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    Formulario 497 AB BOND FUND, INC.
    Tipo de Cambio de Divisas

    Formulario 497 AB BOND FUND, INC.

    usdgbp_lwn506By usdgbp_lwn506enero 21, 2020No hay comentarios151 Mins Read
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    FOLLETO El | DICIEMBRE
    12 de 2018, revisado el 21 de enero de 2020

    Cartera de ingresos de corta duración AB

    (Acciones ofrecidas: símbolo de ticker de intercambio)

    (Clase
    A-SHUAX; Clase C – SHUCX; Asesor Clase – SHUYX)

    A partir del 1 de enero de 2021,
    según lo permitido por las nuevas regulaciones adoptadas por la Comisión de Bolsa y Valores, el accionista anual y semestral del Fondo
    los informes ya no se enviarán por correo, a menos que solicite específicamente copias impresas de los informes. En cambio, los informes serán
    estará disponible en un sitio web, y se le notificará por correo cada vez que se publique un informe y se le proporcione una dirección del sitio web
    para acceder al informe.

    Si ya eligió recibir accionista
    informa electrónicamente, no se verá afectado por este cambio y no necesita tomar ninguna medida. Puede elegir recibir accionista
    informes y otras comunicaciones del Fondo electrónicamente en cualquier momento contactando a su intermediario financiero (como un
    agente de bolsa o banco) o, si es un inversor directo, llamando al Fondo al (800) 221-5672.

    Puedes elegir recibir todo el futuro
    informes en papel de forma gratuita. Si invierte a través de un intermediario financiero, puede contactar a su intermediario financiero
    para solicitar que continúe recibiendo copias en papel de sus informes de accionistas; si invierte directamente con el Fondo, puede
    llame al Fondo al (800) 221-5672. Su elección para recibir informes en forma impresa se aplicará a todos los fondos retenidos en su cuenta con
    su intermediario financiero o, si invierte directamente, en todos los fondos mutuos de AB que tenga.

    La Comisión de Bolsa y Valores
    no ha aprobado o desaprobado estos valores ni ha transmitido la idoneidad de este Folleto. Cualquier representación en contrario.
    Es un delito penal.

    Productos de inversión ofrecidos

    > No están asegurados por la FDIC
    > Puede perder valor
    > No están garantizados por el banco

    TABLA DE CONTENIDO

    INFORMACION DE SUMARIO

    Cartera de ingresos de corta duración AB

    OBJETIVO DE INVERSIÓN

    El objetivo de inversión del Fondo es
    buscar altos ingresos corrientes consistentes con la preservación del capital.

    HONORARIOS Y GASTOS DEL FONDO

    Esta tabla describe los honorarios y gastos.
    que puede pagar si compra y mantiene acciones del Fondo. Puede calificar para reducciones de cargos de ventas si usted y los miembros de su
    familia invierte, o acepta invertir en el futuro, al menos $ 100,000 en fondos mutuos AB. Más información sobre estos y otros descuentos.
    está disponible en su intermediario financiero y en Invertir en el fondo: programas de reducción de cargos de ventas para la clase A
    Acciones en la página 24 de este Folleto, en el Apéndice C: Exenciones de intermediarios financieros de este Folleto y en la Compra de
    Acciones: programas de reducción de cargos de ventas para acciones de Clase A en la página 84 de la Declaración de información adicional del Fondo
    ("EFS").

    Es posible que deba pagar comisiones
    y / u otras formas de compensación a un corredor por transacciones en acciones de Clase Asesor, que no se reflejan en las tablas
    o los ejemplos a continuación.

    Honorarios de accionistas (honorarios pagados directamente
    de su inversión)

    Clase A

    Comparte

    Clase C

    Comparte

    Clase de asesor

    Comparte

    Cargo máximo de venta (carga) impuesto a las compras
    (como porcentaje del precio de oferta)
    4.25 % Ninguna Ninguna
    Cargo máximo de ventas diferidas (carga)
    (como porcentaje del precio de oferta o de la redención, lo que sea menor)
    Ninguna (un) 1.00 %(si) Ninguna
    Tarifa de cambio Ninguna Ninguna Ninguna

    Gastos operativos anuales del fondo (gastos que paga cada año como porcentaje del valor de su inversión)

    Clase A Clase C Clase de asesor
    Los gastos de gestión .35 % .35 % .35 %
    Distribución y / o servicio (12b-1) Tarifas .20 % 1.00 % Ninguna
    Otros gastos:
    Agente de transferencia .09 % .09 % .09 %
    Otros gastos .61 % .61 % .61 %
    Total de otros gastos (c) .70 % .70 % .70 %
    Gastos operativos totales del fondo anual 1,25 % 2,05 % 1.05 %
    Exención de tarifas y / o reembolso de gastos (d) (.60 )% (.60 )% (.60 )%
    Gastos operativos totales del fondo anual después de la exención de tarifas y / o reembolso de gastos .sesenta y cinco % 1,45 % 45 %
    (un) Compras de acciones de Clase A en montos de $ 1,000,000 o más, o por cierta jubilación grupal
    planes, pueden estar sujetos a un 1%, cargo por ventas diferidas contingentes de 1 año, o CDSC, que pueden estar sujetos a exención en ciertas circunstancias.
    (si) Para las acciones de Clase C, el CDSC es del 0% después del primer año. Las acciones de Clase C se convierten automáticamente a
    Acciones de clase A después de diez años.
    (C) Los demás gastos totales se basan en montos estimados para el año fiscal actual.
    (re) El Asesor ha acordado contractualmente renunciar a su comisión de gestión y / o asumir los gastos del
    Fondo hasta el 31 de enero de 2021 en la medida necesaria para evitar los gastos operativos totales del Fondo (excluyendo los honorarios del fondo adquirido y
    gastos distintos a los honorarios de asesoría de cualquier Fondo Mutuo AB en el cual el Fondo pueda invertir, gastos por intereses, impuestos, extraordinarios
    gastos y comisiones de corretaje y otros costos de transacción), sobre una base anualizada, de exceder .65%, 1.45% y .45% de
    activos netos diarios promedio, respectivamente, para las acciones Clase A, Clase C y Clase Asesor ("limitaciones de gastos"). Ninguna
    el Fondo podrá reembolsar los honorarios y los gastos a cargo del Asesor hasta el final del tercer año fiscal después del año fiscal
    período en el que se eximió la tarifa o se asumió el gasto, siempre que no se realice ningún pago de reembolso que cause
    los gastos operativos cubiertos del Fondo para exceder las limitaciones de gastos aplicables.

    Ejemplos

    Los ejemplos están destinados a ayudarlo
    compare el costo de invertir en el Fondo con el costo de invertir en otros fondos mutuos. Los ejemplos suponen que usted
    invertir $ 10,000 en el Fondo durante los períodos indicados y luego canjear todas sus acciones al final de los períodos. los
    Los ejemplos también suponen que su inversión tiene un rendimiento del 5% cada año, que los gastos operativos del Fondo se mantienen igual
    (excepto que los costos de oferta no están incluidos después del primer año) y que cualquier exención de tarifas y / o limitación de gastos está en
    efecto solo por el primer año. Aunque sus costos reales pueden ser más altos o más bajos, según estos supuestos, sus costos
    sería:

    Clase A Clase C Clase de asesor
    Después de 1 año PS 489 PS 248 * * PS 46
    Despues de 3 años PS 729 PS 566 PS 255
    * * Si no canjeó sus acciones al final del período, sus gastos se reducirían en
    aproximadamente $ 100.

    Volumen de negocios de cartera

    El Fondo paga los costos de transacción, como comisiones,
    cuando compra o vende valores (o "entrega" su cartera). Una tasa de rotación de cartera más alta puede indicar una mayor
    costos de transacción y pueden resultar en impuestos más altos cuando las acciones se mantienen en una cuenta gravable. Estos costos de transacción, que son
    no reflejado en los Gastos operativos anuales del Fondo o en los Ejemplos, afecta el rendimiento del Fondo.

    ESTRATEGIAS PRINCIPALES

    El Fondo persigue su objetivo invirtiendo,
    en circunstancias normales, principalmente en valores que generan ingresos. El Fondo también invierte normalmente al menos el 65% de su total
    activos en valores de gobiernos estadounidenses y extranjeros y sus agencias e instrumentos (incluidos valores respaldados por hipotecas),
    derivados relacionados con dichos valores y acuerdos de recompra relacionados con valores del gobierno de EE. UU. Bajo circunstancias normales,
    el Fondo mantendrá una duración promedio ponderada en dólares de menos de tres años, aunque puede invertir en valores de cualquier
    duración o madurez.

    El Fondo puede invertir en entidades no gubernamentales.
    valores de renta fija, incluidos valores de deuda corporativa, valores respaldados por hipotecas no gubernamentales y otros valores respaldados por activos,
    certificados de depósito y papel comercial. El Fondo puede invertir hasta el 35% de sus activos netos en valores por debajo del grado de inversión.
    (comúnmente conocido como "enlaces basura"). Las inversiones del Fondo en valores extranjeros pueden incluir tanto el gobierno como
    valores corporativos y valores de países de mercados emergentes o de emisores en mercados emergentes.

    El asesor selecciona valores para
    compra o venta en función de su evaluación de los riesgos y las características de rendimiento de los valores, así como de los valores
    impacto en los riesgos generales y las características de rendimiento del Fondo. Al hacer esta evaluación, el Asesor tiene en cuenta varios
    factores, incluida la calidad crediticia y la sensibilidad a los tipos de interés de los valores considerados y del Fondo
    otras explotaciones

    El Fondo puede utilizar derivados, como
    como opciones, contratos de futuros, forwards y swaps. El Fondo puede, por ejemplo, utilizar contratos de futuros de tasa de interés y swaps para
    establecer exposición a los mercados de renta fija o valores particulares de renta fija. Los derivados pueden proporcionar una forma más eficiente.
    y exposición económica a segmentos de mercado que las inversiones directas, y también puede ser una forma más eficiente de alterar el Fondo
    exposición. El Fondo también puede realizar transacciones tales como acuerdos de recompra inversa que son similares a los préstamos para inversión.
    propósitos El uso de derivados del Fondo y estas transacciones de préstamos pueden crear una exposición agregada que es sustancialmente
    en exceso de sus activos netos, apalancando efectivamente el Fondo.

    El asesor puede cubrir al extranjero
    exposición a divisas resultante de las posiciones de seguridad del Fondo, y puede tomar posiciones largas o cortas en divisas,
    mediante el uso de derivados relacionados con la moneda. El Fondo está "no diversificado", lo que significa que puede invertir más
    de sus activos en un número menor de emisores.

    PRINCIPALES RIESGOS

    • Riesgo de mercado: El valor de los activos del Fondo fluctuará a medida que fluctúe el mercado de bonos.
    El valor de sus inversiones puede disminuir, a veces de forma rápida e impredecible, simplemente debido a cambios económicos u otros eventos.
    que afectan a grandes porciones del mercado.
    • Riesgo crediticio: Un emisor o garante de una garantía de renta fija, o la contraparte de un
    derivados u otro contrato, puede ser incapaz o no está dispuesto a hacer pagos oportunos de intereses o capital, o de honrar de otra manera
    sus obligaciones El emisor o el garante pueden incumplir, causando una pérdida del monto total del principal de un valor e intereses devengados.
    El grado de riesgo para un valor en particular puede reflejarse en su calificación crediticia. Existe la posibilidad de que la calificación crediticia
    de un valor de renta fija puede reducirse después de la compra, lo que puede afectar negativamente el valor del valor.
    • Riesgo de valores por debajo del grado de inversión: Inversiones en valores de renta fija con menores
    las calificaciones (comúnmente conocidas como "bonos basura") están sujetas a una mayor probabilidad de que un emisor incumpla o no
    cumplir con sus obligaciones de pago. Estos valores pueden estar sujetos a una mayor volatilidad de los precios debido a factores tales como empresas específicas
    desarrollos y percepciones negativas del mercado de bonos basura en general y pueden ser más difíciles de negociar que otros tipos de
    valores.
    • Riesgo de tipo de interés: Los cambios en las tasas de interés afectarán el valor de las inversiones en renta fija
    valores. Cuando las tasas de interés aumentan, el valor de las inversiones existentes en valores de renta fija tiende a disminuir y esto disminuye
    en valor no puede ser compensado por mayores ingresos de nuevas inversiones. El riesgo de tasa de interés es generalmente mayor para los valores de renta fija
    con vencimientos o duraciones más largos.

    • Riesgo de duración: La duración es una medida que relaciona la volatilidad de precios esperada de un ingreso fijo
    seguridad ante cambios en las tasas de interés. La duración de una garantía de renta fija puede ser menor o igual al vencimiento completo
    de una seguridad de renta fija. Los valores de renta fija con mayor duración tienen más riesgo y disminuirán en precio a medida que los intereses
    las tasas suben.
    • Riesgo de inflación: Este es el riesgo de que el valor de los activos o los ingresos de las inversiones
    será menor en el futuro a medida que la inflación disminuya el valor del dinero. A medida que aumenta la inflación, el valor de los activos del Fondo puede
    disminuirá al igual que el valor de las distribuciones del Fondo. Este riesgo es significativamente mayor para los valores de renta fija con
    vencimientos más largos.
    • Riesgo extranjero (no estadounidense): Inversiones en valores de valores no estadounidenses.
    Los emisores pueden implicar un mayor riesgo que los de los emisores estadounidenses. Estos valores pueden fluctuar más ampliamente en precio y pueden ser más difíciles
    al comercio debido a factores adversos del mercado, económicos, políticos, regulatorios u otros.
    • Riesgo de mercado emergente: Las inversiones en países de mercados emergentes pueden tener más riesgo porque
    los mercados están menos desarrollados y menos líquidos, además de estar sujetos a mayores incertidumbres económicas, políticas, regulatorias u otras.
    • Riesgo de derivados: Los derivados pueden ser ilíquidos, difíciles de valorar y apalancados para que
    pequeños cambios pueden producir pérdidas desproporcionadas para el Fondo y pueden estar sujetos al riesgo de contraparte en mayor medida que
    inversiones más tradicionales
    • Riesgo de apalancamiento: En la medida en que el Fondo utilice técnicas de apalancamiento, su valor liquidativo o
    NAV, puede ser más volátil porque el apalancamiento tiende a exagerar el efecto de los cambios en las tasas de interés y cualquier aumento o disminución
    en el valor de las inversiones del Fondo.
    • Riesgo de cambio: Las fluctuaciones en los tipos de cambio pueden afectar negativamente el valor de
    las inversiones del Fondo o reducir los rendimientos del Fondo.
    • Riesgo de inversiones ilíquidas: existe un riesgo de inversiones ilíquidas cuando ciertas inversiones se convierten
    Difícil de comprar o vender. La dificultad para vender tales inversiones puede dar como resultado ventas a precios desfavorables que afecten
    valor de su inversión en el Fondo. Las causas del riesgo de inversiones ilíquidas pueden incluir bajos volúmenes de negociación, grandes posiciones y
    fuertes reembolsos de acciones del Fondo. El riesgo de inversión ilíquido puede ser mayor en un entorno de tasas de interés crecientes, cuando el valor
    y la liquidez de los valores de renta fija generalmente disminuye.
    • Riesgo de no diversificación: El Fondo puede tener más riesgo porque es
                                                                   “No diversificado” y, por lo tanto, puede invertir más de sus activos en un número menor de emisores.
                                                                   En consecuencia, los cambios en el valor de un único valor pueden
                                                                   tener un efecto más significativo, ya sea negativo o positivo, en el
                                                                   Fondo NAV.
    • Riesgo de valores relacionados con hipotecas y / u otros valores respaldados por activos: Inversiones en hipotecas
    y otros valores respaldados por activos están sujetos a ciertos riesgos adicionales. El valor de estos valores puede ser particularmente sensible.
    a cambios en las tasas de interés. Estos riesgos incluyen el "riesgo de extensión", que es el riesgo que, en períodos de interés creciente
    tasas, los emisores pueden retrasar el pago del principal y el "riesgo de prepago", que es el riesgo de que en períodos de caída
    tasas de interés, los emisores pueden pagar el capital antes de lo esperado, exponiendo al Fondo a una tasa de rendimiento más baja al reinvertir
    principal. Los valores respaldados por hipotecas ofrecidos por emisores no gubernamentales y otros valores respaldados por activos pueden estar sujetos a otros
    riesgos, como tasas de incumplimiento más altas en las hipotecas o activos que respaldan los valores o riesgos asociados con la naturaleza y
    servicio de hipotecas o activos que respaldan los valores.
    • Riesgo de gestión: El Fondo está sujeto a riesgos de gestión porque es una entidad gestionada activamente
    fondo de inversión. El Asesor aplicará sus técnicas de inversión y análisis de riesgos al tomar decisiones de inversión para el Fondo,
    pero no hay garantía de que sus técnicas produzcan los resultados previstos.

    Al igual que con
    todas las inversiones, puede perder dinero invirtiendo en el Fondo.

    TABLA DE BARES E INFORMACIÓN DE DESEMPEÑO

    No hay información de rendimiento disponible para
    el Fondo porque aún no ha estado en funcionamiento durante un año calendario completo.

    Asesor de inversiones

    AllianceBernstein L.P. es el asesor de inversiones
    para el fondo.

    GERENTES DE CARTERA

    La siguiente tabla enumera las personas responsables
    para la gestión diaria de la cartera del Fondo:

    Empleado Duración del servicio Título
    Scott A. DiMaggio Desde 2018 Vicepresidente sénior del asesor
    Gershon M. Distenfeld Desde 2018 Vicepresidente sénior del asesor
    Douglas J. Peebles Desde 2018 Vicepresidente sénior del asesor
    Matthew S. Sheridan Desde 2018 Vicepresidente sénior del asesor

    COMPRA Y VENTA DE ACCIONES DEL FONDO

    Compra mínima

    La siguiente tabla describe la inicial
    y las cantidades mínimas de compra posteriores para cada clase de acciones, que están sujetas a exención en ciertas circunstancias.

    Inicial Subsecuente
    Acciones de Clase A / Clase C, incluidas las cuentas IRA tradicionales y las cuentas Roth IRA $ 2,500 $ 50
    Programa de inversión automática Ninguna

    $ 50

    Si la inversión mínima inicial es

    menos de $ 2,500, luego $ 200

    mensualmente hasta el saldo de la cuenta

    alcanza los $ 2,500

    Acciones de Clase Asesor (solo disponible para programas basados ​​en honorarios o mediante otros acuerdos limitados y ciertos acuerdos de corretaje basados ​​en comisiones) Ninguna Ninguna
    Las acciones de Clase A están disponibles en NAV, sin un cargo de venta inicial, a planes 401 (k), planes 457, planes 403 (b) patrocinados por el empleador, planes de pensiones de participación en beneficios y compra de dinero, planes de beneficios definidos y planes no calificados planes de compensación diferida donde en cada caso el nivel del plan o las cuentas ómnibus se mantienen en los libros del Fondo. Ninguna Ninguna

    Puede vender (canjear) sus acciones cada
    día en que está abierta la Bolsa de Nueva York (la "Bolsa"). Puede vender sus acciones a través de su intermediario financiero
    o por correo (AllianceBernstein Investor Services, Inc., apartado postal 786003, San Antonio, TX 78278-6003) o por teléfono
    (800) 221-5672.

    INFORMACIÓN SOBRE LOS IMPUESTOS

    El Fondo puede pagar dividendos de ingresos o hacer capital
    distribuciones de ganancias, que pueden estar sujetas a impuestos federales sobre la renta e imponibles como ingresos ordinarios o ganancias de capital, y también pueden
    estar sujeto a impuestos estatales y locales.

    PAGOS A CORREDORES-DISTRIBUIDORES Y OTROS
    INTERMEDIARIOS FINANCIEROS

    Si compra acciones del Fondo a través de
    un corredor de bolsa u otro intermediario financiero (como un banco o un plan de jubilación grupal), el Fondo y sus compañías relacionadas
    puede pagar al intermediario por la venta de acciones del Fondo y servicios relacionados. Estos pagos pueden crear un conflicto de intereses al
    influir en el corredor de bolsa u otro intermediario financiero y su vendedor para recomendar el Fondo sobre otra inversión.
    Consulte a su vendedor o visite el sitio web de su intermediario financiero para obtener más información.

    INFORMACIÓN ADICIONAL SOBRE EL FONDO
    RIESGOS E INVERSIONES

    Esta sección del Folleto proporciona información adicional.
    información sobre las prácticas de inversión del Fondo y los riesgos relacionados, incluidas las estrategias principales y no principales y
    riesgos Este Folleto no describe todas las prácticas de inversión del Fondo; información adicional sobre el Fondo
    Los riesgos e inversiones se pueden encontrar en la EFS del Fondo.

    Derivados

    El Fondo puede, pero no está obligado a, usar derivados
    para cobertura u otros fines de gestión de riesgos o como parte de sus estrategias de inversión. Los derivados son contratos financieros cuyo
    el valor depende o se deriva del valor de un activo subyacente, tasa de referencia o índice. El Fondo puede usar derivados para
    obtener ingresos y mejorar los rendimientos, para cubrir o ajustar el perfil de riesgo de sus inversiones, para reemplazar las inversiones directas más tradicionales
    y para obtener exposición a mercados de otro modo inaccesibles.

    Hay cuatro tipos principales de derivados: opciones,
    contratos de futuros, forwards y swaps, cada uno de los cuales se describe a continuación. Los derivados incluyen transacciones listadas y liquidadas
    donde la contraparte del comercio de derivados del Fondo es una casa de cambio o cámara de compensación y un "extrabursátil" bilateral no compensado
    transacciones que se negocian de forma privada y donde la contraparte de derivados del Fondo es una institución financiera.
    Las transacciones de derivados negociados en bolsa o compensados ​​tienden a estar sujetas a un menor riesgo de crédito de contraparte que aquellas que son privadas
    negociado

    El uso de derivados del Fondo
    puede implicar riesgos diferentes o posiblemente mayores que los riesgos asociados con la inversión directa en valores
    u otros instrumentos más tradicionales. Estos riesgos incluyen el riesgo de que el valor de un instrumento derivado no se correlacione
    perfectamente, o en absoluto, con el valor de los activos, las tasas de referencia o los índices que están diseñados para rastrear. Otros riesgos incluyen
    la posible ausencia de un mercado secundario líquido para un instrumento en particular y los posibles límites de fluctuación de precios impuestos por el intercambio,
    cualquiera de los dos puede hacer que sea difícil o imposible cerrar una posición cuando se desee, y el riesgo de que la contraparte
    No cumplir con sus obligaciones. Ciertos derivados pueden tener un componente de apalancamiento e implicar un riesgo de apalancamiento. Cambios adversos en el
    El valor o nivel del activo subyacente, nota o índice puede resultar en una pérdida sustancialmente mayor que la inversión del Fondo
    (En algunos casos, la pérdida potencial es ilimitada).

    Las inversiones del Fondo en derivados
    puede incluir, entre otros, los siguientes:

    • Contratos a plazoUn contrato a plazo es un acuerdo que obliga a una parte a comprar,
    y la otra parte a vender, una cantidad específica de un producto subyacente u otro activo tangible por un precio acordado a
    Una fecha futura. Un contrato a plazo generalmente se resuelve mediante la entrega física del producto o activo tangible a un acuerdo acordado
    ubicación (en lugar de liquidarse en efectivo), o se transfiere a un nuevo contrato a plazo o, en el caso de un adelanto no entregable,
    mediante un pago en efectivo al vencimiento. Las inversiones del Fondo en contratos a plazo pueden incluir lo siguiente:
    – Contratos de cambio de divisas a plazo. El Fondo puede comprar o vender contratos de cambio de divisas a plazo
    con fines de cobertura para minimizar el riesgo de cambios adversos en la relación entre el dólar estadounidense y otras monedas
    o para fines de no cobertura como un medio para realizar inversiones directas en monedas extranjeras, como se describe a continuación en "Otros
    Derivados y estrategias — Transacciones de divisas ”. El Fondo, por ejemplo, puede celebrar un contrato a plazo como una transacción
    cobertura (para "bloquear" el precio en dólares estadounidenses de un valor no estadounidense), como cobertura de posición (para proteger
    El valor de los valores que posee el Fondo denominados en una moneda extranjera frente a cambios sustanciales en el valor de
    moneda extranjera) o como cobertura cruzada (para proteger el valor de los valores que posee el Fondo denominados en una moneda extranjera
    contra cambios sustanciales en el valor de esa moneda extranjera mediante la celebración de un contrato a plazo para una moneda extranjera diferente
    se espera que cambie en la misma dirección que la moneda en la que están denominados los valores).
    • Contratos de futuros y opciones sobre contratos de futuros:Un contrato de futuros es un estándar,
    acuerdo negociado en bolsa que obliga al comprador a comprar y al vendedor a vender una cantidad específica de un activo subyacente (o
    liquidar en efectivo el valor de un contrato basado en un activo subyacente, tasa o índice) a un precio específico al vencimiento del contrato
    fecha. Las opciones sobre contratos de futuros son opciones que requieren la entrega de contratos de futuros al momento del ejercicio. El fondo puede comprar
    o vender contratos de futuros y opciones al respecto para protegerse de los cambios en las tasas de interés, valores (a través de índices de futuros o
    opciones) o monedas. El Fondo también puede comprar o vender contratos de futuros para monedas extranjeras u opciones al respecto para no cobertura
    propósitos como un medio para realizar inversiones directas en monedas extranjeras, como se describe a continuación en “Otros derivados y estrategias — Moneda
    Actas".
    • Opciones—Una opción es un acuerdo que, por un pago de prima o tarifa, le da la opción
    titular (el comprador) el derecho pero no la obligación de comprar (una "opción de compra") o vender (una "opción de venta")
    activo subyacente (o liquidar en efectivo una cantidad basada en un activo subyacente, tasa o índice) a un precio específico (el ejercicio
    precio) durante un período de tiempo o en una fecha específica. Las inversiones en opciones se consideran especulativas. El Fondo puede perder el
    prima pagada por ellos si el precio del valor subyacente u otro activo disminuyó o permaneció igual (en el caso de una llamada
    opción) o aumentó o permaneció igual (en el caso de una opción de venta). Si se permitiera una opción de venta o compra comprada por el Fondo
    para vencer sin ser vendido o ejercido, su prima representaría una pérdida para el Fondo. Las inversiones del Fondo en opciones
    puede incluir lo siguiente:
    – Opciones sobre monedas extranjeras. El Fondo puede invertir en opciones sobre monedas extranjeras que son privadas
    negociado o negociado en bolsas de EE. UU. o extranjeras con fines de cobertura para proteger contra la disminución del valor del dólar estadounidense
    de valores denominados en moneda extranjera en poder del Fondo y contra aumentos en el costo en dólares de los valores a
    ser adquirido La compra

    de una
    la opción sobre una moneda extranjera puede constituir una cobertura efectiva contra las fluctuaciones en los tipos de cambio, aunque si las tasas se mueven negativamente,
    el Fondo puede perder el monto total de la prima más los costos de transacción relacionados. El Fondo también puede invertir en opciones sobre divisas
    monedas para fines de no cobertura como un medio para realizar inversiones directas en monedas extranjeras, como se describe a continuación en "Otros
    Derivados y estrategias — Transacciones de divisas ”.

    – Opciones sobre valores. El Fondo puede comprar o escribir una opción de venta o compra en valores. El fondo
    puede escribir opciones cubiertas, lo que significa escribir una opción para valores que posee el Fondo, y opciones no cubiertas.
    – Opciones sobre índices de valores. Una opción en un índice de valores es similar a una opción en un valor
    excepto que, en lugar de tomar o realizar la entrega de un valor a un precio específico, una opción en un índice de valores proporciona
    titular el derecho a recibir, tras el ejercicio de la opción, una cantidad de efectivo si el nivel de cierre del índice elegido es mayor
    que (en el caso de una llamada) o menor que (en el caso de una venta) el precio de ejercicio de la opción.
    • Transacciones de intercambioUn intercambio es un acuerdo que obliga a dos partes a intercambiar un
    serie de flujos de efectivo a intervalos específicos (fechas de pago) basados ​​o calculados por referencia a cambios en precios específicos
    o tarifas (p.ej., tasas de interés en el caso de swaps de tasas de interés o tasas de cambio de divisas en el caso de swaps de divisas)
    para una cantidad específica de un activo subyacente (la cantidad principal "nocional"). Generalmente el monto principal nocional
    se usa únicamente para calcular la secuencia de pago, pero no se intercambia. La mayoría de los swaps se registran de forma neta (es decir,
    los dos flujos de pago se compensan, con el Fondo recibiendo o pagando, según sea el caso, solo el monto neto de los dos pagos).
    Ciertos swaps estandarizados, incluidos ciertos swaps de tasas de interés y swaps de incumplimiento crediticio, están sujetos a compensación central obligatoria
    y deben ejecutarse a través de una instalación de ejecución de intercambio regulada. Los swaps autorizados se tramitan a través de la comisión de futuros
    comerciantes ("FCM") que son miembros de cámaras de compensación centrales con la cámara de compensación que sirve como contraparte central,
    similar a las transacciones en contratos de futuros. Los fondos contabilizan el margen inicial y el margen de variación para respaldar sus obligaciones bajo liquidación
    intercambia haciendo pagos a sus miembros de compensación FCM. La compensación central está destinada a reducir los riesgos de crédito de contraparte y aumentar
    liquidez, pero la compensación centralizada no hace que las transacciones de swap estén libres de riesgo. La Comisión de Bolsa y Valores (la "SEC")
    puede adoptar requisitos similares de compensación y ejecución con respecto a ciertos swaps basados ​​en seguridad bajo su jurisdicción. En privado
    Los acuerdos de intercambio negociados son contratos de dos partes celebrados principalmente por inversores institucionales y no se liquidan a través de
    un tercero, ni se requiere que se ejecuten en una instalación de ejecución de intercambio regulada. Las inversiones del Fondo en swap
    las transacciones incluyen lo siguiente:
    – Swaps de tasas de interés, permutas, topes y pisos. Los swaps de tasas de interés implican el intercambio por parte de
    Fondo con otra parte de pagos calculada por referencia a tasas de interés específicas (p.ej., un intercambio de tasa flotante
    pagos por pagos a tasa fija). A menos que haya un incumplimiento de la contraparte, el riesgo de pérdida para el Fondo por el intercambio de tasas de interés
    las transacciones se limitan al monto neto de pagos de intereses que el Fondo está obligado contractualmente a realizar. Si la contraparte
    en caso de incumplimiento de una transacción de swap de tasa de interés, el riesgo de pérdida del Fondo consiste en la cantidad neta de pagos de intereses que
    el Fondo contractualmente tiene derecho a recibir.

    Una opción en un acuerdo de intercambio,
    también llamado "intercambio", es una opción que le da al comprador el derecho, pero no la obligación, de realizar un intercambio
    en una fecha futura a cambio de pagar una "prima" basada en el mercado. Un intercambio de receptor le da al propietario el derecho a
    recibir el rendimiento total de un activo específico, tasa de referencia o índice. Un intercambio de pagador le da al propietario el derecho de pagar
    rendimiento total de un activo específico, tasa de referencia o índice. Los intercambios también incluyen opciones que permiten finalizar un intercambio existente
    o extendido por una de las contrapartes.

    La compra de un interés.
    el límite de la tasa da derecho al comprador, en la medida en que un índice específico exceda una tasa de interés predeterminada, a recibir pagos
    de interés sobre un monto de capital basado en el contrato de la parte que vende el límite de la tasa de interés. La compra de un interés.
    el piso de la tasa da derecho al comprador, en la medida en que un índice específico cae por debajo de una tasa de interés predeterminada, para recibir pagos
    de interés sobre un monto de capital acordado de la parte que vende el piso de la tasa de interés. Puede ser más difícil para el Fondo.
    para negociar o cerrar topes y pisos de tasas de interés en comparación con otros tipos de swaps.

    No hay límite en la cantidad
    de las transacciones de tasas de interés que pueda realizar el Fondo. El valor de estas transacciones fluctuará en función de los cambios.
    en tasas de interés.

    Swap de tasa de interés, swaption,
    las transacciones de límite y piso pueden, por ejemplo, usarse en un esfuerzo por preservar un rendimiento o un margen sobre una inversión particular o
    una parte de la cartera del Fondo o para proteger contra un aumento en el precio de los valores que el Fondo prevé comprar
    en una fecha posterior. Los swaps de tasas de interés también se pueden utilizar para apalancar las inversiones del Fondo mediante la creación de posiciones que sean funcionalmente
    similar a la compra de una seguridad municipal u otra seguridad de renta fija, pero solo puede requerir pagos a una contraparte de intercambio bajo ciertas
    circunstancias y permitir que el Fondo aumente (o disminuya) de manera eficiente su duración e ingresos.

    – Swaps de inflación (IPC). Los acuerdos de intercambio de inflación son contratos en los que una parte acuerda pagar
    El aumento porcentual acumulado en un índice de precios (el Índice de Precios al Consumidor con respecto a los swaps de IPC) durante el plazo del canje
    (con cierto retraso en el índice de inflación), y el otro paga una tasa fija compuesta. Los acuerdos de intercambio de inflación pueden usarse para proteger
    El valor liquidativo del Fondo frente a un cambio inesperado en la tasa de inflación medida por un índice de inflación desde el valor de estos
    Se espera que los acuerdos aumenten si aumenta la inflación inesperada. El Fondo realizará swaps de inflación sobre una base neta.
    Se espera que los valores de los acuerdos de swaps de inflación cambien en respuesta a los cambios en las tasas de interés reales. Tasas de interés reales
    están vinculados a la relación entre las tasas de interés nominales y la tasa de inflación. Si las tasas de interés nominales aumentan a
    tasa más rápida que la inflación, las tasas de interés reales pueden aumentar, lo que lleva a una disminución en el valor de un acuerdo de intercambio de inflación.

    – Acuerdos de permutas de incumplimiento crediticio. El "comprador" en un contrato de swap de incumplimiento crediticio está obligado
    to pay the “seller” a periodic stream of payments over the term of the contract in return for a contingent payment
    upon the occurrence of a credit event with respect to an underlying reference obligation. Generally, a credit event means bankruptcy,
    failure to pay, obligation acceleration or restructuring. The Fund may be either the buyer or seller in the transaction. If the
    Fund is a seller, the Fund receives a fixed rate of income throughout the term of the contract, which typically is between one
    month and ten years, provided that no credit event occurs. If a credit event occurs, the Fund, as seller, typically must pay the
    contingent payment to the buyer, which will be either (i) the “par value” (face amount) of the reference obligation,
    in which case the Fund will receive the reference obligation in return, or (ii) an amount equal to the difference between
    the face amount and the current market value of the reference obligation. As a buyer, if a credit event occurs, the Fund would
    be the receiver of such contingent payments, either delivering the reference obligation in exchange for the full notional (face)
    value of a reference obligation that may have little or no value, or receiving a payment equal to the difference between the face
    amount and the current market value of the obligation. The current market value of the reference obligation is typically determined
    via an auction process sponsored by the International Swaps and Derivatives Association, Inc. The periodic payments previously
    received by the Fund, coupled with the value of any reference obligation received, may be less than the full amount it pays to
    the buyer, resulting in a loss to the Fund. If the Fund is a buyer and no credit event occurs, the Fund will lose its periodic
    stream of payments over the term of the contract. However, if a credit event occurs, the buyer typically receives full notional
    value for a reference obligation that may have little or no value.

    Credit default swaps may involve
    greater risks than if the Fund had invested in the reference obligation directly. Credit default swaps are subject to general market
    risk and credit risk and may be illiquid.

    – Currency Swaps. The Fund may invest in currency swaps for hedging purposes to protect against adverse
    changes in exchange rates between the U.S. Dollar and other currencies or for non-hedging purposes as a means of making direct
    investments in foreign currencies, as described below under “Other Derivatives and Strategies—Currency Transactions”.
    Currency swaps involve the exchange by the Fund with another party of a series of payments in specified currencies. Currency swaps
    may be bilateral and privately negotiated with the Fund expecting to achieve an acceptable degree of correlation between its portfolio
    investments and its currency swaps position. Currency swaps may involve the exchange of actual principal amounts of currencies
    by the counterparties at the initiation, and again upon the termination, of the transaction.
    – Total Return Swaps. The Fund may enter into total return swaps, under which one party agrees to
    pay the other the total return of a defined underlying asset, such as a security or basket of securities, or non-asset reference,
    such as a securities index, during the specified period in return for periodic payments based on a fixed or variable interest rate
    or the total return from different underlying assets or references. Total return swaps could result in losses if the underlying
    asset or reference does not perform as anticipated. Total return swaps may reflect a leveraged investment and incorporate borrowing
    costs which are borne by the Fund. There is no guarantee that the Fund’s investment via total return swap will deliver returns
    in excess of the inherent borrowing costs and, accordingly, the Fund’s performance may be less than would be achieved by
    a direct investment in the underlying reference asset.
    – Variance and Correlation Swaps. The Fund may enter into variance or correlation swaps to hedge
    equity market risk or adjust exposure to the equity markets. Variance swaps are contracts in which two parties agree to exchange
    cash payments based on the difference between the stated level of variance and the actual variance realized on an underlying asset
    or index. “Variance” as used here is defined as the sum of the square of the returns on the reference asset or index
    (which in effect is a measure of its “volatility”) over the length of the contract term. The parties to a variance
    swap can be said to exchange actual volatility for a contractually stated rate of volatility. Correlation swaps are contracts in
    which two parties agree to exchange cash payments based on the differences between the stated and the actual correlation realized
    on the underlying equity securities within a given equity index. “Correlation” as used here is defined as the weighted
    average of the correlations between the daily returns of each pair of securities within a given equity index. If two assets are
    said to be closely correlated, it means that their daily returns vary in similar proportions or along similar trajectories.
    • Other Derivatives and Strategies
    – Eurodollar Instruments. Eurodollar instruments are essentially U.S. Dollar-denominated futures
    contracts or options that are linked to the London Interbank Offered Rate (LIBOR). Eurodollar futures contracts enable purchasers
    to obtain a fixed rate for the lending of funds and sellers to obtain a fixed rate for borrowings.
    – Currency Transactions. The Fund may invest in non-U.S. Dollar denominated securities on a currency
    hedged or an un-hedged basis. The Adviser may actively manage the Fund’s currency exposures and 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 contracts and options on futures contracts, swaps and options. The Adviser 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. los
    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).

    Convertible Securities

    Prior to conversion, convertible securities
    have the same general characteristics as non-convertible debt securities, which generally provide a stable stream of income with
    generally higher yields than those of equity securities of the same or similar issuers. The price of a convertible security will
    normally vary with changes in the price of the underlying equity security, although the higher yield tends to make the convertible
    security less volatile than the underlying equity security. As with debt securities, the market value of convertible securities
    tends to decrease as interest rates rise and increase as interest rates decline. While convertible securities generally offer lower
    interest or dividend yields than non-convertible debt securities of similar quality, they offer investors the potential to benefit
    from increases in the market prices of the underlying common stock. Convertible debt securities that are rated Baa3 or lower by
    Moody’s or BBB- or lower by S&P or Fitch and comparable unrated securities may share some or all of the risks of debt
    securities with those ratings.

    Depositary Receipts and Securities
    of Supranational Entities

    The Fund may invest in depositary receipts.
    American Depositary Receipts, or ADRs, are depositary receipts typically issued by a U.S. bank or trust company that evidence ownership
    of underlying securities issued by a foreign corporation. Global Depositary Receipts, or GDRs, European Depositary Receipts, or
    EDRs and other types of depositary receipts are typically issued by non-U.S. banks or trust companies and evidence ownership of
    underlying securities issued by either a U.S. or a non-U.S. company. Depositary receipts may not necessarily be denominated in
    the same currency as the underlying securities into which they may be converted. In addition, the issuers of the stock underlying
    unsponsored depositary receipts are not obligated to disclose material information in the United States. Generally, depositary
    receipts in registered form are designed for use in the U.S. securities markets, and depositary receipts in bearer form are designed
    for use in securities markets outside of the United States. For purposes of determining the country of issuance, investments in
    depositary receipts of either type are deemed to be investments in the underlying securities.

    A supranational entity is an entity
    designated or supported by the national government of one or more countries to promote economic reconstruction or development.
    Examples of supranational entities include the World Bank (International Bank for Reconstruction and Development) and the European
    Investment Bank. “Semi-governmental securities” are securities issued by entities owned by either a national, state
    or equivalent government or are obligations of one of such government jurisdictions that are not backed by its full faith and credit
    and general taxing powers.

    Event-Linked Securities

    Event-linked securities are variable
    or fixed-rate fixed-income securities or types of equity securities for which the return of principal and payment of interest are
    contingent on the non-occurrence of various catastrophe exposures, which may be specific trigger events or a diversified group
    of events, such as hurricanes, typhoons, wind events or earthquakes. The most common type of event-linked fixed-income bonds are
    known as “catastrophe” or “cat” bonds. If the trigger events do not occur, the Fund will recover its principal
    and interest. If a trigger event occurs, the Fund may lose a portion of or its entire principal invested in the securities. Estas
    securities are generally illiquid and may be rated below investment grade or the unrated equivalent and have the same or equivalent
    risks as higher yield debt securities (“junk bonds”).

    Forward Commitments

    Forward commitments for the purchase or sale
    of securities may include purchases on a when-issued basis or purchases or sales on a delayed delivery basis. In some cases, a
    forward commitment may be conditioned upon the occurrence of a subsequent event, such as approval and consummation of a merger,
    corporate reorganization or debt restructuring or approval of a proposed financing by appropriate authorities (i.e., a “when,
    as and if issued” trade).

    When forward commitments with respect
    to fixed-income securities are negotiated, the price, which is generally expressed in yield terms, is fixed at the time the commitment
    is made, but payment for and delivery of the securities take place at a later date. Securities purchased or sold under a forward
    commitment are subject to market fluctuation and no interest or dividends accrue to the purchaser prior to the settlement date.
    There is a risk of loss if the value of either a purchased security declines before the settlement date or the security sold increases
    before the settlement date. The use of forward commitments helps the Fund to protect against anticipated changes in interest rates
    and prices.

    Illiquid Securities

    The Fund limits its investments in illiquid
    securities to 15% of its net assets. Under Rule 22e-4 under the Investment Company Act of 1940 (the “1940 Act”), the
    term “illiquid securities” means any security or investment that the Fund reasonably expects cannot be sold or disposed
    of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market
    value of the investment.

    If the Fund invests in illiquid securities,
    the Fund may not be able to sell such securities and may not be able to realize their full value upon sale. Restricted securities
    (securities subject to legal or contractual restrictions on resale) may be illiquid. Some restricted securities (such as securities
    issued pursuant to Rule 144A under the Securities Act of 1933 (“Rule 144A Securities”) or certain commercial paper)
    may be treated as liquid, although they may be more difficult to trade than other types of securities.

    Indexed Commercial Paper

    Indexed commercial paper may have its principal
    linked to changes in foreign currency exchange rates whereby its principal amount is adjusted upwards or downwards (but not below
    zero) at maturity to reflect changes in the referenced exchange rate. The Fund will

    receive interest and principal payments on
    such commercial paper in the currency in which such commercial paper is denominated, but the amount of principal payable by the
    issuer at maturity will change in proportion to the change (if any) in the exchange rate between the two specified currencies between
    the date the instrument is issued and the date the instrument matures. While such commercial paper entails the risk of loss of
    principal, the potential for realizing gains as a result of changes in foreign currency exchange rates enables the Fund to hedge
    (or cross-hedge) against a decline in the U.S. Dollar value of investments denominated in foreign currencies while providing
    an attractive money market rate of return. The Fund will purchase such commercial paper for hedging purposes only, not for speculation.

    Inflation-Indexed Securities

    Inflation-indexed securities are fixed-income
    securities whose principal value is periodically adjusted according to the rate of inflation. If the index measuring inflation
    falls, the principal value of these securities will be adjusted downward, and consequently the interest payable on these securities
    (calculated with respect to a smaller principal amount) will be reduced.

    The value of inflation-indexed securities
    tends to react to changes in real interest rates. In general, the price of inflation-indexed securities can fall when real interest
    rates rise, and can rise when real interest rates fall. In addition, the value of these securities can fluctuate based on fluctuations
    in expectations of inflation. Interest payments on these securities can be unpredictable and will vary as the principal and/or
    interest is adjusted for inflation.

    Investment in Exchange-Traded Funds
    and Other Investment Companies

    The Fund may invest in shares of exchange-traded
    funds or ETFs, subject to the restrictions and limitations of the 1940 Act, or any applicable rules, exemptive orders or regulatory
    guidance thereunder. ETFs are pooled investment vehicles, which may be managed or unmanaged, that seek to track the performance
    of a specific index or implement actively-managed investment strategies. Index ETFs will not track their underlying indices precisely
    since the ETFs have expenses and may need to hold a portion of their assets in cash, unlike the underlying indices, and the ETFs
    may not invest in all of the securities in the underlying indices in the same proportion as the indices for varying reasons. los
    Fund will incur transaction costs when buying and selling ETF shares, and indirectly bear the expenses of the ETFs. In addition,
    the market value of an ETF’s shares, which is based on supply and demand in the market for the ETF’s shares, may differ
    from its NAV. Accordingly, there may be times when an ETF’s shares trade at a discount to its NAV.

    The Fund may also invest in investment
    companies other than ETFs, as permitted by the 1940 Act or the rules and regulations or exemptive orders thereunder. As with ETF
    investments, if the Fund acquires shares in other investment companies, shareholders would bear, indirectly, the expenses of such
    investment companies (which may include management and advisory fees), which to the extent not waived or reimbursed, would be in
    addition to the Fund’s expenses. The Fund intends to invest uninvested cash balances in an affiliated money market fund as
    permitted by Rule 12d1-1 under the 1940 Act. The Fund’s investment in other investment companies, including ETFs, subjects
    the Fund indirectly to the underlying risks of those investment companies.

    LIBOR Transition and Associated Risk

    The Fund may invest in certain debt securities,
    derivatives or other financial instruments that utilize the London Interbank Offered Rate, or “LIBOR,” as a “benchmark”
    or “reference rate” for various interest rate calculations. In July 2017, the United Kingdom Financial Conduct Authority,
    which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. Although financial regulators and industry
    working groups have suggested alternative reference rates, such as European Interbank Offer Rate, Sterling Overnight Interbank
    Average Rate and Secured Overnight Financing Rate, global consensus on alternative rates is lacking and the process for amending
    existing contracts or instruments to transition away from LIBOR remains unclear. The elimination of LIBOR or changes to other reference
    rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the
    market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s
    performance and/or net asset value. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders
    to include revised provisions in new and existing contracts or instruments. Consequently, the transition away from LIBOR to other
    reference rates may lead to increased volatility and illiquidity in markets that are tied to LIBOR, fluctuations in values of LIBOR-related
    investments or investments in issuers that utilize LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness
    of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation
    of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate
    is not completed in a timely manner. Because the usefulness of LIBOR as a benchmark could deteriorate during the transition period,
    these effects could occur prior to the end of 2021.

    Loan Participations

    The Fund may invest in corporate loans either
    by participating as co-lender at the time the loan is originated or by buying an interest in the loan in the secondary market from
    a financial institution or institutional investor. The financial status of an institution interposed between the Fund and a borrower
    may affect the ability of the Fund to receive principal and interest payments.

    The success of the Fund may depend
    on the skill with which an agent bank administers the terms of the corporate loan agreements, monitors borrower compliance with
    covenants, collects principal, interest and fee payments from borrowers and, where necessary, enforces creditor remedies against
    borrowers. Agent banks typically have broad discretion in enforcing loan agreements.

    Mortgage-Related Securities, Other
    Asset-Backed Securities and Structured Securities

    The Fund may invest in mortgage-related or
    other asset-backed securities. Mortgage-related securities include mortgage pass-through securities, collateralized mortgage obligations
    (“CMOs”), commercial mortgage-backed securities, mortgage dollar rolls, CMO residuals, stripped mortgage-backed securities
    (“SMBS”) and other securities that directly or indirectly represent a participation in or are secured by and payable
    from mortgage loans on real property. These securities may be issued or guaranteed by the U.S. Government or one of its sponsored
    entities or may be issued by private organizations.

    The value of mortgage-related or other
    asset-backed securities may be particularly sensitive to changes in prevailing interest rates. Early payments of principal on some
    mortgage-related securities may occur during periods of falling mortgage interest rates and expose the Fund to a lower rate of
    return upon reinvestment of principal. Early payments associated with mortgage-related securities cause these securities to experience
    significantly greater price and yield volatility than is experienced by traditional fixed-income securities. During periods of
    rising interest rates, a reduction in prepayments may increase the effective life of mortgage-related securities, subjecting them
    to greater risk of decline in market value in response to rising interest rates. If the life of a mortgage-related security is
    inaccurately predicted, the Fund may not be able to realize the rate of return it expected.

    One type of SMBS has one class receiving
    all of the interest from the mortgage assets (the interest-only, or “IO” class), while the other class will receive
    all of the principal (the principal-only, or “PO” class). The yield to maturity on an IO class is extremely sensitive
    to the rate of principal payments (including prepayments) on the underlying mortgage assets, and a rapid rate of principal payments
    may have a material adverse effect on the Fund’s yield to maturity from these securities.

    Another type of mortgage-related security,
    known as a Government Sponsored Enterprise (“GSE”) Risk-Sharing Bond or Credit Risk Transfer Security (“CRT”),
    is issued by GSEs (and sometimes banks or mortgage insurers) and structured without any government or GSE guarantee in respect
    of borrower defaults or underlying collateral. The risks associated with an investment in CRTs differ from the risks associated
    with an investment in mortgage-backed securities issued by GSEs because, in CRTs, some or all of the credit risk associated with
    the underlying mortgage loans is transferred to the end-investor.

    The Fund may invest in collateralized
    debt obligations (“CDOs”), which include collateralized bond obligations (“CBOs”), collateralized loan
    obligations (“CLOs”), and other similarly structured securities. CBOs and CLOs are types of asset-backed securities.
    A CBO is a trust that is backed by a diversified pool of high-risk, below investment grade fixed-income securities. A CLO is a
    trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans,
    senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent
    unrated loans. The Fund may invest in other types of asset-backed securities that have been offered to investors.

    The securitization techniques used
    to develop mortgage-related securities are being applied to a broad range of financial assets. Through the use of trusts and special
    purpose corporations, various types of assets, including automobile loans and leases, credit card receivables, home equity loans,
    equipment leases and trade receivables, are being securitized in structures similar to the structures used in mortgage securitizations.

    The Fund may also invest in various
    types of structured securities and basket securities. Structured securities are securities issued in structured financing transactions,
    which generally involve aggregating types of debt assets in a pool or special purpose entity and then issuing new securities. Types
    of structured financings include securities described elsewhere in this Prospectus, such as mortgage-related and other asset-backed
    securities. The Fund’s investments include investments in structured securities that represent interests in entities organized
    and operated solely for the purpose of restructuring the investment characteristics of particular debt obligations. This type of
    restructuring involves the deposit with or purchase by an entity, such as a corporation or trust, of specified instruments (such
    as commercial bank loans or high-yield bonds) and the issuance by that entity of one or more classes of structured securities backed
    by, or representing interests in, the underlying instruments. The cash flow on the underlying instruments may be apportioned among
    the newly issued structured securities to create securities with different investment characteristics such as varying maturities,
    payment priorities and interest rate provisions, and the extent of the payments made with respect to structured securities is dependent
    on the extent of the cash flow from the underlying instruments. Structured securities of a given class may be either subordinated
    or un-subordinated to the payment of another class. Subordinated structured securities typically have higher yields and present
    greater risks than unsubordinated structured securities.

    Basket securities in which the Fund
    may invest may consist of entities organized and operated for the purpose of holding a basket of other securities. Baskets involving
    debt obligations may be designed to represent the characteristics of some portion of the debt securities market or the entire debt
    securities market.

    Municipal Securities

    The two principal classifications of municipal
    securities are bonds and notes. Municipal bonds are intended to meet longer-term capital needs while municipal notes are intended
    to fulfill short-term capital needs. Municipal notes generally have original maturities not exceeding one year. Municipal notes
    include tax anticipation notes, revenue anticipation notes, bond anticipation notes, variable rate demand obligations, and tax-exempt
    commercial paper.

    Municipal bonds are typically classified
    as “general obligation” or “revenue” or “special obligation” bonds. General obligation bonds
    are secured by the issuer’s pledge of its full faith, credit, and taxing power for the payment of principal and interest.
    Revenue or special

    obligation bonds are payable only from
    the revenues derived from a particular facility or class of facilities or, in some cases, from the proceeds of a special excise
    or other tax, but not from general tax revenues.

    Current federal tax law distinguishes between
    municipal securities issued to finance certain private activities (“private activity bonds”) and other municipal securities.
    Private activity bonds, most of which are AMT-Subject bonds and are also revenue bonds, include bonds issued to finance such projects
    as airports, housing projects, resource recovery programs, solid waste disposal facilities, and student loan programs. Bonds of
    certain sectors have special risks. For example, the health-care industry can be affected by federal or state legislation, electric
    utilities are subject to governmental regulation, and private activity bonds are not government-backed. Attempts to restructure
    the tax system may have adverse effects on the value of municipal securities or make them less attractive to investors relative
    to taxable treatments.

    Participatory Notes

    The Fund may enter into participatory notes
    (commonly known as “P-Notes”) to gain exposure to foreign securities markets or foreign securities that might otherwise
    be difficult or costly to access or purchase because of foreign regulatory restrictions or foreign tax laws. Securities brokerages
    in the country buy the securities, then issue to foreign investors P-Notes that derive their value from the underlying securities.
    P-Notes involve transaction costs, which may be higher than those applicable to the equity securities. Any dividends or capital
    gains collected from the underlying securities are passed through to the foreign investors; however, the holder of a P-Note is
    not entitled to the same rights (e.g., dividends, voting rights) as an owner of the underlying security. The Fund must rely
    on the creditworthiness of a counterparty and would have no rights against the issuer of an underlying security. Use of P-Notes
    involves various risks. These include the risks that the P-Notes may be illiquid and that the Fund may not be able to terminate
    or offset its positions at the time it wishes to do so or at a favorable price and that, as a result of the failure of a counterparty
    or legal or operational issues, the Fund may not receive payments required to be made to them under the terms of a P-Note.

    Preferred Stock

    The Fund may invest in preferred stock. Preferred
    stock is a class of capital stock that typically pays dividends at a specified rate. Preferred stock is generally senior to common
    stock, but is subordinated to any debt the issuer has outstanding. Accordingly, preferred stock dividends are not paid until all
    debt obligations are first met. Preferred stock may be subject to more fluctuations in market value, due to changes in market participants’
    perceptions of the issuer’s ability to continue to pay dividends, than debt of the same issuer. These investments include
    convertible preferred stock, which includes an option for the holder to convert the preferred stock into the issuer’s common
    stock under certain conditions, among which may be the specification of a future date when the conversion must begin, a certain
    number of shares of common stock per share of preferred stock, or a certain price per share for the common stock. Convertible preferred
    stock tends to be more volatile than non-convertible preferred stock because its value is related to the price of the issuer’s
    common stock as well as the dividends payable on the preferred stock.

    Real Estate Investment Trusts (REITs)

    REITs are pooled investment vehicles that invest
    primarily in income-producing real estate or real estate related loans or interests. REITs are generally classified as equity REITs,
    mortgage REITs or a combination of equity and mortgage REITs. Equity REITs invest the majority of their assets directly in real
    property and derive income primarily from the collection of rents. Equity REITs can also realize capital gains by selling properties
    that have appreciated in value. Mortgage REITs invest the majority of their assets in real estate mortgages and derive income from
    the collection of interest and principal payments. Similar to investment companies such as the Fund, REITs are not taxed on income
    distributed to shareholders provided they comply with several requirements of the Internal Revenue Code of 1986, as amended (the
    “Code”). The Fund will indirectly bear its proportionate share of expenses incurred by REITs in which the Fund invests
    in addition to the expenses incurred directly by the Fund.

    Repurchase Agreements and Buy/Sell
    Back Transactions

    The Fund may enter into repurchase agreements.
    In a repurchase agreement transaction, the Fund buys a security and simultaneously agrees to sell it back to the counterparty at
    a specified price in the future. However, a repurchase agreement is economically similar to a secured loan, in that the Fund lends
    cash to a counterparty for a specific term, normally a day or a few days, and is given acceptable collateral (the purchased securities)
    to hold in case the counterparty does not repay the loan. The difference between the purchase price and the repurchase price of
    the securities reflects an agreed-upon “interest rate”. Given that the price at which the Fund will sell the collateral
    back is specified in advance, the Fund is not exposed to price movements on the collateral unless the counterparty defaults. Si
    the counterparty defaults on its obligation to buy back the securities at the maturity date and the liquidation value of the collateral
    is less than the outstanding loan amount, the Fund would suffer a loss. In order to further mitigate any potential credit exposure
    to the counterparty, if the value of the securities falls below a specified level that is linked to the loan amount during the
    life of the agreement, the counterparty must provide additional collateral to support the loan.

    The Fund may enter into buy/sell back
    transactions, which are similar to repurchase agreements. In this type of transaction, the Fund enters a trade to buy securities
    at one price and simultaneously enters a trade to sell the same securities at another price on a specified date. Similar to a repurchase
    agreement, the repurchase price is higher than the sale price and reflects current interest rates. Unlike a repurchase agreement,
    however, the buy/sell back transaction is considered two separate transactions.

    Reverse Repurchase Agreements and
    Dollar Rolls

    The Fund may enter into reverse repurchase
    agreements and dollar rolls, subject to the Fund’s limitations on borrowings. The terms of reverse repurchase agreements
    are essentially the reverse of “repurchase agreements” described above. In a reverse repurchase agreement transaction,
    the Fund sells a security and simultaneously agrees to repurchase it at a specified time and price. The economic effect of a reverse
    repurchase agreement is that of the Fund borrowing money on a secured basis, and reverse repurchase agreements may be considered
    a form of borrowing for some purposes. Even though the Fund posts securities as collateral, the Fund maintains exposure to price
    declines on these securities since it has agreed to repurchase the securities at a fixed price. Accordingly, reverse repurchase
    agreements create leverage risk for the Fund because the Fund maintains exposure to price declines of both the securities it sells
    in the reverse repurchase agreement and any securities it purchases with the cash it receives under the reverse repurchase agreement.
    If the value of the posted collateral declines, the counterparty would require the Fund to post additional collateral. If the value
    of the collateral increases, the Fund may ask for some of its collateral back. If the counterparty defaults and fails to sell the
    securities back to the Fund at a time when the market purchase price of the securities exceeds the agreed-upon repurchase price,
    the Fund would suffer a loss.

    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.

    Reverse repurchase agreements and 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. In the event the buyer of securities under a reverse repurchase agreement or dollar roll files for
    bankruptcy or becomes insolvent, the Fund’s use of the proceeds of the agreement may be restricted pending a determination
    by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to repurchase the securities.

    Rights and Warrants

    Rights and warrants are option securities permitting
    their holders to subscribe for other securities. Rights are similar to warrants except that they have a substantially shorter duration.
    Rights and warrants do not carry with them dividend or voting rights with respect to the underlying securities, or any rights in
    the assets of the issuer. As a result, an investment in rights and warrants may be considered more speculative than certain other
    types of investments. In addition, the value of a right or a warrant does not necessarily change with the value of the underlying
    securities, and a right or a warrant ceases to have value if it is not exercised prior to its expiration date.

    Short Sales

    The Fund may make short sales as a part of
    overall portfolio management or to offset a potential decline in the value of a security. A short sale involves the sale of a security
    that the Fund does not own, or if the Fund owns the security, is not to be delivered upon consummation of the sale. When the Fund
    makes a short sale of a security that it does not own, it must borrow from a broker-dealer the security sold short and deliver
    the security to the broker-dealer upon conclusion of the short sale.

    If the price of the security sold short
    increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss;
    conversely, if the price declines, the Fund will realize a short-term capital gain. The potential for the price of a fixed-income
    security sold short to rise is a function of the combination of the remaining maturity of the obligation, its creditworthiness
    and its yield. Unlike short sales of equities or other instruments, potential for the price of a fixed-income security to rise
    may be limited due to the fact that the security will be no more than par at maturity. However, the short sale of other instruments
    or securities generally, including fixed-income securities convertible into equities or other instruments, a fixed-income security
    trading at a deep discount from par or that pays a coupon that is high in relative and/or absolute terms, or that is denominated
    in a currency other than the U.S. Dollar, involves the possibility of a theoretically unlimited loss since there is a theoretically
    unlimited potential for the market price of the security sold short to increase.

    Standby Commitment Agreements

    Standby commitment agreements are similar to
    put options that commit the Fund, for a stated period of time, to purchase a stated amount of a security that may be issued and
    sold to the Fund at the option of the issuer. The price and coupon of the security are fixed at the time of the commitment. A
    the time of entering into the agreement, the Fund is paid a commitment fee, regardless of whether the security ultimately is issued.
    The Fund will enter into such agreements only for the purpose of investing in the security underlying the commitment at a yield
    and price considered advantageous to the Fund and unavailable on a firm commitment basis.

    There is no guarantee that a security
    subject to a standby commitment will be issued. In addition, the value of the security, if issued, on the delivery date may be
    more or less than its purchase price. Since the issuance of the security is at the option of the issuer, the Fund will bear the
    risk of capital loss in the event the value of the security declines and may not benefit from an appreciation in the value of the
    security during the commitment period if the issuer decides not to issue and sell the security to the Fund.

    Sovereign Debt Obligations

    No established secondary markets may exist
    for many sovereign debt obligations. Reduced secondary market liquidity may have an adverse effect on the market price and the
    Fund’s ability to dispose of particular instruments when necessary to meet its liquidity

    requirements or in response to specific economic
    events such as a deterioration in the creditworthiness of the issuer. Reduced secondary market liquidity for certain sovereign
    debt obligations may also make it more difficult for the Fund to obtain accurate market quotations for the purpose of valuing its
    portfolio. Market quotations are generally available on many sovereign debt obligations only from a limited number of dealers and
    may not necessarily represent firm bids of those dealers or prices for actual sales.

    By investing in sovereign debt obligations,
    the Fund will be exposed to the direct or indirect consequences of political, social, and economic changes in various countries.
    Political changes in a country may affect the willingness of a foreign government to make or provide for timely payments of its
    obligations. The country’s economic status, as reflected in, among other things, its inflation rate, the amount of its external
    debt and its gross domestic product, will also affect the government’s ability to honor its obligations.

    The Fund is permitted to invest in
    sovereign debt obligations that are not current in the payment of interest or principal or are in default so long as the Adviser
    believes it to be consistent with the Fund’s investment objectives. The Fund may have limited legal recourse in the event
    of a default with respect to certain sovereign debt obligations they hold. For example, remedies from defaults on certain sovereign
    debt obligations, unlike those on private debt, must, in some cases, be pursued in the courts of the defaulting party itself. Legal
    recourse therefore may be significantly diminished. Bankruptcy, moratorium, and other similar laws applicable to issuers of sovereign
    debt obligations may be substantially different from those applicable to issuers of private debt obligations. The political context,
    expressed as the willingness of an issuer of sovereign debt obligations to meet the terms of the debt obligation, for example,
    is of considerable importance. In addition, no assurance can be given that the holders of commercial bank debt will not contest
    payments to the holders of securities issued by foreign governments in the event of default under commercial bank loan agreements.

    Structured Products

    The Fund may invest in certain hybrid derivatives-type
    instruments that combine features of a traditional stock or bond with those of, for example, a futures contract or an option. Estas
    instruments include structured notes and indexed securities, commodity-linked notes and commodity index-linked notes and credit-linked
    securities. The performance of the structured product, which is generally a fixed-income security, is tied (positively or negatively)
    to the price or prices of an unrelated reference indicator such as a security or basket of securities, currencies, commodities,
    a securities or commodities index or a credit default swap or other kinds of swaps. The structured product may not pay interest
    or protect the principal invested. The structured product or its interest rate may be a multiple of the reference indicator and,
    as a result, may be leveraged and move (up or down) more rapidly than the reference indicator. Investments in structured products
    may provide a more efficient and less expensive means of obtaining exposure to underlying securities, commodities or other derivatives,
    but may potentially be more volatile and carry greater trading and market risk than investments in traditional securities. los
    purchase of a structured product also exposes the Fund to the credit risk of the issuer of the structured product.

    Structured notes are derivative debt
    instruments. The interest rate or principal of these notes is determined by reference to an unrelated indicator (for example, a
    currency, security, or index thereof) unlike a typical note where the borrower agrees to make fixed or floating interest payments
    and to pay a fixed sum at maturity. Indexed securities may include structured notes as well as securities other than debt securities,
    the interest or principal of which is determined by an unrelated indicator.

    Commodity-linked notes and commodity
    index-linked notes provide exposure to the commodities markets. These are derivative securities with one or more commodity-linked
    components that have payment features similar to commodity futures contracts, commodity options, commodity indices or similar instruments.
    Commodity-linked products may be either equity or debt securities, leveraged or unleveraged, and have both security and commodity-like
    characteristics. A portion of the value of these instruments may be derived from the value of a commodity, futures contract, index
    or other economic variable.

    The Fund may also invest in certain
    hybrid derivatives-type investments that combine features of a traditional bond with those of certain derivatives such as a credit
    default swap, an interest rate swap or other securities. These investments include credit-linked securities. The issuers of these
    securities frequently are limited purpose trusts or other special purpose vehicles that invest in a derivative instrument or a
    basket of derivative instruments in order to provide exposure to certain fixed-income markets. For instance, the Fund may invest
    in credit-linked securities as a cash management tool to gain exposure to a certain market or to remain fully invested when more
    traditional income-producing securities are not available. The performance of the structured product, which is generally a fixed-income
    security, is linked to the receipt of payments from the counterparties to the derivative instruments or other securities. The Fund’s
    investments in credit-linked securities are indirectly subject to the risks associated with derivative instruments, including,
    among others, credit risk, default risk, counterparty risk, interest rate risk and leverage risk. These securities are generally
    structured as Rule 144A securities so that they may be freely traded among qualified institutional buyers. However, changes in
    the market for credit-linked securities or the availability of willing buyers may result in reduced liquidity for the securities.

    Variable, Floating and Inverse Floating-Rate
    Instruments

    The Fund may invest in variable, floating and
    inverse floating-rate instruments. Variable and floating-rate securities pay interest at rates that are adjusted periodically,
    according to a specified formula. A “variable” interest rate adjusts at predetermined intervals (e.g., daily,
    weekly or monthly), while a “floating” interest rate adjusts whenever a specified benchmark rate (such as the bank
    prime lending rate) changes.

    The Fund may also invest in inverse
    floating-rate debt instruments (“inverse floaters”). The interest rate on an inverse floater resets in the opposite
    direction from the market rate of interest to which the inverse floater is indexed. An inverse floater may have greater

    volatility in market value, in that,
    during periods of rising interest rates, the market values of inverse floaters will tend to decrease more rapidly than those of
    fixed-rate securities.

    Zero-Coupon and Principal-Only Securities

    Zero-coupon securities and principal-only
    (PO) securities are debt securities that have been issued without interest coupons or stripped of their unmatured interest coupons,
    and include receipts or certificates representing interests in such stripped debt obligations and coupons. Such a security pays
    no interest to its holder during its life. Its value to an investor consists of the difference between its face value at the time
    of maturity and the price for which it was acquired, which is generally an amount significantly less than its face value. Such
    securities usually trade at a deep discount from their face or par value and are subject to greater fluctuations in market value
    in response to changing interest rates than debt obligations of comparable maturities and credit quality that make current distributions
    of interest. On the other hand, because there are no periodic interest payments to be reinvested prior to maturity, these securities
    eliminate reinvestment risk and “lock in” a rate of return to maturity.

    ADDITIONAL RISKS AND OTHER CONSIDERATIONS

    Investments in the Fund involve the risk considerations
    described below.

    Borrowings and Leverage

    The Fund may use borrowings for investment
    purposes subject to its investment policies and procedures and to applicable statutory or regulatory requirements. Borrowings by
    the Fund result in leveraging of the Fund’s shares. The Fund may also use leverage for investment purposes by entering into
    transactions such as reverse repurchase agreements, forward contracts and dollar rolls. This means that the Fund uses cash made
    available during the term of these transactions to make investments in other securities.

    Utilization of leverage, which is usually
    considered speculative, involves certain risks to the Fund’s shareholders. These include a higher volatility of the NAV of
    the Fund’s shares of common stock and the relatively greater effect of changes in the value of the Fund’s portfolio
    on the NAV of the shares caused by favorable or adverse changes in market conditions or interest rates. In the case of borrowings
    for investment purposes, so long as the Fund is able to realize a net return on the leveraged portion of its investment portfolio
    that is higher than the interest expense paid on borrowings, the effect of leverage will be to cause the Fund’s shareholders
    to realize a higher net return than if the Fund were not leveraged. If the interest expense on borrowings or other costs of leverage
    approach the net return on the Fund’s investment portfolio or investments made through leverage, as applicable, the benefit
    of leverage to the Fund’s shareholders will be reduced. If the interest expense on borrowings or other costs of leverage
    were to exceed the net return to the Fund, the Fund’s use of leverage could result in a lower rate of net return than if
    the Fund were not leveraged. Similarly, the effect of leverage in a declining market could normally be a greater decrease in NAV
    than if the Fund were not leveraged.

    Foreign (Non-U.S.) Securities

    Investing in foreign securities involves special
    risks and considerations not typically associated with investing in U.S. securities. The securities markets of many foreign countries
    are relatively small, with the majority of market capitalization and trading volume concentrated in a limited number of companies
    representing a small number of industries. The Fund may experience greater price volatility and significantly lower liquidity than
    a portfolio invested solely in securities of U.S. companies. These markets may be subject to greater influence by adverse events
    generally affecting the market, and by large investors trading significant blocks of securities, than is usual in the United States.
    In addition, the securities markets of some foreign countries may be closed on certain days (p.ej., local holidays) when
    the Fund is open for business. On such days, the Fund may be unable to add to or exit its positions in foreign securities traded
    in such markets even though it may otherwise be attractive to do so.

    Securities registration, custody, and
    settlement may in some instances be subject to delays and legal and administrative uncertainties. Foreign investment in the securities
    markets of certain foreign countries is restricted or controlled to varying degrees. These restrictions or controls may at times
    limit or preclude investment in certain securities and may increase the costs and expenses of the Fund. In addition, the repatriation
    of investment income, capital or the proceeds of sales of securities from certain of the countries is controlled under regulations,
    including in some cases the need for certain advance government notification or authority, and if a deterioration occurs in a country’s
    balance of payments, the country could impose temporary restrictions on foreign capital remittances.

    The Fund also could be adversely affected
    by delays in, or a refusal to grant, any required governmental approval for repatriation, as well as by the application to it of
    other restrictions on investment. Investing in local markets may require the Fund to adopt special procedures or seek local governmental
    approvals or other actions, any of which may involve additional costs to the Fund. These factors may affect the liquidity of the
    Fund’s investments in any country and the Adviser will monitor the effect of any such factor or factors on the Fund’s
    investments. Transaction costs, including brokerage commissions for transactions both on and off the securities exchanges, in many
    foreign countries are generally higher than in the United States.

    Issuers of securities in foreign jurisdictions
    are generally not subject to the same degree of regulation as are U.S. issuers with respect to such matters as insider trading
    rules, restrictions on market manipulation, shareholder proxy requirements, and timely disclosure of information. The reporting,
    accounting, and auditing standards of foreign countries may differ, in some cases significantly, from U.S. standards in important
    respects, and less information may be available to investors in foreign securities than to investors in U.S. securities. Substantially
    less information is publicly available about certain non-U.S. issuers than is available about most U.S. issuers.

    The economies of individual foreign
    countries may differ favorably or unfavorably from the U.S. economy in such respects as growth of gross domestic product or gross
    national product, rate of inflation, capital reinvestment, resource self-sufficiency, and balance of payments position. Nationalization,
    expropriation or confiscatory taxation, currency blockage, political changes, government regulation, political or social instability,
    revolutions, wars or diplomatic developments could affect adversely the economy of a foreign country. In the event of nationalization,
    expropriation, or other confiscation, the Fund could lose its entire investment in securities in the country involved. In addition,
    laws in foreign countries governing business organizations, bankruptcy and insolvency may provide less protection to security holders
    such as the Funds than that provided by U.S. laws.

    In June 2016, the United Kingdom (“UK”)
    voted in a referendum to leave the European Union (“EU”). On March 29, 2017, the UK notified the European Council of
    its intention to withdraw from the EU. There is considerable uncertainty relating to the timing and potential consequences of the
    withdrawal. During the period prior to withdrawal and thereafter, the impact on the UK and European economies and the broader global
    economy could be significant, resulting in increased volatility and illiquidity, currency fluctuations, impacts on arrangements
    for trading and on other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory or otherwise),
    and in potentially lower growth for companies in the UK, Europe and globally, which could have an adverse effect on the value of
    the Fund’s investments.

    Investments in securities of companies
    in emerging markets involve special risks. There are approximately 100 countries identified by the World Bank as Low Income, Lower
    Middle Income and Upper Middle Income countries that are generally regarded as emerging markets. Emerging market countries that
    the Adviser currently considers for investment include:

    Argentina

    Bangladesh

    Bielorrusia

    Belice

    Brasil

    Bulgaria

    Chile

    China

    Colombia

    Croacia

    República Dominicana

    Ecuador

    Egipto

    El Salvador

    Gabon

    Georgia

    Ghana

    Hungría

    India

    Indonesia

    Iraq

    Ivory Coast

    Jamaica

    Jordán

    Kazakhstan

    Lebanon

    Lituania

    Malaysia

    Mexico

    Mongolia

    Nigeria

    Pakistán

    Panamá

    Peru

    Filipinas

    Polonia

    Rusia

    Senegal

    Serbia

    Sudáfrica

    South Korea

    Sri Lanka

    Taiwan

    Tailandia

    Turkey

    Ukraine

    Uruguay

    Venezuela

    Vietnam

    Countries may be added to or removed
    from this list at any time.

    Investing in emerging market securities
    imposes risks different from, or greater than, risks of investing in domestic securities or in foreign, developed countries. Estas
    risks include: smaller market capitalization of securities markets, which may suffer periods of relative illiquidity; significant
    price volatility; restrictions on foreign investment; and possible repatriation of investment income and capital. In addition,
    foreign investors may be required to register the proceeds of sales and future economic or political crises could lead to price
    controls, forced mergers, expropriation or confiscatory taxation, seizure, nationalization, or creation of government monopolies.
    The currencies of emerging market countries may experience significant declines against the U.S. Dollar, and devaluation may
    occur subsequent to investments in these currencies by the Fund. Inflation and rapid fluctuations in inflation rates have had,
    and may continue to have, negative effects on the economies and securities markets of certain emerging market countries.

    Additional risks of emerging market
    securities may include: greater social, economic and political uncertainty and instability; more substantial governmental involvement
    in the economy; less governmental supervision and regulation; unavailability of currency hedging techniques; companies that are
    newly organized and small; differences in auditing and financial reporting standards, which may result in unavailability of material
    information about issuers; and less developed legal systems. In addition, emerging securities markets may have different clearance
    and settlement procedures, which may be unable to keep pace with the volume of securities transactions or otherwise make it difficult
    to engage in such transactions. Settlement problems may cause the Fund to miss attractive investment opportunities, hold a portion
    of its assets in cash pending investment, or be delayed in disposing of a portfolio security. Such a delay could result in possible
    liability to a purchaser of the security.

    The Fund may invest in securities of
    frontier market countries. Frontier market countries generally have smaller, less diverse economies and even less developed capital
    markets and legal, regulatory, and political systems than traditional emerging markets. As a result, the risks of investing in
    emerging market countries are magnified in frontier market countries. Frontier market risks include the potential for extreme price
    volatility and illiquidity—economic or political instability may cause larger price changes in frontier market securities
    than in securities of issuers located in more developed markets. The risks of investing in frontier market countries may also be
    magnified

    by: government ownership or control
    of parts of the private sector and of certain companies; trade barriers, exchange controls, managed adjustments in relative currency
    values, impaired or limited access to issuer information and other protectionist measures imposed or negotiated by the countries
    with which frontier market countries trade; and the relatively new and unsettled securities laws in many frontier market countries.
    The actions of a relatively few major investors in these markets are more likely to result in significant changes in local stock
    prices and the value of fund shares. The risk also exists that an emergency situation may arise in one or more frontier market
    countries as a result of which trading of securities may cease or may be substantially curtailed and prices for investments in
    such markets may not be readily available. All of these factors can make investing in frontier markets riskier than investing in
    more developed emerging markets or other foreign markets.

    Foreign (Non-U.S.) Currencies

    Investing in and exposure to foreign currencies
    involve special risks and considerations. If the Fund invests some portion of its assets in securities denominated in, and receives
    revenues in, foreign currencies, it will be adversely affected by reductions in the value of those currencies relative to the U.S.
    Dollar. Foreign currency exchange rates may fluctuate significantly. They are determined by supply and demand in the foreign exchange
    markets, the relative merits of investments in different countries, actual or perceived changes in interest rates, and other complex
    factors. Currency exchange rates also can be affected unpredictably by intervention (or the failure to intervene) by U.S. or foreign
    governments or central banks or by currency controls or political developments. In light of these risks, the Fund may engage in
    certain currency hedging transactions, as described above, which involve certain special risks.

    The Fund may also invest directly in
    foreign currencies for non-hedging purposes, directly on a spot basis (i.e., cash) or through derivatives transactions,
    such as forward currency exchange contracts, futures contracts and options thereon, swaps and options as described above. Estas
    investments will be subject to the same risks. In addition, currency exchange rates may fluctuate significantly over short periods
    of time, causing the Fund’s NAV to fluctuate.

    Investment in Below Investment Grade
    Fixed-Income Securities

    Investments in securities rated below investment
    grade (commonly known as “junk bonds”) are subject to greater risk of loss of principal and interest than higher-rated
    securities. These securities are also generally considered to be subject to greater market risk than higher-rated securities. los
    capacity of issuers of these securities to pay interest and repay principal is more likely to weaken than is that of issuers of
    higher-rated securities in times of deteriorating economic conditions or rising interest rates. In addition, below investment grade
    securities may be more susceptible to real or perceived adverse economic conditions than investment grade securities.

    The market for these securities may
    be thinner and less active than that for higher-rated securities, which can adversely affect the prices at which these securities
    can be sold. To the extent that there is no established secondary market for these securities, the Fund may experience difficulty
    in valuing such securities and, in turn, the Fund’s assets.

    Unrated Securities

    The Fund may invest in unrated securities when
    the Adviser believes that the financial condition of the issuers of such securities, or the protection afforded by the terms of
    the securities themselves, limits the risk to the Fund to a degree comparable to that of rated securities that are consistent with
    the Fund’s objective and policies.

    Future Developments

    The Fund may take advantage of other investment
    practices that are not currently contemplated for use by the Fund, or are not available but may yet be developed, to the extent
    such investment practices are consistent with the Fund’s investment objective and legally permissible for the Fund. Such
    investment practices, if they arise, may involve risks that exceed those involved in the activities described above.

    Changes in Investment Objectives
    and Policies

    The Fund is a series of AB Bond Fund, Inc.
    The Board of Directors of AB Bond Fund, Inc. (the “Board”) may change the Fund’s investment objective without
    shareholder approval. The Fund will provide shareholders with 60 days’ prior written notice of any change to the Fund’s
    investment objective. Unless otherwise noted, all other policies of the Fund may be changed without shareholder approval.

    Temporary Defensive Position

    For temporary defensive purposes in an attempt
    to respond to adverse market, economic, political or other conditions, the Fund may invest in certain types of short-term, liquid,
    investment-grade or high-quality debt securities. While the Fund is investing for temporary defensive purposes, it may not meet
    its investment objectives.

    Portfolio Holdings

    A description of the Fund’s policies
    and procedures with respect to the disclosure of the Fund’s portfolio securities is available in the Fund’s SAI.

    Cyber Security Risk

    Mutual funds, including the Fund, are susceptible
    to cyber security risk. Cyber security breaches may allow an unauthorized party to gain access to Fund assets, shareholder data,
    or proprietary information, or cause the Fund and/or its service providers to suffer data corruption or lose operational functionality.
    In addition, cyber security breaches at issuers in which the Fund invests may affect the value of your investment in the Fund.

    INVESTING IN THE FUND

    This section discusses how to buy, sell or
    redeem, or exchange different classes of shares of the Fund that are offered through this Prospectus. The Fund offers three classes
    of shares through this Prospectus.

    Each share class represents an investment
    in the same portfolio of securities, but the classes may have different sales charges and bear different ongoing distribution expenses.
    For additional information on the differences between the different classes of shares and factors to consider when choosing among
    them, please see “The Different Share Class Expenses” and “Choosing a Share Class” below. Only Class A
    shares offer Quantity Discounts on sales charges,
    as described below.

    HOW TO BUY SHARES

    The purchase of the Fund’s shares is
    priced at the next-determined NAV after your order is received in proper form.

    Class A and Class C Shares –
    Shares Available to Retail Investors

    You may purchase the Fund’s Class A
    or Class C shares through financial intermediaries, such as broker-dealers or banks. You also may purchase shares directly from
    the Fund’s principal underwriter, AllianceBernstein Investments, Inc., or ABI, if you are (i) an initial investor and the
    Fund has received and accepted a completed Mutual Fund Application identifying a financial intermediary with which ABI has an agreement;
    (ii) an existing Fund shareholder with an account held directly with a Fund; or (iii) an employee of the Adviser or any of its
    affiliates. These purchases may be subject to an initial sales charge, an asset-based sales charge or CDSC as described below.

    Purchase Minimums and Maximums

    Minimums:*

    —Initial: $ 2,500
    —Subsequent: $ 50
    * * Purchase minimums may not apply to some accounts established in connection with the Automatic Investment
    Program and to some retirement-related investment programs. These investment minimums also do not apply to persons participating
    in a fee-based program or “Mutual Fund Only” brokerage program which is sponsored and maintained by a registered broker-dealer
    or other financial intermediary with omnibus account or “network level” account arrangements with the Fund.

    Maximum Individual Purchase Amount:

    —Class A shares Ninguna
    —Class C shares $ 1,000,000

    Other Purchase Information

    Your broker or financial intermediary must
    receive your purchase request by the Fund Closing Time, which is the close of regular trading on any day the Exchange is open (ordinarily,
    4:00 p.m., Eastern time, but sometimes earlier, as in the case of scheduled half-day trading or unscheduled suspensions of
    trading), and submit it to the Fund by a pre-arranged time for you to receive the next-determined NAV, less any applicable initial
    sales charge.

    If you are an existing Fund shareholder
    and you have completed the appropriate section of the Mutual Fund Application, you may purchase additional shares by telephone
    with payment by electronic funds transfer in amounts not exceeding $500,000. AllianceBernstein Investor Services, Inc., or ABIS,
    must receive and confirm telephone requests before the Fund Closing Time to receive that day’s public offering price. Llamada
    (800) 221-5672 to arrange a transfer from your bank account.

    Shares of the Fund are generally available
    for purchase in the United States, Puerto Rico, Guam, American Samoa and the U.S. Virgin Islands. Except to the extent otherwise
    permitted by the Fund, the Fund will only accept purchase orders directly from U.S. citizens with a U.S. address (including an
    APO or FPO address) or resident aliens with a U.S. address (including an APO or FPO address) and a U.S. taxpayer identification
    number (i.e., W-9 tax status). Subject to the requirements of local law applicable to the offering of Fund shares, U.S.
    citizens (i.e., W-9 tax status) residing in foreign countries are permitted to purchase shares of the Fund through their
    accounts at U.S. registered broker-dealers and other similar U.S. financial intermediaries, provided the broker-dealer or intermediary
    has an agreement with the Fund’s distributor permitting it to accept orders for the purchase and sale of Fund shares.

    The Fund will not accept purchase orders
    (including orders for the purchase of additional shares) from foreign persons or entities or from resident aliens who, to the knowledge
    of the Fund, have reverted to non-resident status (p.ej., a resident alien who has a non-U.S. address at time of purchase).

    Tax-Deferred Accounts

    Class A shares are also available to the
    following tax-deferred arrangements:

    • Traditional and Roth IRAs (minimums listed in the table above apply);
    • SEPs, SAR-SEPs, SIMPLE IRAs, and individual 403(b) plans (no investment minimum); y
    • AllianceBernstein-sponsored Coverdell Education Savings Accounts ($2,000 initial investment minimum,
    $150 Automatic Investment Program monthly minimum).

    Class C shares are available to AllianceBernstein
    Link, AllianceBernstein Individual 401(k), AllianceBernstein SIMPLE IRA plans with less than $250,000 in plan assets and 100 employees,
    and to group retirement plans.

    Advisor Class Shares

    You may purchase Advisor Class shares through
    your financial advisor at NAV. Advisor Class shares may be purchased and held solely:

    • through accounts established under a fee-based program, sponsored and maintained by a registered
    broker-dealer or other financial intermediary and approved by ABI;
    • through a defined contribution employee benefit plan (p.ej., a 401(k) plan) that purchases
    shares directly without the involvement of a financial intermediary; y
    • by investment advisory clients of, and certain other persons associated with, the Adviser and its
    affiliates or the Fund.

    Advisor Class shares may also be available
    on brokerage platforms of firms that have agreements with ABI to offer such shares when acting solely on an agency basis for the
    purchase or sale of such shares. If you transact in Advisor Class shares through one of these programs, you may be required to
    pay a commission and/or other forms of compensation to the broker. Shares of the Fund are available in other share classes that
    have different fees and expenses.

    The Fund’s SAI has more detailed
    information about who may purchase and hold Advisor Class shares.

    Class A Shares Available to
    Group Retirement Plans

    Class A shares are available at NAV, without
    an initial sales charge, to 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit-sharing and money purchase pension
    plans, defined benefit plans, and non-qualified deferred compensation plans where plan level or omnibus accounts are held on the
    books of the Fund (“group retirement plans”).

    Class A shares are also available
    at NAV to the AllianceBernstein Link, AllianceBernstein Individual 401(k) and AllianceBernstein SIMPLE IRA plans but only if such
    plans have at least $250,000 in plan assets or 100 employees, and to certain defined contribution retirement plans that do not
    have plan level or omnibus accounts on the books of the Fund.

    Class A shares are also available
    to group retirement plans in the AllianceBernstein-sponsored programs known as the “Informed Choice” programs.

    Required Information

    The Fund is required by law to obtain, verify
    and record certain personal information from you or persons authorized to act on your behalf in order to establish an account.
    Required information includes name, date of birth, physical address and taxpayer identification number (for most investors, your
    social security number). The Fund may also ask to see other identifying documents. If you do not provide the information, the Fund
    will not be able to open your account. If the Fund is unable to verify your identity, or that of another person(s) authorized to
    act on your behalf, or if the Fund believes it has identified potentially criminal activity, the Fund reserves the right to take
    action it deems appropriate or as required by law, which may include closing your account. If you are not a U.S. citizen or resident
    alien, your account must be affiliated with a Financial Industry Regulatory Authority, or FINRA, member firm.

    The Fund is required to withhold 24%
    of taxable dividends, capital gains distributions, and redemptions paid to any shareholder who has not provided the Fund with his
    or her correct taxpayer identification number. To avoid this, you must provide your correct taxpayer identification number on your
    Mutual Fund Application.

    General

    IRA custodians, plan sponsors, plan fiduciaries,
    plan recordkeepers, and other financial intermediaries may establish their own eligibility requirements as to the purchase, sale
    or exchange of Fund shares, including minimum and maximum investment requirements. The Fund is not responsible for, and has no
    control over, the decisions of any plan sponsor, fiduciary or other financial intermediary to impose such differing requirements.

    ABI may refuse any order to purchase
    shares. The Fund reserves the right to suspend the sale of its shares to the public in response to conditions in the securities
    markets or for other reasons.

    THE DIFFERENT SHARE CLASS EXPENSES

    This section describes the different expenses
    of investing in each class and explains factors to consider when choosing a class of shares. The expenses can include distribution
    and/or service (Rule 12b-1) fees, initial sales charges and/or CDSCs. Only Class A shares offer Quantity Discounts,
    as described below.

    Asset-Based Sales Charges or Distribution
    and/or Service (Rule 12b-1) Fees

    WHAT IS A RULE 12b-1 FEE?

    A Rule 12b-1 fee is a fee deducted
    from the Fund’s assets that is used to pay for personal service, maintenance of shareholder accounts and distribution costs,
    such as advertising and compensation of financial intermediaries. The Fund has adopted a plan under SEC Rule 12b-1 that allows
    the Fund to pay asset-based sales charges or distribution and/or service (Rule 12b-1) fees for the distribution and sale of
    its shares. The amount of each share class’s Rule 12b-1 fee, if any, is disclosed below and in the Fund’s fee
    table included in the Summary Information section above.

    The amount of these fees for each class
    of the Fund’s shares is:

    Distribution and/or Service

    (Rule 12b-1) Fee (as a

    Percentage of Aggregate

    Average Daily Net Assets)

    Clase A 0.20 %*
    Clase C 1.00 %
    Advisor Class Ninguna

    * The maximum fee allowed under
    the Rule 12b-1 Plan for the Class A shares of the Fund is 0.25% of the aggregate average daily net assets. The Board currently
    limits the payments to 0.20%.

    Because these fees are paid out of
    the Fund’s assets on an ongoing basis, over time these fees will increase the cost of your investment and may cost you more
    than paying other types of sales fees. Class C shares are subject to higher Rule 12b-1 fees than Class A shares. Clase
    C shares are subject to these higher fees for a period of ten years, after which they convert to Class A shares. Share classes
    with higher Rule 12b-1 fees will have a higher expense ratio, pay correspondingly lower dividends and may have a lower NAV (and
    returns). All or some of these fees are paid to financial intermediaries, which may include your financial intermediary’s
    firm. ABI retains these fees for certain shareholder accounts, including those held directly with the Fund (with no associated
    financial intermediary).

    Sales Charges

    Class A Shares. You can purchase
    Class A shares at their public offering price (or cost), which is NAV plus an initial sales charge of up to 4.25% of the offering
    precio. Any applicable sales charge will be deducted directly from your investment.

    The initial sales charge you pay each
    time you buy Class A shares differs depending on the amount you invest and may be reduced or eliminated for larger purchases
    as indicated below. These discounts, which are also known as Breakpoints or Quantity Discounts, can reduce or, in some cases,
    eliminate the initial sales charges that would otherwise apply to your investment in Class A shares.

    The sales charge schedule of Class A
    share Quantity Discounts is as follows:

    Initial
        Sales Charge
    Amount
        Purchased
    as %
        de
    Net Amount
    Invested
    as %
        de
    Offering
    Precio
    Arriba
        to $100,000
    4.44 % 4.25 %
    $100,000
        up to $250,000
    3.36 3.25
    $250,000
        up to $500,000
    2.30 2.25
    $500,000
        up to $1,000,000
    1.78 1.75
    $1,000,000
        and above
    0.00 0.00

    Except as noted below, purchases of
    Class A shares in the amount of $1,000,000 or more or by AllianceBernstein or non-AllianceBernstein sponsored group retirement
    plans are not subject to an initial sales charge, but may be subject to a 1% CDSC if redeemed or terminated within one year.

    Class A share purchases not
    subject to sales charges.
    The Fund may sell its Class A shares at NAV without an initial sales charge or CDSC to some
    categories of investors, including:

    • persons participating in a fee-based program, sponsored and maintained by a registered broker-dealer
    or other financial intermediary, under which persons pay an asset-based fee for services in the nature of investment advisory or
    administrative services, or clients of broker-dealers or other financial intermediaries who purchase Class A shares for their
    own accounts through self-directed and/or non-discretionary brokerage accounts with the broker-dealers or other financial intermediaries
    that may or may not charge a transaction fee to its customers;
    • plan participants who roll over amounts distributed from employer maintained retirement plans to
    AllianceBernstein-sponsored IRAs where the plan is a client of or serviced by the Adviser’s Institutional Investment Management
    Division or Bernstein Global Wealth Management Division, including subsequent contributions to those IRAs;
    • certain other investors, such as investment management clients of the Adviser or its affiliates,
    including clients and prospective clients of the Adviser’s Institutional Investment Management Division, employees of selected
    dealers authorized to sell the Fund’s shares, and employees of the Adviser; o

    • persons participating in a “Mutual Fund Only” brokerage program, sponsored and maintained
    by a registered broker-dealer or other financial intermediary.

    The availability of certain sales charge
    waivers and discounts will depend on whether you purchase your shares directly from the Fund or through a financial intermediary.
    Intermediaries may have different policies and procedures regarding the availability of front-end sales load waivers and discounts
    or CDSC waivers. In all instances, it is the purchaser’s responsibility to notify the Fund or the purchaser’s financial
    intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or discounts.
    For waivers and discounts not available through a particular intermediary, shareholders will have to purchase Fund shares directly
    from the Fund or through another intermediary to receive these waivers or discounts.

    Please see the Fund’s SAI for
    more information about purchases of Class A shares without sales charges.

    Certain intermediaries impose different
    eligibility criteria for sales load waivers and discounts, which are described in Appendix C—Financial Intermediary Waivers.

    Class C Shares. You can purchase
    Class C shares at NAV without an initial sales charge. This means that the full amount of your purchase is invested in the Fund.
    Your investment is subject to a 1% CDSC if you redeem your shares within one year. If you exchange your shares for the Class
    C shares of another AB Mutual Fund, the 1% CDSC also will apply to the Class C shares received. The 1-year period for the CDSC
    begins with the date of your original purchase, not the date of the exchange for the other Class C shares.

    Class C shares purchased for cash automatically
    convert to Class A shares ten years after the end of the month of your purchase. If you purchase shares by exchange for the Class
    C shares of another AB Mutual Fund, the conversion period runs from the date of your original purchase.

    HOW IS THE CDSC CALCULATED?

    The CDSC is applied to the lesser of
    NAV at the time of redemption or the original cost of shares being redeemed (or, as to Fund shares acquired through an exchange,
    the cost of the AB Mutual Fund shares originally purchased for cash). This means that no sales charge is assessed on increases
    in NAV above the initial purchase price. Shares obtained from dividend or distribution reinvestment are not subject to the CDSC.
    In determining the CDSC, it will be assumed that the redemption is, first, of any shares not subject to a CDSC and, second, of
    shares held the longest.

    Advisor Class Shares. Advisor
    Class shares are not subject to any initial sales charge or CDSC, although your financial advisor may charge a fee.

    SALES CHARGE REDUCTION PROGRAMS FOR
    CLASS A SHARES

    This section includes important information
    about sales charge reduction programs available to investors in Class A shares and describes information or records you may
    need to provide to the Fund or your financial intermediary in order to be eligible for sales charge reduction programs. Your financial
    intermediary may have different policies and procedures regarding eligibility for sales charge reduction programs. See Appendix
    C—Financial Intermediary Waivers.

    Information about Quantity Discounts
    and sales charge reduction programs also is available free of charge and in a clear and prominent format on our website at www.abfunds.com
    (click on “Investments—Mutual Funds”, select the Fund, then click on “More Literature—Understanding
    Sales Charges & Expenses”).

    Rights of Accumulation

    To determine if a new investment in Class A
    shares is eligible for a Quantity Discount, a shareholder can combine the value of the new investment in the Fund with the
    higher of cost or NAV of existing investments in the Fund, any other AB Mutual Fund and AB Institutional Funds. The AB Mutual Funds
    use the higher of cost or current NAV of your existing investments when combining them with your new investment.

    Combined Purchase Privileges

    A shareholder may qualify for a Quantity
    Discount
    by combining purchases of shares of the Fund into a single “purchase”. A “purchase” means
    a single purchase or concurrent purchases of shares of the Fund or any other AB Mutual Fund, including AB Institutional Funds,
    by:

    • an individual, his or her spouse or domestic partner, or the individual’s children under
    the age of 21 purchasing shares for his, her or their own account(s);
    • a trustee or other fiduciary purchasing shares for a single trust, estate or single fiduciary account
    with one or more beneficiaries involved;
    • the employee benefit plans of a single employer; o
    • any company that has been in existence for at least six months or has a purpose other than the
    purchase of shares of the Fund.

    Letter of Intent

    An investor may not immediately invest a sufficient
    amount to reach a Quantity Discount, but may plan to make one or more additional investments over a period of time that,
    in the end, would qualify for a Quantity Discount. For these situations, the Fund offers a Letter of Intent, cuales
    permits new investors to express the intention, in writing, to invest at least $100,000 in Class A shares of the Fund or any
    AB Mutual Fund within 13 months. The Fund will then apply the Quantity Discount to each of the investor’s purchases
    of Class A shares that would apply to the total amount stated in the Letter of Intent. In the event an existing investor
    chooses to initiate a Letter of Intent, the AB Mutual Funds will use the higher of cost or current NAV of the investor’s
    existing investments and of those accounts with which investments are combined via Combined Purchase Privileges toward the
    fulfillment of the Letter of Intent. For example, if the combined cost of purchases totaled $80,000 and the current NAV
    of all applicable accounts is $85,000 at the time a $100,000 Letter of Intent is initiated, the subsequent investment of
    an additional $15,000 would fulfill the Letter of Intent. If an investor fails to invest the total amount stated in the
    Letter of Intent, the Fund will retroactively collect the sales charge otherwise applicable by redeeming shares in the investor’s
    account at their then current NAV. Investors qualifying for Combined Purchase Privileges may purchase shares under a single
    Letter of Intent.

    Required Shareholder Information
    and Records

    In order for shareholders to take advantage
    of sales charge reductions, a shareholder or his or her financial intermediary must notify the Fund that the shareholder qualifies
    for a reduction. Without notification, the Fund is unable to ensure that the reduction is applied to the shareholder’s account.
    A shareholder may have to provide information or records to his or her financial intermediary or the Fund to verify eligibility
    for breakpoint privileges or other sales charge waivers. This may include information or records, including account statements,
    regarding shares of the Fund or other AB Mutual Funds held in:

    • all of the shareholder’s accounts at the Fund or a financial intermediary; y
    • accounts of related parties of the shareholder, such as members of the same family, at any financial
    intermediary.

    CDSC WAIVERS AND OTHER PROGRAMS

    Here Are Some Ways To Avoid Or
    Minimize Charges On Redemption.

    CDSC Waivers

    The Fund will waive the CDSCs on redemptions
    of shares in the following circumstances, among others:

    • permitted exchanges of shares;
    • following the death or disability of a shareholder;
    • if the redemption represents a minimum required distribution from
    an IRA or other retirement plan to a shareholder who has attained the age of 70
    1/ /2;
    o
    • if the redemption is necessary to meet a plan participant’s or beneficiary’s request
    for a distribution or loan from a group retirement plan or to accommodate a plan participant’s or beneficiary’s direction
    to reallocate his or her plan account among other investment alternatives available under a group retirement plan.

    Please
    see the Fund’s SAI for a list of additional circumstances in which the Fund will waive the CDSCs on redemptions of shares.

    Your financial
    intermediary may have different policies and procedures regarding eligibility for CDSC waivers. See Appendix C—Financial
    Intermediary Waivers.

    Other Programs

    Dividend Reinvestment Program

    Unless you specifically have elected to receive
    dividends or distributions in cash, they will automatically be reinvested, without an initial sales charge or CDSC, in the same
    class of additional shares of the Fund. If you elect to receive distributions in cash, you will only receive a check if the amount
    of the distribution is equal to or exceeds $25.00. Distributions of less than $25.00 will automatically be reinvested in shares
    of the Fund. To receive distributions of less than $25.00 in cash, you must have bank instructions associated to your account so
    that distributions can be delivered to you electronically via Electronic Funds Transfer using the Automated Clearing House or “ACH”.
    In addition, the Fund may reinvest your distribution check (and future checks) in additional shares of the Fund if your check (i) is
    returned as undeliverable or (ii) remains uncashed for nine months.

    Dividend Direction Plan

    A shareholder who already maintains accounts
    in more than one AB Mutual Fund may direct the automatic investment of income dividends and/or capital gains by the Fund, in any
    amount, without the payment of any sales charges, in shares of any eligible class of one or more other AB Mutual Fund(s) in which
    the shareholder maintains an account.

    Automatic Investment Program

    The Automatic Investment Program allows investors
    to purchase shares of the Fund through pre-authorized transfers of funds from the investor’s bank account. Under the Automatic
    Investment Program, an investor may (i) make an initial purchase of at least $2,500 and invest at least $50 monthly or (ii) make
    an initial purchase of less than $2,500 and commit to a monthly investment of $200 or more until the investor’s account balance
    is $2,500 or more. Please see the Fund’s SAI for more details.

    Reinstatement Privilege

    A shareholder who has redeemed all or any portion
    of his or her Class A shares may reinvest all or any portion of the proceeds from the redemption in Class A shares of
    any AB Mutual Fund at NAV without any sales charge, if the reinvestment is made within 120 calendar days after the redemption date.

    Systematic Withdrawal Plan

    The Fund offers a systematic withdrawal plan
    that permits the redemption of Class A or Class C shares without payment of a CDSC. Under this plan, redemptions equal to
    1% a month, 2% every two months or 3% a quarter of the value of the Fund account would be free of a CDSC. The Class A and
    Class C shares held the longest would be redeemed first.

    CHOOSING A SHARE CLASS

    Each share class represents an interest in
    the same portfolio of securities, but each class has its own sales charge and expense structure, allowing you to choose the class
    that best fits your situation. In choosing a class of shares, you should consider:

    • the amount you intend to invest;
    • how long you expect to own shares;
    • expenses associated with owning a particular class of shares;
    • whether you qualify for any reduction or waiver of sales charges (for example, if you are making
    a large investment that qualifies for a Quantity Discount, you might consider purchasing Class A shares); y
    • whether a share class is available for purchase.

    Among other things, Class A shares,
    with their lower Rule 12b-1 fees, are designed for investors with a long-term investing time frame. Class C shares should
    not be considered as a long-term investment because they are subject to a higher distribution fee for ten years. Class C shares
    do not, however, have an initial sales charge or a CDSC so long as the shares are held for one year or more. Class C shares are
    designed for investors with a short-term investing time frame.

    A transaction, service, administrative
    or other similar fee may be charged by your broker-dealer, agent or other financial intermediary, with respect to the purchase,
    sale or exchange of Class A, Class C or Advisor Class shares made through your financial advisor, or in connection with participation
    on the intermediary’s platform. Financial intermediaries, a fee-based program, or, for group retirement plans, a plan sponsor
    or plan fiduciary, also may impose requirements on the purchase, sale or exchange of shares that are different from, or in addition
    to, those described in this Prospectus and the Fund’s SAI, including requirements as to the minimum initial and subsequent
    investment amounts. In addition, group retirement plans may not offer all classes of shares of the Fund. The Fund is not responsible
    for, and has no control over, the decision of any financial intermediary, plan sponsor or fiduciary to impose such differing requirements.

    You should consult your financial
    advisor for assistance in choosing a class of Fund shares.

    PAYMENTS TO FINANCIAL ADVISORS AND
    THEIR FIRMS

    Financial intermediaries market and sell shares
    of the Fund. These financial intermediaries employ financial advisors and receive compensation for selling shares of the Fund.
    This compensation is paid from various sources, including any sales charge, CDSC and/or Rule 12b-1 fee that you or the Fund may
    pagar. Your individual financial advisor may receive some or all of the amounts paid to the financial intermediary that employs him
    or her.

    WHAT IS A FINANCIAL INTERMEDIARY?

    A financial intermediary is a firm that
    receives compensation for selling shares of the Fund offered in this Prospectus and/or provides services to the Fund’s shareholders.
    Financial intermediaries may include, among others, your broker, your financial planner or advisor, banks and insurance companies.
    Financial intermediaries may employ financial advisors who deal with you and other investors on an individual basis.

    All or a portion of the initial sales
    charge that you pay is paid by ABI to financial intermediaries selling Class A shares. ABI may also pay financial intermediaries
    a fee of up to 1% on purchases of Class A shares that are sold without an initial sales charge.

    ABI pays, at the time of your purchase,
    a commission to financial intermediaries in an amount to equal to 1% of your investment for sales of Class C shares.

    For Class A and Class C shares,
    up to 100% of the Rule 12b-1 fees applicable to these classes of shares each year may be paid to financial intermediaries.

    Your financial advisor’s firm
    receives compensation from the Fund, ABI and/or the Adviser in several ways from various sources, which include some or all of
    the following:

    – upfront sales commissions;
    – additional distribution support;
    – defrayal of costs for educational seminars and training; y
    – payments related to providing shareholder recordkeeping and/or transfer
    agency services.

    Please read this Prospectus carefully
    for information on this compensation.

    Other Payments for Distribution Services
    and Educational Support

    In addition to the commissions paid to or charged
    by financial intermediaries at the time of sale and Rule 12b-1 fees, some or all of which are paid to financial intermediaries
    (and, in turn, may be paid to your financial advisor), ABI, at its expense, currently provides additional payments to firms that
    sell shares of the AB Mutual Funds. Although the individual components may be higher and the total amount of payments made to each
    qualifying firm in any given year may vary, the total amount paid to a financial intermediary in connection with the sale of shares
    of the AB Mutual Funds will generally not exceed the sum of (a) 0.25% of the current year’s fund sales by that firm
    and (b) 0.10% of average daily net assets attributable to that firm over the year. These sums include payments for distribution
    analytical data regarding AB Mutual Fund sales by financial advisors of these firms and to reimburse directly or indirectly the
    costs incurred by these firms and their employees in connection with educational seminars and training efforts about the AB Mutual
    Funds for the firms’ employees and/or their clients and potential clients. The costs and expenses associated with these efforts
    may include travel, lodging, entertainment and meals. ABI may pay a portion of “ticket” or other transactional charges.

    For 2020, ABI’s additional payments
    to these firms for distribution services and educational support related to the AB Mutual Funds are expected to be approximately
    0.05% of the average monthly assets of the AB Mutual Funds, or approximately $22 million. In 2019, ABI paid approximately 0.05%
    of the average monthly assets of the AB Mutual Funds or approximately $21 million for distribution services and educational
    support related to the AB Mutual Funds.

    A number of factors are considered
    in determining the additional payments, including each firm’s AB Mutual Fund sales, assets and redemption rates, and the
    willingness and ability of the firm to give ABI access to its financial advisors for educational and marketing purposes. En algunos
    cases, firms will include the AB Mutual Funds on a “preferred list”. ABI’s goal is to make the financial advisors
    who interact with current and prospective investors and shareholders more knowledgeable about the AB Mutual Funds so that they
    can provide suitable information and advice about the funds and related investor services.

    The Fund and ABI also make payments
    for recordkeeping and other transfer agency services to financial intermediaries that sell AB Mutual Fund shares. Please see “Management
    of the Fund—Transfer Agency and Retirement Plan Services” below. If paid by the Fund, these expenses are included in
    “Other Expenses” under “Fees and Expenses of the Fund—Annual Fund Operating Expenses” in the Summary
    Information at the beginning of this Prospectus.

    If one mutual fund sponsor makes
    greater distribution assistance payments than another, your financial advisor and his or her firm may have an incentive to recommend
    one fund complex over another. Similarly, if your financial advisor or his or her firm receives more distribution assistance for
    one share class versus another, then they may have an incentive to recommend that class.

    Please speak with your financial
    advisor to learn more about the total amounts paid to your financial advisor and his or her firm by the Fund, the Adviser, ABI
    and by sponsors of other mutual funds he or she may recommend to you. You should also consult disclosures made by your financial
    advisor at the time of purchase.

    As of the date of this Prospectus,
    ABI anticipates that the firms that will receive additional payments for distribution services and/or educational support include:

    Advisor Group

    American Enterprise Investment Services

    AXA Advisors

    Cadaret, Grant & Co.

    Citigroup Global Markets

    Citizens Securities

    Commonwealth Financial Network

    Great-West Life & Annuity Insurance
    Co.

    John Hancock Retirement Plan Services

    JP Morgan Securities

    Lincoln Financial Advisors Corp.

    Lincoln Financial Securities Corp.

    LPL Financial

    Merrill Lynch

    Morgan Stanley

    Northwestern Mutual Investment Services

    PNC Investments

    Raymond James

    RBC Wealth Management

    Robert W. Baird

    UBS Financial Services

    US Bancorp Investments

    Voya Financial Partners

    Waddell & Reed, Inc.

    Wells Fargo Advisors

    Although the Fund may use brokers and
    dealers that sell shares of the Fund to effect portfolio transactions, the Fund does not consider the sale of AB Mutual Fund shares
    as a factor when selecting brokers or dealers to effect portfolio transactions.

    HOW TO EXCHANGE SHARES

    You may exchange your Fund shares for shares
    of the same class of other AB Mutual Funds provided that the other fund offers the same class of shares and, in the case of retirement
    plans, is an investment option under the plan. Exchanges of shares are made at the next-determined NAV, without sales or service
    charges, after your order is received in proper form. All exchanges are subject to the minimum investment restrictions set forth
    in the prospectus for the AB Mutual Fund whose shares are being acquired. You may request an exchange either directly or through
    your financial intermediary or, in the case of retirement plan participants, by following the procedures specified by your plan
    sponsor or plan recordkeeper. In order to receive a day’s NAV, ABIS must receive and confirm your telephone exchange request
    by the Fund Closing Time, on that day. The Fund may modify, restrict or terminate the exchange privilege on 60 days’ written
    darse cuenta.

    HOW TO SELL OR REDEEM SHARES

    You may “redeem” your shares (i.e.,
    sell your shares to the Fund) on any day the Exchange is open, either directly or through your financial intermediary or, in the
    case of retirement plan participants, by following the procedures specified by your plan sponsor or plan recordkeeper. For Advisor
    Class shares, if you are in doubt about what procedures or documents are required by your fee-based program or employee benefit
    plan to sell your shares, you should contact your financial intermediary. Your sale price will be the next-determined NAV, less
    any applicable CDSC, after the Fund receives your redemption request in proper form. The Fund expects that it will typically take
    one to three business days following the receipt of your redemption request in proper form to pay out redemption proceeds. Sin embargo,
    while not expected, payment of redemption proceeds may take up to seven days from the day your request is received in proper form
    by the Fund by the Fund Closing Time. If you recently purchased your shares by check or electronic funds transfer, your redemption
    payment may be delayed until the Fund is reasonably satisfied that the check or electronic funds transfer has been collected (which
    may take up to 10 days).

    The Fund expects, under normal circumstances,
    to use cash or cash equivalents held by the Fund to satisfy redemption requests. The Fund may also determine to sell portfolio
    assets to meet such requests. Under certain circumstances, including stressed market conditions, the Fund may determine to pay
    a redemption request by accessing a bank line of credit or by distributing wholly or partly in kind securities from its portfolio,
    instead of cash.

    Sale In-Kind. The Fund normally
    pays proceeds of a sale of Fund shares in cash. However, the Fund has reserved the right to pay the sale price in whole or in part
    by a distribution in-kind of securities in lieu of cash. If the redemption payment is made in-kind, the securities received will
    be subject to market risk and may decline in value. In addition, you may incur brokerage commissions if you elect to sell the securities
    for cash.

    Selling Shares Through Your Financial
    Intermediary or Retirement Plan

    Your financial intermediary or plan recordkeeper
    must receive your sales request by the Fund Closing Time, and submit it to the Fund by a pre-arranged time for you to receive that
    day’s NAV, less any applicable CDSC. Your financial intermediary, plan sponsor or plan recordkeeper is responsible for submitting
    all necessary documentation to the Fund and may charge you a fee for this service.

    Selling Shares Directly to the Fund

    Por correo:

    • Send a signed letter of instruction or stock power, along with certificates, to:

    AllianceBernstein Investor Services,
    Cía.

    CORREOS. Box 786003

    San Antonio, TX 78278-6003

    • For certified or overnight deliveries, send to:

    AllianceBernstein Investor Services,
    Cía.

    8000 IH 10 W, 13th floor

    San Antonio, TX 78230

    • For your protection, a bank, a member firm of a national stock exchange or another eligible guarantor
    institution must guarantee signatures. Stock power forms are available from your financial intermediary, ABIS and many commercial
    banks. Additional documentation is required for the sale of shares by corporations, intermediaries, fiduciaries and surviving joint
    owners. If you have any questions about these procedures, contact ABIS.

    By Telephone:

    • You may redeem your shares for which no stock certificates have been issued by telephone request.
    Call ABIS at (800) 221-5672 with instructions on how you wish to receive your sale proceeds.
    • ABIS must receive and confirm a telephone redemption request by the Fund Closing Time for you to
    receive that day’s NAV, less any applicable CDSC.
    • For your protection, ABIS will request personal or other information from you to verify your identity
    and will generally record the calls. Neither the Fund nor the Adviser, ABIS, ABI or other Fund agent will be liable for any loss,
    injury, damage or expense as a result of acting upon telephone instructions purporting to be on your behalf that ABIS reasonably
    believes to be genuine.
    • If you have selected electronic funds transfer in your Mutual Fund Application, the redemption
    proceeds will be sent directly to your bank. Otherwise, the proceeds will be mailed to you.
    • Redemption requests by electronic funds transfer or check may not exceed $100,000 per Fund account
    per day.
    • Telephone redemption is not available for shares held in nominee or “street name” accounts,
    retirement plan accounts, or shares held by a shareholder who has changed his or her address of record within the previous 30 calendar
    dias.

    FREQUENT PURCHASES AND REDEMPTIONS
    OF FUND SHARES

    The Board has adopted policies and procedures
    designed to detect and deter frequent purchases and redemptions of Fund shares or excessive or short-term trading that may disadvantage
    long-term Fund shareholders. These policies are described below. There is no guarantee that the Fund will be able to detect excessive
    or short-term trading activity or to identify shareholders engaged in such practices, particularly with respect to transactions
    in omnibus accounts. Shareholders should be aware that application of these policies may have adverse consequences, as described
    below, and should avoid frequent trading in Fund shares through purchases, sales and exchanges of shares. The Fund reserves the
    right to restrict, reject or cancel, without any prior notice, any purchase or exchange order for any reason, including any purchase
    or exchange order accepted by any shareholder’s financial intermediary.

    Risks Associated With Excessive
    or Short-Term Trading Generally.
    While the Fund will try to prevent market timing by utilizing the procedures described below,
    these procedures may not be successful in identifying or stopping excessive or short-term trading in all circumstances. By realizing
    profits through short-term trading, shareholders that engage in rapid purchases and sales or exchanges of the Fund’s shares
    dilute the value of shares held by long-term shareholders. Volatility resulting from excessive purchases and sales or exchanges
    of Fund shares, especially involving large dollar amounts, may disrupt efficient portfolio management and cause the Fund to sell
    portfolio securities at inopportune times to raise cash to accommodate redemptions relating to short-term trading activity. En
    particular, the Fund may have difficulty implementing its long-term investment strategies if it is forced to maintain a higher
    level of its assets in cash to accommodate significant short-term trading activity. In addition, the Fund may incur increased administrative
    and other expenses due to excessive or short-term trading, including increased brokerage costs and realization of taxable capital
    gains.

    Funds that may invest
    significantly in securities of foreign issuers may be particularly susceptible to short-term trading strategies. This is because
    securities of foreign issuers are typically traded on markets that close well before the time a Fund calculates its NAV (ordinarily
    at 4:00 p.m., Eastern time), which gives rise to the possibility that developments may have occurred in the interim that would
    affect the value of these securities. The time zone differences among international stock markets can allow a shareholder engaging
    in a short-term trading strategy to exploit differences in Fund share prices that are based on closing prices of securities of
    foreign issuers established some time before the Fund calculates its own share price (referred to as “time zone arbitrage”).
    The Fund has procedures, referred to as fair value pricing, designed to adjust closing market prices of securities of foreign issuers
    to reflect what is believed to be the fair value of those securities at the time the Fund calculates its NAV. While there is no
    assurance, the Fund expects that the use of fair value pricing, in addition to the short-term trading policies discussed below,
    will significantly reduce a shareholder’s ability to engage in time zone arbitrage to the detriment of other Fund shareholders.

    A shareholder engaging in a short-term
    trading strategy may also target the Fund irrespective of its investments in securities of foreign issuers. Any Fund that invests
    in securities that are, among other things, thinly traded, traded infrequently or that have a limited public float has the risk
    that the current market price for the securities may not accurately reflect current market values. A shareholder may

    seek to engage in short-term trading
    to take advantage of these pricing differences (referred to as “price arbitrage”). The Fund may be adversely affected
    by price arbitrage.

    Policy Regarding Short-Term Trading.
    Purchases and exchanges of shares of the Fund should be made for investment purposes only. The Fund seeks to prevent patterns of
    excessive purchases and sales of Fund shares to the extent they are detected by the procedures described below subject to the Fund’s
    ability to monitor purchase, sale and exchange activity. The Fund reserves the right to modify this policy, including any surveillance
    or account blocking procedures established from time to time to effectuate this policy, at any time without notice.

    • Transaction Surveillance Procedures. The Fund, through its agents, ABI and ABIS, maintains
    surveillance procedures to detect excessive or short-term trading in Fund shares. This surveillance process involves several factors,
    which include scrutinizing transactions in Fund shares that exceed certain monetary thresholds or numerical limits within a specified
    period of time. Generally, more than two exchanges of Fund shares during any 60-day period or purchases of shares followed by a
    sale within 60 days will be identified by these surveillance procedures. For purposes of these transaction surveillance procedures,
    the Fund may consider trading activity in multiple accounts under common ownership, control or influence. Trading activity identified
    by either, or a combination, of these factors, or as a result of any other information available at the time, will be evaluated
    to determine whether such activity might constitute excessive or short-term trading. With respect to managed or discretionary accounts
    for which the account owner gives his/her broker, investment adviser or other third party authority to buy and sell Fund shares,
    the Fund may consider trades initiated by the account owner, such as trades initiated in connection with bona fide cash management
    purposes, separately in their analysis. These surveillance procedures may be modified from time to time, as necessary or appropriate
    to improve the detection of excessive or short-term trading or to address specific circumstances.
    • Account Blocking Procedures. If the Fund determines, in its sole discretion, that a particular
    transaction or pattern of transactions identified by the transaction surveillance procedures described above is excessive or short-term
    trading in nature, the Fund will take remedial actions that may include issuing a warning, revoking certain account-related activities
    (such as the ability to place purchase, sale and exchange orders over the internet or by phone) or prohibiting or “blocking”
    future purchase or sale activity. However, sales of Fund shares back to the Fund or redemptions will continue to be permitted in
    accordance with the terms of the Fund’s current Prospectus. As a result, unless the shareholder redeems his or her shares,
    which may have consequences if the shares have declined in value, a CDSC is applicable or adverse tax consequences may result,
    the shareholder may be “locked” into an unsuitable investment. A blocked account will generally remain blocked for
    90 days. Subsequent detections of excessive or short-term trading may result in an indefinite account block, or an account block
    until the account holder or the associated broker, dealer or other financial intermediary provides evidence or assurance acceptable
    to the Fund that the account holder did not or will not in the future engage in excessive or short-term trading.
    • Applications of Surveillance Procedures and Restrictions to Omnibus Accounts. Omnibus account
    arrangements are common forms of holding shares of the Fund, particularly among certain brokers, dealers and other financial intermediaries,
    including sponsors of retirement plans. The Fund applies its surveillance procedures to these omnibus account arrangements. Como
    required by Commission rules, the Fund has entered into agreements with all of its financial intermediaries that require the financial
    intermediaries to provide the Fund, upon the request of the Fund or its agents, with individual account level information about
    their transactions. If the Fund detects excessive trading through its monitoring of omnibus accounts, including trading at the
    individual account level, the financial intermediaries will also execute instructions from the Fund to take actions to curtail
    the activity, which may include applying blocks to accounts to prohibit future purchases and exchanges of Fund shares. For certain
    retirement plan accounts, the Fund may request that the retirement plan or other intermediary revoke the relevant participant’s
    privilege to effect transactions in Fund shares via the internet or telephone, in which case the relevant participant must submit
    future transaction orders via the U.S. Postal Service (i.e., regular mail).

    HOW THE FUND VALUES ITS SHARES

    The Fund’s NAV is calculated on any day
    the Exchange is open at the close of regular trading (ordinarily, 4:00 p.m., Eastern time, but sometimes earlier, as in the case
    of scheduled half-day trading or unscheduled suspensions of trading). To calculate NAV, the Fund’s assets are valued and
    totaled, liabilities are subtracted, and the balance, called net assets, is divided by the number of shares outstanding. If the
    Fund invests in securities that are primarily traded on foreign exchanges that trade on weekends or other days when the Fund does
    not price its shares, the value of the Fund’s shares may change on days when shareholders will not be able to purchase or
    redeem their shares in the Fund.

    The Fund values its securities at their
    current 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 established by and under the general supervision of the
    Board. When the Fund uses fair value pricing, it may take into account any factors it deems appropriate. The Fund may determine
    fair value based upon developments related to a specific security, current valuations of foreign stock indices (as reflected in
    U.S. futures markets) and/or U.S. sector or broader stock market indices. The prices of securities used by the Fund to calculate
    its NAV may differ from quoted or published prices for the same securities. Fair value pricing involves subjective judgments and
    it is possible that the fair value determined for a security is materially different than the value that could be realized upon
    the sale of that security.

    The Fund expects to use fair value
    pricing for securities primarily traded on U.S. exchanges only under very limited circumstances, such as the early closing of the
    exchange on which a security is traded or suspension of trading in the security, or for securities for which market prices are
    not readily available or deemed unreliable (including restricted securities). The Fund may use fair value pricing more frequently
    for securities primarily traded in non-U.S. markets because, among other things, most foreign markets close well before the Fund
    ordinarily 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. Factors considered in fair
    value pricing may include, but are not limited to, information obtained by contacting the issuer or analysts, or by analysis of
    the issuers’ financial statements. The Fund may value its securities using fair value prices based on independent pricing
    servicios.

    Subject to its oversight, the Board
    has delegated responsibility for valuing the Fund’s assets to the Adviser. The Adviser has established a Valuation Committee,
    which operates under the policies and procedures approved by the Board, to value the Fund’s assets on behalf of the Fund.
    The Valuation Committee values Fund assets as described above. More information about the valuation of the Fund’s assets
    is available in the Fund’s SAI.

    MANAGEMENT OF THE FUND

    INVESTMENT ADVISER

    The Fund’s Adviser is AllianceBernstein
    L.P., 1345 Avenue of the Americas, New York, NY 10105. The Adviser is a leading global investment adviser supervising client
    accounts with assets as of September 30, 2019, totaling over $592 billion (of which approximately $116 billion represented
    assets of investment companies sponsored by the Adviser). As of September 30, 2019, the Adviser managed retirement assets for many
    of the largest public and private employee benefit plans (including 15 of the nation’s FORTUNE 100 companies), for public
    employee retirement funds in 30 of the 50 states, for investment companies, and for foundations, endowments, banks and insurance
    companies worldwide. The 28 registered investment companies managed by the Adviser, comprising approximately 109 separate investment
    portfolios, had as of September 30, 2019 approximately 2.6 million shareholder accounts.

    During the second quarter of 2018, AXA S.A.
    (“AXA”), a French holding company for the AXA Group, a worldwide leader in life, property and casualty and health insurance
    and asset management, completed the sale of a minority stake in its subsidiary, AXA Equitable Holdings, Inc. (now named Equitable
    Holdings, Inc.) (“Equitable”), through an initial public offering. Equitable is the holding company for a diverse group
    of financial services companies, including an approximately 65.3% economic interest in the Adviser and a 100% interest in AllianceBernstein
    Corporation, the general partner of the Adviser. Since the initial sale, AXA has completed additional offerings, most recently
    during the fourth quarter of 2019. As a result, AXA owned 10.1% of the outstanding shares of common stock of Equitable as of November
    13, 2019, and no longer owns a controlling interest in Equitable. AXA previously announced its intention to sell its entire interest
    in Equitable over time, subject to market conditions and other factors (the “Plan”). Most of AXA’s remaining
    Equitable shares are to be delivered on redemption of AXA bonds mandatorily exchangeable into Equitable shares and maturing in
    May 2021. AXA retains sole discretion to determine the timing of any future sales of its remaining shares of Equitable common stock.

    The latest transaction
    under the Plan, which occurred on November 13, 2019, resulted in the indirect transfer of a “controlling
    block” of voting securities of the Adviser (a “Change of Control Event”) and was deemed an
    “assignment” causing a termination of the Fund’s investment advisory agreement. In order to ensure that
    investment advisory services could continue uninterrupted in the event of a Change of Control Event, the Board previously
    approved new investment advisory agreements with the Adviser and shareholders of the Fund subsequently approved the new
    investment advisory agreements. These agreements became effective on November 13, 2019.

    The Adviser provides investment advisory
    services and order placement facilities for the Fund. For these advisory services, the Fund pays the Adviser a management fee of
    0.35% of the first $2.5 billion of the Fund’s average net assets and 0.30% thereafter.

    A discussion regarding the basis for
    the Board’s approval of the Fund’s investment advisory agreement will be available in the Fund’s semi-annual
    report to shareholders for the fiscal period ending April 30, 2019.

    The Adviser acts as an investment adviser
    to other persons, firms or corporations, including investment companies, hedge funds, pension funds and other institutional investors.
    The Adviser may receive management fees, including performance fees, that may be higher or lower than the advisory fees it receives
    from the Fund. Certain other clients of the Adviser have investment objectives and policies similar to those of the Fund. The Adviser
    may, from time to time, make recommendations that result in the purchase or sale of a particular security by its other clients
    simultaneously with the Fund. If transactions on behalf of more than one client during the same period increase the demand for
    securities being purchased or the supply of securities being sold, there may be an adverse effect on price or quantity. It is the
    policy of the Adviser to allocate advisory recommendations and the placing of orders in a manner that is deemed equitable by the
    Adviser to the accounts involved, including the Fund. When two or more of the clients of the Adviser (including the Fund) are purchasing
    or selling the same security on a given day from the same broker-dealer, such transactions may be averaged as to price.

    PORTFOLIO MANAGERS

    The management of, and investment decisions
    for, the Fund’s portfolio are made by the Adviser’s Short Duration Income investment team. The Short Duration Income
    investment team relies heavily on the fundamental analysis and research of the Adviser’s large internal research staff. No
    one person is principally responsible for coordinating the Fund’s investments.

    The following table lists the senior
    members of the Short Duration Income investment team with the responsibility for day-to-day management of the Fund’s portfolio,
    the length of time that each person has been jointly and primarily responsible for the Fund, and each person’s principal
    occupation during the past five years:

    Employee; Length of Service with
    the Fund; Title

    Principal Occupation During
    the Past Five (5) Years
    Scott A. DiMaggio; since 2018; Senior Vice President of the Adviser, and Co-Head of Fixed Income Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2015.
    Gershon M. Distenfeld; since 2018; Senior Vice President of the Adviser, and Co-Head of Fixed Income Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2015.
    Douglas J. Peebles; since 2018; Senior Vice President of the Adviser, and Chief Investment Officer of Fixed Income Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2015.
    Matthew S. Sheridan; since 2018; Senior Vice President of the Adviser Senior Vice President of the Adviser, with which he has been associated in a substantially similar capacity to his current position since prior to 2015.

    The Fund’s SAI provides additional
    information about each Portfolio Manager’s compensation, other accounts managed by the Portfolio Managers, and the Portfolio
    Managers’ ownership of securities in the Fund.

    TRANSFER AGENCY AND RETIREMENT PLAN
    SERVICES

    ABIS acts as the transfer agent for the Fund.
    ABIS, an indirect wholly-owned subsidiary of the Adviser, registers the transfer, issuance and redemption of Fund shares and disburses
    dividends and other distributions to Fund shareholders.

    Many Fund shares are owned by financial
    intermediaries for the benefit of their customers. Retirement plans also may hold Fund shares in the name of the plan, rather than
    the participant. In those cases, the Fund often does not maintain an account for you. Thus, some or all of the transfer agency
    functions for these and certain other accounts are performed by the financial intermediaries and plan recordkeepers. Financiero
    intermediaries and recordkeepers, which may have affiliated financial intermediaries that sell shares of the AB Mutual Funds, may
    be paid by the Fund, the Adviser, ABI and ABIS (i) account fees in amounts up to $19 per account per annum, (ii) asset-based fees
    of up to 0.25% (except in respect of a limited number of intermediaries) per annum of the average daily assets held through
    the intermediary, or (iii) a combination of both. These amounts include fees for shareholder servicing, sub-transfer agency, sub-accounting
    and recordkeeping services. These amounts do not include fees for shareholder servicing that may be paid separately by the Fund
    pursuant to its Rule 12b-1 plan. Amounts paid by the Fund for these services are included in “Other Expenses” under
    “Fees and Expenses of the Fund” in the Summary Information section of this Prospectus. In addition, financial intermediaries
    may be affiliates of entities that receive compensation from the Adviser or ABI for maintaining retirement plan “platforms”
    that facilitate trading by affiliated and non-affiliated financial intermediaries and recordkeeping for retirement plans.

    Because financial intermediaries and plan recordkeepers
    may be paid varying amounts per class for sub-transfer agency and related recordkeeping services, the service requirements of which
    may also vary by class, this may create an additional incentive for financial intermediaries and their financial advisors to favor
    one fund complex over another or one class of shares over another.

    For more information, please refer
    to the Fund’s SAI, call your financial advisor or visit our website at www.abfunds.com.

    DIVIDENDS, DISTRIBUTIONS AND TAXES

    Dividends and Distributions

    Income dividends and capital gains
    distributions, if any, declared by the Fund on its outstanding shares will, at the election of each shareholder, be paid in cash
    or in additional shares of the same class of shares of the Fund. If paid in additional shares, the shares will have an aggregate
    NAV as of the close of business on the declaration date of the dividend or distribution equal to the cash amount of the dividend
    or distribution.

    Income dividends generally are declared
    daily and distributed monthly; capital gains distributions for the Fund generally occur annually in December.

    You may make an election to receive
    dividends and distributions in cash or in shares at the time you purchase shares. Your election can be changed at any time prior
    to a record date for a dividend. There is no sales or other charge in connection with the reinvestment of dividends or capital
    gains distributions. Cash dividends may be paid by check, or, at your election, electronically via the ACH network.

    If you receive an income dividend or
    capital gains distribution in cash you may, within 120 days following the date of its payment, reinvest the dividend or distribution
    in additional shares of the Fund without charge by returning to the Adviser, with appropriate instructions, the check representing
    the dividend or distribution. Thereafter, unless you otherwise specify, you will be deemed to have elected to reinvest all subsequent
    dividends and distributions in shares of the Fund.

    Impuestos

    While it is the intention of the Fund
    to distribute to its shareholders substantially all of each fiscal year’s net income and net realized capital gains, if any,
    the amount and timing of any dividend or distribution will depend on the realization by the Fund of income and capital gains from
    investments. There is no fixed dividend rate and there can be no assurance that the Fund will pay any dividends or realize any
    capital gains. The final determination of the amount of the Fund’s return of capital distributions for the period will be
    made after the end of each calendar year.

    You will normally have to pay federal
    income tax, and any state or local income taxes, on the distributions you receive from the Fund, whether you take the distributions
    in cash or reinvest them in additional shares. Distributions of net capital gains from the sale of investments that the Fund owned
    for more than one year and that are properly designated as capital gains distributions are taxable as long-term capital gains.
    Distributions of dividends to the Fund’s non-corporate shareholders may be treated as “qualified dividend income”,
    which is taxed at reduced rates, if such distributions are derived from, and designated by the Fund as, “qualified dividend
    income” and provided that holding period and other requirements are met by both the shareholder and the Fund. “Qualified
    dividend income” generally is income derived from dividends from U.S. corporations and “qualified foreign corporations”.
    Other distributions by the Fund are generally taxable to you as ordinary income. The Fund will notify you as to how much of the
    Fund’s distributions, if any, qualify for these reduced tax rates. Dividends declared in October, November, or December and
    paid in January of the following year are taxable as if they had been paid the previous December.

    Investment income received by the Fund
    from sources within foreign countries may be subject to foreign income taxes withheld at the source. To the extent that the Fund
    is liable for foreign income taxes withheld at the source, the Fund intends, if possible, to operate so as to meet the requirements
    of the Code to “pass through” to the Fund’s shareholders credits for foreign income taxes paid (or to permit
    shareholders to claim a deduction for such foreign taxes), but there can be no assurance that the Fund will be able to do so, and
    if the Fund invests primarily in U.S. securities, it will not do so. Furthermore, a shareholder’s ability to claim a foreign
    tax credit or deduction for foreign taxes paid by the Fund may be subject to certain limitations imposed by the Code, as a result
    of which a shareholder may not be permitted to claim a credit or deduction for all or a portion of the amount of such taxes.

    Under certain circumstances, if the
    Fund realizes losses (e.g., from fluctuations in currency exchange rates) after paying a dividend, all or a portion of the
    dividend may subsequently be characterized as a return of capital. Returns of capital are generally nontaxable, but will reduce
    a shareholder’s basis in shares of the Fund. If that basis is reduced to zero (which could happen if the shareholder does
    not reinvest distributions and returns of capital are significant), any further returns of capital will be taxable as a capital
    gain.

    General

    If you buy shares just before the Fund deducts
    a distribution from its NAV, you will pay the full price for the shares and then receive a portion of the price back as a distribution,
    which may be taxable.

    For tax purposes, an exchange is treated
    as a sale of Fund shares. The sale or exchange of Fund shares is a taxable transaction for federal income tax purposes.

    Each year shortly after December 31,
    the Fund will send you tax information stating the amount and type of all its distributions for the year. You are encouraged to
    consult your tax adviser about the federal, state, and local tax consequences in your particular circumstances, as well as about
    any possible foreign tax consequences.

    Non-U.S. Shareholders

    If you are a nonresident alien individual or
    a foreign corporation for federal income tax purposes, please see the Fund’s SAI for information on how you will be taxed
    as a result of holding shares in the Fund.

    GENERAL INFORMATION

    Under unusual circumstances, the Fund may suspend
    redemptions or postpone payment for up to seven days or longer, as permitted by federal securities law. The Fund reserves the right
    to close an account that has remained below $1,000 for 90 days.

    During drastic economic or market developments,
    you might have difficulty in reaching ABIS by telephone, in which event you should issue written instructions to ABIS. ABIS is
    not responsible for the authenticity of telephone requests to purchase, sell, or exchange shares. ABIS will employ reasonable procedures
    to verify that telephone requests are genuine, and could be liable for losses resulting from unauthorized transactions if it failed
    to do so. Dealers and agents may charge a commission for handling telephone requests. The telephone service may be suspended or
    terminated at any time without notice.

    Shareholder Services. ABIS offers
    a variety of shareholder services. For more information about these services or your account, call ABIS’s toll-free number,
    (800) 221-5672. Some services are described in the Mutual Fund Application.

    Householding. Many shareholders
    of the AB Mutual Funds have family members living in the same home who also own shares of the same funds. In order to reduce the
    amount of duplicative mail that is sent to homes with more than one fund account and to reduce expenses of the funds, all AB Mutual
    Funds will, until notified otherwise, send only one copy of each prospectus, shareholder report and proxy statement to each household
    address. This process, known as “householding”, does not apply to account statements, confirmations, or personal tax
    information. If you do not wish to participate in householding, or wish to discontinue householding at any time, call ABIS at (800)
    221-5672. We will resume separate mailings for your account within 30 days of your request.

    GLOSSARY OF INVESTMENT TERMS

    AMT is the federal alternative minimum
    tax.

    AMT-Subject bonds are municipal
    securities paying interest that is an item of “tax preference” and thus subject to the AMT when received by a person
    in a tax year during which the person is subject to the AMT. These securities are primarily private activity bonds, including revenue
    cautiverio.

    Bonds are interest-bearing or
    discounted government or corporate securities that obligate the issuer to pay the bond holder a specified sum of money, usually
    at specified intervals, and to repay the principal amount of the loan at maturity.

    Fixed-income securities son
    investments, such as bonds, that pay a fixed rate of return.

    Municipal securities are debt
    obligations issued by states, territories and possessions of the United States and the District of Columbia, and their political
    subdivisions, duly constituted authorities and corporations. Municipal securities include municipal bonds, which are intended to
    meet longer-term capital needs and municipal notes, which are intended to fulfill short-term capital needs.

    Non-U.S. company or non-U.S. issuer
    is an entity that (i) is organized under the laws of a foreign country and conducts business in a foreign country, (ii) derives
    50% or more of its total revenues from business in foreign countries, or (iii) issues equity or debt securities that are traded
    principally on a stock exchange in a foreign country.

    U.S. Government securities son
    securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities, including obligations that are issued
    by private issuers that are guaranteed as to principal or interest by the U.S. Government, its agencies or instrumentalities, or
    by certain government-sponsored entities (entities chartered by or sponsored by Act of Congress). These securities include securities
    backed by the full faith and credit of the United States, those supported by the right of the issuer to borrow from the U.S.
    Treasury, and those backed only by the credit of the issuing agency or entity itself. The first category includes U.S. Treasury
    securities (which are U.S. Treasury bills, notes, and bonds) and certificates issued by the Government National Mortgage Association.
    U.S. Government securities not backed by the full faith and credit of the United States or a right to borrow from the U.S. Treasury
    include certificates issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.

    FINANCIAL HIGHLIGHTS

    Financial highlights information is
    not available because the Fund had not yet commenced operations as of the date of this Prospectus.

    APPENDIX A

    BOND RATINGS

    Moody’s Investors Service, Inc. (“Moody’s”)

    Aaa—Bonds which are rated Aaa are judged
    to be of the highest quality. They carry the smallest degree of investment risk and are generally referred to as “gilt edge”.
    Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective
    elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position
    of such issues.

    Aa—Bonds which are rated Aa are
    judged to be of high quality and are subject to very low credit risk. Together with the Aaa group they comprise what are generally
    known as high-grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa
    securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make
    the long-term risks appear somewhat larger than the Aaa securities.

    A—Bonds which are rated A possess
    many favorable investment attributes and are to be considered as upper-medium-grade obligations and are subject to low credit risk.
    Factors giving security to principal and interest are considered adequate but elements may be present which suggest a susceptibility
    to impairment some time in the future.

    Baa—Bonds which are rated Baa
    are considered as medium-grade obligations, i.e., they are neither highly protected nor poorly secured. Interest payments
    and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically
    unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics
    también.

    Ba—Bonds which are rated Ba are
    judged to be speculative and are subject to substantial credit risk; their future cannot be considered as well-assured. Often the
    protection of interest and principal payments may be very moderate and thereby not well safeguarded during both good and bad times
    over the future. Uncertainty of position characterizes bonds in this class.

    B—Bonds which are rated B are
    considered speculative and are subject to high credit risk.

    Caa—Bonds which are rated Caa
    are judged to be speculative of poor standing and are subject to very high credit risk.

    Ca—Bonds which are rated Ca are
    highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest.

    C—Bonds which are rated C are
    the lowest rated class of bonds and are typically in default, with little prospect for recovery of principal or interest.

    Absence of Rating—Where no rating
    has been assigned or where a rating has been withdrawn, it may be for reasons unrelated to the quality of the issue.

    Should no rating be assigned, the reason
    may be one of the following:

    1) An application for rating was not received or accepted;
    2) The issue or issuer belongs to a group of securities or companies that are unrated as a matter
    of policy;
    3) There is a lack of essential data pertaining to the issue or issuer;
    4) The issue was privately placed, in which case the rating is not published in Moody’s publications.

    Suspension may occur if new and material
    circumstances arise, the effects of which preclude satisfactory analysis; if there is no longer available reasonable up-to-date
    data to permit a judgment to be formed; if a bond is called for redemption; or for other reasons.

    Note—Moody’s applies numerical
    modifiers, 1, 2 and 3 in each generic rating classification from Aa through Caa in its corporate bond rating system. The modifier
    1 indicates that the security ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking;
    and the modifier 3 indicates that the issue ranks in the lower end of its generic rating category. Additionally, a “(hyb)”
    indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance companies, and securities firms.

    S&P Global Ratings (“S&P”)

    AAA—Debt rated AAA has the highest rating
    assigned by S&P. Capacity to pay interest and repay principal is extremely strong.

    AA—Debt rated AA has a very strong
    capacity to pay interest and repay principal and differs from the highest rated issues only in small degree.

    A—Debt rated A has a strong capacity
    to pay interest and repay principal although it is somewhat more susceptible to the adverse effects of changes in circumstances
    and economic conditions than debt in higher rated categories.

    BBB—Debt rated BBB normally exhibits
    adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened
    capacity to pay interest and repay principal for debt in this category than in higher rated categories.

    BB, B, CCC, CC, C—Debt rated
    BB, B, CCC, CC or C is regarded as having significant speculative characteristics. BB indicates the lowest degree of speculation
    and C the highest. While such debt will likely have some quality and protective characteristics, these may be outweighed by large
    uncertainties or major exposures to adverse conditions.

    BB—Debt rated BB is less vulnerable
    to nonpayment than other speculative debt. However, it faces major ongoing uncertainties or exposure to adverse business, financial
    or economic conditions which could lead to an inadequate capacity to pay interest and repay principal.

    B—Debt rated B is more vulnerable
    to nonpayment than debt rated BB, but there is capacity to pay interest and repay principal. Adverse business, financial or economic
    conditions will likely impair the capacity or willingness to pay principal or repay interest.

    CCC—Debt rated CCC is currently
    vulnerable to nonpayment, and is dependent upon favorable business, financial and economic conditions to pay interest and repay
    principal. In the event of adverse business, financial or economic conditions, there is not likely to be capacity to pay interest
    or repay principal.

    CC—Debt rated CC is currently
    highly vulnerable to nonpayment. The CC rating is used when a default has not yet occurred but S&P expects default to be a
    virtual certainty, regardless of the anticipated time to default.

    C— Debt rated C is currently
    highly vulnerable to nonpayment, and the obligation is expected to have lower relative seniority or lower ultimate recovery compared
    with obligations that are rated higher.

    D—Debt rated D is in default
    or in breach of an imputed promise. For non-hybrid capital instruments, the D rating category is used when payments on an obligation
    are not made on the date due, unless S&P believes that such payments will be made within five business days in the absence
    of a stated grace period or within the earlier of the stated grace period or 30 calendar days. The D rating also will be used upon
    the filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual certainty,
    for example due to automatic stay provisions. An obligation’s rating is lowered to D if it is subject to a distressed exchange
    offer.

    Plus (+) or Minus (-)—The
    ratings from AA to CCC may be modified by the addition of a plus or minus sign to show relative standing within the major rating
    categories.

    NR—Debt designated NR is not
    rated.

    Fitch Ratings

    AAA—Bonds considered to be investment
    grade and of the highest credit quality. The obligor has an exceptionally strong ability to pay interest and repay principal, which
    is unlikely to be affected by reasonably foreseeable events.

    AA—Bonds considered to be investment
    grade and of very high credit quality. The obligor’s ability to pay interest and repay principal is very strong, although
    not quite as strong as bonds rated AAA. Because bonds rated in the AAA and AA categories are not significantly vulnerable to foreseeable
    future developments, short-term debt of these issuers is generally rated F1+.

    A—Bonds considered to be investment
    grade and of high credit quality. The obligor’s ability to pay interest and repay principal is considered to be strong, but
    may be more vulnerable to adverse business or economic conditions and circumstances than bonds with higher ratings.

    BBB—Bonds considered to be investment
    grade and of satisfactory credit quality. The obligor’s ability to pay interest and repay principal is considered to be adequate.
    Adverse changes in economic conditions and circumstances, however, are more likely to have adverse impact on these bonds, and therefore
    impair timely payment. The likelihood that the ratings of these bonds will fall below investment grade is higher than for bonds
    with higher ratings.

    BB—Bonds are considered speculative.
    The obligor’s ability to pay interest and repay principal may be affected over time by adverse economic changes. Sin embargo,
    business and financial alternatives can be identified which could assist the obligor in satisfying its debt service requirements.

    B—Bonds are considered highly
    speculative. While bonds in this class are currently meeting debt service requirements, the probability of continued timely payment
    of principal and interest reflects the obligor’s limited margin of safety and the need for reasonable business and economic
    activity throughout the life of the issue.

    CCC—Bonds have certain identifiable
    characteristics which, if not remedied, may lead to default. The ability to meet obligations requires an advantageous business
    and economic environment.

    CC—Bonds are minimally protected.
    Default in payment of interest and/or principal seems probable over time.

    C—Bonds are in imminent default
    in payment of interest or principal.

    Defaulted obligations are typically
    rated in the CCC to C rating categories, depending upon their recovery prospects and other relevant characteristics. This approach
    better aligns obligations that have comparable overall expected loss but varying vulnerability to default and loss.

    Plus (+) Minus (-)—Plus
    and minus signs are used with a rating symbol to indicate the relative position of a credit within the rating category. Plus and
    minus signs, however, are not used in the AAA category or in categories below CCC.

    APPENDIX B

    Hypothetical Investment and Expense Information

    The following supplemental hypothetical
    investment information provides additional information calculated and presented in a manner different from expense information
    found under “Fees and Expenses of the Fund” in the Summary Information at the beginning of this Prospectus, about the
    effect of the Fund’s expenses, including investment advisory fees and other Fund costs, on the Fund’s returns over
    a 10-year period. The chart shows the estimated expenses that would be charged on a hypothetical investment of $10,000 in Class A
    shares of the Fund assuming a 5% return each year, including an initial sales charge of 4.25%. Except as otherwise indicated, the
    chart also assumes that the current annual expense ratio stays the same throughout the 10-year period. The current annual expense
    ratio for the Fund is the same as stated under “Fees and Expenses of the Fund”. Additional information concerning the
    fees and expenses incurred by the Fund may be found at FINRA’s Fund Analyzer web page (available at http://apps.finra.org/fundanalyzer/1/fa.aspx).
    Your actual expenses may be higher or lower.

    Año Hypothetical
    Investment

    Hypothetical

    Performance

    Earnings

    Investment

    Después

    Returns

    Hypothetical

    Expenses*

    Hypothetical

    Ending

    Investment

    1 $ 10,000.00 $ 478.75 $ 10,053.75 $ 490.35 $ 9,988.40
    2 9,988.40 499.42 10,487.82 121.66 10,366.16
    3 10,366.16 518.31 10,884.47 126.26 10,758.21
    4 4 10,758.21 537.91 11,295.12 131.03 11,165.09
    5 11,165.09 558.25 11,723.34 135.99 11,587.35
    6 6 11,587.35 579.37 12,166.72 141.13 12,025.59
    7 7 12,025.59 601.28 12,626.87 146.47 12,480.40
    8 12,480.40 624.02 13,104.42 152.01 12,952.41
    9 9 12,952.41 647.62 13,600.03 157.76 13,442.27
    10 13,442.27 672.11 14,114.38 163.73 13,950.65
    Cumulative $ 5,717.04 $ 1,766.39

    * * Expenses are net of any fee waiver or expense waiver for the first year. Thereafter, the expense
    ratio reflects the Fund’s operating expenses before fee waiver as reflected under “Fees and Expenses of the Fund”
    in the Summary Information at the beginning of this Prospectus (excluding offering expenses).

    APPENDIX C—FINANCIAL INTERMEDIARY WAIVERS

    Waiver Specific to Merrill Lynch

    Effective April 10, 2017, shareholders
    purchasing Fund shares through a Merrill Lynch platform or account will be eligible only for the following load waivers (front-end
    sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed
    elsewhere in the Fund’s Prospectus or SAI:

    Front-end Sales Load Waivers
    on Class A Shares available at Merrill Lynch

    • Employer-sponsored retirement, deferred compensation and employee benefit plans (including health
    savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account
    and shares are held for the benefit of the plan
    • Shares purchased by or through a 529 Plan
    • Shares purchased through a Merrill Lynch affiliated investment advisory program
    • Shares purchased by third party investment advisors on behalf of their advisory clients through
    Merrill Lynch’s platform
    • Shares of funds purchased through the Merrill Edge Self-Directed platform (if applicable)
    • Shares purchased through reinvestment of capital gains distributions and dividend reinvestment
    when purchasing shares of the same fund (but not any other fund within the fund family)
    • Shares exchanged from Class C (i.e., level-load) shares of the same fund in the month of
    or following the 10-year anniversary of the purchase date
    • Employees and registered representatives of Merrill Lynch or its affiliates and their family members
    • Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any
    of its affiliates, as described in this prospectus
    • Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the
    repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed
    shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement)

    CDSC Waivers on A and C Shares
    available at Merrill Lynch

    • Death or disability of the shareholder
    • Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus
    • Return of excess contributions from an IRA Account
    • Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the
    shareholder reaching age 70½
    • Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch
    • Shares acquired through a right of reinstatement
    • Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due
    to transfer to a fee based account or platform

    Front-end Load Discounts Available
    at Merrill Lynch: Breakpoints, Rights of Accumulation & Letters of Intent

    • Breakpoints as described in this Prospectus.
    • Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically
    calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Merrill
    Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies
    his or her financial advisor about such assets
    • Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within
    a fund family, through Merrill Lynch, over a 13-month period of time (if applicable)

    Waivers Specific to Morgan Stanley

    Effective July 1, 2018, shareholders purchasing Fund
    shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following front-end
    sales charge waivers with respect to Class A shares, which may differ from and may be more limited than those disclosed elsewhere
    in the Fund’s Prospectus or SAI.

    • Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans

    • Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules

    • Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund

    • Shares purchased through a Morgan Stanley self-directed brokerage account

    • Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program

    • Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge

    Waivers Specific to Ameriprise Financial

    The following information applies to Class A shares
    purchases if you have an account with or otherwise purchase Fund shares through Ameriprise Financial:

    Effective June 1, 2018, shareholders purchasing Fund
    shares through an Ameriprise Financial platform or account will be eligible for the following front-end sales charge waivers and
    discounts, which may differ from those disclosed elsewhere in the Fund’s prospectus or SAI:

    • Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs

    • Shares purchased through an Ameriprise Financial investment advisory program (if an advisory or similar share class for such investment advisory program is not available)

    • Shares purchased by third-party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if an advisory or similar share class for such investment advisory program is not available)

    • Shares purchased through reinvestment of distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within same fund family)

    • Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that this prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for load waived shares, that waiver will also apply to such exchanges

    • Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members

    • Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant

    • Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e., Rights of Reinstatement)

    Waivers Specific to Raymond
    James & Associates, Inc., Raymond James Financial Services, Inc. and Each Entity’s Affiliates (“Raymond James”)

    Effective
    March 1, 2019, shareholders purchasing Fund shares through a Raymond James platform or account, or through an introducing broker-dealer
    or independent registered investment adviser for which Raymond James provides trade execution, clearance, and/or custody services,
    will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales
    charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund’s Prospectus or SAI.

    Front-end
    Sales Load Waivers on Class A Shares Available at Raymond James

    • Shares purchased in an investment advisory program
    • Shares purchased within the same fund family through a systematic reinvestment of capital gains
    and dividend distributions
    •

    Employees and registered representatives of Raymond James or its affiliates and their family members as designated
    by Raymond James

    • Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the
    repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed
    shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement)
    • A shareholder in the Fund’s Class C shares will have their shares converted at net asset
    value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion
    is in line with the policies and procedures of Raymond James

    CDSC Waivers on Class A and C Shares
    Available at Raymond James

    • Death or disability of the shareholder
    • Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus
    • Return of excess contributions from an IRA Account
    • Shares sold as part of a required minimum distribution for IRA and
    retirement accounts due to the shareholder reaching age 70
    1/ /2
    as described in this Fund’s Prospectus
    • Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James
    • Shares acquired through a right of reinstatement

    Front-end Load Discounts Available
    at Raymond James: Breakpoints, and/or Rights of Accumulation, and/or Letters of Intent

    • Breakpoints as described in this Prospectus
    • Rights of Accumulation (“ROA”) which entitle shareholders to breakpoint discounts will
    be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s
    household at Raymond James. Eligible fund family assets not held at Raymond James may be included in the ROA calculation only if
    the shareholder notifies his or her financial advisor about such assets
    • Letters of intent which allow for breakpoint discounts based on anticipated purchases within a
    fund family, over a 13-month time period. Eligible fund family assets not held at Raymond James may be included in the calculation
    of letters of intent only if the shareholder notifies his or her financial advisor about such assets

    For more information about the Fund, the following
    documents are available upon request:

    • ANNUAL/SEMI-ANNUAL REPORTS TO SHAREHOLDERS

    The Fund’s annual and semi-annual reports
    to shareholders will contain additional information on the Fund’s investments. In the annual report, you will find a discussion
    of the market conditions and investment strategies that significantly affected the Fund’s performance during its last fiscal
    año.

    • STATEMENT OF ADDITIONAL INFORMATION (SAI)

    The Fund has an SAI, which contains more detailed
    information about the Fund, including its operations and investment policies. The Fund’s SAI and the independent registered
    public accounting firm’s reports and financial statements in the Fund’s most recent annual report to shareholders are
    incorporated by reference into (and are legally part of) this Prospectus.

    You may request a free copy of the current
    annual/semi-annual report or SAI, or make inquiries concerning the Fund, by contacting your broker or other financial intermediary,
    or by contacting the Adviser:

    Por correo:

    AllianceBernstein Investor Services, Inc.

    CORREOS. Box 786003

    San Antonio, TX 78278-6003

    Por teléfono:

    For Information: (800) 221-5672

    For Literature: (800) 227-4618

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    Copies of this information can be obtained, for a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.

    You also may find these documents and
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