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AB Global Bond Fund

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AB Global Bond Fund SAMPLE REQUEST FOR PROPOSAL 2018 AB Global Bond Fund Investors should consider the investment objectives, risks, charges and expenses of the Fund/Portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, please visit us online at www.abglobal.com or contact your AB Investments representative. Please read the prospectus and/or summary prospectus carefully before investing. For investment professional or institutional investor use only. Not for distribution to the general public. AB GLOBAL BOND FUND1 The AB Global Bond is an open-end fund that seeks to generate current income consistent with preservation of capital. The Fund has the ability to pursue opportunities across all fixed income sectors without any percentage limits in any sector. The Fund normally invests at least 80% of its net assets in fixed-income securities from developed and emerging markets that are denominated in US dollars or in local currencies. The Fund has no restrictions as to the amount of the portfolio that may be invested in any particular sector. Up to 25% of the Fund’s net assets may be invested in fixed-income securities that are rated below investment grade. We believe a global multi-sector approach enables the Fund to provide potentially improved risk/return benefits over a single-sector approach. Benchmark Barclays Capital Global Aggregate Index (USD Hedged) Objective Seeks to generate current income consistent with preservation of capital • Typically invests at least 80% in fixed-income securities with no sector restrictions • Invests in fixed-income securities of both developed and emerging markets, denominated in US dollars or in local currency • At least 75% investment grade with up to 25% allowed in below investment grade securities Investment Universe • May invest in mortgage-related and other asset-backed securities, loan participations, inflation-protected securities, structured securities, variable, floating, and inverse floating rate instruments and preferred stock, and may use other investment techniques • May invest, without limit, in derivatives such as options, futures, forwards and swaps 25% sector allocation Expected Sources of 25% security selection Excess Return 25% country selection/yield-curve positioning 25% currency selection Base Currency US dollar March 27, 1992 (Class A Shares) Inception Date* November 6, 2007 (Class I Shares) Current AUM US$6,809.4 million as of December 31, 2017 *The Fund’s Class A share inception date is 3/27/92 and is the date used to calculate since inception annualized performance. 1 Effective January 20, 2015, the Fund's name changed from AllianceBernstein Global Bond Fund to AB Global Bond Fund. AllianceBernstein L.P. is now referred to as AB. The [A/B] logo is a service mark of AllianceBernstein and AllianceBernstein® is a registered trademark used by permission of the owner, AllianceBernstein L.P. General Disclosure The information contained herein may change at any time subsequent to the date of the issuance of this document. These materials are provided for informational purposes only, and under no circumstances may any information contained herein be construed as an offer or solicitation for the purchase or sale of any particular financial instrument, product or service sponsored or provided by AB or any affiliate or agent thereof. Investors should consider the investment objectives, risks, charges and expenses of any AB fund/portfolio carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.ABglobal.com or contact your AB Investments representative. Please read the prospectus and/or summary prospectus carefully before investing. AB Investments, Inc. (ABI) is the distributor of the AB family of mutual funds. ABI is a member of FINRA and is an affiliate of AB L.P., the manager of the funds. The [A/B] logo is a service mark of AB and AB® is a registered trademark used by permission of the owner, AB L.P. Investment Products Offered Are not FDIC Insured May Lose Value Are Not Bank Guaranteed SAMPLE RFP 170412110726 2 About AB AB is one of the world’s recognized leaders in fixed income investing, with $272 billion fixed income assets under management (as of September 30, 2017). We have been managing fixed income assets since 1971 (more than 40 years) and global fixed income portfolios since 1986, when we introduced our first global sovereign bond strategy. Recognition for the AB Global Bond Fund1 The AB Global Bond Fund has been awarded top honors by Lipper for the second consecutive year. The Fund was awarded the Lipper Fund Award in 2014 and 20152 in the category of Global Income Funds. The AB Global Bond Fund is the #1 ranked fund for the 10-year period in the Global Income Funds category, out of 76. The AB Global Bond Fund has been ranked in the first quartile of Lipper’s Global Income Funds peer group for 3-year, 5-year and since inception periods.3 Investment Philosophy As a firm, AB believes that inefficiencies in the global debt markets arise from investor emotion, market complexity and conflicting investment agendas, and that the resulting mispricings in countries, sectors, securities, and currencies provide the largest probability of generating alpha. We use a powerful combination of both Quantitative and Fundamental Research to identify and exploit these inefficiencies, as we believe this combination provides higher and more reliable alpha than either research discipline can provide separately. We believe the combination of Fundamental and Quantitative Research works better than either does in isolation because they offer complementary approaches to identifying better return opportunities. Quantitative Research is most effective in creating forecasts based upon objective, historical data and the power of averages. It gives us “breadth”: the ability to create expected return forecasts across the broadest possible opportunity set using objective rules, relying on past relationships to forecast future relationship. Fundamental Research gives us “depth”, permitting us to explore a given topic with deeper focus. Through Fundamental Research, we can uncover opportunities and identify downside risks based upon human experience and perspective, a component that Quantitative Research cannot capture. We believe that combining the two types of research permits us to exploit the power of both averages and exceptions, can improve our timing, prompts us to challenge our assumptions when assessments diverge, and helps us to determine when we are being highly compensated for risk, causing us to take more risk in our portfolios, leading to better outcomes. Few other firms have successfully brought both skill sets together in so harmonizing and integrated a manner. With regards to core fixed income solutions, our philosophy is that investors are best served using a global, multi-sector, currency-hedged approach to core fixed income investing, as it provides optimal diversification across interest rate, credit, and liquidity cycles and maximizes risk-adjusted returns while potentially lowering overall volatility. Given the recent rise in geopolitical and other risks, we believe now more than ever that broad global diversification across interest rate and credit cycles (maintaining a disciplined balance between the two risks) is the key to lowering overall volatility in core fixed income allocations. 1Past performance is no guarantee of future results. 2 Lipper Award 2015 was based on returns at NAV as of November 30, 2014. Lipper rankings are specific metrics of performance and do not represent absolute performance of any. (Source: Thomson Reuters/Lipper Awards and AB) 3 As of September 30, 2017 Lipper rankings are based on total returns at net asset value, without the imposition of a sales charge which would reduce total return figures. Lipper averages represent the average returns of funds contained in the respective Lipper category for A-share. Funds within the category generally have similar investment objectives although some may have different investment policies. Source: Lipper and AB SAMPLE RFP 170412110726 3 Investment Strategy The AB Global Bond Fund is a globally-diversified portfolio that seeks to take full advantage of our best research ideas by pursuing attractive investment opportunities across all fixed-income sectors. Our research shows that a global multi-sector approach allows us to achieve a favorable balance of risk and return potential compared with a single-sector portfolio. The portfolio’s risk level is adjusted depending on how well investors are being compensated - we seek extra income during favorable markets, while we attempt to reduce risk in times of caution. The Fund uses a consistent and repeatable investment process that combines quantitative and fundamental research to build effective bond portfolios. Investment Team The AB Global Bond Fund is managed by an experienced four-member team averaging 28 years of experience and 24 years at the firm. The team is led by Scott DiMaggio, Director of Global Fixed Income, with 25 years of experience and 98 years at the firm. The named Portfolio Managers of the Fund are Mr. DiMaggio, Douglas Peebles, Chief Investment Officer of Fixed Income, Paul DeNoon, Director or Emerging Market Debt and Matthew Sheridan, SVP and Portfolio Manager focusing on Global Multi-Sector fixed income. They are the senior members and the key decision-makers of the team. AB Global Bond Fund Management Team 2018 Yrs. Yrs. Name Position Location Exp. Firm Co-Head of Fixed Income & Director—Global Scott DiMaggio, CFA 25 19 NY Fixed Income Douglas J. Peebles Chief Investment Officer—AB Fixed Income 31 31 NY Senior Vice President and Director—Income Paul DeNoon 34 26 NY Strategies Senior Vice President and Portfolio Manager Matthew Sheridan, CFA 21 20 NY Focus: Global Multi-Sector Average 28 24 As of December 31, 2017 The named portfolio managers are supported by an additional four portfolio managers who focus on various sectors of the fixed income market.
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