Overview

A high-income fund that seeks to earn the highest level of current income, exempt from federal income tax, that is available consistent with an appropriate level of risk.

About this Fund

  • The Portfolio seeks to enhance after-tax yields by allocating to high yield credit and managing overall interest rate risk–two distinct drivers of income that seek to capture attractive income in any market
  • By blending top-down research with bottoms up fundamental analysis, the portfolio seeks broad diversification and risk exposure across sectors without relying on a small number of concentrated positions.
  • Leverages decades of AB's municipal credit analyst expertise to unlock differentiated opportunities that may enhance income and provide greater risk mitigation, a critical component of driving income and returns for clients.

Investment Approach

  • Invests principally in high-yielding municipal securities that may be non-investment grade or investment grade while emphasizing liquidity

Meet the Team

“

We’ve spent years developing this proprietary technology that allows us to be more nimble.

Matthew Norton—Chief Investment Officer-Municipal Bonds

 
Explore Solutions

Municipal Bonds

Looking for more information about municipal bond 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.

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

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

  • Leverage Risk: Trying to enhance investment returns by borrowing money or using other leverage transactions such as reverser purchase agreements—magnifies both gains and losses, resulting in greater volatility.

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

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

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

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

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

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

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

    The [A/B] logo and AllianceBernstein® are registered trademarks used by permission of the owner, AllianceBernstein L.P.