Overview

An active core municipal bond strategy that combines flexibility and innovation to increase after-tax returns and reduce volatility

About this Fund

  • Uses an innovative structure to help balance three distinctive return sources designed to help boost returns: high-grade municipals, municipal credit, and taxable bonds
  • Manages interest rate exposure, with the ability to invest in lower-rated munis and corporate bonds
  • Leverages the strength of AB's award-winning, fixed-income platform

Investment Approach

  • Invests primarily in high-quality municipal bonds with the flexibility to tactically allocate to taxable bonds and high-income municipals
  • Targeted duration: 4 to 7 years

Meet the Team

“

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

Andrew Potter, CFA—Portfolio Manager-Municipal Bond

 
Strategic Approach

Invest for Tax-Advantaged Income

Looking for more information about tax-advantaged income strategies? Explore our other products and thought leadership. 

Learn More 
 

Additional Information

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

Investment Definitions

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

Risks To Consider

  • Below Investment Grade Securities Risk: Investments in fixed-income securities with lower ratings (a/k/a 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 municipal or corporate developments and negative performance of the junk bond market generally and may be more difficult to trade than other types of securities.

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

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

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

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

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

  • Municipal Market Risk: Economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities may negatively impact the yield or value of a municipal security.

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

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

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

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

    The [A/B] logo is a registered service mark of AllianceBernstein and AllianceBernstein® is a registered service mark used by permission of the owner, AllianceBernstein L.P..

 

Looking for More Information?

Feel free to get in touch with our team, and we will get back to
you as soon as possible.

Get in touch