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Mutual Fund Expense Information

To help you assess the costs associated with your AllianceBernstein investments, we include a summary of fund expenses on your quarterly statements.

It is important to note that these fees and expenses are not new or additional-they are the normal costs of operating a mutual fund.

In fact, all mutual funds have fees and expenses.

Our statements include two sections that specifically address mutual fund expenses:

  • The Current Expense Summary Section
  • The Hypothetical Expense Summary Section

Important Notes Regarding Expenses

  • Expenses are reflected in the fund's price and are not charged to your individual account directly.
  • Operating expenses include all of the normal costs of running a mutual fund (payment to managers, maintaining phone lines, mailing prospectuses etc).
  • Expenses can vary by Class of Share.
  • Funds that focus their investments on a particular industry sector generally have higher expense ratios than general equity funds, which, in turn, generally have higher expense ratios than bond funds. International funds generally have higher expense ratios than comparable domestic funds.
  • Fees and expenses fluctuate over time and may be higher or lower than estimates shown.
  • A fund's returns are always stated after expenses.

For more information, click the FAQs tab above.

This section lists each of your fund names, fund numbers, account numbers, the annual expense ratio for each fund, quarterly fees and the ending value of each fund you own as of the end of the quarter.

Current Expense Summary

Fund Name Fund/Account Number Annual Expense Ratio Your Quarterly Fees Ending Value
ALLIANCEBERNSTEIN SAMPLE FUND CLASS A 555555555555 1.03% $64.38 $25,000

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

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

In reporting the figure in the ‘Your Quarterly Fees’ column, the Annual Expense Ratio is divided by 4 and multiplied by the ‘Ending Value’.

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

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

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

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

Hypothetical Expense Summary

Year Hypothetical Investment Hypothetical Performance Earnings Investment After Returns Annual Expense Ratio Hypothetical Expenses Hypothetical Ending Investmen
1 $10,000.00 $478.75 $10,053.75 1.03% $528.55 $9,950.20
2 $9,950.20 $497.51 $10,447.71 1.03% $107.61 $10,340.09
3 $10,340.09 $517.00 $10,857.10 1.03% $111.83 $10,745.27
4 $10,745.27 $537.26 $11,282.54 1.03% $116.21 $11,166.32
5 $11,166.32 $558.32 $11,724.64 1.03% $120.76 $11,603.88
6 $11,603.88 $580.19 $12,184.07 1.03% $125.50 $12,058.58
7 $12,058.58 $602.93 $12,661.50 1.03% $130.41 $12,531.09
8 $12,531.09 $626.55 $13,157.65 1.03% $135.52 $13,022.12
9 $13,022.12 $651.11 $13,673.23 1.03% $140.83 $13,532.39
10 $13,532.39 $676.62 $14,209.01 1.03% $146.35 $14,062.66
Total $5,726.25 $1,663.59

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


  1. How do these fees and expenses affect my account?

  2. Have these fees and expenses been applied to my account before?

  3. Do the fees and expenses impact my share balance?

  4. Do all mutual funds charge fees?

  5. Why do mutual funds charge fees, and how are the fees used by the fund?

  6. What is an expense ratio?

  7. How do fees affect returns on my mutual fund?

  8. What are the main types of mutual fund fees?

  9. How do I read a fee table in a fund prospectus?

  10. Do I have a choice in how I pay for my fund investment?

  11. How can I estimate how much I will pay in fees?

  12. How can I learn which fees a fund charges?

  13. Should I consider fund fees in making my investment decision?

  14. Does anyone oversee the fees a fund charges?

  15. Why doesn’t my statement include this new mutual fund expense information?

  1. How do these fees and expenses affect my account?
    Fees and expenses have been applied to your account since you opened it. Mutual fund shares are not removed from your account to cover any fees and expenses, nor are you required to forward any additional money to us. All mutual fund shareholders incur fees and expenses, which are reflected in the net asset value (NAV) price of a fund.

  2. Have these fees and expenses been applied to my account before?
    Yes. Fees and expenses are not newthey have been applied to your account since you opened it, but the expense ratios may have been different.


  3. Do the fees and expenses impact my share balance?
    The fees and expenses are reflected in the net asset value (NAV) of the fund. Mutual fund shares are not removed from your account to cover the fees and expenses.


  4. Do all mutual funds charge fees?
    Yes, all mutual fund companies charge fees and expenses. Annual fund operating expenses reflect the normal costs of operating a mutual fund. Unlike transaction fees, these expenses are not charged directly to an investor, but are deducted from fund assets before earnings are distributed to shareholders.


  5. Why do mutual funds charge fees, and how are the fees used by the fund?
    The fees you pay help cover the costs of managing the fund’s portfolio of securities. They also are used to pay for producing account statements, computerized account services, recordkeeping, legal services, printing, and mailing. Some fees may also compensate a financial advisor for his or her services.


  6. What is an expense ratio?
    A fund’s expense ratio is its total annual fund operating expenses as a percentage of the fund’s assets. This includes management fees, 12b-1 fees, the cost of shareholder mailings, and other administrative expenses.


  7. How do fees affect returns on my mutual fund?
    The fees you pay for owning a mutual fund will reduce your return from the fund. Before investing, you should review a fund’s prospectus carefully and decide if this cost is acceptable to you. And, it’s a good idea to check your fund’s fees when you review an investment you already have made. Keep in mind that a fund’s returns are always stated after expenses.


  8. What are the main types of mutual fund fees?
    Even if you do not memorize the name of every mutual fund fee, you should understand what you are paying for. Even more important, you should understand that the amount you pay in fees affects the return on your investment. Mutual fund fees generally fall into two categories. Both categories, "shareholder fees" and "annual fund operating expenses," are disclosed in the fee table in the front of a fund’s prospectus. (See question and answer #11 for more details regarding these fees and expenses.)


  9. How do I read a fee table in a fund prospectus?
    The fee table is the key to helping you understand fees. This standardized table is always near the front of a fund’s prospectus and lists all fees charged by a fund. Reading the fee table allows easy comparison of the costs of one fund versus another. Every fee table is broken into two sections. The first section describes "shareholder fees" which are the fees paid directly from your investment—any sales charges or transaction fees you will pay when you buy, sell, or exchange your shares. The second section describes "annual fund operating expenses" and lists all of the ongoing fees you will pay each year for as long as you own shares in the fund. The fee table also includes a hypothetical example that tells you in dollars and cents what a $10,000 investment would cost based on a 5 percent return.


  10. Do I have a choice in how I pay for my fund investment?
    Yes. Mutual funds offer different pricing arrangements to meet the needs of different investors. Many mutual funds make this possible by offering investors various "classes" of shares, which have different front-end or contingent deferred sales charges and distribution fees. Share classes represent ownership in the same mutual fund but offer investors a choice in how to pay for the fund. Share class names vary depending on the fund. You should review a fund’s share classes to determine which option is right for you. Your professional financial adviser or broker is responsible for recommending the share class most suitable for you. While fund expenses may vary by class of share, each class does, in fact, have expenses reflected in its net asset value.


  11. How can I estimate how much I will pay in fees?
    There are a number of ways to assess fund fees:
    • Ask your financial advisor.
    • Use the Mutual Fund Fees and Expenses Calculators on our website. This feature offers both Current Investment and Hypothetical Fee and Expense calculation capabilities.
    • Refer to your fund’s prospectus. Every fund prospectus includes a fee table and an example showing the dollar amount of expenses on a $10,000 investment that earns 5% over various time periods, listed in 1-, 3-, 5-, and 10-year increments. Remember that this amount will not reflect what you will actually pay, (except in the unlikely event that you invest exactly $10,000 and your investment earns exactly 5%) but can be a useful way for you to compare the effect of the overall fees on different funds. Prospectuses are mailed to you each year and can also be accessed on our website.


  12. How can I learn which fees a fund charges?
    Mutual fund fees are subject to exacting regulatory standards and disclosure requirements. You can easily learn which fees your fund charges by looking at the fee table near the front of the fund’s prospectus, which can be secured directly from the fund company or, in many cases, by visiting the fund’s section on this website.


  13. Should I consider fund fees in making my investment decision?
    Yes. Fund fees are one of many important elements that should be considered when you are making a decision about whether to purchase a particular fund. It is important to remember that a fund’s fees and expenses represent the cost you will incur for the services that you receive from the fund. You also need to consider the fund’s investment objective, policies, and its risks.


  14. Does anyone oversee the fees a fund charges?
    Yes. The fees you pay as a mutual fund shareholder are subject to ongoing oversight and review by the fund’s board of directors, including its independent directors. Directors have a responsibility under the law to protect the interests of shareholders. A majority of a fund’s board generally consists of directors who are independent of the fund’s adviser. A mutual fund’s directors, including the fund’s independent directors, annually review the fees paid to manage the fund. Any change in these fees must be approved by holders of the majority of a fund’s shares and a majority of the fund’s directors.


  15. Why doesn’t my statement include this new mutual fund expense information?
    If your AllianceBernstein Fund shares are held in a brokerage account, your statement may not be issued by AllianceBernstein, but rather by the brokerage firm. Deciding what information to include on statements is at the discretion of the issuing firm.
  16. For more information, call your Investment Advisor, or call AllianceBernstein at (800) 221-5672.

 


Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, click here or contact your AllianceBernstein Investments representative. Please read the prospectus and/or summary prospectus carefully before investing.


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


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


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