Each fund, other than Retirement Allocation, is named for a “target date”—the approximate year when you expect to retire and start withdrawing from your account. Funds furthest from their target dates emphasize growth potential by investing almost entirely in equities. As investors move closer to—and into—retirement, the funds automatically adjust to a more conservative asset mix. Investments in target-date funds are not guaranteed against loss of principal: at any time, your account value can be more or less than the original amount contributed—including at the time of the fund’s target date. Also, investing in target-date funds does not guarantee sufficient income in retirement.
A WORD ABOUT RISK
The value of your investment in the Fund will change with changes in the values of the Fund’s investments in the Underlying Funds. There is no assurance that the Fund will provide an investor with adequate income at or through retirement. Allocation Risk: The allocation of investments among the Underlying Funds’ different investment styles, such as equity or debt securities, or US or non-US securities, may have a more significant effect on the Fund’s net asset value (“NAV”) when one of these investments is performing more poorly than the other. There is no assurance that allocation decisions will result in the desired effects. Subjective decisions made by the Advisor and/or Morningstar Investment Management may cause the Fund to incur losses or to miss profit opportunities on which it might otherwise have capitalized. Market Risk: The value of the Fund’s investments 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 that affect large portions of the market. It includes the risk that a particular style of investing may be underperforming the stock market generally. Interest-Rate Risk: Changes in interest rates will affect the value of the Fund’s investments in Underlying Funds that invest in fixed-income securities. When interest-rates rise, the value of 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. 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. 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. Investments by Underlying Funds in fixed-income securities with lower ratings are subject to a higher probability that an issuer will default or fail to meet its payment obligations. Inflation Risk: This is the risk that the value of assets or income from the Fund’s investments in the Underlying Funds will be less in the future as inflation decreases the value of money. As inflation increases, the value of each Underlying Fund’s assets can decline, as can the value of that Underlying Fund’s distributions. Foreign (Non-US) Risk: Investments in non-US issuers by Underlying Funds may involve more risk than investments in US issuers. These securities may fluctuate more widely in price and may be less liquid due to adverse market, economic, political, regulatory or other factors. Emerging Market Risk: Investments by Underlying Funds in emerging-market countries may involve more risk than investments in other foreign countries because the markets in emerging-market countries are less developed and less liquid as well as subject to increased economic, political, regulatory and other uncertainties. Currency Risk: Fluctuations in currency exchange rates may negatively affect the value of the Fund’s investments or reduce its returns. Capitalization Risk: Investments in small- and mid-capitalization companies by Underlying Funds tend to be more volatile than investments in large-capitalization companies. Investments in small-capitalization companies may have additional risks because these companies often have limited product lines, markets, or financial resources. Derivatives Risk: Derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce disproportionate losses, and may be subject to counterparty risk to a greater degree than more traditional investments. Leverage Risk: Borrowing money or other leverage may make an Underlying Fund’s investments more volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of its investments. An Underlying Fund may create leverage through the use of certain portfolio-management techniques such as reverse repurchase agreements or forward commitments, or by borrowing money. Diversification Risk: The Fund may have more risk because it is “non-diversified,” meaning that it can invest more of its assets in a smaller number of issuers. Management Risk: The Fund is subject to management risk because it is an actively managed investment fund. The Advisor and Morningstar Investment Management will apply their investment techniques and risk analyses in making investment decisions for the Fund, but there is no guarantee that their techniques will produce the intended results. As with all investments, you may lose money by investing in the Fund. Investments in the underlying funds are subject to change. Accordingly, no assurances can be given that the Trust will continue to invest its assets, or the same portion of its assets, in any of the underlying funds.
The investment return and principal value of an investment in the Trust will fluctuate as the prices of the individual securities in which the Trust invests fluctuate, so that the Units, when redeemed, may be worth more or less than their original cost. Performance information is
as of the date shown; because of ongoing market volatility, the Trust’s performance may have been subject to substantial fluctuations since that date and may be greater or lesser than shown.
The Trust is a Collective Trust formed by the Trustee. The Trust is not a mutual fund and Units of the Collective Trust are not deposits of AllianceBernstein Trust Company, LLC or AllianceBernstein Investments. The Units are securities which have not been registered under the 1933 Act and exempted from investment company registration under the Investment Act of 1940. Therefore, Participating Plans and their Participants will not be entitled to the protections under these Acts. AllianceBernstein L.P. is the Trust Advisor and provides investment management services. AllianceBernstein Trust Company, LLC is the Trust’s Trustee and provides customized securities processing services. Effective April 2, 2007, AllianceBernstein Trust Company, LLC was appointed successor trustee to the Trusts.
The Trust serves as a pooled investment vehicle for (i) pension and profit-sharing trusts of employers that are qualified under section 401(a) of the Internal Revenue Code of 1986, and (ii) governmental plans described in Code Section 414(d) (the “Eligible Plans”). An Eligible Plan becomes a participating plan and unitholder of the Trust (a “Participating Plan”) upon the execution and acceptance of an adoption agreement in the form prescribed by the Trustee (the “Adoption Agreement”) and delivery of assets to the Trustee. AllianceBernstein Trust
Company (“ABTC” or the “Trustee”) formed the Series Trust pursuant to a Declaration of Trust dated Month, Day Year (as may be amended from time to time, the “Declaration”) and is the Trustee of the Series Trust. AllianceBernstein L.P. serves as the investment advisor “AllianceBernstein” or the “Investment Advisor”) to the Trust. Decisions as to which securities will be bought or sold for the Trust will be made by the Trustee, although the Trustee intends to rely on the investment recommendations of AllianceBernstein as a general manner.
The Units are securities which have not been registered under the 1933 Act, or the securities laws of any state and are being offered and sold in reliance on an exemption from the registration requirements of such act and such laws. The Units have not been approved or disapproved by the Securities and Exchange Commission, any state securities commission or other regulatory authority, nor have any of the foregoing authorities passed upon or endorsed the merits of this offering or the accuracy or adequacy of this document. Any representation to the contrary is unlawful. Neither the Series Trust nor the Trust will be registered as an investment company under the Investment Act of 1940, as amended (the “1940 Act”), pursuant to the exemption from the registration requirement of the 1940 Act contained in section 3(c)(11); therefore, the protections available to investors under these acts are not available. Management of the Trust, however, is generally subject to the fiduciary duty and prohibited transaction rules under the Employee Retirement Income Securities Act of 1974 (“ERISA”). Commingled funds are not required to file a prospectus or registration statement with the SEC and, accordingly, neither is available.
Morningstar Investment Management LLC is a registered investment adviser and subsidiary of Morningstar, Inc. AllianceBernstein and the AllianceBernstein Trust Company LLC have appointed Morningstar Investment Management as a sub-adviser to the AB Multi-Manager Retirement Trusts of the AB Collective Investment Trust Series. Morningstar Investment Management is not acting in the capacity of adviser to individual investors. Morningstar Investment Management is not affiliated with AllianceBernstein, the AllianceBernstein Trust Company or its affiliates. The Morningstar name and logo are the property of Morningstar, Inc.
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is a registered service mark used by permission of the owner, AllianceBernstein L.P.