 104,824 | |||||||
5.125%, 08/29/2031(a) | 200 | 209,024 | ||||||||
Investec Bank PLC | 461 | 446,939 | ||||||||
JPMorgan Chase & Co. | U.S.$ | 611 | 543,493 | |||||||
1.561%, 12/10/2025 | 582 | 550,042 | ||||||||
2.005%, 03/13/2026 | 574 | 540,569 | ||||||||
2.083%, 04/22/2026 | 579 | 543,501 | ||||||||
2.182%, 06/01/2028 | 135 | 118,112 | ||||||||
2.545%, 11/08/2032 | 315 | 243,757 | ||||||||
2.947%, 02/24/2028 | 720 | 653,072 | ||||||||
3.22%, 03/01/2025 | 11 | 10,856 | ||||||||
3.509%, 01/23/2029 | 235 | 213,143 | ||||||||
3.54%, 05/01/2028 | 641 | 589,280 | ||||||||
3.96%, 01/29/2027 | 567 | 541,668 | ||||||||
4.565%, 06/14/2030 | 156 | 145,311 | ||||||||
5.546%, 12/15/2025 | 300 | 297,965 | ||||||||
5.717%, 09/14/2033 | 175 | 168,438 | ||||||||
6.263% (SOFR + 0.92%), 02/24/2026(e) | 4,649 | 4,651,267 | ||||||||
Series E | EUR | 7,804 | 7,627,296 | |||||||
1.963%, 03/23/2030(a) | 189 | 175,828 | ||||||||
Series Q | U.S.$ | 213 | 213,319 | |||||||
Series R | 4,314 | 4,329,107 |
abfunds.com | AB GLOBAL BOND FUND | 49 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Jyske Bank A/S | EUR | 170 | $ | 164,232 | ||||||
2.25%, 04/05/2029(a) | 100 | 103,497 | ||||||||
KBC Group NV | U.S.$ | 300 | 292,866 | |||||||
Series E | EUR | 200 | 176,878 | |||||||
1.50%, 03/29/2026(a) | 100 | 101,151 | ||||||||
4.375%, 11/23/2027(a) | 100 | 105,420 | ||||||||
Kookmin Bank | U.S.$ | 810 | 635,704 | |||||||
Lloyds Banking Group PLC | 285 | 261,878 | ||||||||
7.50%, 09/27/2025(b) | 247 | 230,748 | ||||||||
7.953%, 11/15/2033 | 415 | 429,635 | ||||||||
Macquarie Bank Ltd. | 651 | 531,382 | ||||||||
Macquarie Group Ltd. | EUR | 555 | 491,563 | |||||||
0.625%, 02/03/2027(a) | 100 | 93,206 | ||||||||
Mitsubishi UFJ Financial Group, Inc. | U.S.$ | 550 | 426,002 | |||||||
5.354%, 09/13/2028 | 200 | 195,675 | ||||||||
5.475%, 02/22/2031 | 200 | 193,965 | ||||||||
Mizuho Financial Group, Inc. | EUR | 135 | 116,603 | |||||||
2.26%, 07/09/2032 | U.S.$ | 200 | 150,788 | |||||||
2.839%, 09/13/2026 | 402 | 368,724 | ||||||||
4.353%, 10/20/2025(a) | 949 | 908,981 | ||||||||
5.414%, 09/13/2028 | 200 | 195,938 | ||||||||
5.748%, 07/06/2034 | 200 | 191,476 | ||||||||
Series E | EUR | 528 | 504,765 | |||||||
4.608%, 08/28/2030(a) | 200 | 210,241 | ||||||||
Morgan Stanley | 471 | 441,132 | ||||||||
0.495%, 10/26/2029 | 280 | 242,053 | ||||||||
1.164%, 10/21/2025 | U.S.$ | 626 | 590,926 | |||||||
2.63%, 02/18/2026 | 593 | 564,019 | ||||||||
2.95%, 05/07/2032 | EUR | 235 | 220,700 | |||||||
4.21%, 04/20/2028 | U.S.$ | 309 | 290,371 | |||||||
4.656%, 03/02/2029 | EUR | 10,875 | 11,486,689 | |||||||
4.679%, 07/17/2026 | U.S.$ | 152 | 148,130 | |||||||
4.813%, 10/25/2028 | EUR | 7,920 | 8,491,488 | |||||||
5.123%, 02/01/2029 | U.S.$ | 389 | 374,777 | |||||||
5.164%, 04/20/2029 | 62 | 59,632 |
50 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
5.424%, 07/21/2034 | U.S.$ | 124 | $ | 117,141 | ||||||
5.957% (SOFR + 0.62%), 01/24/2025(e) | 1,050 | 1,048,100 | ||||||||
6.296%, 10/18/2028 | 245 | 246,621 | ||||||||
Series G | 95 | 86,576 | ||||||||
3.875%, 01/27/2026 | 203 | 193,955 | ||||||||
5.148%, 01/25/2034 | EUR | 148 | 160,363 | |||||||
Series I | U.S.$ | 562 | 529,291 | |||||||
Nanyang Commercial Bank Ltd. | 570 | 547,371 | ||||||||
Nationwide Building Society | 4,664 | 4,174,740 | ||||||||
4.00%, 09/14/2026(a) | 611 | 567,925 | ||||||||
4.302%, 03/08/2029(a) | 494 | 453,438 | ||||||||
6.632% (SOFR + 1.29%), 02/16/2028(a)(e) | 290 | 283,097 | ||||||||
Series E | EUR | 554 | 482,039 | |||||||
NatWest Group PLC | GBP | 105 | 120,251 | |||||||
5.808%, 09/13/2029 | U.S.$ | 200 | 194,553 | |||||||
7.472%, 11/10/2026 | 290 | 295,802 | ||||||||
Series E | EUR | 7,135 | 7,444,343 | |||||||
NatWest Markets PLC | 105 | 101,867 | ||||||||
0.125%, 06/18/2026(a) | 534 | 504,770 | ||||||||
NBK Tier 1 Financing 2 Ltd. | U.S.$ | 290 | 266,290 | |||||||
NIBC Bank NV | EUR | 500 | 461,775 | |||||||
Nordea Bank Abp | 100 | 105,594 | ||||||||
Nykredit Realkredit AS | 528 | 509,511 | ||||||||
Oversea-Chinese Banking Corp., Ltd. | U.S.$ | 530 | 486,365 | |||||||
Philippine National Bank | 480 | 464,580 | ||||||||
PNC Financial Services Group, Inc. (The) | 75 | 67,958 |
abfunds.com | AB GLOBAL BOND FUND | 51 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
5.812%, 06/12/2026 | U.S.$ | 123 | $ | 121,997 | ||||||
Series O | 1,214 | 1,217,550 | ||||||||
QIB Sukuk Ltd. | 300 | 276,624 | ||||||||
QNB Finance Ltd. | 510 | 460,826 | ||||||||
1.625%, 09/22/2025(a) | 200 | 183,838 | ||||||||
2.75%, 02/12/2027(a) | 240 | 219,554 | ||||||||
Raiffeisen Bank International AG | EUR | 600 | 522,134 | |||||||
Santander Consumer Bank AS | 200 | 203,432 | ||||||||
Santander Holdings USA, Inc. | U.S.$ | 5,605 | 4,864,641 | |||||||
6.499%, 03/09/2029 | 3,330 | 3,249,151 | ||||||||
6.565%, 06/12/2029 | 707 | 689,094 | ||||||||
Santander UK Group Holdings PLC | 450 | 391,915 | ||||||||
6.534%, 01/10/2029 | 541 | 536,153 | ||||||||
6.833%, 11/21/2026 | 10,142 | 10,195,219 | ||||||||
Series E | EUR | 1,438 | 1,226,134 | |||||||
Shinhan Bank Co., Ltd. | U.S.$ | 760 | 678,855 | |||||||
Shinhan Financial Group Co., Ltd. | 540 | 517,082 | ||||||||
Siam Commercial Bank PCL/Cayman Islands | 350 | 328,587 | ||||||||
Societe Generale SA | 15,026 | 15,019,073 | ||||||||
Series E | EUR | 600 | 532,765 | |||||||
1.50%, 05/30/2025(a) | 100 | 103,774 | ||||||||
4.25%, 12/06/2030(a) | 100 | 100,873 | ||||||||
5.625%, 06/02/2033(a) | 200 | 204,215 | ||||||||
SpareBank 1 SR-Bank ASA | 116 | 122,260 | ||||||||
Standard Chartered PLC | 195 | 169,361 |
52 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
1.456%, 01/14/2027(a) | U.S.$ | 300 | $ | 267,701 | ||||||
2.608%, 01/12/2028(a) | 12,199 | 10,794,213 | ||||||||
2.819%, 01/30/2026(a) | 973 | 925,710 | ||||||||
6.17%, 01/09/2027(a) | 349 | 347,390 | ||||||||
6.301%, 01/09/2029(a) | 210 | 209,213 | ||||||||
7.141% (LIBOR 3 Month + 1.51%), 01/30/2027(a)(b)(e) | 12,300 | 11,423,979 | ||||||||
7.767%, 11/16/2028(a) | 279 | 292,165 | ||||||||
Series E | EUR | 200 | 208,164 | |||||||
Sumitomo Mitsui Financial Group, Inc. | U.S.$ | 681 | 599,205 | |||||||
1.474%, 07/08/2025 | 344 | 318,298 | ||||||||
1.546%, 06/15/2026(a) | EUR | 499 | 493,520 | |||||||
3.04%, 07/16/2029 | U.S.$ | 585 | 501,041 | |||||||
3.784%, 03/09/2026 | 456 | 434,295 | ||||||||
5.464%, 01/13/2026 | 593 | 587,272 | ||||||||
Series E | EUR | 110 | 93,446 | |||||||
Svenska Handelsbanken AB | U.S.$ | 200 | 152,949 | |||||||
Series E | GBP | 6,655 | 7,464,422 | |||||||
Swedbank AB | U.S.$ | 1,070 | 1,070,987 | |||||||
Series G | EUR | 200 | 206,770 | |||||||
Series NC5 | U.S.$ | 200 | 191,477 | |||||||
Sydbank AS | EUR | 100 | 105,314 | |||||||
Synchrony Bank | U.S.$ | 2,165 | 2,082,679 | |||||||
Toronto-Dominion Bank (The) | EUR | 526 | 491,340 | |||||||
Truist Bank | U.S.$ | 827 | 761,642 | |||||||
UBS AG/London | 200 | 188,371 | ||||||||
UBS Group AG | EUR | 547 | 478,881 | |||||||
3.126%, 08/13/2030(a) | U.S.$ | 295 | 248,207 | |||||||
4.125%, 09/24/2025(a) | 800 | 767,983 | ||||||||
4.125%, 04/15/2026(a) | 425 | 404,249 |
abfunds.com | AB GLOBAL BOND FUND | 53 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
4.194%, 04/01/2031(a) | U.S.$ | 2,312 | $ | 2,026,023 | ||||||||
5.125%, 07/29/2026(a)(b) | 200 | 177,648 | ||||||||||
6.246%, 09/22/2029(a) | 6,135 | 6,086,934 | ||||||||||
6.921% (SOFR + 1.58%), 05/12/2026(a)(e) | 17,565 | 17,670,379 | ||||||||||
Series E | EUR | 254 | 244,859 | |||||||||
3.25%, 04/02/2026(a) | 198 | 204,268 | ||||||||||
UniCredit SpA | U.S.$ | 619 | 546,778 | |||||||||
2.569%, 09/22/2026(a) | 19,606 | 17,962,999 | ||||||||||
3.127%, 06/03/2032(a) | 3,755 | 2,883,884 | ||||||||||
United Overseas Bank Ltd. | 200 | 176,980 | ||||||||||
Series G | 250 | 225,057 | ||||||||||
US Bancorp | 123 | 119,791 | ||||||||||
Virgin Money UK PLC | GBP | 4,310 | 5,087,840 | |||||||||
4.625%, 10/29/2028(a) | EUR | 100 | 101,759 | |||||||||
5.125%, 12/11/2030(a) | GBP | 135 | 154,844 | |||||||||
Visa, Inc. | EUR | 375 | 373,390 | |||||||||
Wells Fargo & Co. | U.S.$ | 200 | 175,444 | |||||||||
7.625%, 09/15/2028(b) | 3,299 | 3,339,534 | ||||||||||
Series E | EUR | 253 | 210,177 | |||||||||
4.875%, 11/29/2035(a) | GBP | 100 | 102,802 | |||||||||
Western Union Co. (The) | U.S.$ | 221 | 168,831 | |||||||||
Westpac Banking Corp. | 185 | 171,471 | ||||||||||
Woori Bank | 210 | 199,809 | ||||||||||
Yorkshire Building Society | EUR | 553 | 483,842 | |||||||||
|
| |||||||||||
472,134,283 | ||||||||||||
|
| |||||||||||
Brokerage – 0.4% | ||||||||||||
Abrdn PLC | U.S.$ | 866 | 738,318 | |||||||||
Blue Owl Finance LLC | 133 | 105,845 |
54 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Charles Schwab Corp. (The) | U.S.$ | 5,465 | $ | 5,373,983 | ||||||||
5.875%, 08/24/2026 | 121 | 120,555 | ||||||||||
Series I | 11,930 | 9,967,855 | ||||||||||
China Great Wall International Holdings V Ltd. | 200 | 167,856 | ||||||||||
Clearstream Banking AG | EUR | 200 | 193,714 | |||||||||
Nomura Holdings, Inc. | U.S.$ | 5,405 | 4,999,608 | |||||||||
5.099%, 07/03/2025 | 335 | 328,279 | ||||||||||
5.709%, 01/09/2026 | 221 | 218,606 | ||||||||||
6.087%, 07/12/2033 | 223 | 218,361 | ||||||||||
|
| |||||||||||
22,432,980 | ||||||||||||
|
| |||||||||||
Finance – 0.6% | ||||||||||||
Aareal Bank AG | EUR | 400 | 348,699 | |||||||||
Aircastle Ltd. | U.S.$ | 5,668 | 5,519,674 | |||||||||
Aviation Capital Group LLC | 1,832 | 1,644,291 | ||||||||||
1.95%, 09/20/2026(a) | 1,590 | 1,386,370 | ||||||||||
3.50%, 11/01/2027(a) | 1,342 | 1,182,754 | ||||||||||
4.125%, 08/01/2025(a) | 23 | 21,880 | ||||||||||
4.375%, 01/30/2024(a) | 1,889 | 1,871,674 | ||||||||||
4.875%, 10/01/2025(a) | 926 | 888,761 | ||||||||||
5.50%, 12/15/2024(a) | 5,268 | 5,180,751 | ||||||||||
Bain Capital Specialty Finance, Inc. | 139 | 119,555 | ||||||||||
Blue Owl Capital Corp. | 747 | 613,914 | ||||||||||
3.40%, 07/15/2026 | 591 | 529,909 | ||||||||||
Blue Owl Credit Income Corp. | 571 | 566,195 | ||||||||||
Blue Owl Technology Finance Corp. | 288 | 241,809 | ||||||||||
BOC Aviation Ltd. | 620 | 589,824 | ||||||||||
Brookfield Capital Finance LLC | 123 | 119,362 | ||||||||||
CCBL Cayman 1 Corp., Ltd. | 400 | 359,140 |
abfunds.com | AB GLOBAL BOND FUND | 55 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
CDBL Funding 1 | U.S.$ | 430 | $ | 396,808 | ||||||||
CIMIC Finance Ltd. | EUR | 299 | 251,076 | |||||||||
EQT AB | 286 | 219,649 | ||||||||||
FS KKR Capital Corp. | U.S.$ | 668 | 543,377 | |||||||||
GTCR W-2 Merger Sub LLC/GTCR W Dutch Finance Sub BV | GBP | 424 | 528,835 | |||||||||
Huarong Finance 2017 Co., Ltd. | U.S.$ | 530 | 439,831 | |||||||||
Huarong Finance 2019 Co., Ltd. | 260 | 243,126 | ||||||||||
4.50%, 05/29/2029(a) | 570 | 453,441 | ||||||||||
Huarong Finance II Co., Ltd. | 213 | 186,081 | ||||||||||
ICBCIL Finance Co., Ltd. | 230 | 218,054 | ||||||||||
Intercorp Financial Services, Inc. | 840 | 742,157 | ||||||||||
Power Finance Corp., Ltd. | 360 | 291,985 | ||||||||||
Prospect Capital Corp. | 359 | 310,779 | ||||||||||
REC Ltd. | 200 | 194,760 | ||||||||||
Synchrony Financial | 9,262 | 6,560,998 | ||||||||||
3.95%, 12/01/2027 | 1,468 | 1,290,039 | ||||||||||
5.15%, 03/19/2029 | 39 | 34,688 | ||||||||||
Wendel SE | EUR | 400 | 416,268 | |||||||||
|
| |||||||||||
34,506,514 | ||||||||||||
|
| |||||||||||
Insurance – 0.7% | ||||||||||||
Aegon NV | U.S.$ | 346 | 319,829 | |||||||||
Ageas SA/NV | EUR | 100 | 76,733 | |||||||||
3.25%, 07/02/2049(a) | 100 | 90,787 |
56 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
AIA Group Ltd. | U.S.$ | 240 | $ | 227,383 | ||||||
Allianz SE | EUR | 200 | 200,629 | |||||||
3.099%, 07/06/2047(a) | 200 | 198,279 | ||||||||
3.375%, 09/18/2024(a)(b) | 200 | 206,677 | ||||||||
Series E | 100 | 96,188 | ||||||||
4.75%, 10/24/2023(a)(b) | 200 | 211,394 | ||||||||
American International Group, Inc. | U.S.$ | 310 | 287,926 | |||||||
Argentum Netherlands BV for Swiss Re Ltd. | 597 | 559,502 | ||||||||
5.75%, 08/15/2050(a) | 365 | 350,780 | ||||||||
Argentum Netherlands BV for Zurich Insurance Co., Ltd. | EUR | 155 | 155,307 | |||||||
Assicurazioni Generali SpA | 107 | �� | 92,492 | |||||||
Athene Global Funding | U.S.$ | 640 | 599,983 | |||||||
2.717%, 01/07/2029(a) | 13 | 10,756 | ||||||||
Series E | EUR | 107 | 99,019 | |||||||
0.832%, 01/08/2027(a) | 530 | 490,887 | ||||||||
Athene Holding Ltd. | U.S.$ | 454 | 369,254 | |||||||
Aviva PLC | GBP | 135 | 123,492 | |||||||
AXA SA | EUR | 299 | 283,802 | |||||||
4.25%, 03/10/2043(a) | 138 | 131,388 | ||||||||
Berkshire Hathaway, Inc. | 280 | 276,047 | ||||||||
Cloverie PLC for Zurich Insurance Co., Ltd. | U.S.$ | 859 | 832,035 | |||||||
CNP Assurances SACA | EUR | 500 | 436,183 | |||||||
Series E | 6,200 | 5,217,796 |
abfunds.com | AB GLOBAL BOND FUND | 57 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Coface SA | EUR | 200 | $ | 212,193 | ||||||
Corebridge Global Funding | U.S.$ | 122 | 121,621 | |||||||
Credit Agricole Assurances SA | EUR | 8,900 | 8,949,829 | |||||||
Global Atlantic Fin Co. | U.S.$ | 613 | 589,365 | |||||||
Guardian Life Global Funding | 121 | 121,416 | ||||||||
Guardian Life Insurance Co. of America (The) | 149 | 112,028 | ||||||||
Humana, Inc. | 120 | 109,111 | ||||||||
5.75%, 03/01/2028 | 77 | 77,216 | ||||||||
Jackson National Life Global Funding | 315 | 296,075 | ||||||||
5.50%, 01/09/2026(a) | 150 | 146,378 | ||||||||
Marsh & McLennan Cos., Inc. | 120 | 115,903 | ||||||||
MetLife Capital Trust IV | 110 | 113,977 | ||||||||
Metropolitan Life Global Funding I | 285 | 285,813 | ||||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | EUR | 300 | 226,046 | |||||||
1.25%, 05/26/2041(a) | 100 | 80,097 | ||||||||
3.25%, 05/26/2049(a) | 3,700 | 3,543,363 | ||||||||
Nationwide Mutual Insurance Co. | U.S.$ | 4,295 | 5,183,065 | |||||||
New York Life Global Funding | 122 | 121,542 | ||||||||
New York Life Insurance Co. | 80 | 58,736 | ||||||||
NN Group NV | EUR | 188 | 184,099 | |||||||
Pacific Life Global Funding II | U.S.$ | 121 | 120,339 | |||||||
Pricoa Global Funding I | 150 | 149,911 | ||||||||
Principal Life Global Funding II | 519 | 507,163 | ||||||||
Protective Life Global Funding | 150 | 146,417 |
58 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Prudential Financial, Inc. | U.S.$ | 385 | $ | 378,224 | ||||||||
QBE Insurance Group Ltd. | 325 | 309,649 | ||||||||||
Sammons Financial Group, Inc. | 129 | 104,391 | ||||||||||
Swiss Re Finance Luxembourg SA | 200 | 189,480 | ||||||||||
UnitedHealth Group, Inc. | 581 | 412,786 | ||||||||||
4.75%, 05/15/2052 | 96 | 81,718 | ||||||||||
4.95%, 05/15/2062 | 481 | 413,614 | ||||||||||
5.20%, 04/15/2063 | 123 | 109,720 | ||||||||||
5.875%, 02/15/2053 | 111 | 111,445 | ||||||||||
6.05%, 02/15/2063 | 111 | 112,753 | ||||||||||
|
| |||||||||||
35,740,031 | ||||||||||||
|
| |||||||||||
Other Finance – 0.0% | ||||||||||||
China Cinda 2020 I Management Ltd. | 510 | 398,952 | ||||||||||
Computershare US, Inc. | EUR | 305 | 235,744 | |||||||||
|
| |||||||||||
634,696 | ||||||||||||
|
| |||||||||||
REITs – 1.3% | ||||||||||||
Akelius Residential Property Financing BV | 360 | 300,288 | ||||||||||
American Tower Corp. | 270 | 250,002 | ||||||||||
0.50%, 01/15/2028 | 196 | 175,671 | ||||||||||
0.875%, 05/21/2029 | 16,895 | 14,562,015 | ||||||||||
4.00%, 06/01/2025 | U.S.$ | 282 | 272,791 | |||||||||
4.125%, 05/16/2027 | EUR | 242 | 252,690 | |||||||||
5.80%, 11/15/2028 | U.S.$ | 76 | 75,409 | |||||||||
Annington Funding PLC | GBP | 3,571 | 3,621,744 | |||||||||
Aroundtown SA | EUR | 100 | 80,266 | |||||||||
1.45%, 07/09/2028(a) | 1,700 | 1,299,535 | ||||||||||
Balder Finland Oyj | 155 | 106,170 |
abfunds.com | AB GLOBAL BOND FUND | 59 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Blackstone Property Partners Europe Holdings SARL | GBP | 100 | $ | 108,357 | ||||||
Boston Properties LP | U.S.$ | 162 | 162,863 | |||||||
Digital Dutch Finco BV | EUR | 307 | 248,972 | |||||||
Digital Euro Finco LLC | 15,955 | 16,014,941 | ||||||||
Digital Intrepid Holding BV | 452 | 341,140 | ||||||||
Equinix, Inc. | 100 | 78,066 | ||||||||
3.20%, 11/18/2029 | U.S.$ | 597 | 510,016 | |||||||
Essential Properties LP | 10,801 | 7,871,254 | ||||||||
Fastighets AB Balder | EUR | 265 | 210,756 | |||||||
GLP Capital LP/GLP Financing II, Inc. | U.S.$ | 3,900 | 3,022,845 | |||||||
4.00%, 01/15/2031 | 1,667 | 1,387,595 | ||||||||
Grand City Properties SA | EUR | 100 | 80,716 | |||||||
Heimstaden Bostad Treasury BV | 275 | 190,478 | ||||||||
Host Hotels & Resorts LP | U.S.$ | 105 | 80,585 | |||||||
Kojamo Oyj | EUR | 299 | 230,082 | |||||||
MAF Sukuk Ltd. | U.S.$ | 340 | 306,989 | |||||||
NE Property BV | EUR | 509 | 515,307 | |||||||
Nerval SAS | 300 | 261,376 | ||||||||
Omega Healthcare Investors, Inc. | U.S.$ | 8,923 | 6,536,477 | |||||||
3.375%, 02/01/2031 | 185 | 144,285 | ||||||||
3.625%, 10/01/2029 | 1,382 | 1,153,898 |
60 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Praemia Healthcare SACA | EUR | 300 | $ | 241,964 | ||||||||
Prologis Euro Finance LLC | 145 | 129,777 | ||||||||||
Series E | 220 | 193,718 | ||||||||||
4.25%, 01/31/2043 | 256 | 234,558 | ||||||||||
Realty Income Corp. | GBP | 230 | 234,404 | |||||||||
Regency Centers LP | U.S.$ | 33 | 24,416 | |||||||||
Sabra Health Care LP | 320 | 305,747 | ||||||||||
Simon Property Group LP | 130 | 120,275 | ||||||||||
Sirius Real Estate Ltd. | EUR | 200 | 186,272 | |||||||||
Trust Fibra Uno | U.S.$ | 700 | 592,081 | |||||||||
6.39%, 01/15/2050(a) | 205 | 156,825 | ||||||||||
Vornado Realty LP | 233 | 168,037 | ||||||||||
WEA Finance LLC | 701 | 601,568 | ||||||||||
3.50%, 06/15/2029(a) | 688 | 551,038 | ||||||||||
Westfield America Management Ltd. | GBP | 2,605 | 2,514,313 | |||||||||
WPC Eurobond BV | EUR | 435 | 392,045 | |||||||||
|
| |||||||||||
67,100,617 | ||||||||||||
|
| |||||||||||
632,549,121 | ||||||||||||
|
| |||||||||||
Utility – 2.0% | ||||||||||||
Electric – 1.5% | ||||||||||||
Abu Dhabi National Energy Co. PJSC | U.S.$ | 420 | 411,545 | |||||||||
Adani Transmission Step-One Ltd. | 8,086 | 7,056,005 | ||||||||||
AEP Texas, Inc. | 121 | 103,717 | ||||||||||
AES Panama Generation Holdings SRL | 2,859 | 2,428,837 | ||||||||||
Alexander Funding Trust II | 2,863 | 2,860,628 | ||||||||||
American Electric Power Co., Inc. | 73 | 72,564 | ||||||||||
AusNet Services Holdings Pty Ltd. | EUR | 507 | 488,877 |
abfunds.com | AB GLOBAL BOND FUND | 61 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Avangrid, Inc. | U.S.$ | 99 | $ | 94,669 | ||||||
Black Hills Corp. | 2 | 2,000 | ||||||||
Chile Electricity PEC SpA | 206 | 159,030 | ||||||||
Cometa Energia SA de CV | 452 | 419,860 | ||||||||
Commonwealth Edison Co. | ||||||||||
5.30%, 02/01/2053 | 130 | 119,344 | ||||||||
5.90%, 03/15/2036 | 150 | 150,039 | ||||||||
Series 133 | 98 | 70,378 | ||||||||
Consolidated Edison Co. of New York, Inc. | 102 | 77,343 | ||||||||
Series 06-A | 115 | 111,844 | ||||||||
Consorcio Transmantaro SA | 460 | 407,689 | ||||||||
Constellation Energy Generation LLC | 121 | 120,958 | ||||||||
Duke Energy Corp. | EUR | 241 | 239,520 | |||||||
Duke Energy Ohio, Inc. | U.S.$ | 130 | 100,367 | |||||||
Duke Energy Progress LLC | 602 | 547,125 | ||||||||
E.ON International Finance BV | EUR | 91 | 92,023 | |||||||
Electricite de France SA | 8,400 | 7,736,034 | ||||||||
5.993%, 05/23/2030(a) | CAD | 4,109 | 2,948,714 | |||||||
Series E | GBP | 3,890 | 4,609,156 | |||||||
Emirates Semb Corp. Water & Power Co. PJSC | U.S.$ | 220 | 201,483 | |||||||
Enel Chile SA | 270 | 256,003 | ||||||||
Enel Finance International NV | 200 | 182,090 | ||||||||
6.00%, 10/07/2039(a) | 115 | 107,003 | ||||||||
7.50%, 10/14/2032(a) | 6,524 | 6,962,371 | ||||||||
7.75%, 10/14/2052(a) | 200 | 219,161 | ||||||||
Series E | EUR | 360 | 309,119 |
62 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Enel SpA | EUR | 6,925 | $ | 7,403,822 | ||||||
Engie Energia Chile SA | U.S.$ | 250 | 205,958 | |||||||
Engie SA | EUR | 100 | 105,190 | |||||||
Entergy Louisiana LLC | U.S.$ | 123 | 100,554 | |||||||
Entergy Texas, Inc. | 610 | 516,534 | ||||||||
Eversource Energy | 124 | 121,225 | ||||||||
Fells Point Funding Trust | 596 | 540,394 | ||||||||
Florida Power & Light Co. | 435 | 346,107 | ||||||||
4.125%, 06/01/2048 | 125 | 97,191 | ||||||||
5.30%, 04/01/2053 | 130 | 120,772 | ||||||||
Georgia Power Co. | 290 | 202,675 | ||||||||
Iberdrola International BV | EUR | 300 | 286,845 | |||||||
Series NC6 | 11,700 | 10,722,484 | ||||||||
Infraestructura Energetica Nova SAPI de CV | U.S.$ | 480 | 339,480 | |||||||
Israel Electric Corp., Ltd. | ||||||||||
3.75%, 02/22/2032(a) | 290 | 237,980 | ||||||||
4.25%, 08/14/2028(a) | 450 | 411,516 | ||||||||
LLPL Capital Pte Ltd. | 386 | 342,904 | ||||||||
Minejesa Capital BV | 930 | 829,300 | ||||||||
National Grid PLC | 614 | 607,850 | ||||||||
5.809%, 06/12/2033 | 239 | 232,855 | ||||||||
Series E | EUR | 554 | 468,411 | |||||||
Nevada Power Co. | U.S.$ | 538 | 517,488 |
abfunds.com | AB GLOBAL BOND FUND | 63 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
New York State Electric & Gas Corp. | U.S.$ | 614 | $ | 608,563 | ||||||
5.85%, 08/15/2033(a) | 558 | 550,101 | ||||||||
NextEra Energy Capital Holdings, Inc. | 123 | 122,636 | ||||||||
Niagara Mohawk Power Corp. | 13,394 | 10,427,930 | ||||||||
4.278%, 12/15/2028(a) | 1,751 | 1,627,977 | ||||||||
NRG Energy, Inc. | 1,114 | 969,010 | ||||||||
NSTAR Electric Co. | 122 | 121,782 | ||||||||
NTPC Ltd. | 370 | 357,753 | ||||||||
Pacific Gas and Electric Co. | 104 | 87,906 | ||||||||
4.95%, 07/01/2050 | 272 | 203,062 | ||||||||
5.25%, 03/01/2052 | 131 | 100,368 | ||||||||
PacifiCorp | 390 | 274,634 | ||||||||
6.35%, 07/15/2038 | 110 | 108,707 | ||||||||
Palomino Funding Trust I | 354 | 355,034 | ||||||||
PECO Energy Co. | 155 | 90,881 | ||||||||
Pennsylvania Electric Co. | 122 | 119,724 | ||||||||
Pertamina Geothermal Energy PT | 200 | 194,772 | ||||||||
Public Service Co. of Colorado | 123 | 107,219 | ||||||||
Public Service Co. of New Hampshire | 122 | 119,878 | ||||||||
Public Service Electric and Gas Co. | 410 | 303,770 | ||||||||
RH International Singapore Corp. Pte Ltd. | 470 | 436,917 | ||||||||
San Diego Gas & Electric Co. | 360 | 228,699 | ||||||||
Series WWW | 231 | 139,650 | ||||||||
Sierra Pacific Power Co. | 178 | 170,464 |
64 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Sociedad de Transmision Austral SA | U.S.$ | 390 | $ | 328,267 | ||||||||
Southern California Edison Co. | 598 | 597,410 | ||||||||||
5.70%, 03/01/2053 | 120 | 109,732 | ||||||||||
5.875%, 12/01/2053 | 123 | 115,878 | ||||||||||
Series E | 120 | 105,678 | ||||||||||
Southern Power Co. | 345 | 276,881 | ||||||||||
Tampa Electric Co. | 120 | 101,292 | ||||||||||
TenneT Holding BV | EUR | 125 | 124,878 | |||||||||
TNB Global Ventures Capital Bhd | U.S.$ | 430 | 415,449 | |||||||||
Tucson Electric Power Co. | 296 | 267,732 | ||||||||||
Vistra Operations Co., LLC | 558 | 544,020 | ||||||||||
6.95%, 10/15/2033(a) | 120 | 117,482 | ||||||||||
Xcel Energy, Inc. | 124 | 118,416 | ||||||||||
|
| |||||||||||
85,473,583 | ||||||||||||
|
| |||||||||||
Natural Gas – 0.3% | ||||||||||||
Atmos Energy Corp. | 345 | 299,180 | ||||||||||
5.45%, 10/15/2032 | 32 | 31,756 | ||||||||||
Boston Gas Co. | 316 | 298,441 | ||||||||||
Brooklyn Union Gas Co. (The) | 122 | 119,645 | ||||||||||
Cadent Finance PLC | EUR | 279 | 291,624 | |||||||||
Centrica PLC | GBP | 10,835 | 12,326,322 | |||||||||
CU, Inc. | CAD | 1,227 | 934,756 | |||||||||
ENN Energy Holdings Ltd. | U.S.$ | 290 | 232,516 | |||||||||
KeySpan Gas East Corp. | 137 | 84,068 | ||||||||||
National Grid North America, Inc. | EUR | 209 | 173,493 |
abfunds.com | AB GLOBAL BOND FUND | 65 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
NiSource, Inc. | U.S.$ | 230 | $ | 208,457 | ||||||||
Southern California Gas Co. | 123 | 114,664 | ||||||||||
|
| |||||||||||
15,114,922 | ||||||||||||
|
| |||||||||||
Other Utility – 0.2% | ||||||||||||
Suez SACA | EUR | 200 | 214,123 | |||||||||
Thames Water Utilities Finance PLC | 1,900 | 1,877,688 | ||||||||||
6.75%, 11/16/2028 | GBP | 7,480 | 8,826,360 | |||||||||
|
| |||||||||||
10,918,171 | ||||||||||||
|
| |||||||||||
111,506,676 | ||||||||||||
|
| |||||||||||
Total Corporates - Investment Grade | 1,392,927,019 | |||||||||||
|
| |||||||||||
MORTGAGE | ||||||||||||
Agency Fixed Rate 30-Year – 12.1% | ||||||||||||
Federal Home Loan Mortgage Corp. Gold | U.S.$ | 6,212 | 5,815,364 | |||||||||
Federal National Mortgage Association | 6 | 6,009 | ||||||||||
Series 2007 | 4 | 4,006 | ||||||||||
5.50%, 08/01/2037 | 4 | 4,486 | ||||||||||
Series 2008 | 2 | 1,817 | ||||||||||
5.50%, 05/01/2038 | 799 | 801,758 | ||||||||||
Series 2012 | 16,319 | 14,553,895 | ||||||||||
3.50%, 01/01/2043 | 2,780 | 2,475,135 | ||||||||||
Series 2013 | 9,543 | 8,490,868 | ||||||||||
Series 2017 | 11 | 9,983 | ||||||||||
3.50%, 08/01/2047 | 19 | 16,467 | ||||||||||
3.50%, 10/01/2047 | 136 | 118,727 | ||||||||||
3.50%, 01/01/2048 | 7 | 5,709 | ||||||||||
Series 2018 | 397 | 346,579 |
66 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
3.50%, 02/01/2048 | U.S.$ | 154 | $ | 134,397 | ||||||||
3.50%, 03/01/2048 | 10,595 | 9,287,773 | ||||||||||
3.50%, 05/01/2048 | 275 | 239,946 | ||||||||||
4.50%, 09/01/2048 | 7,818 | 7,299,618 | ||||||||||
4.50%, 12/01/2048 | 5,043 | 4,717,337 | ||||||||||
Series 2020 | 14,274 | 12,486,917 | ||||||||||
Government National Mortgage Association | 39,009 | 37,018,895 | ||||||||||
Series 2023 | ||||||||||||
4.50%, 06/20/2053 | 18,752 | 17,319,237 | ||||||||||
4.50%, 10/01/2053, TBA | 79,877 | 73,779,509 | ||||||||||
5.00%, 10/01/2053, TBA | 72,000 | 68,247,886 | ||||||||||
5.50%, 10/01/2053, TBA | 194,210 | 188,481,865 | ||||||||||
6.00%, 10/01/2053, TBA | 112,822 | 111,798,754 | ||||||||||
Uniform Mortgage-Backed Security | 25,375 | 24,526,536 | ||||||||||
6.00%, 10/01/2053, TBA | 67,299 | 66,428,715 | ||||||||||
|
| |||||||||||
Total Mortgage Pass-Throughs | 654,418,188 | |||||||||||
|
| |||||||||||
COVERED BONDS – 4.9% | ||||||||||||
Banco de Sabadell SA | EUR | 7,900 | 7,574,531 | |||||||||
Bank of Montreal | 17,195 | 16,092,974 | ||||||||||
Bank of Nova Scotia (The) | 17,880 | 16,695,989 | ||||||||||
Series E | 400 | 361,784 | ||||||||||
BPCE SFH SA | 300 | 299,778 | ||||||||||
0.75%, 11/27/2026(a) | 7,600 | 7,341,387 | ||||||||||
Series E | 200 | 208,055 | ||||||||||
Caisse de Refinancement de l’Habitat SA | 3,500 | 3,268,306 | ||||||||||
2.75%, 04/12/2028(a) | 7,300 | 7,438,999 | ||||||||||
Caisse Francaise de Financement Local | 7,100 | 6,411,795 | ||||||||||
Series E | 6,500 | 6,189,470 | ||||||||||
0.75%, 01/11/2027(a) | 7,500 | 7,222,624 |
abfunds.com | AB GLOBAL BOND FUND | 67 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Cie de Financement Foncier SA | EUR | 15,700 | $ | 14,997,812 | ||||||
3.125%, 05/18/2027(a) | 4,700 | 4,875,944 | ||||||||
Commonwealth Bank of Australia | 17,890 | 15,202,664 | ||||||||
Series E | 4,795 | 4,450,233 | ||||||||
Credit Agricole Home Loan SFH SA | 1,900 | 1,709,167 | ||||||||
0.875%, 08/31/2027(a) | 1,900 | 1,807,782 | ||||||||
2.875%, 06/23/2028(a) | 1,600 | 1,636,961 | ||||||||
Credit Mutuel Home Loan SFH SA | 14,300 | 14,846,470 | ||||||||
DNB Boligkreditt AS | 7,015 | 6,414,184 | ||||||||
Series E | 350 | 355,362 | ||||||||
0.625%, 06/19/2025(a) | 4,751 | 4,756,014 | ||||||||
National Australia Bank Ltd. | 17,865 | 15,481,881 | ||||||||
Series G | 11,055 | 10,481,492 | ||||||||
Series E | 5,000 | 5,207,269 | ||||||||
National Westminster Bank PLC | 310 | 320,524 | ||||||||
Nationwide Building Society | 4,570 | 4,349,057 | ||||||||
3.625%, 03/15/2028(a) | 10,740 | 11,305,679 | ||||||||
Nordea Kiinnitysluottopankki Oyj | 430 | 440,287 | ||||||||
Royal Bank of Canada | 3,100 | 2,895,986 | ||||||||
0.125%, 04/26/2027(a) | 20,240 | 18,809,730 | ||||||||
Santander UK PLC | 15,000 | 14,033,825 | ||||||||
1.125%, 03/12/2027(a) | 4,609 | 4,453,609 | ||||||||
Skandinaviska Enskilda Banken AB | 320 | 312,491 | ||||||||
Societe Generale SFH SA | 600 | 566,723 |
68 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Stadshypotek AB | EUR | 320 | $ | 311,834 | ||||||||
Toronto-Dominion Bank (The) | 3,770 | 3,467,396 | ||||||||||
Series G | 1,500 | 1,434,469 | ||||||||||
3.25%, 04/27/2026(a) | 14,125 | 14,686,220 | ||||||||||
Westpac Banking Corp. | 10,098 | 8,810,117 | ||||||||||
|
| |||||||||||
Total Covered Bonds | 267,526,874 | |||||||||||
|
| |||||||||||
COLLATERALIZED MORTGAGE OBLIGATIONS – 3.5% | ||||||||||||
Risk Share Floating Rate – 3.4% | ||||||||||||
Bellemeade Re Ltd. | ||||||||||||
8.334% (LIBOR 1 Month + 2.90%), 04/25/2028(a)(e) | U.S.$ | 254 | 254,056 | |||||||||
Series 2019-2A, Class M1C | 4,416 | 4,421,829 | ||||||||||
Series 2019-2A, Class M2 | 5,800 | 5,927,439 | ||||||||||
Series 2019-3A, Class M1C | 6,265 | 6,283,565 | ||||||||||
Series 2019-4A, Class M1C | 2,723 | 2,729,565 | ||||||||||
Series 2020-3A, Class M1C | 2,410 | 2,446,538 | ||||||||||
Series 2021-3A, Class A2 | 7,225 | 7,152,709 | ||||||||||
Connecticut Avenue Securities Trust | 8 | 8,329 | ||||||||||
Series 2019-R07, Class 1M2 | 151 | 151,244 |
abfunds.com | AB GLOBAL BOND FUND | 69 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Series 2020-R01, Class 1M2 | U.S.$ | 1,862 | $ | 1,867,660 | ||||||
Series 2021-R01, Class 1M1 | 115 | 115,008 | ||||||||
Series 2021-R01, Class 1M2 | 878 | 876,083 | ||||||||
Series 2022-R06, Class 1M1 | 5,999 | 6,149,402 | ||||||||
Series 2022-R08, Class 1M1 | 11,206 | 11,411,728 | ||||||||
Series 2023-R04, Class 1M1 | 6,589 | 6,672,418 | ||||||||
Series 2023-R05, Class 1M1 | 6,304 | 6,339,622 | ||||||||
Eagle Re Ltd. | 4,843 | 4,846,534 | ||||||||
Series 2021-2, Class M1B | 3,700 | 3,701,053 | ||||||||
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes | 3,700 | 3,716,711 | ||||||||
Series 2015-DNA1, Class M3 | 1,736 | 1,756,495 | ||||||||
Series 2019-DNA3, Class M2 | 599 | 601,146 | ||||||||
Series 2019-DNA4, Class M2 | 139 | 139,632 | ||||||||
Series 2020-DNA1, Class M2 | 245 | 245,144 |
70 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||
| ||||||||||
Series 2020-HQA2, Class M2 | U.S.$ | 1,518 | $ | 1,565,770 | ||||||
Series 2021-DNA5, Class M2 | 4,730 | 4,725,017 | ||||||||
Series 2021-DNA6, Class M1 | 462 | 460,787 | ||||||||
Series 2021-DNA6, Class M2 | 11,395 | 11,231,406 | ||||||||
Series 2021-DNA7, Class M1 | 686 | 678,746 | ||||||||
Series 2021-DNA7, Class M2 | 13,277 | 12,965,892 | ||||||||
Series 2021-HQA4, Class M1 | 14,770 | 14,493,653 | ||||||||
Series 2021-HQA4, Class M2 | 6,919 | 6,685,479 | ||||||||
Series 2023-DNA1, Class M1A | 14,975 | 15,112,235 | ||||||||
Series 2023-DNA2, Class M1A | 13,038 | 13,159,984 | ||||||||
Federal National Mortgage Association Connecticut Avenue Securities | 89 | 89,494 | ||||||||
Series 2014-C01, Class M2 | 372 | 375,931 | ||||||||
Series 2014-C04, Class 1M2 | 1,221 | 1,263,907 | ||||||||
Series 2014-C04, Class 2M2 | 48 | 47,837 | ||||||||
Series 2015-C01, Class 1M2 | 1,349 | 1,389,710 |
abfunds.com | AB GLOBAL BOND FUND | 71 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Series 2015-C02, Class 1M2 | U.S.$ | 1,293 | $ | 1,331,392 | ||||||||
Series 2015-C03, Class 1M2 | 300 | 315,238 | ||||||||||
Series 2015-C04, Class 1M2 | 906 | 966,253 | ||||||||||
Series 2015-C04, Class 2M2 | 4,134 | 4,294,013 | ||||||||||
Series 2016-C01, Class 2M2 | 581 | 610,018 | ||||||||||
Series 2016-C02, Class 1M2 | 1,559 | 1,637,144 | ||||||||||
Series 2021-R02, Class 2M2 | 7,361 | 7,241,137 | ||||||||||
JPMorgan Madison Avenue Securities Trust | 1,427 | 1,448,303 | ||||||||||
PMT Credit Risk Transfer Trust | 4,454 | 4,448,695 | ||||||||||
Series 2019-3R, Class A | 314 | 312,456 | ||||||||||
Triangle Re Ltd. | 3,523 | 3,544,187 | ||||||||||
|
| |||||||||||
188,208,594 | ||||||||||||
|
| |||||||||||
Non-Agency Fixed Rate – 0.1% | ||||||||||||
Alternative Loan Trust | 1,268 | 670,424 | ||||||||||
Series 2006-26CB, Class A6 | 112 | 57,348 | ||||||||||
Series 2006-26CB, Class A8 6.25%, 09/25/2036 | 418 | 214,229 |
72 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Series 2006-J1, Class 1A11 | U.S.$ | 620 | $ | 425,389 | ||||||||
Series 2007-15CB, Class A19 | 250 | 143,254 | ||||||||||
CHL Mortgage Pass-Through Trust | 757 | 342,222 | ||||||||||
Series 2007-HY4, Class 1A1 | 219 | 189,806 | ||||||||||
Citigroup Mortgage Loan Trust | 113 | 95,357 | ||||||||||
Residential Accredit Loans, Inc. Trust | 463 | 392,366 | ||||||||||
Wells Fargo Mortgage Backed Securities Trust | 730 | 625,348 | ||||||||||
|
| |||||||||||
3,155,743 | ||||||||||||
|
| |||||||||||
Non-Agency Floating Rate – 0.0% | ||||||||||||
First Horizon Alternative Mortgage Securities Trust | 529 | 125,296 | ||||||||||
|
| |||||||||||
Total Collateralized Mortgage Obligations | 191,489,633 | |||||||||||
|
| |||||||||||
INFLATION-LINKED | ||||||||||||
Canada – 0.2% | ||||||||||||
Canadian Government Real Return Bond | CAD | 15,311 | 12,710,903 | |||||||||
|
| |||||||||||
Sweden – 0.2% | ||||||||||||
Sweden Inflation Linked Bond | SEK | 117,360 | 12,999,060 | |||||||||
|
| |||||||||||
United States – 2.2% | ||||||||||||
U.S. Treasury Inflation Index | U.S.$ | 125,323 | 116,534,581 | |||||||||
|
| |||||||||||
Total Inflation-Linked Securities | 142,244,544 | |||||||||||
|
| |||||||||||
abfunds.com | AB GLOBAL BOND FUND | 73 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
COLLATERALIZED LOAN OBLIGATIONS – 2.4% | ||||||||||||
CLO - Floating Rate – 2.4% | ||||||||||||
AGL CLO 16 Ltd. | U.S.$ | 700 | $ | 695,729 | ||||||||
Apidos CLO XXXV | 5,030 | 4,966,753 | ||||||||||
Balboa Bay Loan Funding Ltd. | 4,500 | 4,449,690 | ||||||||||
Ballyrock CLO 16 Ltd. | 3,917 | 3,857,193 | ||||||||||
Elmwood CLO 15 Ltd. | 5,000 | 4,970,430 | ||||||||||
Elmwood CLO VIII Ltd. | 3,632 | 3,624,390 | ||||||||||
Invesco CLO Ltd. | 5,500 | 5,428,263 | ||||||||||
Kings Park CLO Ltd. | 5,450 | 5,414,597 | ||||||||||
Marble Point CLO XI Ltd. | 15,794 | 15,713,727 | ||||||||||
OCP CLO Ltd. | 3,453 | 3,444,581 | ||||||||||
Octagon Loan Funding Ltd. | 8,984 | 8,960,695 |
74 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
OZLM XVIII Ltd. | U.S.$ | 16,013 | $ | 15,931,523 | ||||||||
Peace Park CLO Ltd. | 4,620 | 4,584,814 | ||||||||||
Pikes Peak CLO 8 | 14,279 | 14,109,646 | ||||||||||
Rad CLO 14 Ltd. | 4,750 | 4,709,924 | ||||||||||
Regatta XXIV Funding Ltd. | 450 | 447,812 | ||||||||||
Rockford Tower CLO Ltd. | 8,500 | 8,471,057 | ||||||||||
Signal Peak CLO 12 Ltd. | 15,929 | 15,875,673 | ||||||||||
TIAA CLO IV Ltd. | 4,510 | 4,496,804 | ||||||||||
|
| |||||||||||
Total Collateralized Loan Obligations | 130,153,301 | |||||||||||
|
| |||||||||||
GOVERNMENTS - SOVEREIGN BONDS – 2.0% | ||||||||||||
Chile – 0.1% | ||||||||||||
Chile Electricity Lux MPC SARL | 3,313 | 3,295,398 | ||||||||||
Chile Government International Bond | 825 | 560,357 | ||||||||||
5.33%, 01/05/2054 | 265 | 235,585 | ||||||||||
|
| |||||||||||
4,091,340 | ||||||||||||
|
| |||||||||||
France – 0.5% | ||||||||||||
Dexia Credit Local SA | EUR | 22,100 | 20,152,395 | |||||||||
0.01%, 01/22/2027(a) | 7,200 | 6,784,995 | ||||||||||
|
| |||||||||||
26,937,390 | ||||||||||||
|
|
abfunds.com | AB GLOBAL BOND FUND | 75 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Germany – 0.7% | ||||||||||||
Kreditanstalt fuer Wiederaufbau | AUD | 6,000 | $ | 3,552,826 | ||||||||
3.20%, 09/11/2026 | 6,008 | 3,723,086 | ||||||||||
4.10%, 02/20/2026 | 37,326 | 23,766,442 | ||||||||||
Landwirtschaftliche Rentenbank | 9,310 | 5,997,951 | ||||||||||
|
| |||||||||||
37,040,305 | ||||||||||||
|
| |||||||||||
Hungary – 0.0% | ||||||||||||
Hungary Government International Bond | U.S.$ | 673 | 494,958 | |||||||||
3.125%, 09/21/2051(a) | 200 | 110,446 | ||||||||||
5.25%, 06/16/2029(a) | 310 | 295,845 | ||||||||||
6.125%, 05/22/2028(a) | 250 | 248,988 | ||||||||||
6.75%, 09/25/2052(a) | 420 | 398,164 | ||||||||||
|
| |||||||||||
1,548,401 | ||||||||||||
|
| |||||||||||
Indonesia – 0.3% | ||||||||||||
Indonesia Government International Bond | EUR | 5,330 | 4,622,958 | |||||||||
2.15%, 07/28/2031 | U.S.$ | 1,030 | 802,555 | |||||||||
3.20%, 09/23/2061 | 640 | 379,891 | ||||||||||
3.375%, 07/30/2025(a) | EUR | 10,564 | 10,957,252 | |||||||||
3.55%, 03/31/2032 | U.S.$ | 200 | 172,550 | |||||||||
4.125%, 01/15/2025(a) | 590 | 579,351 | ||||||||||
4.30%, 03/31/2052 | 200 | 154,860 | ||||||||||
|
| |||||||||||
17,669,417 | ||||||||||||
|
| |||||||||||
Mexico – 0.0% | ||||||||||||
Mexico Government International Bond | 400 | 315,756 | ||||||||||
4.28%, 08/14/2041 | 500 | 368,490 | ||||||||||
6.338%, 05/04/2053 | 248 | 225,060 | ||||||||||
|
| |||||||||||
909,306 | ||||||||||||
|
| |||||||||||
Panama – 0.1% | ||||||||||||
Panama Bonos del Tesoro | 500 | 395,865 | ||||||||||
Panama Government International Bond | 408 | 294,278 | ||||||||||
3.87%, 07/23/2060 | 400 | 229,400 | ||||||||||
3.875%, 03/17/2028 | 920 | 844,717 | ||||||||||
6.40%, 02/14/2035 | 658 | 635,891 | ||||||||||
6.853%, 03/28/2054 | 200 | 185,632 | ||||||||||
6.875%, 01/31/2036 | 3,012 | 3,019,939 | ||||||||||
|
| |||||||||||
5,605,722 | ||||||||||||
|
|
76 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Peru – 0.0% | ||||||||||||
Peruvian Government International Bond | U.S.$ | 150 | $ | 108,080 | ||||||||
2.78%, 12/01/2060 | 105 | 55,443 | ||||||||||
|
| |||||||||||
163,523 | ||||||||||||
|
| |||||||||||
Philippines – 0.0% | ||||||||||||
Philippine Government International Bond | 1,660 | 1,263,675 | ||||||||||
3.229%, 03/29/2027 | 205 | 190,933 | ||||||||||
3.556%, 09/29/2032 | 205 | 176,142 | ||||||||||
4.20%, 03/29/2047 | 205 | 158,961 | ||||||||||
|
| |||||||||||
1,789,711 | ||||||||||||
|
| |||||||||||
Poland – 0.0% | ||||||||||||
Republic of Poland Government International Bond | 212 | 196,549 | ||||||||||
5.50%, 04/04/2053 | 158 | 142,608 | ||||||||||
|
| |||||||||||
339,157 | ||||||||||||
|
| |||||||||||
Qatar – 0.0% | ||||||||||||
Qatar Government International Bond | 1,110 | 1,033,743 | ||||||||||
4.40%, 04/16/2050(a) | 490 | 398,443 | ||||||||||
|
| |||||||||||
1,432,186 | ||||||||||||
|
| |||||||||||
Romania – 0.2% | ||||||||||||
Romanian Government International Bond | EUR | 300 | 185,344 | |||||||||
3.00%, 02/14/2031(a) | U.S.$ | 250 | 200,567 | |||||||||
3.625%, 03/27/2032(a) | 256 | 207,660 | ||||||||||
5.25%, 11/25/2027(a) | 694 | 673,916 | ||||||||||
6.625%, 09/27/2029(a) | EUR | 8,410 | 9,112,248 | |||||||||
|
| |||||||||||
10,379,735 | ||||||||||||
|
| |||||||||||
Saudi Arabia – 0.1% | ||||||||||||
KSA Sukuk Ltd. | U.S.$ | 405 | 405,079 | |||||||||
Saudi Government International Bond | 290 | 177,013 | ||||||||||
3.625%, 03/04/2028(a) | 370 | 344,292 | ||||||||||
3.75%, 01/21/2055(a) | 970 | 641,859 | ||||||||||
5.00%, 04/17/2049(a) | 407 | 339,365 | ||||||||||
|
| |||||||||||
1,907,608 | ||||||||||||
|
|
abfunds.com | AB GLOBAL BOND FUND | 77 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Uruguay – 0.0% | ||||||||||||
Uruguay Government International Bond | U.S.$ | 260 | $ | 256,428 | ||||||||
4.375%, 01/23/2031 | 430 | 411,200 | ||||||||||
|
| |||||||||||
667,628 | ||||||||||||
|
| |||||||||||
Total Governments - Sovereign Bonds | 110,481,429 | |||||||||||
|
| |||||||||||
SUPRANATIONALS – 1.5% | ||||||||||||
Supranational – 1.5% | ||||||||||||
European Investment Bank | AUD | 15,292 | 8,526,179 | |||||||||
1.45%, 01/25/2024(a) | 3,378 | 2,153,560 | ||||||||||
1.80%, 01/19/2027 | 19,295 | 11,362,864 | ||||||||||
3.10%, 08/17/2026(a) | 9,991 | 6,186,839 | ||||||||||
Inter-American Development Bank | 2,505 | 1,499,862 | ||||||||||
2.70%, 01/29/2026 | 2,485 | 1,531,398 | ||||||||||
4.25%, 06/11/2026 | 12,339 | 7,858,984 | ||||||||||
International Bank for Reconstruction & Development | 6,993 | 4,299,442 | ||||||||||
Series G | EUR | 14,647 | 13,856,042 | |||||||||
Series GDIF | 7,398 | 6,721,465 | ||||||||||
International Finance Corp. | AUD | 18,234 | 11,675,923 | |||||||||
Nordic Investment Bank | 6,590 | 4,248,957 | ||||||||||
|
| |||||||||||
Total Supranationals | 79,921,515 | |||||||||||
|
| |||||||||||
ASSET-BACKED | ||||||||||||
Other ABS - Fixed Rate – 1.1% | ||||||||||||
Amur Equipment Finance Receivables XII LLC | U.S.$ | 4,328 | 4,337,914 | |||||||||
BHG Securitization Trust | 6,380 | 6,285,472 | ||||||||||
CNH Equipment Trust | 4,776 | 4,762,092 |
78 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Dell Equipment Finance Trust | U.S.$ | 3,473 | $ | 3,463,900 | ||||||||
Dext ABS LLC | 5,535 | 5,449,722 | ||||||||||
HPEFS Equipment Trust | 4,077 | 4,066,843 | ||||||||||
Series 2023-1A, Class A2 | 3,456 | 3,445,354 | ||||||||||
Kubota Credit Owner Trust | 6,924 | 6,899,666 | ||||||||||
Marlette Funding Trust | 1,373 | 1,367,363 | ||||||||||
Series 2023-3A, Class A | 4,981 | 4,981,239 | ||||||||||
Nelnet Student Loan Trust | 8,191 | 6,395,885 | ||||||||||
NMEF Funding LLC | 6,000 | 6,001,909 | ||||||||||
SBA Tower Trust | 3,008 | 2,927,623 | ||||||||||
|
| |||||||||||
60,384,982 | ||||||||||||
|
| |||||||||||
Autos - Fixed Rate – 0.4% | ||||||||||||
BOF VII AL Funding Trust I | 6,988 | 6,949,520 | ||||||||||
LAD Auto Receivables Trust | 5,653 | 5,638,110 | ||||||||||
OCCU Auto Receivables Trust | 3,727 | 3,726,280 | ||||||||||
Santander Bank Auto Credit-Linked Notes | 2,801 | 2,773,842 | ||||||||||
|
| |||||||||||
19,087,752 | ||||||||||||
|
| |||||||||||
Total Asset-Backed Securities | 79,472,734 | |||||||||||
|
|
abfunds.com | AB GLOBAL BOND FUND | 79 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
GOVERNMENTS - SOVEREIGN AGENCIES – 1.1% | ||||||||||||
Canada – 0.3% | ||||||||||||
Canada Housing Trust No. 1 | CAD | 24,140 | $ | 17,328,240 | ||||||||
|
| |||||||||||
France – 0.2% | ||||||||||||
SNCF Reseau | EUR | 9,800 | 10,155,798 | |||||||||
|
| |||||||||||
Japan – 0.5% | ||||||||||||
Development Bank of Japan, Inc. | 7,071 | 7,168,097 | ||||||||||
0.01%, 09/09/2025(a) | 15,859 | 15,566,673 | ||||||||||
0.875%, 10/10/2025(a) | 5,600 | 5,577,520 | ||||||||||
|
| |||||||||||
28,312,290 | ||||||||||||
|
| |||||||||||
Netherlands – 0.1% | ||||||||||||
BNG Bank NV | 4,715 | 4,349,565 | ||||||||||
|
| |||||||||||
South Korea – 0.0% | ||||||||||||
Korea Gas Corp. | U.S.$ | 290 | 256,812 | |||||||||
|
| |||||||||||
Total Governments - Sovereign Agencies | 60,402,705 | |||||||||||
|
| |||||||||||
CORPORATES - NON-INVESTMENT GRADE – 1.0% | ||||||||||||
Industrial – 0.6% | ||||||||||||
Basic – 0.1% | ||||||||||||
INEOS Quattro Finance 2 PLC | EUR | 5,045 | 4,857,991 | |||||||||
|
| |||||||||||
Communications - Media – 0.2% | ||||||||||||
CCO Holdings LLC/CCO Holdings Capital Corp. | U.S.$ | 141 | 112,809 | |||||||||
DISH DBS Corp. | 7,940 | 6,747,505 | ||||||||||
5.75%, 12/01/2028(a) | 6,707 | 5,154,303 | ||||||||||
|
| |||||||||||
12,014,617 | ||||||||||||
|
|
80 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Communications -Telecommunications – 0.0% | ||||||||||||
Telefonica Europe BV | EUR | 100 | $ | 103,789 | ||||||||
|
| |||||||||||
Consumer Cyclical - | ||||||||||||
ZF Finance GmbH | 5,300 | 4,910,001 | ||||||||||
ZF North America Capital, Inc. | U.S.$ | 180 | 176,508 | |||||||||
|
| |||||||||||
5,086,509 | ||||||||||||
|
| |||||||||||
Consumer Cyclical - Entertainment – 0.1% | ||||||||||||
Carnival Corp. | 150 | 129,832 | ||||||||||
Carnival PLC | EUR | 3,234 | 2,186,724 | |||||||||
|
| |||||||||||
2,316,556 | ||||||||||||
|
| |||||||||||
Consumer Non-Cyclical – 0.0% | ||||||||||||
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC | U.S.$ | 140 | 134,666 | |||||||||
|
| |||||||||||
Technology – 0.0% | ||||||||||||
Cedacri Mergeco SpA | EUR | 2,165 | 2,251,032 | |||||||||
|
| |||||||||||
Transportation - Services – 0.1% | ||||||||||||
NAC Aviation 29 DAC | U.S.$ | 4,743 | 4,335,654 | |||||||||
|
| |||||||||||
31,100,814 | ||||||||||||
|
| |||||||||||
Financial Institutions – 0.3% | ||||||||||||
Banking – 0.0% | ||||||||||||
Unicaja Banco SA | EUR | 200 | 210,442 | |||||||||
|
| |||||||||||
Finance – 0.1% | ||||||||||||
Aircastle Ltd. | U.S.$ | 195 | 153,986 | |||||||||
SLM Corp. | 6,276 | 5,870,918 | ||||||||||
|
| |||||||||||
6,024,904 | ||||||||||||
|
|
abfunds.com | AB GLOBAL BOND FUND | 81 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
REITs – 0.2% | ||||||||||||
MPT Operating Partnership LP/MPT Finance Corp. | EUR | 100 | $ | 93,240 | ||||||||
Via Celere Desarrollos Inmobiliarios SA | 100 | 99,394 | ||||||||||
Vivion Investments SARL | 8,100 | 7,799,088 | ||||||||||
Series E | 3,300 | 2,581,754 | ||||||||||
|
| |||||||||||
10,573,476 | ||||||||||||
|
| |||||||||||
16,808,822 | ||||||||||||
|
| |||||||||||
Utility – 0.1% | ||||||||||||
Electric – 0.1% | ||||||||||||
EDP - Energias de Portugal SA | 8,400 | 7,532,329 | ||||||||||
Vistra Corp. | U.S.$ | 100 | 91,983 | |||||||||
|
| |||||||||||
7,624,312 | ||||||||||||
|
| |||||||||||
Total Corporates - Non-Investment Grade | 55,533,948 | |||||||||||
|
| |||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES – 0.9% | ||||||||||||
Non-Agency Floating Rate | ||||||||||||
Ashford Hospitality Trust | 9,940 | 9,824,425 | ||||||||||
BAMLL Commercial Mortgage Securities Trust | 6,275 | 5,681,792 | ||||||||||
Natixis Commercial Mortgage Securities Trust | 10,690 | 9,750,324 | ||||||||||
Series 2022-JERI, Class A | 8,113 | 7,147,106 | ||||||||||
|
| |||||||||||
32,403,647 | ||||||||||||
|
|
82 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Non-Agency Fixed Rate | ||||||||||||
225 Liberty Street Trust | U.S.$ | 9,098 | $ | 6,288,769 | ||||||||
Commercial Mortgage Trust | 2,322 | 1,390,863 | ||||||||||
JPMBB Commercial Mortgage Securities Trust | 6,329 | 5,848,352 | ||||||||||
|
| |||||||||||
13,527,984 | ||||||||||||
|
| |||||||||||
Total Commercial Mortgage-Backed Securities | 45,931,631 | |||||||||||
|
| |||||||||||
QUASI-SOVEREIGNS – 0.7% | ||||||||||||
Quasi-Sovereign Bonds – 0.7% | ||||||||||||
Chile – 0.1% | ||||||||||||
Corp. Nacional del Cobre de Chile | 530 | 455,487 | ||||||||||
5.125%, 02/02/2033(a) | 3,837 | 3,536,333 | ||||||||||
Empresa de Transporte de Pasajeros Metro SA | 370 | 328,160 | ||||||||||
4.70%, 05/07/2050(a) | 370 | 286,517 | ||||||||||
|
| |||||||||||
4,606,497 | ||||||||||||
|
| |||||||||||
China – 0.0% | ||||||||||||
CNAC HK Finbridge Co., Ltd. | 800 | 653,320 | ||||||||||
|
| |||||||||||
Hong Kong – 0.0% | ||||||||||||
Airport Authority | 250 | 227,232 | ||||||||||
3.50%, 01/12/2062(a) | 350 | 233,121 | ||||||||||
4.75%, 01/12/2028(a) | 255 | 249,982 | ||||||||||
|
| |||||||||||
710,335 | ||||||||||||
|
| |||||||||||
Hungary – 0.1% | ||||||||||||
Magyar Export-Import Bank Zrt | 7,349 | 7,219,290 | ||||||||||
|
| |||||||||||
Indonesia – 0.0% | ||||||||||||
Indonesia Asahan Aluminium PT/Mineral Industri Indonesia Persero PT | 255 | 254,396 |
abfunds.com | AB GLOBAL BOND FUND | 83 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Pertamina Persero PT | U.S.$ | 480 | $ | 431,928 | ||||||||
2.30%, 02/09/2031(a) | 280 | 216,969 | ||||||||||
4.15%, 02/25/2060(a) | 410 | 268,595 | ||||||||||
Perusahaan Perseroan Persero PT Perusahaan Listrik Negara | 460 | 431,857 | ||||||||||
|
| |||||||||||
1,603,745 | ||||||||||||
|
| |||||||||||
Kazakhstan – 0.0% | ||||||||||||
Fund of National Welfare Samruk-Kazyna JSC | 473 | 420,724 | ||||||||||
|
| |||||||||||
Malaysia – 0.0% | ||||||||||||
Petronas Capital Ltd. | 1,000 | 791,230 | ||||||||||
|
| |||||||||||
Mexico – 0.3% | ||||||||||||
Comision Federal de Electricidad | 7,524 | 5,868,720 | ||||||||||
4.677%, 02/09/2051(a) | 220 | 141,194 | ||||||||||
4.688%, 05/15/2029(a) | 240 | 214,800 | ||||||||||
5.00%, 09/29/2036(a) | 3,248 | 2,711,746 | ||||||||||
Petroleos Mexicanos | 3,505 | 3,073,587 | ||||||||||
6.70%, 02/16/2032 | 3,774 | 2,794,647 | ||||||||||
|
| |||||||||||
14,804,694 | ||||||||||||
|
| |||||||||||
Panama – 0.0% | ||||||||||||
Aeropuerto Internacional de Tocumen SA | 240 | 175,001 | ||||||||||
Banco Nacional de Panama | 580 | 449,158 | ||||||||||
|
| |||||||||||
624,159 | ||||||||||||
|
| |||||||||||
Poland – 0.0% | ||||||||||||
Bank Gospodarstwa Krajowego | 265 | 249,100 | ||||||||||
|
| |||||||||||
Qatar – 0.0% | ||||||||||||
QatarEnergy | 540 | 431,735 | ||||||||||
3.30%, 07/12/2051(a) | 500 | 323,015 | ||||||||||
|
| |||||||||||
754,750 | ||||||||||||
|
| |||||||||||
Saudi Arabia – 0.0% | ||||||||||||
Gaci First Investment Co. | 430 | 419,822 | ||||||||||
|
|
84 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
South Africa – 0.1% | ||||||||||||
Transnet SOC Ltd. | U.S.$ | 5,065 | $ | 4,839,962 | ||||||||
|
| |||||||||||
United Arab Emirates – 0.1% | ||||||||||||
Abu Dhabi Crude Oil Pipeline LLC | 270 | 246,902 | ||||||||||
4.60%, 11/02/2047(a) | 250 | 215,445 | ||||||||||
Abu Dhabi Ports Co. PJSC | 500 | 406,615 | ||||||||||
DP World Ltd./United Arab Emirates | 430 | 443,640 | ||||||||||
MDGH GMTN RSC Ltd. | 520 | 366,870 | ||||||||||
Series G | 690 | 566,662 | ||||||||||
|
| |||||||||||
2,246,134 | ||||||||||||
|
| |||||||||||
Total Quasi-Sovereigns | 39,943,762 | |||||||||||
|
| |||||||||||
LOCAL GOVERNMENTS - REGIONAL BONDS – 0.7% | ||||||||||||
Australia – 0.0% | ||||||||||||
Queensland Treasury Corp. | AUD | 3,061 | 1,990,034 | |||||||||
|
| |||||||||||
Japan – 0.7% | ||||||||||||
Japan Finance Organization for Municipalities | EUR | 29,930 | 28,013,028 | |||||||||
2.375%, 09/08/2027(a) | 9,345 | 9,396,291 | ||||||||||
|
| |||||||||||
37,409,319 | ||||||||||||
|
| |||||||||||
Total Local Governments - Regional Bonds | 39,399,353 | |||||||||||
|
| |||||||||||
LOCAL GOVERNMENTS - PROVINCIAL BONDS – 0.6% | ||||||||||||
Canada – 0.6% | ||||||||||||
Province of Ontario Canada | 9,347 | 8,847,711 |
abfunds.com | AB GLOBAL BOND FUND | 85 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Province of Quebec Canada | EUR | 19,183 | $ | 18,446,698 | ||||||||
3.65%, 05/20/2032 | CAD | 10,105 | 6,871,633 | |||||||||
|
| |||||||||||
Total Local Governments - Provincial Bonds | 34,166,042 | |||||||||||
|
| |||||||||||
LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 0.5% | ||||||||||||
United States – 0.5% | ||||||||||||
California Earthquake Authority | U.S.$ | 4,745 | 4,714,396 | |||||||||
Commonwealth Financing Authority | 2,640 | 2,269,249 | ||||||||||
New Jersey Economic Development Authority | 5,982 | 6,317,971 | ||||||||||
New Jersey Transportation Trust Fund Authority | 4,740 | 4,748,878 | ||||||||||
New York State Thruway Authority | 5,975 | 4,837,638 | ||||||||||
State Board of Administration Finance Corp | 7,016 | 5,619,112 | ||||||||||
|
| |||||||||||
Total Local Governments - US Municipal Bonds | 28,507,244 | |||||||||||
|
| |||||||||||
86 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
EMERGING MARKETS - CORPORATE BONDS – 0.4% | ||||||||||||
Industrial – 0.3% | ||||||||||||
Basic – 0.1% | ||||||||||||
Braskem Idesa SAPI | U.S.$ | 4,523 | $ | 2,714,207 | ||||||||
Volcan Cia Minera SAA | 927 | 527,723 | ||||||||||
|
| |||||||||||
3,241,930 | ||||||||||||
|
| |||||||||||
Capital Goods – 0.1% | ||||||||||||
Embraer Netherlands Finance BV | 3,204 | 3,178,774 | ||||||||||
Odebrecht Holdco Finance Ltd. | 9,813 | 8,832 | ||||||||||
|
| |||||||||||
3,187,606 | ||||||||||||
|
| |||||||||||
Communications - Media – 0.0% | ||||||||||||
Globo Comunicacao e Participacoes SA | 879 | 727,241 | ||||||||||
|
| |||||||||||
Consumer Non-Cyclical – 0.0% | ||||||||||||
BRF GmbH | 1,475 | 1,355,967 | ||||||||||
Virgolino de Oliveira Finance SA | 4,300 | 430 | ||||||||||
|
| |||||||||||
1,356,397 | ||||||||||||
|
| |||||||||||
Energy – 0.1% | ||||||||||||
Acu Petroleo Luxembourg SARL | 3,390 | 3,097,184 | ||||||||||
Greenko Dutch BV | 370 | 332,249 | ||||||||||
Greenko Solar Mauritius Ltd. | 215 | 199,503 | ||||||||||
Leviathan Bond Ltd. | 3,835 | 3,724,392 | ||||||||||
|
| |||||||||||
7,353,328 | ||||||||||||
|
| |||||||||||
15,866,502 | ||||||||||||
|
| |||||||||||
Utility – 0.1% | ||||||||||||
Electric – 0.1% | ||||||||||||
Adani Green Energy Ltd. | 3,315 | 3,096,972 | ||||||||||
Diamond II Ltd. | 2,135 | 2,103,421 | ||||||||||
|
| |||||||||||
5,200,393 | ||||||||||||
|
|
abfunds.com | AB GLOBAL BOND FUND | 87 |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
Financial Institutions – 0.0% | ||||||||||||
Other Finance – 0.0% | ||||||||||||
OEC Finance Ltd. | U.S.$ | 5,311 | $ | 212,433 | ||||||||
5.25%, 12/27/2033(a)(c)(g) | 1,749 | 69,959 | ||||||||||
7.125%, 12/26/2046(a)(c)(g) | 2,546 | 176,087 | ||||||||||
|
| |||||||||||
458,479 | ||||||||||||
|
| |||||||||||
Total Emerging Markets - Corporate Bonds | 21,525,374 | |||||||||||
|
| |||||||||||
BANK LOANS – 0.1% | ||||||||||||
Industrial – 0.1% | ||||||||||||
Consumer Cyclical - | ||||||||||||
IRB Holding Corp. | 1,092 | 1,086,643 | ||||||||||
|
| |||||||||||
Consumer Non-Cyclical – 0.1% | ||||||||||||
LifePoint Health, Inc. (fka Regionalcare Hospital Partners Holdings, Inc.) | 4,770 | 4,754,459 | ||||||||||
|
| |||||||||||
Total Bank Loans | 5,841,102 | |||||||||||
|
| |||||||||||
Shares | ||||||||||||
COMMON STOCKS – 0.1% |
| |||||||||||
Financials – 0.1% | ||||||||||||
Banks – 0.0% | ||||||||||||
Nordic Aviation Capital DAC(d)(h)(j) | 86,655 | 1,424,851 | ||||||||||
|
| |||||||||||
Insurance – 0.1% | ||||||||||||
Mt Logan Re Ltd. Special Investment, Series 2, December 2022 – Class U-1(d)(h)(j) | 2,703 | 1,471,842 | ||||||||||
|
| |||||||||||
2,896,693 | ||||||||||||
|
| |||||||||||
Energy – 0.0% | ||||||||||||
Oil, Gas & Consumable Fuels – 0.0% | ||||||||||||
Golden Energy Offshore Services AS(j) | 3,089,816 | 357,029 | ||||||||||
SandRidge Energy, Inc. | 4,459 | 69,829 | ||||||||||
|
| |||||||||||
426,858 | ||||||||||||
|
| |||||||||||
Total Common Stocks | 3,323,551 | |||||||||||
|
|
88 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Principal Amount (000) | U.S. $ Value | |||||||||||
| ||||||||||||
EMERGING MARKETS - TREASURIES – 0.0% | ||||||||||||
South Africa – 0.0% | ||||||||||||
Republic of South Africa Government Bond | ZAR | 0 | ** | $ | 1 | |||||||
|
| |||||||||||
Shares | ||||||||||||
SHORT-TERM INVESTMENTS – 1.6% |
| |||||||||||
Investment Companies – 1.4% | ||||||||||||
AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 5.25%(l)(m)(n) | 73,930,984 | 73,930,984 | ||||||||||
|
| |||||||||||
Principal Amount (000) | ||||||||||||
Time Deposits – 0.2% |
| |||||||||||
Citibank, New York | U.S.$ | 7,650 | 7,649,945 | |||||||||
SEB, Stockholm | CHF | 0 | ** | 10 | ||||||||
2.81%, 10/02/2023 | EUR | 3,123 | 3,301,743 | |||||||||
4.17%, 10/02/2023 | GBP | 7 | 8,121 | |||||||||
Sumitomo, Tokyo | JPY | 9,399 | 62,895 | |||||||||
|
| |||||||||||
Total Time Deposits | 11,022,714 | |||||||||||
|
| |||||||||||
Total Short-Term Investments | 84,953,698 | |||||||||||
|
| |||||||||||
Total Investments – 108.1% | 5,861,486,758 | |||||||||||
Other assets less liabilities – (8.1)% | (440,890,416 | ) | ||||||||||
|
| |||||||||||
Net Assets – 100.0% | $ | 5,420,596,342 | ||||||||||
|
|
abfunds.com | AB GLOBAL BOND FUND | 89 |
PORTFOLIO OF INVESTMENTS (continued)
FUTURES (see Note D)
Description | Number of Contracts | Expiration Month | Current Notional | Value and Unrealized Appreciation (Depreciation) | ||||||||||||
Purchased Contracts | ||||||||||||||||
5 Yr Canadian Bond Futures | 1,846 | December 2023 | $ | 146,982,367 | $ | (226,556 | ) | |||||||||
10 Yr Canadian Bond Futures | 7 | December 2023 | 609,321 | (15,976 | ) | |||||||||||
Euro-BOBL Futures | 399 | December 2023 | 48,855,416 | (27,118 | ) | |||||||||||
Euro-Bund Futures | 379 | December 2023 | 52,190,067 | (644,309 | ) | |||||||||||
Euro-BUXL 30Y Bond Futures | 5 | December 2023 | 690,490 | (43,664 | ) | |||||||||||
Long Gilt Futures | 326 | December 2023 | 37,512,047 | (59,663 | ) | |||||||||||
U.S. 10 Yr Ultra Futures | 279 | December 2023 | 32,099,969 | (974,031 | ) | |||||||||||
U.S. Long Bond (CBT) Futures | 50 | December 2023 | 6,006,516 | (317,453 | ) | |||||||||||
U.S. T-Note 2 Yr (CBT) Futures | 6 | December 2023 | 1,217,156 | (891 | ) | |||||||||||
U.S. T-Note 5 Yr (CBT) Futures | 4,870 | December 2023 | 517,548,883 | (4,448,727 | ) | |||||||||||
U.S. T-Note 10 Yr (CBT) Futures | 17 | December 2023 | 1,869,813 | (32,750 | ) | |||||||||||
U.S. Ultra Bond (CBT) Futures | 36 | December 2023 | 4,513,188 | (240,438 | ) | |||||||||||
Sold Contracts | ||||||||||||||||
10 Yr Canadian Bond Futures | 159 | December 2023 | 13,836,827 | 359,433 | ||||||||||||
Euro-BOBL Futures | 20 | December 2023 | 2,471,850 | 24,317 | ||||||||||||
Euro-OAT Futures | 397 | December 2023 | 52,910,942 | 1,200,423 | ||||||||||||
Euro-Schatz Futures | 1,317 | December 2023 | 146,703,029 | 515,140 | ||||||||||||
Long Gilt Futures | 2 | December 2023 | 230,672 | 903 | ||||||||||||
U.S. T-Note 5 Yr (CBT) Futures | 62 | December 2023 | 6,576,180 | 43,898 | ||||||||||||
|
| |||||||||||||||
$ | (4,887,462 | ) | ||||||||||||||
|
|
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 | EUR | 1,241,316 | USD | 1,331,386 | 10/05/2023 | $ | 18,898,979 | |||||||||
Bank of America, NA | USD | 3,588 | EUR | 3,363 | 10/05/2023 | (32,488 | ) | |||||||||
Bank of America, NA | MXN | 365,635 | USD | 21,258 | 10/06/2023 | 287,651 | ||||||||||
Barclays Bank PLC | CNH | 1,153,916 | USD | 157,924 | 10/11/2023 | (239,838 | ) | |||||||||
BNP Paribas SA | CAD | 561,659 | USD | 414,487 | 10/05/2023 | 958,218 | ||||||||||
BNP Paribas SA | EUR | 7,199 | USD | 7,796 | 10/12/2023 | 182,293 | ||||||||||
Brown Brothers Harriman & Co. | USD | 5,783 | EUR | 5,472 | 10/05/2023 | 2,884 | ||||||||||
Brown Brothers Harriman & Co. | USD | 12,550 | EUR | 11,743 | 10/05/2023 | (134,442 | ) | |||||||||
Brown Brothers Harriman & Co. | MXN | 56,883 | USD | 3,239 | 10/06/2023 | (23,548 | ) | |||||||||
Brown Brothers Harriman & Co. | EUR | 549 | USD | 607 | 10/12/2023 | 26,593 | ||||||||||
Brown Brothers Harriman & Co. | USD | 807 | EUR | 746 | 10/12/2023 | (17,903 | ) | |||||||||
Brown Brothers Harriman & Co. | CAD | 225 | USD | 167 | 10/27/2023 | 1,198 | ||||||||||
Brown Brothers Harriman & Co. | AUD | 292 | USD | 189 | 11/08/2023 | 1,233 | ||||||||||
Citibank, NA | SEK | 142,724 | USD | 12,931 | 10/05/2023 | (133,227 | ) | |||||||||
Citibank, NA | THB | 642,670 | USD | 18,021 | 10/05/2023 | 368,021 | ||||||||||
Citibank, NA | USD | 11,324 | GBP | 9,203 | 10/05/2023 | (95,282 | ) | |||||||||
Citibank, NA | EUR | 7,189 | USD | 7,741 | 10/12/2023 | 137,360 | ||||||||||
Citibank, NA | IDR | 404,966,875 | USD | 26,950 | 10/12/2023 | 820,825 | ||||||||||
Citibank, NA | GBP | 4,083 | USD | 5,091 | 11/17/2023 | 108,190 | ||||||||||
HSBC Bank USA | MXN | 118,005 | USD | 6,685 | 10/06/2023 | (83,279 | ) | |||||||||
HSBC Bank USA | KRW | 570,848,764 | USD | 446,948 | 10/26/2023 | 23,690,628 | ||||||||||
JPMorgan Chase Bank, NA | MXN | 402,964 | USD | 23,399 | 10/06/2023 | 287,975 |
90 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
Counterparty | Contracts to Deliver (000) | In Exchange For (000) | Settlement Date | Unrealized Appreciation (Depreciation) | ||||||||||||
Morgan Stanley Capital Services LLC | AUD | 257,206 | USD | 165,252 | 10/05/2023 | $ | (130,408 | ) | ||||||||
Morgan Stanley Capital Services LLC | CAD | 17,785 | USD | 13,166 | 10/05/2023 | 71,845 | ||||||||||
Morgan Stanley Capital Services LLC | USD | 21,933 | AUD | 33,970 | 10/05/2023 | (90,626 | ) | |||||||||
Morgan Stanley Capital Services LLC | USD | 5,785 | GBP | 4,660 | 10/05/2023 | (99,325 | ) | |||||||||
Morgan Stanley Capital Services LLC | MXN | 85,383 | USD | 4,821 | 10/06/2023 | (75,458 | ) | |||||||||
Morgan Stanley Capital Services LLC | USD | 6,276 | NZD | 10,626 | 10/06/2023 | 92,386 | ||||||||||
Morgan Stanley Capital Services LLC | EUR | 6,641 | USD | 7,266 | 10/12/2023 | 241,610 | ||||||||||
Morgan Stanley Capital Services LLC | CAD | 1,530 | USD | 1,130 | 10/27/2023 | 2,941 | ||||||||||
Morgan Stanley Capital Services LLC | MYR | 120,125 | USD | 25,899 | 01/11/2024 | 90,387 | ||||||||||
Natwest Markets PLC | JPY | 24,271,972 | USD | 165,240 | 10/06/2023 | 2,742,881 | ||||||||||
Standard Chartered Bank | GBP | 206,571 | USD | 257,608 | 10/05/2023 | 5,568,462 | ||||||||||
UBS AG | EUR | 73,314 | USD | 78,454 | 10/05/2023 | 936,656 | ||||||||||
UBS AG | USD | 157,708 | CNH | 1,153,916 | 10/11/2023 | 455,674 | ||||||||||
UBS AG | CNH | 1,153,916 | USD | 157,738 | 10/25/2023 | (511,346 | ) | |||||||||
|
| |||||||||||||||
$ | 54,307,720 | |||||||||||||||
|
|
CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note D)
Description | Fixed Rate (Pay) Receive | Payment Frequency | Implied Credit Spread at September 30, 2023 | Notional Amount (000) | Market Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | |||||||||||||||||||||
Buy Contracts | ||||||||||||||||||||||||||||
iTraxx Australia Series 40, 5 Year Index, 12/20/2028* | (1.00 | )% | Quarterly | 0.88 | % | USD 83,510 | $ | (492,918 | ) | $ | (668,824 | ) | $ | 175,906 | ||||||||||||||
Sale Contracts | ||||||||||||||||||||||||||||
CDX-NAIG Series 41, 5 Year Index, 12/20/2028* | 1.00 | Quarterly | 0.74 | USD 83,510 | 1,024,500 | 1,133,353 | (108,853 | ) | ||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||
$ | 531,582 | $ | 464,529 | $ | 67,053 | |||||||||||||||||||||||
|
|
|
|
|
|
* | Termination date |
abfunds.com | AB GLOBAL BOND FUND | 91 |
PORTFOLIO OF INVESTMENTS (continued)
CENTRALLY CLEARED INTEREST RATE SWAPS (see Note D)
Rate Type | ||||||||||||||||||||||||||||||
Notional (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) | |||||||||||||||||||||||
NZD | 43,642 | 11/01/2024 | | 3 Month BKBM | | 2.580% | Quarterly/Semi-Annual | $ | (879,243 | ) | $ | – 0 | – | $ | (879,243 | ) | ||||||||||||||
NZD | 116,738 | 11/02/2024 | | 3 Month BKBM | | 2.503% | Quarterly/Semi-Annual | (2,442,666 | ) | – 0 | – | (2,442,666 | ) | |||||||||||||||||
HUF | 12,128,363 | 06/02/2028 | 8.820% | | 6 Month BUBOR | | Annual/ Semi-Annual | (634,079 | ) | – 0 | – | (634,079 | ) | |||||||||||||||||
HUF | 11,402,887 | 06/05/2028 | 8.698% | | 6 Month BUBOR | | Annual/ Semi-Annual | (459,144 | ) | – 0 | – | (459,144 | ) | |||||||||||||||||
JPY | 21,211,240 | 08/18/2028 | 0.438% | | 1 Day TONAR | | Annual | 765,659 | – 0 | – | 765,659 | |||||||||||||||||||
CNY | 1,449,660 | 09/28/2028 | 2.420% | | China 7-Day Reverse Repo Rate | | Quarterly | (242,907 | ) | – 0 | – | (242,907 | ) | |||||||||||||||||
CNY | 1,449,660 | 09/28/2028 | | China 7-Day Reverse Repo Rate | | 2.418% | Quarterly | 222,272 | – 0 | – | 222,272 | |||||||||||||||||||
CNY | 1,449,660 | 09/28/2028 | | China 7-Day Reverse Repo Rate | | 2.420% | Quarterly | 242,907 | – 0 | – | 242,907 | |||||||||||||||||||
NZD | 101,450 | 04/26/2033 | | 3 Month BKBM | | 4.180% | Quarterly/ Semi-Annual | (4,094,346 | ) | – 0 | – | (4,094,346 | ) | |||||||||||||||||
JPY | 5,416,180 | 08/18/2033 | | 1 Day TONAR | | 0.838% | Annual | (424,247 | ) | – 0 | – | (424,247 | ) | |||||||||||||||||
EUR | 45,250 | 09/30/2050 | 0.122% | | 6 Month EURIBOR | | Annual/ Semi-Annual | 25,836,021 | – 0 | – | 25,836,021 | |||||||||||||||||||
EUR | 45,250 | 09/30/2050 | | 6 Month EURIBOR | | (0.017)% | Semi-Annual/ Annual | (27,013,958 | ) | – 0 | – | (27,013,958 | ) | |||||||||||||||||
EUR | 45,740 | 11/10/2050 | 0.022% | | 6 Month EURIBOR | | Annual/ Semi-Annual | 27,669,913 | 357,073 | 27,312,840 | ||||||||||||||||||||
EUR | 45,740 | 11/10/2050 | | 6 Month EURIBOR | | (0.043)% | Semi-Annual/ Annual | (28,258,069 | ) | – 0 | – | (28,258,069 | ) | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||
$ | (9,711,887 | ) | $ | 357,073 | $ | (10,068,960 | ) | |||||||||||||||||||||||
|
|
|
|
|
|
CREDIT DEFAULT SWAPS (see Note D)
Swap Counterparty & Referenced Obligation | Fixed Rate (Pay) Receive | Payment Frequency | Implied Credit Spread at September 30, 2023 | Notional Amount (000) | Market Value | Upfront Premiums Paid (Received) | Unrealized Appreciation (Depreciation) | |||||||||||||||||||||||||
Sale Contracts | ||||||||||||||||||||||||||||||||
Credit Suisse International |
| |||||||||||||||||||||||||||||||
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | 3.00 | % | Monthly | 7.50 | % | USD | 2,444 | $ | (351,656 | ) | $ | (320,220 | ) | $ | (31,436 | ) | ||||||||||||||||
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | 3.00 | Monthly | 7.50 | USD | 3,177 | (457,153 | ) | (415,798 | ) | (41,355 | ) | |||||||||||||||||||||
Goldman Sachs International |
| |||||||||||||||||||||||||||||||
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | 3.00 | Monthly | 7.50 | USD | 1,466 | (211,238 | ) | (106,136 | ) | (105,102 | ) | |||||||||||||||||||||
CDX-CMBX.NA.BBB- Series 6, 05/11/2063* | 3.00 | Monthly | 7.50 | USD | 4,888 | (704,127 | ) | (342,519 | ) | (361,608 | ) | |||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||
$ | (1,724,174 | ) | $ | (1,184,673 | ) | $ | (539,501 | ) | ||||||||||||||||||||||||
|
|
|
|
|
|
92 | AB GLOBAL BOND FUND | abfunds.com |
PORTFOLIO OF INVESTMENTS (continued)
* | Termination date |
** | Principal amount less than 500. |
(a) | Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At September 30, 2023, the aggregate market value of these securities amounted to $2,424,807,235 or 44.7% 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) | Coupon rate adjusts periodically based upon a predetermined schedule. Stated interest rate in effect at September 30, 2023. |
(d) | Fair valued by the Adviser. |
(e) | Floating Rate Security. Stated interest/floor/ceiling rate was in effect at September 30, 2023. |
(f) | Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.03% of net assets as of September 30, 2023, are considered illiquid and restricted. Additional information regarding such securities follows: |
144A/Restricted & Illiquid Securities | Acquisition Date | Cost | Market Value | Percentage of Net Assets | ||||||||||||
Chile Electricity PEC SpA | 10/06/2021 | $ | 186,261 | $ | 159,030 | 0.00 | % | |||||||||
JPMorgan Madison Avenue Securities Trust | 09/18/2015 | 1,426,765 | 1,448,303 | 0.03 | % | |||||||||||
Virgolino de Oliveira Finance SA | | 06/13/2013 – 09/23/2014 | | 3,886,876 | 430 | 0.00 | % |
(g) | 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 September 30, 2023. |
(h) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
(i) | Defaulted matured security. |
(j) | Non-income producing security. |
(k) | The stated coupon rate represents the greater of the SOFR or the SOFR floor rate plus a spread at September 30, 2023. |
(l) | 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. |
(m) | The rate shown represents the 7-day yield as of period end. |
(n) | Affiliated investments. |
Currency Abbreviations:
AUD – Australian Dollar CAD – Canadian Dollar CHF – Swiss Franc CNH – Chinese Yuan Renminbi (Offshore) CNY – Chinese Yuan Renminbi EUR – Euro GBP – Great British Pound HUF – Hungarian Forint IDR – Indonesian Rupiah | JPY – Japanese Yen KRW – South Korean Won MXN – Mexican Peso MYR – Malaysian Ringgit NZD – New Zealand Dollar SEK – Swedish Krona THB – Thailand Baht USD – United States Dollar ZAR – South African Rand |
abfunds.com | AB GLOBAL BOND FUND | 93 |
PORTFOLIO OF INVESTMENTS (continued)
Glossary:
ABS – Asset-Backed Securities
BKBM – Bank Bill Benchmark (New Zealand)
BOBL – Bundesobligationen
CBT – Chicago Board of Trade
CDX-CMBX.NA – North American Commercial Mortgage-Backed Index
CDX-NAIG – North American Investment Grade Credit Default Swap Index
CLO – Collateralized Loan Obligations
CMBS – Commercial Mortgage-Backed Securities
EURIBOR – Euro Interbank Offered Rate
JSC – Joint Stock Company
LIBOR – London Interbank Offered Rate
NATL – National Interstate Corporation
OAT – Obligations Assimilables du Trésor
PJSC – Public Joint Stock Company
REIT – Real Estate Investment Trust
SOFR – Secured Overnight Financing Rate
TBA – To Be Announced
TIPS – Treasury Inflation Protected Security
TONAR – Tokyo Overnight Average Rate
See notes to financial statements.
94 | AB GLOBAL BOND FUND | abfunds.com |
STATEMENT OF ASSETS & LIABILITIES
September 30, 2023
Assets | ||||
Investments in securities, at value | $ | 5,787,555,774 | ||
Affiliated issuers (cost $73,930,984) | 73,930,984 | |||
Cash | 29,325 | |||
Cash collateral due from broker | 25,086,706 | |||
Foreign currencies, at value (cost $966,816) | 962,395 | |||
Receivable for investment securities sold and foreign currency transactions | 58,151,702 | |||
Unrealized appreciation on forward currency exchange contracts | 55,974,890 | |||
Unaffiliated interest receivable | 41,397,722 | |||
Receivable for capital stock sold | 8,752,934 | |||
Receivable for variation margin on futures | 2,380,504 | |||
Affiliated dividends receivable | 1,252,910 | |||
Receivable for variation margin on centrally cleared swaps | 59 | |||
|
| |||
Total assets | 6,055,475,905 | |||
|
| |||
Liabilities | ||||
Payable for investment securities purchased and foreign currency transactions | 590,570,068 | |||
Cash collateral due to broker | 24,916,509 | |||
Payable for capital stock redeemed | 9,044,384 | |||
Advisory fee payable | 2,115,157 | |||
Market value of credit default swaps (net premiums received $1,184,673) | 1,724,174 | |||
Unrealized depreciation on forward currency exchange contracts | 1,667,170 | |||
Dividends payable | 1,617,474 | |||
Payable for variation margin on centrally cleared swaps | 821,028 | |||
Payable for capital gains taxes | 718,872 | |||
Transfer Agent fee payable | 145,152 | |||
Distribution fee payable | 96,204 | |||
Administrative fee payable | 24,598 | |||
Accrued expenses | 1,418,773 | |||
|
| |||
Total liabilities | 634,879,563 | |||
|
| |||
Net Assets | $ | 5,420,596,342 | ||
|
| |||
Composition of Net Assets | ||||
Capital stock, at par | $ | 826,054 | ||
Additional paid-in capital | 6,830,145,022 | |||
Accumulated loss | (1,410,374,734 | ) | ||
|
| |||
$ | 5,420,596,342 | |||
|
|
See notes to financial statements.
abfunds.com | AB GLOBAL BOND FUND | 95 |
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 | $ | 332,870,930 | 50,684,776 | $ | 6.57 | * | ||||||
| ||||||||||||
C | $ | 14,098,614 | 2,139,598 | $ | 6.59 | |||||||
| ||||||||||||
Advisor | $ | 3,549,674,446 | 541,023,829 | $ | 6.56 | |||||||
| ||||||||||||
R | $ | 31,163,832 | 4,754,589 | $ | 6.55 | |||||||
| ||||||||||||
K | $ | 8,085,377 | 1,232,689 | $ | 6.56 | |||||||
| ||||||||||||
I | $ | 670,854,182 | 102,230,503 | $ | 6.56 | |||||||
| ||||||||||||
Z | $ | 813,848,961 | 123,987,649 | $ | 6.56 | |||||||
|
* | The maximum offering price per share for Class A shares was $6.86, which reflects a sales charge of 4.25%. |
See notes to financial statements.
96 | AB GLOBAL BOND FUND | abfunds.com |
STATEMENT OF OPERATIONS
Year Ended September 30, 2023
Investment Income | ||||||||
Interest (net of foreign taxes withheld of $332,534) | $ | 204,870,610 | ||||||
Dividends | ||||||||
Affiliated issuers | 5,309,885 | |||||||
Unaffiliated issuers | 1,100,163 | |||||||
Other income | 76,275 | $ | 211,356,933 | |||||
|
| |||||||
Expenses | ||||||||
Advisory fee (see Note B) | 25,513,700 | |||||||
Transfer agency—Class A | 203,823 | |||||||
Transfer agency—Class C | 10,609 | |||||||
Transfer agency—Advisor Class | 1,890,340 | |||||||
Transfer agency—Class R | 136,359 | |||||||
Transfer agency—Class K | 26,269 | |||||||
Transfer agency—Class I | 548,049 | |||||||
Transfer agency—Class Z | 183,492 | |||||||
Distribution fee—Class A | 926,885 | |||||||
Distribution fee—Class C | 181,876 | |||||||
Distribution fee—Class R | 171,148 | |||||||
Distribution fee—Class K | 21,550 | |||||||
Custody and accounting | 644,544 | |||||||
Registration fees | 225,712 | |||||||
Audit and tax | 135,616 | |||||||
Printing | 121,455 | |||||||
Administrative | 104,635 | |||||||
Legal | 91,329 | |||||||
Directors’ fees | 77,660 | |||||||
Miscellaneous | 136,213 | |||||||
|
| |||||||
Total expenses before interest expense | 31,351,264 | |||||||
Interest expense | 93,766 | |||||||
|
| |||||||
Total expenses | 31,445,030 | |||||||
Less: expenses waived and reimbursed by the Adviser (see Note B) | (100,396 | ) | ||||||
|
| |||||||
Net expenses | 31,344,634 | |||||||
�� |
|
| ||||||
Net investment income | 180,012,299 | |||||||
|
|
See notes to financial statements.
abfunds.com | AB GLOBAL BOND FUND | 97 |
STATEMENT OF OPERATIONS (continued)
Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions | ||||||||
Net realized loss on: | ||||||||
Investment transactions(a) | $ | (328,717,914 | ) | |||||
Forward currency exchange contracts | (168,598,295 | ) | ||||||
Futures | (9,107,517 | ) | ||||||
Swaps | (10,218,178 | ) | ||||||
Foreign currency transactions | (69,581,536 | ) | ||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||
Investments(b) | 484,780,496 | |||||||
Forward currency exchange contracts | (4,933,748 | ) | ||||||
Futures | (14,858,882 | ) | ||||||
Swaps | 10,524,276 | |||||||
Foreign currency denominated assets and liabilities | 783,895 | |||||||
|
| |||||||
Net loss on investment and foreign currency transactions | (109,927,403 | ) | ||||||
|
| |||||||
Contributions from Affiliates (see Note B) | 4,238 | |||||||
|
| |||||||
Net Increase in Net Assets from Operations | $ | 70,089,134 | ||||||
|
|
(a) | Net of foreign realized capital gains taxes of $174,608. |
(b) | Net of increase in accrued foreign capital gains taxes on unrealized gains of $52,478. |
See notes to financial statements.
98 | AB GLOBAL BOND FUND | abfunds.com |
STATEMENT OF CHANGES IN NET ASSETS
Year Ended September 30, 2023 | Year Ended September 30, 2022 | |||||||
Increase (Decrease) in Net Assets from Operations | ||||||||
Net investment income | $ | 180,012,299 | $ | 104,569,555 | ||||
Net realized loss on investment and foreign currency transactions | (586,223,440 | ) | (14,056,457 | ) | ||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency denominated assets and liabilities | 476,296,037 | (963,213,409 | ) | |||||
Contributions from Affiliates | 4,238 | 716 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets from operations | 70,089,134 | (872,699,595 | ) | |||||
Distributions to Shareholders | ||||||||
Class A | (31,048,451 | ) | (21,975,166 | ) | ||||
Class C | (1,479,477 | ) | (1,182,268 | ) | ||||
Advisor Class | (284,552,068 | ) | (190,054,777 | ) | ||||
Class R | (2,714,762 | ) | (1,745,135 | ) | ||||
Class K | (676,437 | ) | (501,460 | ) | ||||
Class I | (60,631,879 | ) | (38,514,337 | ) | ||||
Class Z | (64,290,456 | ) | (39,231,722 | ) | ||||
Return of Capital | ||||||||
Class A | (2,887,617 | ) | – 0 | – | ||||
Class C | (137,597 | ) | – 0 | – | ||||
Advisor Class | (26,464,357 | ) | – 0 | – | ||||
Class R | (252,482 | ) | – 0 | – | ||||
Class K | (62,911 | ) | – 0 | – | ||||
Class I | (5,638,981 | ) | – 0 | – | ||||
Class Z | (5,979,242 | ) | – 0 | – | ||||
Capital Stock Transactions | ||||||||
Net increase (decrease) | 437,645,834 | (462,510,929 | ) | |||||
|
|
|
| |||||
Total increase (decrease) | 20,918,251 | (1,628,415,389 | ) | |||||
Net Assets | ||||||||
Beginning of period | 5,399,678,091 | 7,028,093,480 | ||||||
|
|
|
| |||||
End of period | $ | 5,420,596,342 | $ | 5,399,678,091 | ||||
|
|
|
|
See notes to financial statements.
abfunds.com | AB GLOBAL BOND FUND | 99 |
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
NOTE A
Significant Accounting Policies
AB Global Bond Fund, Inc. (the “Fund”) is organized as a Maryland corporation and is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund offers Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares. Class B 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 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 automatically convert to Class A shares eight 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 market value determined on the basis of market quotations or, if market quotations are not readily available or are unreliable, at “fair value” as determined in accordance with procedures approved by and under the oversight of the Fund’s Board of Directors (the “Board”). Pursuant to these procedures, AllianceBernstein L.P. (the “Adviser”) serves as the Fund’s valuation designee pursuant to Rule 2a-5 of the 1940 Act. In this capacity, the Adviser is responsible, among other things, for making all fair value determinations relating to the Fund’s portfolio investments, subject to the Board’s oversight.
In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national
100 | AB GLOBAL BOND FUND | 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, 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. 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
abfunds.com | AB GLOBAL BOND FUND | 101 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 which are then discounted to calculate fair values. If these inputs are
102 | AB GLOBAL BOND FUND | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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.
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
abfunds.com | AB GLOBAL BOND FUND | 103 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 September 30, 2023:
Investments in | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Governments – Treasuries | $ | – 0 | – | $ | 2,393,323,110 | $ | – 0 | – | $ | 2,393,323,110 | ||||||
Corporates – Investment Grade | 255,968 | 1,392,671,051 | – 0 | – | 1,392,927,019 | |||||||||||
Mortgage Pass-Throughs | – 0 | – | 654,418,188 | – 0 | – | 654,418,188 | ||||||||||
Covered Bonds | – 0 | – | 267,526,874 | – 0 | – | 267,526,874 | ||||||||||
Collateralized Mortgage Obligations | – 0 | – | 191,489,633 | – 0 | – | 191,489,633 | ||||||||||
Inflation-Linked Securities | – 0 | – | 142,244,544 | – 0 | – | 142,244,544 | ||||||||||
Collateralized Loan Obligations | – 0 | – | 130,153,301 | – 0 | – | 130,153,301 | ||||||||||
Governments – Sovereign Bonds | – 0 | – | 110,481,429 | – 0 | – | 110,481,429 | ||||||||||
Supranationals | – 0 | – | 79,921,515 | – 0 | – | 79,921,515 | ||||||||||
Asset-Backed Securities | – 0 | – | 79,472,734 | – 0 | – | 79,472,734 | ||||||||||
Governments – Sovereign Agencies | – 0 | – | 60,402,705 | – 0 | – | 60,402,705 | ||||||||||
Corporates – Non-Investment Grade | – 0 | – | 55,533,948 | – 0 | – | 55,533,948 | ||||||||||
Commercial Mortgage-Backed Securities | – 0 | – | 45,931,631 | – 0 | – | 45,931,631 | ||||||||||
Quasi-Sovereigns | – 0 | – | 39,943,762 | – 0 | – | 39,943,762 | ||||||||||
Local Governments – Regional Bonds | – 0 | – | 39,399,353 | – 0 | – | 39,399,353 | ||||||||||
Local Governments – Provincial Bonds | – 0 | – | 34,166,042 | – 0 | – | 34,166,042 | ||||||||||
Local Governments – US Municipal Bonds | – 0 | – | 28,507,244 | – 0 | – | 28,507,244 | ||||||||||
Emerging Markets – Corporate Bonds | – 0 | – | 21,524,944 | 430 | 21,525,374 | |||||||||||
Bank Loans | – 0 | – | 5,841,102 | – 0 | – | 5,841,102 | ||||||||||
Common Stocks | 426,858 | – 0 | – | 2,896,693 | 3,323,551 |
104 | AB GLOBAL BOND FUND | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
Investments in | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Emerging Markets – Treasuries | $ | – 0 | – | $ | 1 | $ | – 0 | – | $ | 1 | ||||||
Short-Term Investments: | ||||||||||||||||
Investment Companies | 73,930,984 | – 0 | – | – 0 | – | 73,930,984 | ||||||||||
Time Deposits | – 0 | – | 11,022,714 | – 0 | – | 11,022,714 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | 74,613,810 | 5,783,975,825 | 2,897,123 | 5,861,486,758 | ||||||||||||
Other Financial Instruments*: | ||||||||||||||||
Assets | ||||||||||||||||
Futures | 2,144,114 | – 0 | – | – 0 | – | 2,144,114 | † | |||||||||
Forward Currency Exchange Contracts | – 0 | – | 55,974,890 | – 0 | – | 55,974,890 | ||||||||||
Centrally Cleared Credit Default Swaps | – 0 | – | 1,024,500 | – 0 | – | 1,024,500 | † | |||||||||
Centrally Cleared Interest Rate Swaps | – 0 | – | 54,736,772 | – 0 | – | 54,736,772 | † | |||||||||
Liabilities | ||||||||||||||||
Futures | (7,031,576 | ) | – 0 | – | – 0 | – | (7,031,576 | )† | ||||||||
Forward Currency Exchange Contracts | – 0 | – | (1,667,170 | ) | – 0 | – | (1,667,170 | ) | ||||||||
Centrally Cleared Credit Default Swaps | – 0 | – | (492,918 | ) | – 0 | – | (492,918 | )† | ||||||||
Centrally Cleared Interest Rate Swaps | – 0 | – | (64,448,659 | ) | – 0 | – | (64,448,659 | )† | ||||||||
Credit Default Swaps | – 0 | – | (1,724,174 | ) | – 0 | – | (1,724,174 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 69,726,348 | $ | 5,827,379,066 | $ | 2,897,123 | $ | 5,900,002,537 | ||||||||
|
|
|
|
|
|
|
|
* | 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, written options and written swaptions which are valued at market value. |
† | 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
abfunds.com | AB GLOBAL BOND FUND | 105 |
NOTES TO FINANCIAL STATEMENTS (continued)
were acquired or sold. Income and expenses are translated into U.S. dollars at the 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.
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. Non-cash dividends, if any, are recorded on the ex-dividend date at the fair value of the securities received. 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.
106 | AB GLOBAL BOND FUND | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
6. Class Allocations
All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each settled 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. 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 .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.
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 September 30, 2023, the reimbursement for such services amounted to $104,635.
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 $1,024,458 for the year ended September 30, 2023.
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 $3,221 from the sale of Class A shares and received $397 and $998 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended September 30, 2023.
abfunds.com | AB GLOBAL BOND FUND | 107 |
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 had 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, 2023. Effective September 1, 2023, the Adviser has contractually agreed to waive .05% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .15%) until August 31, 2024. 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 September 30, 2023, such waiver amounted to $100,396.
A summary of the Fund’s transactions in AB mutual funds for the year ended September 30, 2023 is as follows:
Fund | Market Value 9/30/22 (000) | Purchases at Cost (000) | Sales Proceeds (000) | Market Value 9/30/23 (000) | Dividend Income (000) | |||||||||||||||
Government Money Market Portfolio | $ | 64,626 | $ | 1,960,428 | $ | 1,951,123 | $ | 73,931 | $ | 5,310 |
During the year ended September 30, 2023 and the year ended September 30, 2022, the Adviser reimbursed the Fund $4,238 and $716, respectively, for trading losses incurred due to trade entry errors.
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 and .25% of the Fund’s average daily net assets attributable to Class K shares. There are no distribution and servicing fees on 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
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NOTES TO FINANCIAL STATEMENTS (continued)
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 $15,602,788, $1,463,434 and $324,424 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 September 30, 2023, were as follows:
Purchases | Sales | |||||||
Investment securities (excluding U.S. government securities) | $ | 5,347,330,615 | $ | 4,819,466,661 | ||||
U.S. government securities | 4,720,761,013 | 4,930,895,032 |
The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:
Cost | $ | 6,401,202,677 | ||
|
| |||
Gross unrealized appreciation | $ | 125,932,399 | ||
Gross unrealized depreciation | (674,211,909 | ) | ||
|
| |||
Net unrealized depreciation | $ | (548,279,510 | ) | |
|
|
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:
• | 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”.
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NOTES TO 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 September 30, 2023, the Fund held forward currency exchange contracts for hedging and non-hedging purposes.
• | 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
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NOTES TO FINANCIAL STATEMENTS (continued)
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 September 30, 2023, the Fund held futures 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 including by 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 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
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NOTES TO FINANCIAL STATEMENTS (continued)
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.
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
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NOTES TO FINANCIAL STATEMENTS (continued)
of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by the 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 September 30, 2023, 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 obligation with the same counterparty.
Credit default swaps may involve greater risks than if the 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.
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NOTES TO FINANCIAL STATEMENTS (continued)
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 September 30, 2023, 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 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 tables below for additional details.
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NOTES TO FINANCIAL STATEMENTS (continued)
During the year ended September 30, 2023, 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 | Receivable for variation margin on futures | $ | 2,144,114 | * | | Payable for variation margin |
| $ | 7,031,576 | * | ||||
Interest rate | Receivable for variation margin on centrally cleared swaps | | 54,379,699 | * | | Payable for variation margin | | | 64,448,659 | * | ||||
Foreign currency | Unrealized appreciation on forward currency exchange contracts | | 55,974,890 | | Unrealized depreciation on forward currency exchange contracts | | 1,667,170 | |||||||
Credit contracts | | Market value of credit default swaps | 1,724,174 | |||||||||||
Credit contracts | Receivable for variation margin on centrally cleared swaps | 175,906 | * | | Payable for variation margin | | 108,853 | * | ||||||
|
|
|
| |||||||||||
Total | $ | 112,674,609 | $ | 74,980,432 | ||||||||||
|
|
|
|
* | 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 | 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) on swaps | $ | (9,230,412 | ) | $ | 8,835,346 | ||||
Interest rate contracts | Net realized gain/(loss) on futures; Net change in unrealized appreciation (depreciation) on futures | (9,107,517 | ) | (14,858,882 | ) |
abfunds.com | AB GLOBAL BOND FUND | 115 |
NOTES TO FINANCIAL STATEMENTS (continued)
Derivative Type | Location of Gain or | Realized Gain or (Loss) on Derivatives | Change in Unrealized Appreciation or (Depreciation) | |||||||
Foreign currency contracts | Net realized gain/(loss) on forward currency exchange contracts; Net change in unrealized appreciation (depreciation) on forward currency exchange contracts | $ | (168,598,295 | ) | $ | (4,933,748 | ) | |||
Credit contracts | Net realized gain/(loss) on swaps; Net change in unrealized appreciation (depreciation) on swaps | (987,766 | ) | 1,688,930 | ||||||
|
|
|
| |||||||
Total | $ | (187,923,990 | ) | $ | (9,268,354 | ) | ||||
|
|
|
|
The following table represents the average monthly volume of the Fund’s derivative transactions during the year ended September 30, 2023:
Centrally Cleared Credit Default Swaps: | ||||
Average notional amount of buy contracts | $ | 52,627,624 | (a) | |
Average notional amount of sale contracts | $ | 49,448,429 | (b) | |
Centrally Cleared Interest Rate Swaps | ||||
Average notional amount | $ | 608,257,483 | ||
Credit Default Swaps: | ||||
Average notional amount of sale contracts | $ | 14,586,370 | ||
Forward Currency Exchange Contracts: | ||||
Average principal amount of buy contracts | $ | 2,282,305,724 | ||
Average principal amount of sale contracts | $ | 5,091,451,697 | ||
Futures: | ||||
Average notional amount of buy contracts | $ | 519,592,379 | ||
Average notional amount of sale contracts | $ | 560,453,479 |
(a) | Positions were open for eight months during the reporting period. |
(b) | Positions were open for six months during the reporting period. |
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
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NOTES TO FINANCIAL STATEMENTS (continued)
received/pledged by the Fund as of September 30, 2023. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the tables.
Counterparty | Derivative Assets Subject to a MA | Derivatives Available for Offset | Cash Collateral Received* | Security Collateral Received* | Net Amount of Derivative Assets | |||||||||||||||
Bank of America, NA | $ | 19,186,630 | $ | (32,488 | ) | $ | – 0 | – | $ | – 0 | – | $ | 19,154,142 | |||||||
BNP Paribas SA | 1,140,511 | – 0 | – | – 0 | – | – 0 | – | 1,140,511 | ||||||||||||
Brown Brothers Harriman & Co. | 31,908 | (31,908 | ) | – 0 | – | – 0 | – | – 0 | – | |||||||||||
Citibank, NA | 1,434,396 | (228,509 | ) | (869,509 | ) | – 0 | – | 336,378 | ||||||||||||
HSBC Bank USA | 23,690,628 | (83,279 | ) | (23,607,349 | ) | – 0 | – | – 0 | – | |||||||||||
JPMorgan Chase Bank, NA | 287,975 | – 0 | – | – 0 | – | – 0 | – | 287,975 | ||||||||||||
Morgan Stanley Capital Services LLC | 499,169 | (395,817 | ) | – 0 | – | – 0 | – | 103,352 | ||||||||||||
Natwest Markets PLC | 2,742,881 | – 0 | – | – 0 | – | – 0 | – | 2,742,881 | ||||||||||||
Standard Chartered Bank | 5,568,462 | – 0 | – | – 0 | – | – 0 | – | 5,568,462 | ||||||||||||
UBS AG | 1,392,330 | (511,346 | ) | – 0 | – | – 0 | – | 880,984 | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 55,974,890 | $ | (1,283,347 | ) | $ | (24,476,858 | ) | $ | – 0 | – | $ | 30,214,685 | ^ | ||||||
|
|
|
|
|
|
|
|
|
|
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 | $ | 32,488 | $ | (32,488 | ) | $ | – 0 | – | $ | – 0 | – | $ | – 0 | – | ||||||
Barclays Bank PLC | 239,838 | – 0 | – | – 0 | – | – 0 | – | 239,838 | ||||||||||||
Brown Brothers Harriman & Co. | 175,893 | (31,908 | ) | – 0 | – | – 0 | – | 143,985 | ||||||||||||
Citibank, NA | 228,509 | (228,509 | ) | – 0 | – | – 0 | – | – 0 | – | |||||||||||
Credit Suisse International | 808,809 | – 0 | – | (808,809 | ) | – 0 | – | – 0 | – | |||||||||||
Goldman Sachs International | 915,365 | – 0 | – | (915,365 | ) | – 0 | – | – 0 | – | |||||||||||
HSBC Bank USA | 83,279 | (83,279 | ) | – 0 | – | – 0 | – | – 0 | – | |||||||||||
Morgan Stanley Capital Services LLC | 395,817 | (395,817 | ) | – 0 | – | – 0 | – | – 0 | – | |||||||||||
UBS AG | 511,346 | (511,346 | ) | – 0 | – | – 0 | – | – 0 | – | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 3,391,344 | $ | (1,283,347 | ) | $ | (1,724,174 | ) | $ | – 0 | – | $ | 383,823 | ^ | ||||||
|
|
|
|
|
|
|
|
|
|
* | The actual collateral received/pledged may be more than the amount reported due to overcollateralization. |
^ | 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
abfunds.com | AB GLOBAL BOND FUND | 117 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 agreed-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 September 30, 2023, the Fund earned drop income of $322,297 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
118 | AB GLOBAL BOND FUND | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
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 September 30, 2023, the average amount of reverse repurchase agreements outstanding was $8,689,395 and the daily weighted average interest rate was 0.01%. As of September 30, 2023, the Fund did not hold reverse repurchase agreements.
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 September 30, 2023 | Year Ended 2022 | Year Ended 2023 | Year Ended 2022 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Shares sold | 4,509,902 | 4,950,816 | $ | 30,649,967 | $ | 39,184,488 | ||||||||||||||||||
| ||||||||||||||||||||||||
Shares issued in reinvestment of dividends and distributions | 3,667,291 | 2,067,039 | 25,074,171 | 16,764,841 | ||||||||||||||||||||
| ||||||||||||||||||||||||
Shares converted from Class C | 560,882 | 704,291 | 3,843,963 | 5,483,574 | ||||||||||||||||||||
| ||||||||||||||||||||||||
Shares redeemed | (15,816,533 | ) | (18,092,414 | ) | (108,001,665 | ) | (142,150,009 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Net decrease | (7,078,458 | ) | (10,370,268 | ) | $ | (48,433,564 | ) | $ | (80,717,106 | ) | ||||||||||||||
| ||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||
Shares sold | 274,766 | 276,563 | $ | 1,897,691 | $ | 2,233,094 | ||||||||||||||||||
| ||||||||||||||||||||||||
Shares issued in reinvestment of dividends and distributions | 199,318 | 123,567 | 1,368,001 | 1,014,799 | ||||||||||||||||||||
| ||||||||||||||||||||||||
Shares converted to Class A | (558,996 | ) | (701,834 | ) | (3,843,963 | ) | (5,483,574 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Shares redeemed | (950,912 | ) | (1,193,631 | ) | (6,517,657 | ) | (9,474,619 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Net decrease | (1,035,824 | ) | (1,495,335 | ) | $ | (7,095,928 | ) | $ | (11,710,300 | ) | ||||||||||||||
|
abfunds.com | AB GLOBAL BOND FUND | 119 |
NOTES TO FINANCIAL STATEMENTS (continued)
Shares | Amount | |||||||||||||||||||||||
Year Ended September 30, 2023 | Year Ended 2022 | Year Ended 2023 | Year Ended 2022 | |||||||||||||||||||||
|
| |||||||||||||||||||||||
Advisor Class | ||||||||||||||||||||||||
Shares sold | 138,998,489 | 92,883,007 | $ | 945,834,055 | $ | 733,805,941 | ||||||||||||||||||
| ||||||||||||||||||||||||
Shares issued in reinvestment of dividends and distributions | 34,042,911 | 18,069,481 | 232,307,208 | 146,241,591 | ||||||||||||||||||||
| ||||||||||||||||||||||||
Shares redeemed | (117,576,424 | ) | (178,294,111 | ) | (802,849,124 | ) | (1,396,559,349 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Net increase (decrease) | 55,464,976 | (67,341,623 | ) | $ | 375,292,139 | $ | (516,511,817 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Class R | ||||||||||||||||||||||||
Shares sold | 877,603 | 1,095,028 | $ | 5,971,615 | $ | 8,744,132 | ||||||||||||||||||
| ||||||||||||||||||||||||
Shares issued in reinvestment of dividends and distributions | 432,248 | 214,722 | 2,955,309 | 1,745,775 | ||||||||||||||||||||
| ||||||||||||||||||||||||
Shares redeemed | (1,803,227 | ) | (1,884,158 | ) | (12,333,376 | ) | (14,837,194 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Net decrease | (493,376 | ) | (574,408 | ) | $ | (3,406,452 | ) | $ | (4,347,287 | ) | ||||||||||||||
| ||||||||||||||||||||||||
Class K | ||||||||||||||||||||||||
Shares sold | 262,805 | 320,299 | $ | 1,784,991 | $ | 2,564,766 | ||||||||||||||||||
| ||||||||||||||||||||||||
Shares issued in reinvestment of dividends and distributions | 107,902 | 61,487 | 737,433 | 500,253 | ||||||||||||||||||||
| ||||||||||||||||||||||||
Shares redeemed | (325,174 | ) | (749,614 | ) | (2,196,154 | ) | (5,838,903 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Net increase (decrease) | 45,533 | (367,828 | ) | $ | 326,270 | $ | (2,773,884 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||
Shares sold | 11,945,619 | 14,043,371 | $ | 81,348,626 | $ | 113,080,949 | ||||||||||||||||||
| ||||||||||||||||||||||||
Shares issued in reinvestment of dividends and distributions | 9,020,337 | 4,583,235 | 61,574,598 | 37,041,565 | ||||||||||||||||||||
| ||||||||||||||||||||||||
Shares redeemed | (20,995,086 | ) | (24,308,868 | ) | (140,660,468 | ) | (190,795,317 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Net increase (decrease) | (29,130 | ) | (5,682,262 | ) | $ | 2,262,756 | $ | (40,672,803 | ) | |||||||||||||||
| ||||||||||||||||||||||||
Class Z | ||||||||||||||||||||||||
Shares sold | 26,748,800 | 41,432,532 | $ | 181,371,641 | $ | 342,522,824 | ||||||||||||||||||
| ||||||||||||||||||||||||
Shares issued in reinvestment of dividends and distributions | 10,049,288 | 4,672,398 | 68,647,726 | 37,670,207 | ||||||||||||||||||||
| ||||||||||||||||||||||||
Shares redeemed | (19,334,825 | ) | (23,845,413 | ) | (131,318,754 | ) | (185,970,763 | ) | ||||||||||||||||
| ||||||||||||||||||||||||
Net increase | 17,463,263 | 22,259,517 | $ | 118,700,613 | $ | 194,222,268 | ||||||||||||||||||
|
120 | AB GLOBAL BOND FUND | �� | abfunds.com |
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) and regional and global conflicts, 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. The Fund may be subject to a greater risk of rising interest rates than would normally be the case due to the recent end of a period of historically low rates and the effect of potential central bank monetary policy, and government fiscal policy, initiatives and resulting market reactions to those initiatives.
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
abfunds.com | AB GLOBAL BOND FUND | 121 |
NOTES TO FINANCIAL STATEMENTS (continued)
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 and are 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—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. A short position in a derivative instrument involves the risk of a theoretically unlimited increase in the value of the underlying asset, which
122 | AB GLOBAL BOND FUND | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
could cause the Fund to suffer a potentially unlimited loss. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.
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 redemption of Fund shares. 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 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 Replacement Risk—The Fund may be exposed to debt securities, derivatives or other financial instruments that recently transitioned from the London Interbank Offered Rate, or “LIBOR,” as a “benchmark” or “reference rate” for various interest rate calculations. LIBOR’s administrator, ICE Benchmark Administration, ceased publishing most LIBOR settings (including some U.S. LIBOR settings) by the end of 2021 and the remaining (and most widely used) U.S. Dollar LIBOR settings after June 30, 2023. The United Kingdom Financial Conduct Authority, which regulates LIBOR, will permit the use of synthetic U.S. Dollar LIBOR rates for non-U.S. contracts through September 30, 2024, but any such rates would be considered non-representative of the underlying market. Since 2018 the Federal Reserve Bank of New York has published the Secured Overnight Financing Rate (referred to as SOFR), which is intended to replace U.S. Dollar LIBOR. SOFR is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement (repo) market. There is no assurance that the composition or characteristics of SOFR or any such alternative reference rate will be similar to or produce the same value or economic equivalence as LIBOR or that the market for SOFR-linked financial instruments will have the same volume or liquidity as did the market for LIBOR-linked financial instruments prior to LIBOR’s discontinuance or unavailability. Neither the long-term effects of the LIBOR transition process nor its ultimate success can yet be known.
abfunds.com | AB GLOBAL BOND FUND | 123 |
NOTES TO 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 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 related to redemptions and other short term liquidity requirements, subject to certain restrictions. 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 September 30, 2023.
NOTE H
Distributions to Shareholders
The tax character of distributions paid during the fiscal years ended September 30, 2023 and September 30, 2022 were as follows:
2023 | 2022 | |||||||
Distributions paid from: | ||||||||
Ordinary income | $ | 445,393,530 | $ | 239,373,330 | ||||
Net long-term capital gains | – 0 | – | 53,831,535 | |||||
|
|
|
| |||||
Total taxable distributions paid | $ | 445,393,530 | $ | 293,204,865 | ||||
Return of Capital | 41,423,187 | – 0 | – | |||||
|
|
|
| |||||
Total distributions paid | $ | 486,816,717 | $ | 293,204,865 | ||||
|
|
|
|
As of September 30, 2023, the components of accumulated earnings (deficit) on a tax basis were as follows:
Accumulated capital losses | $ | (672,761,557 | )(a) | |
Other losses | (184,629,669 | )(b) | ||
Unrealized appreciation (depreciation) | (549,081,267 | )(c) | ||
|
| |||
Total accumulated earnings (deficit) | $ | (1,406,472,493 | )(d) | |
|
|
(a) | As of September 30, 2023, the Fund had a net capital loss carryforward of $672,761,557. |
124 | AB GLOBAL BOND FUND | abfunds.com |
NOTES TO FINANCIAL STATEMENTS (continued)
(b) | As of September 30, 2023, the Fund had a qualified late-year ordinary loss deferral of $184,629,669. |
(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 callable bonds, the tax treatment of swaps, and the tax deferral of losses on wash sales. |
(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 September 30, 2023, the Fund had a net short-term capital loss carryforward of $291,540,435 and a net long-term capital loss carryforward of $381,221,122, which may be carried forward for an indefinite period.
During the current fiscal year, permanent differences primarily due to 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 I
Recent Accounting Pronouncements
In December 2022, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2022-06, “Reference Rate Reform (Topic 848) – Deferral of the Sunset Date of Topic 848”. ASU 2022-06 is an amendment to ASU 2020-04, which provided optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates and which was effective as of March 12, 2020 through December 31, 2022. ASU 2022-06 extends the effective period through December 31, 2024. Management is currently evaluating the impact, if any, of applying ASU 2022-06.
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 GLOBAL BOND FUND | 125 |
FINANCIAL HIGHLIGHTS
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class A | ||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
|
| |||||||||||||||||||
Net asset value, beginning of period | $ 7.09 | $ 8.52 | $ 8.62 | $ 8.67 | $ 8.19 | |||||||||||||||
|
| |||||||||||||||||||
Income From Investment Operations | ||||||||||||||||||||
Net investment income(a)(b) | .21 | .11 | .11 | .14 | .17 | |||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.11 | ) | (1.20 | ) | (.02 | ) | .07 | .52 | ||||||||||||
Contributions from Affiliates | .00 | (c) | .00 | (c) | – 0 | – | .00 | (c) | .00 | (c) | ||||||||||
|
| |||||||||||||||||||
Net increase (decrease) in net asset value from operations | .10 | (1.09 | ) | .09 | .21 | .69 | ||||||||||||||
|
| |||||||||||||||||||
Less: Dividends and Distributions | ||||||||||||||||||||
Dividends from net investment income | (.57 | ) | (.24 | ) | (.13 | ) | (.26 | ) | (.21 | ) | ||||||||||
Distributions from net realized gain on investment and foreign currency transactions | – 0 | – | (.10 | ) | (.06 | ) | – 0 | – | – 0 | – | ||||||||||
Return of Capital | (.05 | ) | – 0 | – | – 0 | – | – 0 | – | – 0 | – | ||||||||||
|
| |||||||||||||||||||
Total dividends and distributions | (.62 | ) | (.34 | ) | (.19 | ) | (.26 | ) | (.21 | ) | ||||||||||
|
| |||||||||||||||||||
Net asset value, end of period | $ 6.57 | $ 7.09 | $ 8.52 | $ 8.62 | $ 8.67 | |||||||||||||||
|
| |||||||||||||||||||
Total Return | ||||||||||||||||||||
Total investment return based on net asset value(d) | 1.27 | % | (13.27 | )% | .92 | % | 2.44 | %^ | 8.58 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period | $332,871 | $409,768 | $580,627 | $656,731 | $758,638 | |||||||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, net of waivers/reimbursements(e) | .80 | % | .80 | % | .80 | % | .80 | % | .81 | % | ||||||||||
Expenses, before waivers/reimbursements(e) | .80 | % | .80 | % | .80 | % | .80 | % | .81 | % | ||||||||||
Net investment income(b) | 3.06 | % | 1.40 | % | 1.24 | % | 1.62 | % | 2.02 | % | ||||||||||
Portfolio turnover rate* | 177 | % | 159 | % | 130 | % | 135 | % | 126 | % |
See footnote summary on page 133.
126 | AB GLOBAL BOND FUND | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class C | ||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
|
| |||||||||||||||||||
Net asset value, beginning of period | $ 7.12 | $ 8.55 | $ 8.65 | $ 8.70 | $ 8.21 | |||||||||||||||
|
| |||||||||||||||||||
Income From Investment Operations | ||||||||||||||||||||
Net investment income(a)(b) | .16 | .05 | .04 | .08 | .11 | |||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.12 | ) | (1.20 | ) | (.02 | ) | .06 | .53 | ||||||||||||
Contributions from Affiliates | .00 | (c) | .00 | (c) | – 0 | – | .00 | (c) | .00 | (c) | ||||||||||
|
| |||||||||||||||||||
Net increase (decrease) in net asset value from operations | .04 | (1.15 | ) | .02 | .14 | .64 | ||||||||||||||
|
| |||||||||||||||||||
Less: Dividends and Distributions | ||||||||||||||||||||
Dividends from net investment income | (.52 | ) | (.18 | ) | (.06 | ) | (.19 | ) | (.15 | ) | ||||||||||
Distributions from net realized gain on investment and foreign currency transactions | – 0 | – | (.10 | ) | (.06 | ) | – 0 | – | – 0 | – | ||||||||||
Return of Capital | (.05 | ) | – 0 | – | – 0 | – | – 0 | – | – 0 | – | ||||||||||
|
| |||||||||||||||||||
Total dividends and distributions | (.57 | ) | (.28 | ) | (.12 | ) | (.19 | ) | (.15 | ) | ||||||||||
|
| |||||||||||||||||||
Net asset value, end of period | $ 6.59 | $ 7.12 | $ 8.55 | $ 8.65 | $ 8.70 | |||||||||||||||
|
| |||||||||||||||||||
Total Return | ||||||||||||||||||||
Total investment return based on net asset value(d) | .36 | % | (13.88 | )% | .27 | % | 1.66 | % | 7.87 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000’s omitted) | $14,099 | $22,599 | $39,929 | $65,949 | $104,089 | |||||||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, net of waivers/reimbursements(e) | 1.55 | % | 1.55 | % | 1.55 | % | 1.55 | % | 1.56 | % | ||||||||||
Expenses, before waivers/reimbursements(e) | 1.55 | % | 1.56 | % | 1.55 | % | 1.55 | % | 1.56 | % | ||||||||||
Net investment income(b) | 2.26 | % | .62 | % | .49 | % | .93 | % | 1.26 | % | ||||||||||
Portfolio turnover rate* | 177 | % | 159 | % | 130 | % | 135 | % | 126 | % |
See footnote summary on page 133.
abfunds.com | AB GLOBAL BOND FUND | 127 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Advisor Class | ||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
|
| |||||||||||||||||||
Net asset value, beginning of period | $ 7.09 | $ 8.51 | $ 8.62 | $ 8.66 | $ 8.18 | |||||||||||||||
|
| |||||||||||||||||||
Income From Investment Operations | ||||||||||||||||||||
Net investment income(a)(b) | .23 | .13 | .13 | .16 | .19 | |||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.12 | ) | (1.19 | ) | (.03 | ) | .08 | .52 | ||||||||||||
Contributions from Affiliates | .00 | (c) | .00 | (c) | – 0 | – | .00 | (c) | .00 | (c) | ||||||||||
|
| |||||||||||||||||||
Net increase (decrease) in net asset value from operations | .11 | (1.06 | ) | .10 | .24 | .71 | ||||||||||||||
|
| |||||||||||||||||||
Less: Dividends and Distributions | ||||||||||||||||||||
Dividends from net investment income | (.59 | ) | (.26 | ) | (.15 | ) | (.28 | ) | (.23 | ) | ||||||||||
Distributions from net realized gain on investment and foreign currency transactions | – 0 | – | (.10 | ) | (.06 | ) | – 0 | – | – 0 | – | ||||||||||
Return of Capital | (.05 | ) | – 0 | – | – 0 | – | – 0 | – | – 0 | – | ||||||||||
|
| |||||||||||||||||||
Total dividends and distributions | (.64 | ) | (.36 | ) | (.21 | ) | (.28 | ) | (.23 | ) | ||||||||||
|
| |||||||||||||||||||
Net asset value, end of period | $ 6.56 | $ 7.09 | $ 8.51 | $ 8.62 | $ 8.66 | |||||||||||||||
|
| |||||||||||||||||||
Total Return | ||||||||||||||||||||
Total investment return based on net asset value(d) | 1.38 | % | (12.95 | )% | 1.17 | % | 2.82 | % | 8.86 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000’s omitted) | $3,549,674 | $3,441,514 | $4,707,655 | $4,645,021 | $4,845,448 | |||||||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, net of waivers/reimbursements(e) | .55 | % | .55 | % | .55 | % | .55 | % | .56 | % | ||||||||||
Expenses, before waivers/reimbursements(e) | .55 | % | .56 | % | .55 | % | .55 | % | .56 | % | ||||||||||
Net investment income(b) | 3.33 | % | 1.66 | % | 1.49 | % | 1.91 | % | 2.26 | % | ||||||||||
Portfolio turnover rate* | 177 | % | 159 | % | 130 | % | 135 | % | 126 | % |
See footnote summary on page 133.
128 | AB GLOBAL BOND FUND | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class R | ||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
|
| |||||||||||||||||||
Net asset value, beginning of period | $ 7.09 | $ 8.52 | $ 8.62 | $ 8.66 | $ 8.18 | |||||||||||||||
|
| |||||||||||||||||||
Income From Investment Operations | ||||||||||||||||||||
Net investment income(a)(b) | .17 | .08 | .07 | .10 | .13 | |||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.12 | ) | (1.21 | ) | (.02 | ) | .08 | .53 | ||||||||||||
Contributions from Affiliates | .00 | (c) | .00 | (c) | – 0 | – | .00 | (c) | .00 | (c) | ||||||||||
|
| |||||||||||||||||||
Net increase (decrease) in net asset value from operations | .05 | (1.13 | ) | .05 | .18 | .66 | ||||||||||||||
|
| |||||||||||||||||||
Less: Dividends and Distributions | ||||||||||||||||||||
Dividends from net investment income | (.54 | ) | (.20 | ) | (.09 | ) | (.22 | ) | (.18 | ) | ||||||||||
Distributions from net realized gain on investment and foreign currency transactions | – 0 | – | (.10 | ) | (.06 | ) | – 0 | – | – 0 | – | ||||||||||
Return of Capital | (.05 | ) | – 0 | – | – 0 | – | – 0 | – | – 0 | – | ||||||||||
|
| |||||||||||||||||||
Total dividends and distributions | (.59 | ) | (.30 | ) | (.15 | ) | (.22 | ) | (.18 | ) | ||||||||||
|
| |||||||||||||||||||
Net asset value, end of period | $ 6.55 | $ 7.09 | $ 8.52 | $ 8.62 | $ 8.66 | |||||||||||||||
|
| |||||||||||||||||||
Total Return | ||||||||||||||||||||
Total investment return based on net asset value(d) | .50 | % | (13.65 | )% | .59 | % | 2.08 | % | 8.13 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000’s omitted) | $31,164 | $37,213 | $49,599 | $56,424 | $69,424 | |||||||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, net of waivers/reimbursements(e) | 1.40 | % | 1.25 | % | 1.24 | % | 1.27 | % | 1.24 | % | ||||||||||
Expenses, before waivers/reimbursements(e) | 1.40 | % | 1.25 | % | 1.24 | % | 1.27 | % | 1.24 | % | ||||||||||
Net investment income(b) | 2.46 | % | .96 | % | .80 | % | 1.20 | % | 1.59 | % | ||||||||||
Portfolio turnover rate* | 177 | % | 159 | % | 130 | % | 135 | % | 126 | % |
See footnote summary on page 133.
abfunds.com | AB GLOBAL BOND FUND | 129 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class K | ||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
|
| |||||||||||||||||||
Net asset value, beginning of period | $ 7.09 | $ 8.52 | $ 8.62 | $ 8.66 | $ 8.18 | |||||||||||||||
|
| |||||||||||||||||||
Income From Investment Operations | ||||||||||||||||||||
Net investment income(a)(b) | .19 | .10 | .10 | .13 | .16 | |||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.11 | ) | (1.20 | ) | (.02 | ) | .07 | .52 | ||||||||||||
Contributions from Affiliates | .00 | (c) | .00 | (c) | – 0 | – | .00 | (c) | .00 | (c) | ||||||||||
|
| |||||||||||||||||||
Net increase (decrease) in net asset value from operations | .08 | (1.10 | ) | .08 | .20 | .68 | ||||||||||||||
|
| |||||||||||||||||||
Less: Dividends and Distributions | ||||||||||||||||||||
Dividends from net investment income | (.56 | ) | (.23 | ) | (.12 | ) | (.24 | ) | (.20 | ) | ||||||||||
Distributions from net realized gain on investment and foreign currency transactions | – 0 | – | (.10 | ) | (.06 | ) | – 0 | – | – 0 | – | ||||||||||
Return of Capital | (.05 | ) | – 0 | – | – 0 | – | – 0 | – | – 0 | – | ||||||||||
|
| |||||||||||||||||||
Total dividends and distributions | (.61 | ) | (.33 | ) | (.18 | ) | (.24 | ) | (.20 | ) | ||||||||||
|
| |||||||||||||||||||
Net asset value, end of period | $ 6.56 | $ 7.09 | $ 8.52 | $ 8.62 | $ 8.66 | |||||||||||||||
|
| |||||||||||||||||||
Total Return | ||||||||||||||||||||
Total investment return based on net asset value(d) | .97 | % | (13.38 | )% | .90 | % | 2.39 | % | 8.46 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000’s omitted) | $8,085 | $8,420 | $13,249 | $16,627 | $19,576 | |||||||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, net of waivers/reimbursements(e) | 1.05 | % | .94 | % | .93 | % | .96 | % | .93 | % | ||||||||||
Expenses, before waivers/reimbursements(e) | 1.05 | % | .94 | % | .93 | % | .96 | % | .93 | % | ||||||||||
Net investment income(b) | 2.83 | % | 1.24 | % | 1.11 | % | 1.51 | % | 1.89 | % | ||||||||||
Portfolio turnover rate* | 177 | % | 159 | % | 130 | % | 135 | % | 126 | % |
See footnote summary on page 133.
130 | AB GLOBAL BOND FUND | abfunds.com |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class I | ||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
|
| |||||||||||||||||||
Net asset value, beginning of period | $ 7.09 | $ 8.52 | $ 8.62 | $ 8.66 | $ 8.18 | |||||||||||||||
|
| |||||||||||||||||||
Income From Investment Operations | ||||||||||||||||||||
Net investment income(a)(b) | .23 | .13 | .13 | .16 | .19 | |||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.13 | ) | (1.20 | ) | (.02 | ) | .07 | .52 | ||||||||||||
Contributions from Affiliates | .00 | (c) | .00 | (c) | – 0 | – | .00 | (c) | .00 | (c) | ||||||||||
|
| |||||||||||||||||||
Net increase (decrease) in net asset value from operations | .10 | (1.07 | ) | .11 | .23 | .71 | ||||||||||||||
|
| |||||||||||||||||||
Less: Dividends and Distributions | ||||||||||||||||||||
Dividends from net investment income | (.58 | ) | (.26 | ) | (.15 | ) | (.27 | ) | (.23 | ) | ||||||||||
Distributions from net realized gain on investment and foreign currency transactions | – 0 | – | (.10 | ) | (.06 | ) | – 0 | – | – 0 | – | ||||||||||
Return of Capital | (.05 | ) | – 0 | – | – 0 | – | – 0 | – | – 0 | – | ||||||||||
|
| |||||||||||||||||||
Total dividends and distributions | (.63 | ) | (.36 | ) | (.21 | ) | (.27 | ) | (.23 | ) | ||||||||||
|
| |||||||||||||||||||
Net asset value, end of period | $ 6.56 | $ 7.09 | $ 8.52 | $ 8.62 | $ 8.66 | |||||||||||||||
|
| |||||||||||||||||||
Total Return | ||||||||||||||||||||
Total investment return based on net asset value(d) | 1.36 | % | (13.06 | )% | 1.29 | % | 2.79 | % | 8.87 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000’s omitted) | $670,854 | $724,876 | $919,250 | $854,892 | $852,566 | |||||||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, net of waivers/reimbursements(e) | .57 | % | .56 | % | .55 | % | .58 | % | .55 | % | ||||||||||
Expenses, before waivers/reimbursements(e) | .57 | % | .57 | % | .55 | % | .58 | % | .56 | % | ||||||||||
Net investment income(b) | 3.31 | % | 1.65 | % | 1.49 | % | 1.88 | % | 2.27 | % | ||||||||||
Portfolio turnover rate* | 177 | % | 159 | % | 130 | % | 135 | % | 126 | % |
See footnote summary on page 133.
abfunds.com | AB GLOBAL BOND FUND | 131 |
FINANCIAL HIGHLIGHTS (continued)
Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period
Class Z | ||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
|
| |||||||||||||||||||
Net asset value, beginning of period | $ 7.09 | $ 8.52 | $ 8.62 | $ 8.66 | $ 8.18 | |||||||||||||||
|
| |||||||||||||||||||
Income From Investment Operations | ||||||||||||||||||||
Net investment income(a)(b) | .23 | .14 | .13 | .16 | .19 | |||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.12 | ) | (1.21 | ) | (.02 | ) | .08 | .53 | ||||||||||||
Contributions from Affiliates | .00 | (c) | .00 | (c) | – 0 | – | .00 | (c) | .00 | (c) | ||||||||||
|
| |||||||||||||||||||
Net increase (decrease) in net asset value from operations | .11 | (1.07 | ) | .11 | .24 | .72 | ||||||||||||||
�� |
| |||||||||||||||||||
Less: Dividends and Distributions | ||||||||||||||||||||
Dividends from net investment income | (.59 | ) | (.26 | ) | (.15 | ) | (.28 | ) | (.24 | ) | ||||||||||
Distributions from net realized gain on investment and foreign currency transactions | – 0 | – | (.10 | ) | (.06 | ) | – 0 | – | – 0 | – | ||||||||||
Return of Capital | (.05 | ) | – 0 | – | – 0 | – | – 0 | – | – 0 | – | ||||||||||
|
| |||||||||||||||||||
Total dividends and distributions | (.64 | ) | (.36 | ) | (.21 | ) | (.28 | ) | (.24 | ) | ||||||||||
|
| |||||||||||||||||||
Net asset value, end of period | $ 6.56 | $ 7.09 | $ 8.52 | $ 8.62 | $ 8.66 | |||||||||||||||
|
| |||||||||||||||||||
Total Return | ||||||||||||||||||||
Total investment return based on net asset value(d) | 1.40 | % | (13.01 | )% | 1.34 | % | 2.84 | % | 8.93 | % | ||||||||||
Ratios/Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000’s omitted) | $813,849 | $755,288 | $717,784 | $579,878 | $580,799 | |||||||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, net of waivers/reimbursements(e) | .52 | % | .51 | % | .50 | % | .53 | % | .50 | % | ||||||||||
Expenses, before waivers/reimbursements(e) | .52 | % | .51 | % | .50 | % | .53 | % | .50 | % | ||||||||||
Net investment income(b) | 3.37 | % | 1.73 | % | 1.53 | % | 1.93 | % | 2.33 | % | ||||||||||
Portfolio turnover rate* | 177 | % | 159 | % | 130 | % | 135 | % | 126 | % |
See footnote summary on page 133.
132 | AB GLOBAL BOND FUND | 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) | Amount is less than $0.005. |
(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 charge or contingent deferred sales charge is not reflected in the calculation of total investment return. Total investment 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 for a period of less than one year is not annualized. |
(e) | The expense ratios presented below exclude interest expense: |
Year Ended September 30, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
|
| |||||||||||||||||||
Class A | ||||||||||||||||||||
Net of waivers/reimbursements | .80 | % | .80 | % | .80 | % | .80 | % | .81 | % | ||||||||||
Before waivers/reimbursements | .80 | % | .80 | % | .80 | % | .80 | % | .81 | % | ||||||||||
Class C | ||||||||||||||||||||
Net of waivers/reimbursements | 1.55 | % | 1.55 | % | 1.55 | % | 1.55 | % | 1.56 | % | ||||||||||
Before waivers/reimbursements | 1.55 | % | 1.56 | % | 1.55 | % | 1.55 | % | 1.56 | % | ||||||||||
Advisor Class | ||||||||||||||||||||
Net of waivers/reimbursements | .55 | % | .55 | % | .55 | % | .55 | % | .56 | % | ||||||||||
Before waivers/reimbursements | .55 | % | .56 | % | .55 | % | .55 | % | .56 | % | ||||||||||
Class R | ||||||||||||||||||||
Net of waivers/reimbursements | 1.39 | % | 1.25 | % | 1.24 | % | 1.27 | % | 1.24 | % | ||||||||||
Before waivers/reimbursements | 1.39 | % | 1.25 | % | 1.24 | % | 1.27 | % | 1.24 | % | ||||||||||
Class K | ||||||||||||||||||||
Net of waivers/reimbursements | 1.05 | % | .94 | % | .93 | % | .96 | % | .93 | % | ||||||||||
Before waivers/reimbursements | 1.05 | % | .94 | % | .93 | % | .96 | % | .93 | % | ||||||||||
Class I | ||||||||||||||||||||
Net of waivers/reimbursements | .57 | % | .56 | % | .55 | % | .58 | % | .55 | % | ||||||||||
Before waivers/reimbursements | .57 | % | .57 | % | .55 | % | .58 | % | .56 | % | ||||||||||
Class Z | ||||||||||||||||||||
Net of waivers/reimbursements | .52 | % | .51 | % | .50 | % | .53 | % | .50 | % | ||||||||||
Before waivers/reimbursements | .52 | % | .51 | % | .50 | % | .53 | % | .50 | % |
^ | 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. |
* | The Fund accounts for dollar roll transactions as purchases and sales. |
See notes to financial statements.
abfunds.com | AB GLOBAL BOND FUND | 133 |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Directors of
AB Global Bond Fund, Inc.
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of AB Global Bond Fund, Inc. (the “Fund”), including the portfolio of investments, as of September 30, 2023, 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 at September 30, 2023, 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 Fund’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 Fund 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 Fund is not required to have, nor were we engaged to perform, an audit of the Fund’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 Fund’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 the financial statements. Our procedures included confirmation
134 | AB GLOBAL BOND FUND | abfunds.com |
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM (continued)
of securities owned as of September 30, 2023, by correspondence with the custodian, brokers and others; when replies were not received from brokers or others, we performed other auditing procedures. 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
November 22, 2023
abfunds.com | AB GLOBAL BOND FUND | 135 |
2023 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 September 30, 2023. For foreign shareholders, 31.99% 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 2024.
136 | AB GLOBAL BOND FUND | abfunds.com |
BOARD OF DIRECTORS
Garry L. Moody(1), Jorge A. Bermudez(1) Michael J. Downey(1) Onur Erzan, President and Chief Executive Officer | Nancy P. Jacklin(1) Jeanette W. Loeb(1) Carol C. McMullen(1) Marshall C. Turner, Jr.(1) | |
OFFICERS | ||
Scott A. DiMaggio(2), Matthew S. Sheridan(2), John Taylor(2), Vice President Nancy E. Hay, Secretary | Michael B. Reyes, Stephen M. Woetzel, Treasurer and Chief Financial Officer Phyllis J. Clarke, Controller Jennier Friedland, Chief |
Custodian and Accounting Agent Brown Brothers Harriman & Co. 50 Post Office Square Boston, MA 02110
Principal Underwriter AllianceBernstein Investments, Inc. 501 Commerce Street Nashville, TN 37203
Legal Counsel Seward & Kissel LLP One Battery Park Plaza New York, NY 10004 | Transfer Agent AllianceBernstein Investor Services, Inc. P.O. Box 786003 San Antonio, TX 78278 Toll-Free (800) 221-5672
Independent Registered Public Accounting Firm Ernst & Young LLP One Manhattan West New York, NY 10001 |
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 Global Fixed Income Investment Team. Messrs. DiMaggio, Sheridan and Taylor are the investment professionals with the most significant responsibility for the day-to-day management of the Fund’s portfolio. |
abfunds.com | AB GLOBAL BOND FUND | 137 |
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, | PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION*** | PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR | OTHER PUBLIC COMPANY DIRECTORSHIPS DIRECTOR | |||||
INTERESTED DIRECTOR | ||||||||
Onur Erzan,# AllianceBernstein L.P. | Senior Vice President of AllianceBernstein L.P. (the “Adviser”), Head of Global Client Group and Head of Private Wealth. He oversees AB’s entire private wealth management business and third-party institutional and retail franchise, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. He is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in January 2021, he spent over 19 years with McKinsey (management consulting firm), most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey’s Banking & Securities Solutions (a portfolio of data, analytics and digital assets and capabilities) globally. | 77 | None |
138 | AB GLOBAL BOND FUND | abfunds.com |
MANAGEMENT OF THE FUND (continued)
NAME, ADDRESS*, AGE, | PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION*** | PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR | OTHER PUBLIC COMPANY DIRECTORSHIPS DIRECTOR | |||||
INDEPENDENT DIRECTORS | ||||||||
Garry L. Moody,## Chairman of the Board 71 (2008) | Private Investor since prior to 2018. 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 served as a member of the Investment Company Institute’s Board of Governors and the Independent Directors Council’s Governing Council from October 2019 through September 2023, where he also served as Chairman of the Governance Committee from October 2021 through September 2023. He is Chairman of the AB Funds and Chairman of the Independent Directors Committees since January 2023; he has served as a director or trustee since 2008, and served as Chairman of the Audit Committee of such funds from 2008 to February 2023. | 77 | None |
abfunds.com | AB GLOBAL BOND FUND | 139 |
MANAGEMENT OF THE FUND (continued)
NAME, ADDRESS*, AGE, | PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION*** | PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR | OTHER PUBLIC COMPANY DIRECTORSHIPS DIRECTOR | |||||
INDEPENDENT DIRECTORS (continued) | ||||||||
Jorge A. Bermudez,## 72 (2020) | Private Investor since prior to 2018. 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; and Chair of the Audit Committee of the Board of Directors of Moody’s Corporation since December 2022. He has served as director or trustee of the AB Funds since January 2020. | 77 | Moody’s Corporation since April 2011 | |||||
Michael J. Downey,## (2005) | Private Investor since prior to 2018. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2018 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 |
140 | AB GLOBAL BOND FUND | abfunds.com |
MANAGEMENT OF THE FUND (continued)
NAME, ADDRESS*, AGE, | PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION*** | PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR | OTHER PUBLIC COMPANY DIRECTORSHIPS DIRECTOR | |||||
INDEPENDENT DIRECTORS (continued) | ||||||||
Nancy P. Jacklin,## 75 (2006) | Private Investor since prior to 2018. 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 served as Chair of the Governance and Nominating Committees of the AB Funds from 2014 to August 2023. | 77 | None |
abfunds.com | AB GLOBAL BOND FUND | 141 |
MANAGEMENT OF THE FUND (continued)
NAME, ADDRESS*, AGE, | PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION*** | PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR | OTHER PUBLIC COMPANY DIRECTORSHIPS DIRECTOR | |||||
INDEPENDENT DIRECTORS (continued) | ||||||||
Jeanette W. Loeb,## 71 (2020) | Private Investor since prior to 2018. Director of New York City Center since 2005. Formerly, Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to April 2023. She was a director of Apollo Investment Corp. (business development company) from August 2011 to July 2023 and a director of AB Multi-Manager Alternative Fund (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 and serves as Chair of the Governance and Nominating Committees of the AB Funds since August 2023. | 77 | None |
142 | AB GLOBAL BOND FUND | abfunds.com |
MANAGEMENT OF THE FUND (continued)
NAME, ADDRESS*, AGE, | PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION*** | PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR | OTHER PUBLIC COMPANY DIRECTORSHIPS DIRECTOR | |||||
INDEPENDENT DIRECTORS (continued) | ||||||||
Carol C. McMullen,## 68 | Private Investor and a member of the Advisory Board of Butcher Box (since 2018) and serves as Advisory Board Chair as of June 2023. Formerly, Managing Director of Slalom Consulting (consulting) from 2014 until July 2023; member, Mass General Brigham (formerly, 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 and serves as Chair of the Audit Committees of such funds since February 2023. | 77 | None |
abfunds.com | AB GLOBAL BOND FUND | 143 |
MANAGEMENT OF THE FUND (continued)
NAME, ADDRESS*, AGE, | PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS AND OTHER INFORMATION*** | PORTFOLIOS IN AB FUND COMPLEX OVERSEEN BY DIRECTOR | OTHER PUBLIC COMPANY DIRECTORSHIPS DIRECTOR | |||||
INDEPENDENT DIRECTORS (continued) | ||||||||
Marshall C. Turner, Jr.,## (2005) | Private Investor since prior to 2018. 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. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment) from 2003 through 2006. 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 board of the George Lucas Educational Foundation. He has served as a director of one AB Fund since 1992, and director or trustee of all the AB Funds since 2005. He has served as both Chairman of the AB Funds and Chairman of the Independent Directors Committees from 2014 through December 2022. | 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. Erzan 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. |
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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** | ||
Onur Erzan, 47 | President and Chief Executive Officer | See biography above. | ||
Scott A. DiMaggio, 52 | Vice President | Senior Vice President of the Adviser**, with which he has been associated since prior to 2018. He is also Co-Head of Fixed Income. | ||
Matthew S. Sheridan, 47 | Vice President | Senior Vice President of the Adviser**, with which he has been associated since prior to 2018. He is also Director—US Multi-Sector Fixed Income. | ||
John Taylor, 46 | Vice President | Senior Vice President of the Adviser**, with which he has been associated since prior to 2018. He is also Director—Global Multi-Sector. | ||
Nancy E. Hay, 51 | Secretary | Senior Vice President and Counsel of the Adviser**, with which she has been associated since prior to 2018 and Assistant Secretary of ABI**. | ||
Michael B. Reyes, 47 | Senior Vice President | Vice President of the Adviser,** with which he has been associated since prior to 2018. | ||
Stephen M. Woetzel, 52 | Treasurer and Chief Financial Officer | Senior Vice President of AllianceBernstein Investor Services, Inc. (“ABIS”),** with which he has been associated since prior to 2018. | ||
Phyllis J. Clarke, 62 | Controller | Vice President of ABIS**, with which she has been associated since prior to 2018. | ||
Jennifer Friedland, 49 | Chief Compliance Officer | Vice President of the Adviser** since 2020 and Mutual Fund Chief Compliance Officer (of all Funds since January 2023 and of the ETF Funds since 2022). Before joining the Adviser** in 2020, she was Chief Compliance Officer at WestEnd Advisors, LLC from prior to 2018 until 2019. |
* | 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.
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Operation and Effectiveness of the Funds’ 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/Trustees (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 2023, which covered the period January 1, 2022 through December 31, 2022 (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, incorporating 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 Funds’ LRMP is adequately designed, has been implemented as intended,
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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was challenged due to rising rates and economic uncertainty. However, markets also remained orderly during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.
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Information Regarding the Review and Approval of the Fund’s Advisory Agreement
The disinterested directors (the “directors”) of AB Global Bond Fund, Inc. (the “Fund”) unanimously approved the continuance of the Fund’s Advisory Agreement with the Adviser at a meeting held in-person on August 1-2, 2023 (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 Vice President of 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 a portion of its assets.
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
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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 at the request of the directors. 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 2021 and 2022 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. 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
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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 money market 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 Advisor Class 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 Advisor Class shares against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended May 31, 2023 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 lower than the median. They also noted that the Adviser’s total rate of compensation, taking into account the impact of the administrative expense reimbursement paid to the Adviser in the latest fiscal year, was lower than the median.
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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 Vice President 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 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 Advisor Class shares of the Fund in comparison to the medians for a peer group and a peer universe selected by the 15(c) service provider. The Advisor Class expense ratio of the Fund was based on the Fund’s latest fiscal year. 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.
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Economies of Scale
The directors noted that the advisory fee schedule for the Fund contains breakpoints and that the Fund’s net assets were higher than the breakpoint levels. Accordingly, the Fund’s current effective advisory fee rate reflected a reduction due to the breakpoints 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 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 breakpoint arrangements were acceptable and provide a means for sharing of any economies of scale. The directors also informed the Adviser that they would continue to monitor the Fund’s asset levels and consider whether additional breakpoints should be imposed in the future if circumstances warranted doing so.
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This page is not part of the Shareholder Report or the Financial Statements.
AB FAMILY OF FUNDS
US EQUITY
CORE
Core Opportunities Fund
Select US Equity Portfolio
Sustainable US Thematic Portfolio
GROWTH
Concentrated Growth Fund
Discovery Growth Fund
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 Low Volatility Equity Portfolio1
Sustainable Global Thematic Fund
Sustainable International Thematic Fund
Tax-Managed Wealth Appreciation Strategy
Wealth Appreciation Strategy
GROWTH
Concentrated International Growth Portfolio
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 Portfolio
National Portfolio
Arizona Portfolio
California Portfolio
Massachusetts Portfolio
Minnesota Portfolio
New Jersey Portfolio
New York Portfolio
Ohio Portfolio
Pennsylvania Portfolio
Virginia Portfolio
TAXABLE
Bond Inflation Strategy
Global Bond Fund
High Income Fund
Income Fund
Intermediate Duration Portfolio
Short Duration High Yield Portfolio1
Short Duration Income Portfolio
Short Duration Portfolio
Sustainable Thematic Credit 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 Total Return Portfolio
Emerging Markets Multi-Asset Portfolio
Global Risk Allocation Fund
Sustainable Thematic Balanced Portfolio
CLOSED-END FUNDS
AllianceBernstein Global High Income Fund
AllianceBernstein National Municipal Income Fund
EXCHANGE-TRADED FUNDS
Disruptors ETF
High Yield ETF
Tax-Aware Short Duration Municipal ETF
Ultra Short Income ETF
US High Dividend ETF
US Large Cap Strategic Equities ETF
US Low Volatility Equity ETF
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 July 5, 2023, International Low Volatility Equity Portfolio was named International Strategic Core Portfolio and Short Duration High Yield Portfolio was named Limited Duration High Income Portfolio. |
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NOTES
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NOTES
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NOTES
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AB GLOBAL BOND FUND
1345 Avenue of the Americas
New York, NY 10105
800 221 5672
GB-0151-0923
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., Jorge A. Bermudez and Carol C. McMullen 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 Global Bond Fund | 2022 | $ | 107,956 | $ | — | $ | 24,515 | |||||||||
2023 | $ | 107,956 | $ | — | $ | 22,432 |
(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) 100% of the amounts for Audit-Related Fees and Tax Fees in the table under Item 4 (b) and (c) are for services pre-approved by the Fund’s Audit Committee. No amounts are reported for Item 4 (d).
(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 Global Bond Fund | 2022 | $ | 1,956,972 | $ | 24,515 | |||||||
$ | — | |||||||||||
$ | (24,515 | ) | ||||||||||
2023 | $ | 1,703,463 | $ | 22,432 | ||||||||
$ | — | |||||||||||
$ | (22,432 | ) |
(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-2(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 period covered by this report 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:
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 Global Bond Fund, Inc. | ||
By: | /s/ Onur Erzan | |
Onur Erzan | ||
President | ||
Date: | November 29, 2023 |
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/ Onur Erzan | |
Onur Erzan | ||
President | ||
Date: | November 29, 2023 | |
By: | /s/ Stephen M. Woetzel | |
Stephen M. Woetzel | ||
Treasurer and Chief Financial Officer | ||
Date: | November 29, 2023 |