# EDGAR Filing Document

**Accession Number:** 0001274676
**File Stem:** 0001193125-23-068845
**Filing Date:** 2023-3
**Character Count:** 924237
**Document Hash:** fa9b103068d38c7305864836c2ae9f61
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-068845.hdr.sgml**: 20230313

**ACCESSION NUMBER**: 0001193125-23-068845

**CONFORMED SUBMISSION TYPE**: N-CSR/A

**PUBLIC DOCUMENT COUNT**: 44

**CONFORMED PERIOD OF REPORT**: 20220430

**FILED AS OF DATE**: 20230313

**DATE AS OF CHANGE**: 20230313

**EFFECTIVENESS DATE**: 20230313

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AB CORPORATE SHARES
- **CENTRAL INDEX KEY:** 0001274676
- **IRS NUMBER:** 000000000
- **FISCAL YEAR END:** 0430

**FILING VALUES:**
- **FORM TYPE:** N-CSR/A
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-21497
- **FILM NUMBER:** 23726718

**BUSINESS ADDRESS:**
- **STREET 1:** ALLIANCEBERNSTEIN LP
- **STREET 2:** 1345 AVENUE OF THE AMERICAS
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10105
- **BUSINESS PHONE:** 2129691000

**MAIL ADDRESS:**
- **STREET 1:** ALLIANCEBERNSTEIN LP
- **STREET 2:** 1345 AVENUE OF THE AMERICAS
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10105

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ALLIANCEBERNSTEIN CORPORATE SHARES
- **DATE OF NAME CHANGE:** 20031230

## Series and Classes Contracts Data

### AB CORPORATE INCOME SHARES (Series ID: S000010876)

| Class ID   | Class Name                 | Ticker Symbol   |
|:---|:---|:---|
| C000030134 | AB CORPORATE INCOME SHARES | ACISX           |

### AB Municipal Income Shares (Series ID: S000029560)

| Class ID   | Class Name                 | Ticker Symbol   |
|:---|:---|:---|
| C000090717 | AB Municipal Income Shares | MISHX           |

### AB Taxable Multi-Sector Income Shares (Series ID: S000029838)

| Class ID   | Class Name                            | Ticker Symbol   |
|:---|:---|:---|
| C000091758 | AB Taxable Multi-Sector Income Shares | CSHTX           |

### AB Tax-Aware Real Return Income Shares (Series ID: S000031982)

| Class ID   | Class Name                             | Ticker Symbol   |
|:---|:---|:---|
| C000099557 | AB Tax-Aware Real Return Income Shares | TARRX           |

### AB Impact Municipal Income Shares (Series ID: S000058704)

| Class ID   | Class Name                        | Ticker Symbol   |
|:---|:---|:---|
| C000192686 | AB Impact Municipal Income Shares | ABIMX           |

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**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, D.C. 20549** 

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**FORM N-CSR** 

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**CERTIFIED SHAREHOLDER REPORT OF REGISTERED** 

**MANAGEMENT INVESTMENT COMPANIES** 

**Investment Company Act file number: 811-21497** 

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## AB CORPORATE SHARES
**(Exact name of registrant as specified in charter)** 

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**1345 Avenue of the Americas, New York, New York 10105** 

**(Address of principal executive offices) (Zip code)** 

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**Joseph J. Mantineo** 

**AllianceBernstein L.P.** 

**1345 Avenue of the Americas** 

**New York, New York 10105** 

**(Name and address of agent for service)** 

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**Registrant's telephone number, including area code: (800) 221-5672** 

**Date of fiscal year end: April 30, 2022** 

**Date of reporting period: April 30, 2022** 

Explanatory Note:

Enclosed for filing you will find an amended Form N-CSR of the registrant's original 2022 Form N-CSR filing of the referenced period. The purpose of this amended filing is to update Item 11 (b) and Item 13 (which is addressed in exhibits labeled Exhibit 12 (b)(1) and Exhibit 12 (b)(2) in the original filings). Except as set forth above, no other changes have been made to the Form N-CSR, and this amended filing does not amend, update or change any other items or disclosure found in the Form N-CSR.

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| | |
|:---|:---|
| **ITEM 1.** | **REPORTS TO STOCKHOLDERS.**  |

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**APR** <sup>04.30.22</sup>

![LOGO](g472794g43p34.jpg)

ANNUAL REPORT

## AB CORPORATE INCOME SHARES
![LOGO](g472794covart_7682.jpg)

As of January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund's annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

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 <br> Investment Products Offered   <u> • Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed</u>

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund's prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund's proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB's website at www.abfunds.com, or go to the Securities and Exchange Commission's (the "Commission") website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund's Form N-PORT reports are available on the Commission's website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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| | |
|:---|:---|
| **FROM THE PRESIDENT** | ![LOGO](g472794g92f19.jpg) |

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Dear Shareholder,

We're pleased to provide this report for AB Corporate Income Shares (the "Fund"). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund's investment strategy.

At AB, we're striving to help our clients achieve better outcomes by:

<sup>+</sup> Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

<sup>+</sup> Applying differentiated investment insights through a connected global research network

<sup>+</sup> Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you're an individual investor or a multibillion-dollar institution, we're putting our knowledge and experience to work for you every day.

For more information about AB's comprehensive range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

![LOGO](g472794g55d83.jpg)

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 1** |

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**ANNUAL REPORT** 

**June 3, 2022** 

This report provides management's discussion of fund performance for AB Corporate Income Shares for the annual reporting period ended April 30, 2022. Please note, shares of this Fund are available only to separately managed accounts or participants in "wrap fee" programs or other investment programs approved by the Adviser.

**The Fund's investment objective is to earn high current income.** 

**NAV RETURNS AS OF APRIL 30, 2022** (unaudited)

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| | | |
|:---|:---|:---|
|  | 6 Months | 12 Months |
| **AB CORPORATE INCOME SHARES** | -12.63% | -10.08% |
| Bloomberg US Credit Bond Index | -12.27% | -10.13% |

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**INVESTMENT RESULTS** 

The table above shows the Fund's performance compared to its benchmark, the Bloomberg US Credit Bond Index, for the six- and 12-month periods ended April 30, 2022.

During the 12-month period, the Fund outperformed the benchmark. Security selection contributed, relative to the benchmark, as selection within insurance, telecommunications, basic industry and electric more than offset a loss from banking. Industry allocation detracted, from an underweight to supranationals and an overweight to media. Yield-curve positioning also hampered returns, since positioning on the five- to seven-year parts of the curve detracted more than gains from positioning on the one- to four-year parts of the curve.

Over the six-month period, the Fund underperformed the benchmark. Industry allocation was the primary detractor, as losses from an underweight to supranationals and an overweight to media were greater than a gain from an underweight to consumer noncyclical. Yield-curve positioning on the four- to seven-year parts of the curve lost more than gains on maturities 10 years and longer, and two- to four-year parts of the yield curve. Security selection was a minor detractor, as selection within banking, energy and technology lost more than gains from selection within insurance and electric.

The Fund utilized derivatives in the form of futures and interest rate swaps for hedging purposes, which detracted from absolute returns for both periods. Credit default swaps were used for investment purposes, which had no material impact on returns for either period.

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| | |
|:---|:---|
| **2 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**MARKET REVIEW AND INVESTMENT STRATEGY** 

During the 12-month period ended April 30, 2022, fixed-income government bond market yields increased rapidly, and bond prices fell in all developed markets. Government bond returns fell the most in the UK and Australia, and fell by the least in Japan. Most major central banks started the path of tightening monetary policy by raising short-term interest rates and ending bond purchases to combat high and persistent inflation. Inflation expectations worsened toward the end of the period when Russia invaded Ukraine, causing energy and agricultural prices to spike. Global inflation-linked bonds had positive returns and significantly outperformed nominal government bonds. In credit sectors, high-yield corporate bonds in the US and eurozone outperformed treasuries, while investment-grade corporate bonds underperformed respective treasury markets, except in the eurozone. Securitized assets generally outperformed corporate bonds. Emerging-market bonds lagged as the US dollar advanced against most developed- and emerging-market currencies. Brent crude oil prices surged from increased demand and as major oil producers limited production increases.

The Fund's Senior Investment Management Team (the "Team") continues to seek attractively priced securities through top-down and bottom-up research, while mitigating overall risk. The Team invests primarily in single-sector, investment-grade issues of global corporates, but has leeway to invest in below investment-grade bonds as well.

**INVESTMENT POLICIES** 

The Fund invests, under normal circumstances, at least 80% of its net assets in US corporate bonds. The Fund may also invest in US government securities (other than US government securities that are mortgage-backed or asset-backed securities), repurchase agreements and forward contracts relating to US government securities. The Fund normally invests all of its assets in securities that are rated, at the time of purchase, at least BBB- or the equivalent. The Fund will not invest in unrated corporate debt securities. The Fund has the flexibility to invest in long- and short-term fixed-income securities. In making decisions about whether to buy or sell securities, the Adviser will consider, among other things, the strength of certain sectors of the fixed-income market relative to others, interest rates and other general market conditions and the credit quality of individual issuers.

(continued on next page)

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| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 3** |

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The Fund also may: invest in convertible debt securities; invest up to 10% of its assets in inflation-indexed securities; invest up to 5% of its net assets in preferred stock; purchase and sell interest rate futures contracts and options; enter into swap transactions; invest in zero-coupon securities and "payment-in-kind" debentures; make secured loans of portfolio securities; and invest in US dollar-denominated fixed-income securities issued by non-US companies.

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| | |
|:---|:---|
| **4 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**DISCLOSURES AND RISKS** 

**Benchmark Disclosure** 

**The Bloomberg US Credit Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a fund.** The Bloomberg US Credit Bond Index represents the performance of the US credit securities within the US fixed-income market. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

**A Word About Risk** 

**Market Risk:** The value of the Fund's assets will fluctuate as the stock or bond market fluctuates. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

**Credit Risk:** An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and any accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

**Interest-Rate Risk:** Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations. The current historically low interest rate environment heightens the risks associated with rising interest rates.

**Inflation Risk:** This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund's assets can decline as can the value of the Fund's distributions. This risk is significantly greater for fixed-income securities with longer maturities.

**Foreign (Non-US) Risk:** Investments in securities of non-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

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| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 5** |

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**DISCLOSURES AND RISKS** (continued)

**Derivatives Risk:** Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

**Management Risk:** The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

These risks are fully discussed in the Fund's prospectus. As with all investments, you may lose money by investing in the Fund.

**An Important Note About Historical Performance** 

**The performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by calling (800) 227 4618. The investment return and principal value of an investment in the Fund will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. Performance assumes reinvestment of distributions and does not account for taxes.** 

**Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus and/or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AllianceBernstein Investments representative. Please read the prospectus and/or summary prospectus carefully before investing.** 

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| | |
|:---|:---|
| **6 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** 

**GROWTH OF A $10,000 INVESTMENT IN THE FUND** (unaudited)

4/30/2012 TO 4/30/2022

![LOGO](g472794g00a09.jpg)

This chart illustrates the total value of an assumed $10,000 investment in AB Corporate Income Shares (from 4/30/2012 to 4/30/2022) as compared to the performance of the Fund's benchmark.

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| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 7** |

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**HISTORICAL PERFORMANCE** (continued)

**AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2022** (unaudited)

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| | |
|:---|:---|
|  | NAV Returns |
| 1 Year | -10.08% |
| 5 Years | 2.54% |
| 10 Years | 3.45% |

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**AVERAGE ANNUAL RETURNS** 

**AS OF THE MOST RECENT CALENDAR QUARTER-END** 

**MARCH 31, 2022** (unaudited)

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| | |
|:---|:---|
|  | NAV Returns |
| 1 Year | -3.85% |
| 5 Years | 3.91% |
| 10 Years | 4.19% |

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**The prospectus fee table shows the fees and the total operating expenses of the Fund as 0.00% because the Adviser does not charge any fees or expenses and reimburses Fund operating expenses, except certain extraordinary expenses, taxes, brokerage costs and the interest on borrowings or certain leveraged transactions. Participants in a wrap fee program or other investment program eligible to invest in the Fund pay fees to the program sponsor and should review the program brochure or other literature provided by the sponsor for a discussion of fees and expenses charged.** 

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| | |
|:---|:---|
| **8 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**EXPENSE EXAMPLE** 

(unaudited)

As a shareholder of the Fund, you may incur various ongoing non-operating and extraordinary costs. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

**Actual Expenses** 

The table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account Value<br>November 1, 2021** | **Ending<br>Account Value<br>April 30, 2022** | **Expenses Paid<br>During Period\*** | **Annualized<br>Expense Ratio\*** |
|  Actual | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;873.70 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 | 0.00% |
|  Hypothetical\*\* | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1024.79 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 | 0.00% |

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\* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The Fund's operating expenses are borne by the Adviser or its affiliates.

\*\* Assumes 5% annual return before expenses. 

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| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 9** |

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**PORTFOLIO SUMMARY** 

**April 30, 2022** (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $222.5

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![LOGO](g472794g00a14.jpg)

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| | |
|:---|:---|
| 1 | All data are as of April 30, 2022. The Fund's security type breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see "Portfolio of Investments" section of the report for additional details).  |

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|:---|:---|
| **10 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** 

**April 30, 2022** 

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **CORPORATES - INVESTMENT GRADE – 96.1%** |  |  |
|  **Industrial – 49.5%** |  |  |
|  **Basic – 4.3%** |  |  |
|  Alpek SAB de CV <br>3.25%, 02/25/2031<sup>(a)</sup> | $214 | $180803 |
|  Anglo American Capital PLC<br>2.25%, 03/17/2028<sup>(a)</sup> | 400 | 353756 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 03/16/2029<sup>(a)</sup> | 211 | 199560 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 04/01/2030<sup>(a)</sup> | 435 | 454385 |
|  Celanese US Holdings LLC <br>1.40%, 08/05/2026 | 680 | 603514 |
|  Celulosa Arauco y Constitucion SA<br>4.25%, 04/30/2029<sup>(a)</sup> | 246 | 229441 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.50%, 08/01/2024 | 200 | 201350 |
|  EI du Pont de Nemours and Co. <br>1.70%, 07/15/2025 | 533 | 503072 |
|  Equate Petrochemical BV <br>2.625%, 04/28/2028<sup>(a)</sup> | 317 | 288470 |
|  Freeport Indonesia PT<br>4.763%, 04/14/2027<sup>(a)</sup> | 240 | 238531 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.315%, 04/14/2032<sup>(a)</sup> | 240 | 232080 |
|  Glencore Funding LLC<br>1.625%, 09/01/2025<sup>(a)</sup> | 651 | 599317 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 09/23/2031<sup>(a)</sup> | 405 | 337612 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.625%, 04/29/2024<sup>(a)</sup> | 215 | 217733 |
|  Huntsman International LLC <br>2.95%, 06/15/2031 | 660 | 571837 |
|  Industrias Penoles SAB de CV <br>4.15%, 09/12/2029<sup>(a)</sup> | 300 | 285300 |
|  International Flavors & Fragrances, Inc.<br>1.832%, 10/15/2027<sup>(a)</sup> | 436 | 383357 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.30%, 11/01/2030<sup>(a)</sup> | 260 | 218085 |
|  International Paper Co. <br>7.30%, 11/15/2039 | 170 | 206875 |
|  Inversiones CMPC SA <br>3.85%, 01/13/2030<sup>(a)</sup> | 210 | 193108 |
|  LyondellBasell Industries NV <br>4.625%, 02/26/2055 | 122 | 110797 |
|  Mosaic Co. (The) <br>5.625%, 11/15/2043 | 210 | 227012 |
|  Newmont Corp. <br>2.60%, 07/15/2032 | 665 | 566986 |
|  Reliance Steel & Aluminum Co. <br>4.50%, 04/15/2023 | 1038 | 1049127 |
|  Sealed Air Corp. <br>1.573%, 10/15/2026<sup>(a)</sup> | 675 | 593818 |

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|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 11** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Suzano Austria GmbH <br>3.75%, 01/15/2031 | $| 92 | $| 79833 |
|  Westlake Chemical Corp. <br>3.375%, 08/15/2061 |  | 540 |  | 387072 |
|  |  |  |  | 9512831 |
|  **Capital Goods – 0.7%** | **Capital Goods – 0.7%** | **Capital Goods – 0.7%** | **Capital Goods – 0.7%** | **Capital Goods – 0.7%** |
|  CNH Industrial Capital LLC <br>1.95%, 07/02/2023 |  | 390 |  | 384427 |
|  Waste Management, Inc. <br>4.15%, 04/15/2032 |  | 450 |  | 448164 |
|  Westinghouse Air Brake Technologies Corp. <br>4.40%, 03/15/2024 |  | 752 |  | 759520 |
|  |  |  |  | 1592111 |
|  **Communications - Media – 6.5%** | **Communications - Media – 6.5%** | **Communications - Media – 6.5%** | **Communications - Media – 6.5%** | **Communications - Media – 6.5%** |
|  Charter Communications Operating LLC/Charter Communications Operating Capital<br>3.50%, 06/01/2041 |  | 615 |  | 450666 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.70%, 04/01/2051 |  | 275 |  | 193693 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 07/01/2049 |  | 379 |  | 325478 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 04/01/2053 |  | 370 |  | 323780 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 05/01/2047 |  | 639 |  | 570608 |
|  Comcast Corp.<br>2.937%, 11/01/2056<sup>(a)</sup> |  | 802 |  | 576028 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.25%, 11/01/2039 |  | 698 |  | 590313 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.90%, 03/01/2038 |  | 265 |  | 245435 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.65%, 07/15/2042 |  | 348 |  | 345331 |
|  Cox Communications, Inc. <br>2.60%, 06/15/2031<sup>(a)</sup> |  | 524 |  | 446474 |
|  Discovery Communications LLC<br>4.65%, 05/15/2050 |  | 59 |  | 50597 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.20%, 09/20/2047 |  | 578 |  | 533679 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.30%, 05/15/2049 |  | 82 |  | 76867 |
|  FactSet Research Systems, Inc. <br>2.90%, 03/01/2027 |  | 635 |  | 600551 |
|  Fox Corp.<br>3.05%, 04/07/2025 |  | 23 |  | 22600 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.50%, 04/08/2030 |  | 220 |  | 203872 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.709%, 01/25/2029 |  | 555 |  | 557892 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.576%, 01/25/2049 |  | 646 |  | 671065 |
|  Interpublic Group of Cos., Inc. (The)<br>3.375%, 03/01/2041 |  | 420 |  | 337798 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.65%, 10/01/2028 |  | 93 |  | 94135 |
|  Magallanes, Inc.<br>3.755%, 03/15/2027<sup>(a)</sup> |  | 679 |  | 655568 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.054%, 03/15/2029<sup>(a)</sup> |  | 163 |  | 155680 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.05%, 03/15/2042<sup>(a)</sup> |  | 375 |  | 341827 |

---

---

| | |
|:---|:---|
| **12 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Netflix, Inc. <br>4.875%, 04/15/2028 | $705 | $692127 |
|  Omnicom Group, Inc.<br>2.60%, 08/01/2031 | 260 | 224791 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.20%, 06/01/2030 | 769 | 756058 |
|  Prosus NV<br>3.257%, 01/19/2027<sup>(a)</sup> | 237 | 210788 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.68%, 01/21/2030<sup>(a)</sup> | 210 | 177502 |
|  Tencent Holdings Ltd. <br>2.39%, 06/03/2030<sup>(a)</sup> | 397 | 334795 |
|  Thomson Reuters Corp. <br>5.65%, 11/23/2043 | 280 | 300216 |
|  Time Warner Entertainment Co. LP <br>8.375%, 03/15/2023 | 1207 | 1262546 |
|  ViacomCBS, Inc. <br>4.20%, 05/19/2032 | 275 | 253709 |
|  Walt Disney Co. (The)<br>3.00%, 09/15/2022 | 325 | 326423 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 10/01/2023 | 40 | 40496 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.40%, 12/15/2035 | 201 | 240086 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.875%, 04/26/2023 | 125 | 132125 |
|  Walt Disney Co., (The) <br>3.35%, 03/24/2025 | 759 | 757307 |
|  Weibo Corp. <br>3.50%, 07/05/2024 | 373 | 363745 |
|  |  | 14442651 |
|  **Communications - Telecommunications – 2.1%** |  |  |
|  AT&T, Inc.<br>3.50%, 09/15/2053 | 219 | 171711 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.30%, 02/15/2030 | 337 | 338314 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.15%, 03/15/2042 | 368 | 376648 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.55%, 01/15/2028 | 130 | 144771 |
|  Corning, Inc. <br>4.75%, 03/15/2042 | 785 | 787221 |
|  Rogers Communications, Inc.<br>3.80%, 03/15/2032<sup>(a)</sup> | 630 | 581112 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.50%, 03/15/2043 | 4 | 3658 |
|  T-Mobile USA, Inc.<br>2.70%, 03/15/2032<sup>(a)</sup> | 670 | 569373 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 04/15/2030 | 1219 | 1153783 |
|  Verizon Communications, Inc.<br>2.55%, 03/21/2031 | 241 | 209181 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.40%, 03/22/2041 | 495 | 416706 |
|  |  | 4752478 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 13** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Consumer Cyclical - Automotive – 1.8%** |  |  |
|  General Motors Co. <br>5.95%, 04/01/2049 | $115 | $115178 |
|  General Motors Financial Co., Inc.<br>2.40%, 04/10/2028 | 1140 | 994548 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.15%, 06/19/2023 | 146 | 147543 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.30%, 04/06/2029 | 485 | 462467 |
|  Harley-Davidson Financial Services, Inc.<br>3.05%, 02/14/2027<sup>(a)</sup> | 834 | 775061 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.35%, 06/08/2025<sup>(a)</sup> | 873 | 849839 |
|  Hyundai Capital America <br>5.875%, 04/07/2025<sup>(a)</sup> | 200 | 209018 |
|  Nissan Motor Acceptance Co. LLC <br>2.75%, 03/09/2028<sup>(a)</sup> | 255 | 221809 |
|  Nissan Motor Co., Ltd. <br>4.345%, 09/17/2027<sup>(a)</sup> | 285 | 272346 |
|  |  | 4047809 |
|  **Consumer Cyclical - Entertainment – 0.2%** |  |  |
|  Hasbro, Inc. <br>5.10%, 05/15/2044 | 445 | 426421 |
|  **Consumer Cyclical - Other – 2.2%** |  |  |
|  DR Horton, Inc. <br>2.50%, 10/15/2024 | 510 | 496934 |
|  Las Vegas Sands Corp.<br>2.90%, 06/25/2025 | 855 | 791867 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.90%, 08/08/2029 | 480 | 413774 |
|  Lennar Corp.<br>4.50%, 04/30/2024 | 495 | 502455 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.75%, 11/29/2027 | 884 | 886130 |
|  Marriott International, Inc./MD<br>3.75%, 10/01/2025 | 235 | 233249 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series EE<br>5.75%, 05/01/2025 | 456 | 478116 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series II<br>2.75%, 10/15/2033 | 540 | 443497 |
|  MDC Holdings, Inc. <br>6.00%, 01/15/2043 | 170 | 160419 |
|  PulteGroup, Inc.<br>6.375%, 05/15/2033 | 237 | 256451 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.875%, 06/15/2032 | 153 | 183404 |
|  |  | 4846296 |
|  **Consumer Cyclical - Restaurants – 0.3%** |  |  |
|  McDonald's Corp.<br>4.60%, 05/26/2045 | 350 | 340168 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.70%, 12/09/2035 | 280 | 284312 |
|  |  | 624480 |

---

---

| | |
|:---|:---|
| **14 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Consumer Cyclical - Retailers – 1.2%** |  |  |
|  AutoNation, Inc. <br>3.85%, 03/01/2032 | $635 | $572249 |
|  Dollar General Corp. <br>3.25%, 04/15/2023 | 61 | 61296 |
|  Dollar Tree, Inc. <br>2.65%, 12/01/2031 | 565 | 481109 |
|  Ralph Lauren Corp. <br>2.95%, 06/15/2030 | 1215 | 1107971 |
|  Ross Stores, Inc.<br>4.70%, 04/15/2027 | 200 | 205766 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.80%, 04/15/2030 | 115 | 117370 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.45%, 04/15/2050 | 215 | 233062 |
|  |  | 2778823 |
|  **Consumer Non-Cyclical – 8.4%** |  |  |
|  AbbVie, Inc.<br>4.05%, 11/21/2039 | 80 | 73417 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.40%, 11/06/2042 | 440 | 417094 |
|  Altria Group, Inc.<br>3.40%, 05/06/2030 | 220 | 197879 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 02/04/2061 | 370 | 267969 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.80%, 02/14/2029 | 1001 | 996496 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.95%, 02/14/2049 | 230 | 223739 |
|  AmerisourceBergen Corp.<br>0.737%, 03/15/2023 | 591 | 582194 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.25%, 03/01/2045 | 205 | 185427 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.30%, 12/15/2047 | 365 | 336556 |
|  Amgen, Inc. <br>3.35%, 02/22/2032 | 277 | 255624 |
|  Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide, Inc. <br>4.70%, 02/01/2036 | 450 | 445689 |
|  Anheuser-Busch InBev Finance, Inc. <br>4.70%, 02/01/2036 | 548 | 535615 |
|  Anheuser-Busch InBev Worldwide, Inc. <br>4.95%, 01/15/2042 | 600 | 596856 |
|  BAT Capital Corp.<br>2.259%, 03/25/2028 | 387 | 331384 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.39%, 08/15/2037 | 403 | 343219 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.906%, 04/02/2030 | 934 | 903047 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.65%, 03/16/2052 | 245 | 222254 |
|  BAT International Finance PLC <br>4.448%, 03/16/2028 | 495 | 476566 |
|  Baxter International, Inc. <br>0.868%, 12/01/2023<sup>(a)</sup> | 675 | 649364 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 15** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Biogen, Inc. <br>2.25%, 05/01/2030 | $| 400 | $| 334148 |
|  Bristol-Myers Squibb Co. <br>3.55%, 08/15/2022 |  | 256 |  | 257431 |
|  Cardinal Health, Inc.<br>4.50%, 11/15/2044 |  | 375 |  | 339281 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.90%, 09/15/2045 |  | 385 |  | 363875 |
|  Cargill, Inc. <br>3.625%, 04/22/2027<sup>(a)</sup> |  | 690 |  | 684860 |
|  Cigna Corp.<br>3.00%, 07/15/2023 |  | 71 |  | 71016 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.80%, 08/15/2038 |  | 880 |  | 877518 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.875%, 05/15/2027 |  | 53 |  | 61758 |
|  CommonSpirit Health <br>4.35%, 11/01/2042 |  | 44 |  | 41058 |
|  CVS Health Corp.<br>3.875%, 07/20/2025 |  | 378 |  | 379697 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.78%, 03/25/2038 |  | 991 |  | 980545 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 07/20/2045 |  | 395 |  | 396497 |
|  Gilead Sciences, Inc.<br>0.75%, 09/29/2023 |  | 253 |  | 244732 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.65%, 12/01/2041 |  | 125 |  | 137400 |
|  Keurig Dr Pepper, Inc. <br>3.95%, 04/15/2029 |  | 475 |  | 463700 |
|  Kimberly-Clark de Mexico SAB de CV <br>2.431%, 07/01/2031<sup>(a)</sup> |  | 320 |  | 269860 |
|  Mylan, Inc. <br>4.20%, 11/29/2023 |  | 852 |  | 859029 |
|  Newell Brands, Inc. <br>4.10%, 04/01/2023 |  | 191 |  | 190956 |
|  Ochsner LSU Health System of North Louisiana <br>Series 2021 <br>2.51%, 05/15/2031 |  | 324 |  | 267747 |
|  Smithfield Foods, Inc. <br>2.625%, 09/13/2031<sup>(a)</sup> |  | 670 |  | 554358 |
|  Sysco Corp.<br>2.45%, 12/14/2031 |  | 535 |  | 459613 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.15%, 12/14/2051 |  | 270 |  | 197672 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.95%, 04/01/2030 |  | 309 |  | 336461 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.60%, 04/01/2050 |  | 277 |  | 328239 |
|  Thermo Fisher Scientific, Inc. <br>0.797%, 10/18/2023 |  | 1558 |  | 1510684 |
|  |  |  |  | 18648524 |
|  **Energy – 9.0%** | **Energy – 9.0%** | **Energy – 9.0%** | **Energy – 9.0%** | **Energy – 9.0%** |
|  Boardwalk Pipelines LP <br>4.80%, 05/03/2029 |  | 374 |  | 368536 |

---

---

| | |
|:---|:---|
| **16 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  BP Capital Markets America, Inc.<br>2.939%, 06/04/2051 | $605 | $448420 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.00%, 02/24/2050 | 820 | 620166 |
|  Cenovus Energy, Inc.<br>4.40%, 04/15/2029 | 730 | 722861 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 07/15/2025 | 78 | 80989 |
|  Conocophillips Co. <br>3.80%, 03/15/2052 | 505 | 453753 |
|  Continental Resources, Inc./OK<br>2.875%, 04/01/2032<sup>(a)</sup> | 384 | 317414 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.75%, 01/15/2031<sup>(a)</sup> | 281 | 288255 |
|  Devon Energy Corp. <br>5.60%, 07/15/2041 | 545 | 568277 |
|  Ecopetrol SA <br>5.875%, 09/18/2023-05/28/2045 | 89 | 84422 |
|  Enable Midstream Partners LP <br>5.00%, 05/15/2044 | 41 | 36022 |
|  Enbridge Energy Partners LP <br>7.375%, 10/15/2045 | 526 | 658357 |
|  Energy Transfer LP<br>3.90%, 07/15/2026 | 550 | 535557 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.20%, 04/15/2027 | 47 | 46171 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.40%, 03/15/2027 | 446 | 440867 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.95%, 05/15/2028 | 63 | 63113 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.35%, 05/15/2045 | 175 | 160038 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.25%, 04/15/2049 | 803 | 815390 |
|  Eni SpA<br>4.25%, 05/09/2029<sup>(a)</sup> | 247 | 244952 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.70%, 10/01/2040<sup>(a)</sup> | 420 | 452857 |
|  Enterprise Products Operating LLC<br>3.70%, 01/31/2051 | 160 | 129374 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.20%, 01/31/2050 | 797 | 696179 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.80%, 02/01/2049 | 85 | 80956 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.90%, 05/15/2046 | 45 | 43326 |
|  EOG Resources, Inc. <br>4.375%, 04/15/2030 | 74 | 75903 |
|  Exxon Mobil Corp.<br>4.114%, 03/01/2046 | 644 | 614106 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.327%, 03/19/2050 | 270 | 265642 |
|  Flex Intermediate Holdco LLC<br>3.363%, 06/30/2031<sup>(a)</sup> | 265 | 231411 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.317%, 12/30/2039<sup>(a)</sup> | 265 | 224206 |
|  Kinder Morgan, Inc. <br>5.55%, 06/01/2045 | 825 | 830189 |
|  Marathon Oil Corp. <br>6.60%, 10/01/2037 | 385 | 431088 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 17** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Marathon Petroleum Corp.<br>5.125%, 12/15/2026 | $| 1298 | $| 1352127 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.50%, 03/01/2041 |  | 205 |  | 231252 |
|  MPLX LP<br>4.95%, 03/14/2052 |  | 370 |  | 338550 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.20%, 03/01/2047-12/01/2047 |  | 475 |  | 447984 |
|  ONEOK Partners LP <br>6.125%, 02/01/2041 |  | 540 |  | 548116 |
|  ONEOK, Inc. <br>6.35%, 01/15/2031 |  | 553 |  | 603804 |
|  Ovintiv Exploration Inc. <br>5.375%, 01/01/2026 |  | 750 |  | 777240 |
|  Pioneer Natural Resources Co. <br>2.15%, 01/15/2031 |  | 700 |  | 590100 |
|  Plains All American Pipeline LP/PAA Finance Corp.<br>3.55%, 12/15/2029 |  | 51 |  | 46681 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.50%, 12/15/2026 |  | 421 |  | 421215 |
|  Sabine Pass Liquefaction LLC <br>5.625%, 04/15/2023 |  | 552 |  | 560898 |
|  Saudi Arabian Oil Co. <br>2.25%, 11/24/2030<sup>(a)</sup> |  | 350 |  | 303625 |
|  Shell International Finance BV <br>3.75%, 09/12/2046 |  | 125 |  | 112559 |
|  Suncor Energy, Inc.<br>6.50%, 06/15/2038 |  | 385 |  | 440991 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.85%, 06/01/2039 |  | 265 |  | 313999 |
|  Tengizchevroil Finance Co. International Ltd. <br>3.25%, 08/15/2030<sup>(a)</sup> |  | 265 |  | 212928 |
|  TransCanada PipeLines Ltd.<br>4.75%, 05/15/2038 |  | 50 |  | 49144 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.20%, 10/15/2037 |  | 67 |  | 75381 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.625%, 01/15/2039 |  | 88 |  | 112842 |
|  Valero Energy Corp. <br>7.50%, 04/15/2032 |  | 388 |  | 462411 |
|  Western Midstream Operating LP<br>4.65%, 07/01/2026 |  | 81 |  | 79855 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.45%, 04/01/2044 |  | 149 |  | 136743 |
|  Williams Cos., Inc. (The)<br>3.50%, 10/15/2051 |  | 670 |  | 515049 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.30%, 04/15/2040 |  | 160 |  | 177605 |
|  |  |  |  | 19939896 |
|  **Services – 2.6%** | **Services – 2.6%** | **Services – 2.6%** | **Services – 2.6%** | **Services – 2.6%** |
|  Alibaba Group Holding Ltd.<br>2.125%, 02/09/2031 |  | 400 |  | 330624 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.70%, 02/09/2041 |  | 300 |  | 210561 |

---

---

| | |
|:---|:---|
| **18 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Amazon.com, Inc. <br>4.10%, 04/13/2062 | $| 350 | $| 333973 |
|  Block Financial LLC <br>2.50%, 07/15/2028 |  | 540 |  | 478040 |
|  Booking Holdings, Inc. <br>4.625%, 04/13/2030 |  | 990 |  | 1014750 |
|  eBay, Inc. <br>2.60%, 05/10/2031 |  | 1065 |  | 921598 |
|  Expedia Group, Inc.<br>2.95%, 03/15/2031 |  | 495 |  | 425151 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.625%, 08/01/2027 |  | 627 |  | 630041 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.25%, 05/01/2025<sup>(a)</sup> |  | 33 |  | 34603 |
|  Global Payments, Inc.<br>2.90%, 11/15/2031 |  | 675 |  | 578691 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.20%, 08/15/2029 |  | 455 |  | 413085 |
|  Moody's Corp. <br>2.75%, 08/19/2041 |  | 225 |  | 172742 |
|  S&P Global, Inc.<br>2.90%, 03/01/2032<sup>(a)</sup> |  | 276 |  | 249565 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.25%, 05/01/2029<sup>(a)</sup> |  | 90 |  | 90542 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.75%, 08/01/2028<sup>(a)</sup> |  | 20 |  | 20720 |
|  |  |  |  | 5904686 |
|  **Technology – 8.9%** | **Technology – 8.9%** | **Technology – 8.9%** | **Technology – 8.9%** | **Technology – 8.9%** |
|  Analog Devices, Inc. <br>2.95%, 04/01/2025 |  | 36 |  | 35550 |
|  Apple, Inc.<br>2.55%, 08/20/2060 |  | 260 |  | 183180 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.65%, 05/11/2050 |  | 210 |  | 159894 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.45%, 05/06/2044 |  | 1081 |  | 1109657 |
|  Baidu, Inc.<br>1.625%, 02/23/2027 |  | 435 |  | 387598 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.075%, 04/07/2025 |  | 265 |  | 258669 |
|  Broadcom, Inc.<br>3.137%, 11/15/2035<sup>(a)</sup> |  | 586 |  | 469743 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.187%, 11/15/2036<sup>(a)</sup> |  | 983 |  | 778123 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.419%, 04/15/2033<sup>(a)</sup> |  | 170 |  | 146210 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 04/15/2029<sup>(a)</sup> |  | 49 |  | 46768 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.15%, 04/15/2032<sup>(a)</sup> |  | 171 |  | 158702 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.926%, 05/15/2037<sup>(a)</sup> |  | 562 |  | 525313 |
|  Broadridge Financial Solutions, Inc. <br>2.60%, 05/01/2031 |  | 395 |  | 337998 |
|  CDW LLC/CDW Finance Corp. <br>2.67%, 12/01/2026 |  | 555 |  | 510356 |
|  Dell International LLC/EMC Corp.<br>6.02%, 06/15/2026 |  | 964 |  | 1019844 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.35%, 07/15/2046 |  | 42 |  | 55907 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 19** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  DXC Technology Co.<br>1.80%, 09/15/2026 | $400 | $358224 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.375%, 09/15/2028 | 400 | 348056 |
|  Entegris Escrow Corp. <br>4.75%, 04/15/2029<sup>(a)</sup> | 485 | 466759 |
|  Fidelity National Information Services, Inc. <br>0.375%, 03/01/2023 | 1605 | 1573189 |
|  Honeywell International, Inc. <br>0.483%, 08/19/2022 | 54 | 53892 |
|  HP, Inc. <br>4.20%, 04/15/2032 | 480 | 440405 |
|  Infor, Inc. <br>1.75%, 07/15/2025<sup>(a)</sup> | 95 | 88425 |
|  Intel Corp. <br>4.75%, 03/25/2050 | 564 | 585060 |
|  Jabil, Inc. <br>4.25%, 05/15/2027 | 455 | 450755 |
|  Kyndryl Holdings, Inc. <br>2.05%, 10/15/2026<sup>(a)</sup> | 1340 | 1171120 |
|  Lam Research Corp. <br>3.75%, 03/15/2026 | 172 | 172657 |
|  Marvell Technology, Inc. <br>2.95%, 04/15/2031 | 505 | 438941 |
|  Micron Technology, Inc. <br>4.663%, 02/15/2030 | 555 | 548479 |
|  NXP BV/NXP Funding LLC <br>5.55%, 12/01/2028<sup>(a)</sup> | 1176 | 1228038 |
|  NXP BV/NXP Funding LLC/NXP USA, Inc. <br>2.70%, 05/01/2025<sup>(a)</sup> | 24 | 22939 |
|  Oracle Corp.<br>2.50%, 05/15/2022-04/01/2025 | 1099 | 1064586 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 03/25/2031 | 260 | 220529 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.60%, 04/01/2040 | 536 | 414087 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.65%, 03/25/2041 | 293 | 226580 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.85%, 04/01/2060 | 94 | 66081 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 11/15/2047 | 667 | 515371 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 07/15/2040 | 173 | 165839 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.125%, 07/08/2039 | 314 | 326711 |
|  SK Hynix, Inc. <br>2.375%, 01/19/2031<sup>(a)</sup> | 390 | 323571 |
|  Skyworks Solutions, Inc. <br>3.00%, 06/01/2031 | 319 | 265663 |
|  Take-Two Interactive Software, Inc. <br>3.30%, 03/28/2024 | 323 | 321259 |
|  TSMC Arizona Corp. <br>4.50%, 04/22/2052 | 345 | 345894 |

---

---

| | |
|:---|:---|
| **20 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  VeriSign, Inc. <br>2.70%, 06/15/2031 | $| 174 | $| 149355 |
|  VMware, Inc. <br>3.90%, 08/21/2027 |  | 721 |  | 705470 |
|  Western Digital Corp.<br>2.85%, 02/01/2029 |  | 110 |  | 96957 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.10%, 02/01/2032 |  | 530 |  | 442688 |
|  Workday, Inc. <br>3.70%, 04/01/2029 |  | 70 |  | 67026 |
|  |  |  |  | 19848118 |
|  **Transportation - Airlines – 0.5%** | **Transportation - Airlines – 0.5%** | **Transportation - Airlines – 0.5%** | **Transportation - Airlines – 0.5%** | **Transportation - Airlines – 0.5%** |
|  Delta Air Lines, Inc./SkyMiles IP Ltd. <br>4.50%, 10/20/2025<sup>(a)</sup> |  | 161 |  | 160375 |
|  Southwest Airlines Co. <br>5.25%, 05/04/2025 |  | 835 |  | 861745 |
|  |  |  |  | 1022120 |
|  **Transportation - Services – 0.8%** | **Transportation - Services – 0.8%** | **Transportation - Services – 0.8%** | **Transportation - Services – 0.8%** | **Transportation - Services – 0.8%** |
|  ENA Master Trust <br>4.00%, 05/19/2048<sup>(a)</sup> |  | 370 |  | 342666 |
|  ERAC USA Finance LLC <br>3.85%, 11/15/2024<sup>(a)</sup> |  | 881 |  | 887572 |
|  Penske Truck Leasing Co. Lp/PTL Finance Corp.<br>3.90%, 02/01/2024<sup>(a)</sup> |  | 370 |  | 371650 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.20%, 04/01/2027<sup>(a)</sup> |  | 147 |  | 147277 |
|  |  |  |  | 1749165 |
|  |  |  |  | 110136409 |
|  **Financial Institutions – 40.3%** | **Financial Institutions – 40.3%** | **Financial Institutions – 40.3%** | **Financial Institutions – 40.3%** | **Financial Institutions – 40.3%** |
|  **Banking – 22.9%** | **Banking – 22.9%** | **Banking – 22.9%** | **Banking – 22.9%** | **Banking – 22.9%** |
|  Banco de Credito del Peru S.A. <br>3.125%, 07/01/2030<sup>(a)</sup> |  | 464 |  | 421747 |
|  Banco Santander SA<br>1.722%, 09/14/2027 |  | 800 |  | 704568 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.749%, 12/03/2030 |  | 400 |  | 330188 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.175%, 03/24/2028 |  | 200 |  | 194280 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.179%, 11/19/2025 |  | 600 |  | 611736 |
|  Bank of America Corp.<br>2.299%, 07/21/2032 |  | 1125 |  | 930060 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.592%, 04/29/2031 |  | 835 |  | 723503 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.687%, 04/22/2032 |  | 860 |  | 739660 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.884%, 10/22/2030 |  | 680 |  | 606920 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.384%, 04/02/2026 |  | 490 |  | 479455 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.846%, 03/08/2037 |  | 630 |  | 561891 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.97%, 03/05/2029 |  | 760 |  | 737785 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.974%, 02/07/2030 |  | 600 |  | 579498 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.271%, 07/23/2029 |  | 1017 |  | 1000047 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 21** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series X<br>6.25%, 09/05/2024<sup>(b)</sup> | $295 | $297941 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series Z<br>6.50%, 10/23/2024<sup>(b)</sup> | 53 | 54328 |
|  Bank of Ireland Group PLC <br>2.029%, 09/30/2027<sup>(a)</sup> | 560 | 492083 |
|  Bank of New York Mellon Corp. (The) <br>Series G <br>4.70%, 09/20/2025<sup>(b)</sup> | 268 | 268214 |
|  BBVA Bancomer SA/Texas <br>5.875%, 09/13/2034<sup>(a)</sup> | 330 | 315345 |
|  BNP Paribas SA <br>2.591%, 01/20/2028<sup>(a)</sup> | 660 | 601319 |
|  Canadian Imperial Bank of Commerce <br>3.30%, 04/07/2025 | 485 | 478001 |
|  Capital One Financial Corp. <br>3.273%, 03/01/2030 | 336 | 306650 |
|  Citigroup, Inc.<br>3.875%, 02/18/2026<sup>(b)</sup> | 344 | 312971 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.98%, 03/20/2030 | 560 | 537538 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.075%, 04/23/2029 | 708 | 688473 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.412%, 03/31/2031 | 369 | 360657 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.45%, 09/29/2027 | 1222 | 1214900 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series W<br>4.00%, 12/10/2025<sup>(b)</sup> | 368 | 334990 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series Y<br>4.15%, 11/15/2026<sup>(b)</sup> | 569 | 509312 |
|  Commonwealth Bank of Australia <br>3.784%, 03/14/2032<sup>(a)</sup> | 607 | 550118 |
|  Credit Suisse Group AG<br>1.305%, 02/02/2027<sup>(a)</sup> | 250 | 218863 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.091%, 05/14/2032<sup>(a)</sup> | 663 | 556277 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.194%, 04/01/2031<sup>(a)</sup> | 347 | 322325 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.55%, 04/17/2026 | 285 | 284208 |
|  Danske Bank A/S <br>4.298%, 04/01/2028<sup>(a)</sup> | 250 | 242160 |
|  Deutsche Bank AG/New York NY<br>2.311%, 11/16/2027 | 1190 | 1053578 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.552%, 01/07/2028 | 535 | 476230 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.961%, 11/26/2025 | 555 | 545798 |
|  Discover Bank <br>4.682%, 08/09/2028 | 385 | 388565 |
|  Goldman Sachs Group, Inc. (The)<br>1.948%, 10/21/2027 | 540 | 484871 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.383%, 07/21/2032 | 544 | 450606 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.615%, 04/22/2032 | 730 | 618084 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.615%, 03/15/2028 | 620 | 596700 |

---

---

| | |
|:---|:---|
| **22 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.80%, 03/15/2030 | $1279 | $1209103 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.223%, 05/01/2029 | 592 | 579118 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series V<br>4.125%, 11/10/2026<sup>(b)</sup> | 248 | 222305 |
|  HSBC Holdings PLC<br>2.013%, 09/22/2028 | 285 | 248694 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.206%, 08/17/2029 | 545 | 469577 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.251%, 11/22/2027 | 555 | 501665 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.973%, 05/22/2030 | 342 | 323621 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.583%, 06/19/2029 | 1270 | 1247610 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.762%, 03/29/2033 | 242 | 229610 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.375%, 03/30/2025<sup>(b)</sup> | 405 | 407515 |
|  JPMorgan Chase & Co.<br>1.953%, 02/04/2032 | 830 | 677836 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.545%, 11/08/2032 | 765 | 649148 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.58%, 04/22/2032 | 595 | 512051 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.947%, 02/24/2028 | 505 | 475649 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.956%, 05/13/2031 | 1554 | 1366603 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.963%, 01/25/2033 | 260 | 229076 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.323%, 04/26/2028 | 690 | 688006 |
| &nbsp;&nbsp;&nbsp;&nbsp; 8.00%, 04/29/2027 | 650 | 755300 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series I<br>4.709% (LIBOR 3 Month + 3.47%), 07/30/2022<sup>(b)(c)</sup> | 247 | 243989 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series Q<br>5.15%, 05/01/2023<sup>(b)</sup> | 255 | 251922 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series V<br>4.287% (LIBOR 3 Month + 3.32%), 07/01/2022<sup>(b)(c)</sup> | 62 | 61129 |
|  M&T Bank Corp. <br>3.50%, 09/01/2026<sup>(b)</sup> | 334 | 281268 |
|  Mitsubishi UFJ Financial Group, Inc.<br>2.309%, 07/20/2032 | 270 | 225015 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.494%, 10/13/2032 | 330 | 277461 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.08%, 04/19/2028 | 705 | 696131 |
|  Mizuho Financial Group, Inc. <br>2.564%, 09/13/2031 | 440 | 363202 |
|  Morgan Stanley<br>2.943%, 01/21/2033 | 227 | 198098 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.62%, 04/17/2025 | 695 | 691205 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.622%, 04/01/2031 | 265 | 248369 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series G<br>4.431%, 01/23/2030 | 660 | 655644 |
|  National Australia Bank Ltd. <br>3.347%, 01/12/2037<sup>(a)</sup> | 665 | 576848 |
|  Nationwide Building Society <br>2.972%, 02/16/2028<sup>(a)</sup> | 404 | 375114 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 23** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  PNC Financial Services Group, Inc. (The) <br>Series O <br>4.964% (LIBOR 3 Month + 3.68%), 08/01/2022<sup>(b)(c)</sup> | $| 448 | $| 443498 |
|  Santander Holdings USA, Inc.<br>2.49%, 01/06/2028 |  | 156 |  | 141514 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.40%, 07/13/2027 |  | 1877 |  | 1852468 |
|  Santander UK Group Holdings PLC <br>2.469%, 01/11/2028 |  | 325 |  | 294119 |
|  Societe Generale SA<br>1.792%, 06/09/2027<sup>(a)</sup> |  | 435 |  | 383557 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.797%, 01/19/2028<sup>(a)</sup> |  | 795 |  | 717480 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.25%, 04/14/2025<sup>(a)</sup> |  | 243 |  | 239766 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.75%, 11/24/2025<sup>(a)</sup> |  | 200 |  | 199374 |
|  Standard Chartered PLC<br>1.456%, 01/14/2027<sup>(a)</sup> |  | 345 |  | 307053 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.608%, 01/12/2028<sup>(a)</sup> |  | 579 |  | 525471 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.971%, 03/30/2026<sup>(a)</sup> |  | 245 |  | 241033 |
|  Sumitomo Mitsui Financial Group, Inc. <br>2.142%, 09/23/2030 |  | 701 |  | 575227 |
|  Truist Financial Corp.<br>Series P<br>4.95%, 09/01/2025<sup>(b)</sup> |  | 993 |  | 987975 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series Q<br>5.10%, 03/01/2030<sup>(b)</sup> |  | 327 |  | 323024 |
|  Wells Fargo & Co.<br>3.526%, 03/24/2028 |  | 748 |  | 720115 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.908%, 04/25/2026 |  | 693 |  | 688302 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.15%, 01/24/2029 |  | 176 |  | 173386 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.478%, 04/04/2031 |  | 1190 |  | 1188822 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series BB<br>3.90%, 03/15/2026<sup>(b)</sup> |  | 1005 |  | 918610 |
|  Western Union Co. (The) <br>2.75%, 03/15/2031 |  | 610 |  | 519665 |
|  Westpac Banking Corp.<br>3.02%, 11/18/2036 |  | 780 |  | 648040 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.11%, 07/24/2034 |  | 705 |  | 664921 |
|  |  |  |  | 50873745 |
|  **Brokerage – 0.7%** | **Brokerage – 0.7%** | **Brokerage – 0.7%** | **Brokerage – 0.7%** | **Brokerage – 0.7%** |
|  Charles Schwab Corp. (The)<br>Series G<br>5.375%, 06/01/2025<sup>(b)</sup> |  | 271 |  | 273840 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series I<br>4.00%, 06/01/2026<sup>(b)</sup> |  | 745 |  | 679358 |
|  Jefferies Financial Group, Inc. <br>5.50%, 10/18/2023 |  | 554 |  | 563684 |
|  |  |  |  | 1516882 |

---

---

| | |
|:---|:---|
| **24 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Finance – 3.0%** | **Finance – 3.0%** | **Finance – 3.0%** |
|  AerCap Ireland Capital DAC/AerCap Global Aviation Trust<br>3.00%, 10/29/2028 | $810 | $704246 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.15%, 02/15/2024 | 179 | 174504 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.30%, 01/30/2032 | 810 | 673393 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.40%, 10/29/2033 | 330 | 270504 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 01/23/2028 | 515 | 474753 |
|  Air Lease Corp.<br>1.875%, 08/15/2026 | 435 | 388311 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.10%, 09/01/2028 | 451 | 382439 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.875%, 01/15/2026 | 100 | 93842 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.25%, 03/01/2025 | 89 | 86184 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.625%, 04/01/2027 | 19 | 18009 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.625%, 10/01/2028 | 431 | 418083 |
|  Aircastle Ltd.<br>2.85%, 01/26/2028<sup>(a)</sup> | 824 | 721025 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.25%, 06/15/2026 | 21 | 20278 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 08/11/2025<sup>(a)</sup> | 260 | 259496 |
|  Aviation Capital Group LLC<br>1.95%, 01/30/2026-09/20/2026<sup>(a)</sup> | 735 | 650218 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.50%, 11/01/2027<sup>(a)</sup> | 116 | 106517 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 01/30/2024<sup>(a)</sup> | 280 | 278860 |
|  Synchrony Financial<br>2.875%, 10/28/2031 | 458 | 373362 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.15%, 03/19/2029 | 509 | 507244 |
|  |  | 6601268 |
|  **Insurance – 4.9%** | **Insurance – 4.9%** | **Insurance – 4.9%** |
|  ACE Capital Trust II <br>9.70%, 04/01/2030 | 435 | 587998 |
|  Alleghany Corp. <br>3.625%, 05/15/2030 | 1085 | 1042251 |
|  Allstate Corp. (The) <br>Series B <br>5.75%, 08/15/2053 | 712 | 693509 |
|  Berkshire Hathaway, Inc. <br>2.75%, 03/15/2023 | 485 | 486722 |
|  Centene Corp. <br>2.45%, 07/15/2028 | 294 | 256621 |
|  Guardian Life Insurance Co. of America (The) <br>3.70%, 01/22/2070<sup>(a)</sup> | 260 | 209191 |
|  Hartford Financial Services Group, Inc. (The) <br>Series ICON <br>2.631% (LIBOR 3 Month + 2.13%), 02/12/2047<sup>(a)(c)</sup> | 535 | 472367 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 25** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Massachusetts Mutual Life Insurance Co. <br>5.077%, 02/15/2069<sup>(a)</sup> | $| 170 | $| 170398 |
|  MassMutual Global Funding II<br>0.60%, 04/12/2024<sup>(a)</sup> |  | 420 |  | 399265 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.85%, 06/09/2023<sup>(a)</sup> |  | 270 |  | 264122 |
|  Met Tower Global Funding <br>0.70%, 04/05/2024<sup>(a)</sup> |  | 875 |  | 828949 |
|  MetLife Capital Trust IV <br>7.875%, 12/15/2037<sup>(a)</sup> |  | 150 |  | 172833 |
|  MetLife, Inc. <br>Series D <br>5.875%, 03/15/2028<sup>(b)</sup> |  | 210 |  | 208112 |
|  Nationwide Mutual Insurance Co. <br>9.375%, 08/15/2039<sup>(a)</sup> |  | 150 |  | 215488 |
|  New York Life Insurance Co. <br>4.45%, 05/15/2069<sup>(a)</sup> |  | 220 |  | 201571 |
|  Nippon Life Insurance Co. <br>2.75%, 01/21/2051<sup>(a)</sup> |  | 490 |  | 421111 |
|  Peachtree Corners Funding Trust <br>3.976%, 02/15/2025<sup>(a)</sup> |  | 110 |  | 110098 |
|  Prudential Financial, Inc.<br>5.20%, 03/15/2044 |  | 907 |  | 892370 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 05/15/2045 |  | 320 |  | 318298 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 06/15/2043 |  | 859 |  | 859842 |
|  Reinsurance Group of America, Inc. <br>3.15%, 06/15/2030 |  | 483 |  | 438902 |
|  Swiss Re Finance Luxembourg SA <br>5.00%, 04/02/2049<sup>(a)</sup> |  | 600 |  | 600270 |
|  Voya Financial, Inc. <br>5.65%, 05/15/2053 |  | 1080 |  | 1075172 |
|  |  |  |  | 10925460 |
|  **REITs – 8.8%** | **REITs – 8.8%** | **REITs – 8.8%** | **REITs – 8.8%** | **REITs – 8.8%** |
|  Alexandria Real Estate Equities, Inc. <br>2.95%, 03/15/2034 |  | 384 |  | 332314 |
|  American Homes 4 Rent LP <br>4.25%, 02/15/2028 |  | 5 |  | 4892 |
|  American Tower Corp.<br>2.30%, 09/15/2031 |  | 545 |  | 443265 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.125%, 01/15/2027 |  | 335 |  | 316699 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.05%, 03/15/2032 |  | 191 |  | 179259 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 02/15/2024 |  | 645 |  | 661196 |
|  Boston Properties LP <br>2.55%, 04/01/2032 |  | 1001 |  | 838408 |
|  Crown Castle International Corp. <br>2.90%, 03/15/2027 |  | 302 |  | 283213 |

---

---

| | |
|:---|:---|
| **26 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Equinix, Inc. <br>3.90%, 04/15/2032 | $485 | $455037 |
|  Essential Properties LP <br>2.95%, 07/15/2031 | 564 | 465796 |
|  GLP Capital LP/GLP Financing II, Inc.<br>3.25%, 01/15/2032 | 275 | 231924 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 06/01/2025 | 393 | 399760 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 04/15/2026 | 144 | 146828 |
|  Highwoods Realty LP <br>4.125%, 03/15/2028 | 710 | 696439 |
|  Host Hotels & Resorts LP<br>Series E<br>4.00%, 06/15/2025 | 323 | 320271 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series J<br>2.90%, 12/15/2031 | 339 | 286285 |
|  Kilroy Realty LP <br>3.45%, 12/15/2024 | 40 | 39398 |
|  Kimco Realty Corp. <br>2.80%, 10/01/2026 | 95 | 90276 |
|  Office Properties Income Trust<br>2.65%, 06/15/2026 | 306 | 275654 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.45%, 10/15/2031 | 820 | 635566 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.50%, 02/01/2025 | 430 | 426298 |
|  Omega Healthcare Investors, Inc.<br>4.50%, 01/15/2025 | 108 | 108100 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 01/15/2026 | 988 | 1005665 |
|  Public Storage <br>0.749% (SOFR + 0.47%), 04/23/2024<sup>(c)</sup> | 415 | 413875 |
|  Realty Income Corp.<br>2.85%, 12/15/2032 | 447 | 397530 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.60%, 02/06/2024 | 1266 | 1289573 |
|  Regency Centers LP<br>3.70%, 06/15/2030 | 280 | 262536 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.75%, 06/15/2024 | 33 | 32921 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 03/15/2028 | 453 | 448330 |
|  Rexford Industrial Realty LP <br>2.15%, 09/01/2031 | 176 | 144200 |
|  Sabra Health Care LP<br>3.20%, 12/01/2031 | 820 | 691260 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.90%, 10/15/2029 | 770 | 708585 |
|  Simon Property Group LP <br>2.65%, 02/01/2032 | 535 | 461165 |
|  SITE Centers Corp.<br>3.625%, 02/01/2025 | 1004 | 991048 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.25%, 02/01/2026 | 178 | 177283 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.70%, 06/01/2027 | 365 | 365296 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 27** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Spirit Realty LP<br>2.10%, 03/15/2028 | $| 350 | $| 303842 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.20%, 02/15/2031 |  | 475 |  | 420470 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 07/15/2029 |  | 162 |  | 152073 |
|  Sun Communities Operating LP <br>2.30%, 11/01/2028 |  | 663 |  | 580854 |
|  Ventas Realty LP<br>3.50%, 02/01/2025 |  | 924 |  | 914409 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.85%, 04/01/2027 |  | 150 |  | 148608 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.125%, 01/15/2026 |  | 23 |  | 23028 |
|  Vornado Realty LP<br>2.15%, 06/01/2026 |  | 525 |  | 477839 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.40%, 06/01/2031 |  | 655 |  | 572981 |
|  Weyerhaeuser Co. <br>3.375%, 03/09/2033 |  | 505 |  | 456070 |
|  WP Carey, Inc.<br>2.45%, 02/01/2032 |  | 670 |  | 560763 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.60%, 04/01/2024 |  | 44 |  | 44689 |
|  |  |  |  | 19681771 |
|  |  |  |  | 89599126 |
|  **Utility – 6.3%** | **Utility – 6.3%** | **Utility – 6.3%** | **Utility – 6.3%** | **Utility – 6.3%** |
|  **Electric – 5.4%** | **Electric – 5.4%** | **Electric – 5.4%** | **Electric – 5.4%** | **Electric – 5.4%** |
|  Abu Dhabi National Energy Co. PJSC <br>4.375%, 04/23/2025<sup>(a)</sup> |  | 215 |  | 218784 |
|  AES Panama Generation Holdings SRL <br>4.375%, 05/31/2030<sup>(a)</sup> |  | 200 |  | 178000 |
|  Alfa Desarrollo SpA <br>4.55%, 09/27/2051<sup>(a)</sup> |  | 219 |  | 171483 |
|  American Transmission Systems <br>2.65%, 01/15/2032<sup>(a)</sup> |  | 565 |  | 490759 |
|  Berkshire Hathaway Energy Co. <br>6.125%, 04/01/2036 |  | 260 |  | 295987 |
|  CenterPoint Energy, Inc.<br>0.844% (SOFR + 0.65%), 05/13/2024<sup>(c)</sup> |  | 390 |  | 386915 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.65%, 06/01/2031 |  | 845 |  | 735556 |
|  Consolidated Edison Co. of New York, Inc.<br>4.50%, 05/15/2058 |  | 360 |  | 339142 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series A<br>4.125%, 05/15/2049 |  | 350 |  | 320638 |
|  Duke Energy Carolinas LLC <br>3.45%, 04/15/2051 |  | 500 |  | 426360 |
|  Duke Energy Corp. <br>4.20%, 06/15/2049 |  | 278 |  | 244231 |
|  Duke Energy Progress LLC <br>4.00%, 04/01/2052 |  | 164 |  | 153127 |

---

---

| | |
|:---|:---|
| **28 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Empresas Publicas de Medellin ESP <br>4.25%, 07/18/2029<sup>(a)</sup> | $| 200 | $| 168100 |
|  Enel Americas SA <br>4.00%, 10/25/2026 |  | 53 |  | 52200 |
|  Enel Chile SA <br>4.875%, 06/12/2028 |  | 62 |  | 60447 |
|  Engie Energia Chile SA <br>3.40%, 01/28/2030<sup>(a)</sup> |  | 425 |  | 375939 |
|  Entergy Corp. <br>2.80%, 06/15/2030 |  | 450 |  | 395649 |
|  Exelon Corp. <br>3.497%, 06/01/2022 |  | 94 |  | 94000 |
|  Fells Point Funding Trust <br>3.046%, 01/31/2027<sup>(a)</sup> |  | 781 |  | 733757 |
|  Florida Power & Light Co.<br>0.435% (SOFR + 0.25%), 05/10/2023<sup>(c)</sup> |  | 170 |  | 169278 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.95%, 03/01/2048 |  | 782 |  | 740140 |
|  Georgia Power Co. <br>4.30%, 03/15/2042 |  | 420 |  | 383006 |
|  Kentucky Utilities Co. <br>3.30%, 06/01/2050 |  | 52 |  | 42057 |
|  National Rural Utilities Cooperative Finance Corp.<br>0.35%, 02/08/2024 |  | 730 |  | 695113 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.40%, 11/15/2023 |  | 335 |  | 336340 |
|  NextEra Energy Capital Holdings, Inc.<br>0.75% (LIBOR 3 Month + 0.27%), 02/22/2023<sup>(c)</sup> |  | 615 |  | 613659 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.65%, 05/01/2079 |  | 404 |  | 399455 |
|  Public Service Enterprise Group, Inc. <br>8.625%, 04/15/2031 |  | 388 |  | 487386 |
|  Southern California Edison Co. <br>0.70%, 04/03/2023 |  | 500 |  | 489305 |
|  Southern Co. (The)<br>2.95%, 07/01/2023 |  | 512 |  | 512010 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series A<br>3.70%, 04/30/2030 |  | 720 |  | 679507 |
|  Southern Power Co. <br>Series F <br>4.95%, 12/15/2046 |  | 77 |  | 74953 |
|  Virginia Electric & Power Co. <br>8.875%, 11/15/2038 |  | 443 |  | 648840 |
|  |  |  |  | 12112123 |
|  **Natural Gas – 0.9%** | **Natural Gas – 0.9%** | **Natural Gas – 0.9%** | **Natural Gas – 0.9%** | **Natural Gas – 0.9%** |
|  Atmos Energy Corp. <br>3.375%, 09/15/2049 |  | 405 |  | 339913 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 29** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  GNL Quintero SA <br>4.634%, 07/31/2029<sup>(a)</sup> | $| 176 | $| 171362 |
|  NiSource, Inc. <br>5.65%, 02/01/2045 |  | 60 |  | 61645 |
|  ONE Gas, Inc. <br>0.85%, 03/11/2023 |  | 1473 |  | 1452083 |
|  |  |  |  | 2025003 |
|  |  |  |  | 14137126 |
|  Total Corporates - Investment Grade <br>(cost $239,060,053) |  |  |  | 213872661 |
|  **QUASI-SOVEREIGNS – 1.2%** | **QUASI-SOVEREIGNS – 1.2%** | **QUASI-SOVEREIGNS – 1.2%** | **QUASI-SOVEREIGNS – 1.2%** | **QUASI-SOVEREIGNS – 1.2%** |
|  **Quasi-Sovereign Bonds – 1.2%** | **Quasi-Sovereign Bonds – 1.2%** | **Quasi-Sovereign Bonds – 1.2%** | **Quasi-Sovereign Bonds – 1.2%** | **Quasi-Sovereign Bonds – 1.2%** |
|  **Chile – 0.4%** | **Chile – 0.4%** | **Chile – 0.4%** | **Chile – 0.4%** | **Chile – 0.4%** |
|  Empresa de Transporte de Pasajeros Metro SA<br>3.65%, 05/07/2030<sup>(a)</sup> |  | 350 |  | 325347 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.70%, 05/07/2050<sup>(a)</sup> |  | 295 |  | 266293 |
|  Empresa Nacional del Petroleo <br>3.75%, 08/05/2026<sup>(a)</sup> |  | 200 |  | 190500 |
|  |  |  |  | 782140 |
|  **Malaysia – 0.1%** |  |  |  |  |
|  Petronas Capital Ltd. <br>4.55%, 04/21/2050<sup>(a)</sup> |  | 225 |  | 225602 |
|  **Mexico – 0.3%** |  |  |  |  |
|  Comision Federal de Electricidad <br>3.348%, 02/09/2031<sup>(a)</sup> |  | 321 |  | 256359 |
|  Petroleos Mexicanos<br>6.50%, 01/23/2029 |  | 135 |  | 123525 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.75%, 09/21/2047 |  | 112 |  | 80884 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.95%, 01/28/2060 |  | 169 |  | 123370 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.69%, 01/23/2050 |  | 80 |  | 62440 |
|  |  |  |  | 646578 |
|  **Panama – 0.1%** |  |  |  |  |
|  Empresa de Transmision Electrica SA <br>5.125%, 05/02/2049<sup>(a)</sup> |  | 246 |  | 227857 |
|  **Peru – 0.2%** |  |  |  |  |
|  Corp. Financiera de Desarrollo SA <br>2.40%, 09/28/2027<sup>(a)</sup> |  | 560 |  | 490980 |
|  **Qatar – 0.1%** |  |  |  |  |
|  Qatar Petroleum <br>3.125%, 07/12/2041<sup>(a)</sup> |  | 277 |  | 230914 |
|  Total Quasi-Sovereigns <br>(cost $2,993,170) |  |  |  | 2604071 |

---

---

| | |
|:---|:---|
| **30 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **CORPORATES - NON-INVESTMENT GRADE – 0.8%** |  |  |
|  **Industrial – 0.4%** |  |  |
|  **Consumer Cyclical - Automotive – 0.1%** |  |  |
|  Ford Motor Credit Co. LLC <br>3.81%, 01/09/2024 | $395 | $389130 |
|  **Consumer Non-Cyclical – 0.2%** |  |  |
|  Perrigo Finance Unlimited Co. <br>4.375%, 03/15/2026 | 420 | 406522 |
|  **Energy – 0.1%** |  |  |
|  EQM Midstream Partners LP <br>4.75%, 07/15/2023 | 100 | 99633 |
|  Occidental Petroleum Corp. <br>3.50%, 08/15/2029 | 55 | 51661 |
|  |  | 151294 |
|  |  | 946946 |
|  **Utility – 0.2%** |  |  |
|  **Electric – 0.2%** |  |  |
|  National Rural Utilities Coope <br>3.45%, 06/15/2025 | 455 | 452975 |
|  **Financial Institutions – 0.2%** |  |  |
|  **REITs – 0.2%** |  |  |
|  Diversified Healthcare Trust <br>4.75%, 02/15/2028 | 407 | 347175 |
|  Total Corporates - Non-Investment Grade <br>(cost $1,776,848) |  | 1747096 |
|  **GOVERNMENTS - SOVEREIGN BONDS – 0.5%** |  |  |
|  **Colombia – 0.3%** |  |  |
|  Colombia Government International Bond<br>3.125%, 04/15/2031 | 562 | 439695 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.20%, 05/15/2049 | 200 | 151725 |
|  |  | 591420 |
|  **Mexico – 0.1%** |  |  |
|  Mexico Government International Bond<br>4.60%, 01/23/2046 | 200 | 169700 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.75%, 03/08/2044 | 150 | 132000 |
|  |  | 301700 |
|  **Peru – 0.0%** |  |  |
|  Peruvian Government International Bond <br>2.392%, 01/23/2026 | 53 | 49582 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 31** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Qatar – 0.1%** |  |  |
|  Qatar Government International Bond <br>4.817%, 03/14/2049<sup>(a)</sup> | $228 | $244815 |
|  **Uruguay – 0.0%** |  |  |
|  Uruguay Government International Bond <br>4.375%, 01/23/2031 | 54 | 55371 |
|  Total Governments - Sovereign Bonds <br>(cost $1,434,932) |  | 1242888 |
|  **Total Investments – 98.6%** <br>(cost $245,265,003) |  | 219466716 |
|  Other assets less liabilities – 1.4% |  | 3083056 |
|  **Net Assets – 100.0%** |  | $**222549772** |

---

**FUTURES (see Note C)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Number of<br>Contracts** | **Expiration<br>Month** | **Current<br>Notional** | **Value and<br>Unrealized<br>Appreciation/<br>(Depreciation)** |
|  **Purchased Contracts** | **Purchased Contracts** | **Purchased Contracts** | **Purchased Contracts** | **Purchased Contracts** |
|  U.S. T-Note 5 Yr (CBT) Futures | 14 | June 2022 | $1577406 | $(6698) |
|  U.S. Ultra Bond (CBT) Futures | 120 | June 2022 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19252500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2690374) |
|  **Sold Contracts** | **Sold Contracts** | **Sold Contracts** | **Sold Contracts** | **Sold Contracts** |
|  U.S. T-Note 10 Yr (CBT) Futures | 10 | June 2022 | 1191563 | 72330 |
|  U.S. Ultra Bond (CBT) Futures | 95 | June 2022 | 12255000 | 1018071 |
|  |  |  |  | $(1606671) |

---

**CENTRALLY CLEARED CREDIT DEFAULT SWAPS (see Note C)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Swap<br>Counterparty<br>& Referenced<br>Obligation** | **Fixed<br>Rate<br>(Pay)<br>Receive** | **Payment<br>Frequency** | **Implied<br>Credit<br>Spread at<br>April 30,<br>2022** | **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** | **Market<br>Value** | **Upfront<br>Premiums<br>Paid/<br>(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  **Sale Contracts** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CDX-NAIG<br>Series 38,<br>5 Year Index, 06/20/2027\* | 1.00% | Quarterly | 0.84% | USD | &nbsp;&nbsp;&nbsp;&nbsp;3280 | $&nbsp;&nbsp;&nbsp;&nbsp;28711 | $&nbsp;&nbsp;&nbsp;&nbsp;45457 | $&nbsp;&nbsp;&nbsp;&nbsp;(16746) |

---

\* Termination date

---

| | |
|:---|:---|
| **32 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

**CENTRALLY CLEARED INTEREST RATE SWAPS (see Note C)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Rate Type** | **Rate Type** | | | | |
| **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** |<br>**Termination<br>Date** | **Payments<br>made<br>by the<br>Fund** | **Payments<br>received<br>by the<br>Fund** | <br>**Payment<br>Frequency<br>Paid/<br>Received** |<br>**Market<br>Value** |<br>**Upfront<br>Premiums<br>Paid/<br>(Received)** |<br>**Unrealized<br>Appreciation/<br>(Depreciation)** |
| USD | 60 | 11/04/2044 | 3 Month<br>LIBOR | 3.049% | Quarterly/<br> Semi-Annual | $2367 | $– 0 | $2367 |
| USD | 60 | 05/05/2045 | 3 Month<br>LIBOR | 2.562% | Quarterly/<br> Semi-Annual | (2651) | – 0 | (2651) |
| USD | 60 | 06/02/2046 | 3 Month<br>LIBOR | 2.186% | Quarterly/<br> Semi-Annual | (6719) | – 0 | (6719) |
| USD | 690 | 07/15/2046 | 3 Month<br>LIBOR | 1.783% | Quarterly/<br> Semi-Annual | (129030) | – 0 | (129030) |
| USD | 270 | 09/02/2046 | 3 Month<br>LIBOR | 1.736% | Quarterly/<br> Semi-Annual | (53550) | – 0 | (53550) |
| USD | 50 | 11/02/2046 | 3 Month<br>LIBOR | 2.086% | Quarterly/<br> Semi-Annual | (6440) | – 0 | (6440) |
|  |  |  |  |  |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(196023) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(196023) |

---

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are
considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2022, the aggregate market value of these securities amounted to $41,881,910 or 18.8% of net assets.

(b) Securities are perpetual and, thus, do not have a predetermined maturity date. The date shown, if applicable, reflects the
next call date.

(c) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at April 30, 2022.

Glossary:

CBT – Chicago Board of Trade

CDX-NAIG – North American Investment Grade Credit Default Swap Index

LIBOR – London Interbank Offered Rate

PJSC – Public Joint Stock Company

REIT – Real Estate Investment Trust

SOFR – Secured Overnight Financing Rate

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 33** |

---

------

**STATEMENT OF ASSETS & LIABILITIES** 

**April 30, 2022** 

---

| | |
|:---|:---|
| **Assets** |  |
|  Investments in securities, at value (cost $245,265,003) | $219466716 |
|  Cash | 247976 |
|  Cash collateral due from broker | 813832 |
|  Receivable for investment securities sold | 2961111 |
|  Interest receivable | 2033374 |
|  Receivable for shares of beneficial interest sold | 247752 |
|  Total assets | 225770761 |
| **Liabilities** |  |
|  Payable for investment securities purchased | 1380787 |
|  Payable for shares of beneficial interest redeemed | 1118814 |
|  Dividends payable | 619837 |
|  Payable for variation margin on futures | 87190 |
|  Payable for variation margin on centrally cleared swaps | 8673 |
|  Foreign capital gains tax payable | 5688 |
|  Total liabilities | 3220989 |
|  Net Assets | $**222549772** |
| **Composition of Net Assets** |  |
|  Shares of beneficial interest, at par | $218 |
|  Additional paid-in capital | 254524793 |
|  Accumulated loss | (31975239) |
|  Net Assets | $**222549772** |
|  **Net Asset Value Per Share**—unlimited shares of beneficial interest authorized, $.00001 par value (based on 21,769,195 common shares outstanding) | $**10.22** |

---

See notes to financial statements.

---

| | |
|:---|:---|
| **34 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**STATEMENT OF OPERATIONS** 

**Year Ended April 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Investment Income** |  |  |
|  Interest | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6618486 |  |
|  Other income | 660 |  |
|  Total investment income |  | $6619146 |
| **Realized and Unrealized Gain (Loss) on Investment Transactions** |  |  |
|  Net realized gain (loss) on: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment transactions<sup>(a)</sup> |  | (1880654) |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures |  | (186534) |
| &nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 8012 |
|  Net change in unrealized appreciation/depreciation of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments<sup>(b)</sup> |  | (29750607) |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures |  | (1539863) |
| &nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | (170322) |
|  Net loss on investment transactions |  | (33519968) |
|  **Net Decrease in Net Assets from Operations** |  | $**(26900822)** |

---

(a) Net of foreign realized capital gains taxes of $33,168.

(b) Net of decrease in accrued foreign capital gains taxes on unrealized gains of $6,951.

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 35** |

---

------

**STATEMENT OF CHANGES IN NET ASSETS** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>April 30,<br>2022** | **Year Ended<br>April 30,<br>2021** |
| **Increase (Decrease) in Net Assets from Operations** |  |  |
|  Net investment income | $6619146 | $5028258 |
|  Net realized gain (loss) on investment transactions | (2059176) | 3114500 |
|  Net change in unrealized appreciation/depreciation of investments | (31460792) | 744800 |
|  Net increase (decrease) in net assets from operations | (26900822) | 8887558 |
|  Distribution to Shareholders | (9462001) | (9415691) |
| **Transactions in Shares of Beneficial Interest** |  |  |
|  Net increase | 50167122 | 94818239 |
|  Total increase | 13804299 | 94290106 |
| **Net Assets** |  |  |
|  Beginning of period | 208745473 | 114455367 |
|  End of period | $**222549772** | $**208745473** |

---

See notes to financial statements.

---

| | |
|:---|:---|
| **36 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** 

**April 30, 2022** 

**NOTE A** 

**Significant Accounting Policies** 

AB Corporate Shares (the "Trust") is registered under the Investment Company Act of 1940, as an open-end, diversified management investment company. The Trust, which is a Massachusetts Business Trust, operates as a "series" company currently offering five separate portfolios: AB Corporate Income Shares, AB Municipal Income Shares, AB Taxable Multi-Sector Income Shares, AB Impact Municipal Income Shares and AB Tax-Aware Real Return Income Shares. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to AB Corporate Income Shares (the "Fund").

Shares of the Fund are offered exclusively to holders of accounts established under wrap-fee programs sponsored and maintained by certain registered investment advisers approved by AllianceBernstein L.P. (the "Adviser"). The Fund's shares may be purchased at the relevant net asset value without a sales charge or other fee. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("U.S. GAAP"), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

**1. Security Valuation** 

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at "fair value" as determined in accordance with procedures established by and under the general supervision of the Trust's Board of Trustees (the "Board").

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. ("NASDAQ")) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter ("OTC") market put or call options are valued at the mid level

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|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 37** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the "Committee") must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer's financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund 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 and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

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|:---|:---|
| **38 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**2. Fair Value Measurements** 

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund's own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1—quoted prices in active markets for identical investments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates,
prepayment speeds, credit risk, etc.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value
of investments)

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more

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|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 39** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund's investments by the above fair value hierarchy levels as of April 30, 2022:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in<br>Securities:** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets:** |  |  |  |  |
|  Corporates – Investment Grade | $– 0 | $213872661 | $– 0 | $213872661 |
|  Quasi-Sovereigns | – 0 | 2604071 | – 0 | 2604071 |
|  Corporates – Non-Investment Grade | – 0 | 1747096 | – 0 | 1747096 |
|  Governments – Sovereign Bonds | – 0 | 1242888 | – 0 | 1242888 |
|  Total Investments in Securities | – 0 | 219466716 | – 0 | 219466716 |
|  **Other Financial Instruments<sup>(a)</sup>:** |  |  |  |  |
|  **Assets:** |  |  |  |  |
|  Futures | 1090401 | – 0 | – 0 | 1090401 <sup>(b)</sup> |
|  Centrally Cleared Credit Default Swaps | – 0 | 28711 | – 0 | 28711 |
|  Centrally Cleared Interest Rate Swaps | – 0 | 2367 | – 0 | 2367 <sup>(b)</sup> |
|  **Liabilities:** |  |  |  |  |
|  Futures | (2697072) | – 0 | – 0 | (2697072)<sup>(b)</sup> |
|  Centrally Cleared Interest Rate Swaps | – 0 | (198390) | – 0 | (198390)<sup>(b)</sup> |
|  **Total** | $**(1606671** | $**219299404** | $**– 0** | $**217692733** |

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(a) Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the
unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This
amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

**3. Taxes** 

It is the Fund's policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund's tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund's financial statements.

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| | |
|:---|:---|
| **40 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**4. Investment Income and Investment Transactions** 

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

**5. Dividends and Distributions** 

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

**NOTE B** 

**Advisory Fee and Other Transactions with Affiliates** 

Under the terms of the Advisory Agreement, the Fund pays no advisory fee to the Adviser and the Adviser reimburses or pays for the Fund's operating expenses. The Fund is an integral part of separately managed accounts in wrap-fee programs and other investment programs. Typically, participants in these programs pay a fee to their investment adviser for all costs and expenses of the separately managed account, including costs and expenses associated with the Fund, and a fee is paid by their investment adviser to the Adviser. In certain cases, participants may have a direct relationship with the Adviser without the involvement of a third party investment adviser, in which case the participant would pay a fee directly to the Adviser. The Adviser serves as investment manager and adviser of the Fund and continuously furnishes an investment program for the Fund and manages, supervises and conducts the affairs of the Fund, subject to the supervisions of the Fund's Board. The Advisory Agreement provides that the Adviser or an affiliate will furnish, or pay the expenses of the Fund for, office space, facilities and equipment, services of executive and other personnel of the Fund and certain administrative services.

The Fund has entered into a distribution agreement with AllianceBernstein Investments, Inc., the Fund's principal underwriter (the "Underwriter"), to permit the Underwriter to distribute the Fund's shares, which are sold at their net asset value without any sales charge. The Fund does not pay a fee for this service. The Underwriter is a wholly owned subsidiary of the Adviser.

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|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 41** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

AllianceBernstein Investor Services, Inc. ("ABIS"), a wholly-owned subsidiary of the Adviser, acts as the Fund's registrar, transfer agent and dividend-disbursing agent. ABIS registers the transfer, issuance and redemption of Fund shares and disburses dividends and other distributions to Fund shareholders. The Fund does not pay a fee for this service.

**NOTE C** 

**Investment Transactions** 

Purchases and sales of investment securities (excluding short-term investments) for the year ended April 30, 2022 were as follows:

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| | | |
|:---|:---|:---|
|  | **Purchases** | **Sales** |
|  Investment securities (excluding U.S. government securities) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;162962382 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;112718067 |
|  U.S. government securities | 75393 | 76900 |

---

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

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| | |
|:---|:---|
|  Cost | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;245512722 |
|  Gross unrealized appreciation | $2785831 |
|  Gross unrealized depreciation | (29054625) |
|  Net unrealized depreciation | $(26268794) |

---

**1. Derivative Financial Instruments** 

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, "investment purposes"), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **Futures** 

The Fund may buy or sell futures for investment purposes or for the purpose of hedging its portfolio against adverse effects of potential movements in the market. The Fund bears the market risk that arises from changes in the value of these instruments and the imperfect correlation between movements in the price of the futures and movements in the price of the assets, reference rates or indices which they are designed to track. Among other things, the Fund may purchase or sell futures for foreign currencies or options thereon for non-hedging purposes as a means of making direct investment in foreign currencies.

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by

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|:---|:---|
| **42 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

the exchange on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for exchange-traded futures is generally less than privately negotiated futures, since the clearinghouse, which is the issuer or counterparty to each exchange-traded future, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

Use of long futures subjects the Fund to risk of loss in excess of the amounts shown on the statement of assets and liabilities, up to the notional value of the futures. Use of short futures subjects the Fund to unlimited risk of loss. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of futures can vary from the previous day's settlement price, which could effectively prevent liquidation of unfavorable positions.

During the year ended April 30, 2022, the Fund held futures for hedging purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **Swaps** 

The Fund may enter into swaps to hedge its exposure to interest rates or credit risk. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the

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|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 43** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund's exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants ("FCMs") that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

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|:---|:---|
| **44 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**Interest Rate Swaps:** 

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (*e.g.*, an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or "notional") amount. Interest rate swaps are entered into on a net basis (*i.e.*, the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended April 30, 2022, the Fund held interest rate swaps for hedging purposes.

**Credit Default Swaps:** 

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection ("Buy Contract") or provide credit protection ("Sale Contract") on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the "Maximum Payout Amount") and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront

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|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 45** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect of the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation's credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the referenced obligation.

During the year ended April 30, 2022, the Fund held credit default swaps for non-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreement") with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund's net liability, held by the defaulting party, may be delayed or denied.

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|:---|:---|
| **46 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

The Fund's ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels ("net asset contingent features"). If these levels are triggered, the Fund's OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended April 30, 2022, the Fund had entered into the following derivatives:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives** | **Liability Derivatives** |
| **Derivative Type** | **Statement of<br>Assets and<br>Liabilities<br>Location** | **Fair Value** | **Statement of<br>Assets and<br>Liabilities<br>Location** | **Fair Value** |
|  Interest rate contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Receivable/Payable for variation margin on futures | $1090401 <br>\* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Receivable/Payable for variation margin on futures | $2697072 <br>\* |
|  Credit contracts |  |  | Receivable/Payable for variation margin on centrally cleared swaps | 16746 \* |
|  Interest rate contracts | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Receivable/Payable for variation margin on centrally cleared swaps | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>2367 <br>\* | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>Receivable/Payable for variation margin on centrally cleared swaps | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>198390 <br>\* |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1092768 |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2912208 |

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\* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. 

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| | | | |
|:---|:---|:---|:---|
| **Derivative Type** | **Location of Gain<br>or (Loss) on<br>Derivatives<br>Within Statement<br>of Operations** | **Realized Gain<br>or (Loss) on<br>Derivatives** | **Change in<br>Unrealized<br>Appreciation or<br>(Depreciation)** |
|  Interest rate contracts | Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures | $(186534) | $(1539863) |
|  Interest rate contracts | Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps | (5212) | (138615) |
|  Credit contracts | Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps | 13224 | (31707) |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(178522) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1710185) |

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|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 47** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

The following table represents the average monthly volume of the Fund's derivative transactions during the year ended April 30, 2022:

---

| | |
|:---|:---|
|  Futures: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount of buy contracts | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18452278 |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount of sale contracts | $14335830 |
|  Centrally Cleared Interest Rate Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount | $2545385 |
|  Centrally Cleared Credit Default Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount of sale contracts | $3280000 |

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**NOTE D** 

**Shares of Beneficial Interest** 

Transactions in shares of beneficial interest were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>April 30,<br> 2022 | Year Ended<br>April 30,<br> 2021 | Year Ended<br>April 30,<br> 2022 | Year Ended<br>April 30,<br> 2021 |
|  Shares sold | 9419121 | 9909588 | $111031586 | $120804388 |
|  Shares redeemed | (5307601) | (2149225) | (60864464) | (25986149) |
|  **Net increase** | **4111520** | **7760363** | $**50167122** | $**94818239** |

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**NOTE E** 

**Risks Involved in Investing in the Fund** 

**Market Risk**—The value of the Fund's assets will fluctuate as the stock or bond market fluctuates. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

**Credit Risk**—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

**Interest-Rate Risk**—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value

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|:---|:---|
| **48 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The current historically low interest rate environment heightens the risks associated with rising interest rates.

**Inflation Risk**—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund's assets can decline as can the value of the Fund's distributions. This risk is significantly greater for fixed-income securities with longer maturities.

**Foreign (Non-U.S.) Risk**—Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

**Derivatives Risk**—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

**LIBOR Transition and Associated Risk**—A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or "LIBOR," as a "benchmark" or "reference rate" for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority ("FCA"), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR's administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a "synthetic" basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve's Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other

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|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 49** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

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 a 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, potentially adversely affecting a 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. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

**Indemnification Risk**—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

**Management Risk**—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

**NOTE F** 

**Joint Credit Facility** 

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the "Facility") intended to provide short-term financing related to redemptions and other short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended April 30, 2022.

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|:---|:---|
| **50 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE G** 

**Distributions to Shareholders** 

The tax character of distributions paid during the fiscal years ended April 30, 2022 and April 30, 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Distributions paid from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ordinary income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7221076 | $7513033 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net long-term capital gains | 2240925 | 1902658 |
|  Total distributions paid | $9462001 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9415691 |

---

As of April 30, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:

---

| | |
|:---|:---|
|  Undistributed ordinary income | $754454 |
|  Accumulated capital and other losses | (5831169)<sup>(a)</sup> |
|  Unrealized appreciation/(depreciation) | (26273070)<sup>(b)</sup> |
|  Total accumulated earnings/(deficit) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31349785)<sup>(c)</sup> |

---

(a) As of April 30, 2022, the Fund had a post-October short term capital loss deferral of $3,668,555 and a post-October
long term capital loss deferral of $2,162,614.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the
recognition for tax purposes of unrealized gains/losses on certain derivative instruments, the tax treatment of callable bonds, the tax treatment of swaps, and the tax deferral of losses on wash sales.

(c) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily
to the accrual of foreign capital gains tax and dividends payable.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of April 30, 2022, the Fund did not have any capital loss carryforwards.

During the current fiscal year, there were no permanent differences that resulted in adjustments to accumulated loss or additional paid-in capital.

**NOTE H** 

**Recent Accounting Pronouncements** 

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, "Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

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| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 51** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE I** 

**Subsequent Events** 

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund's financial statements through this date.

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| | |
|:---|:---|
| **52 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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------

**FINANCIAL HIGHLIGHTS** 

**Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended April 30,** | **Year Ended April 30,** | **Year Ended April 30,** | **Year Ended April 30,** | **Year Ended April 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $11.82 | $11.56 | $11.11 | $10.81 | $11.14 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income<sup>(a)</sup> | .33 | .37 | .44 | .44 | .39 |
|  Net realized and unrealized gain (loss) on investment transactions | (1.47) | .55 | .51 | .30 | (.33 |
|  Net increase (decrease) in net asset value from operations | (1.14) | .92 | .95 | .74 | .06 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | (.34) | (.38) | (.45) | (.44 | (.39 |
|  Distributions from net realized gain on investment transactions | (.12) | (.28) | (.05) | – 0 | – 0 |
|  Total dividends and distributions | (.46) | (.66) | (.50) | (.44 | (.39 |
|  Net asset value, end of period | **$10.22** | **$11.82** | **$11.56** | **$11.11** | **$10.81** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(b)</sup> | (10.08) % | 7.90% | 8.65% | 7.03 | .50 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period<br>(000's omitted) | $222550 | $208745 | $114455 | $98680 | $84740 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 2.84% | 3.02% | 3.83% | 4.06 | 3.47 |
|  Portfolio turnover rate | 49% | 43% | 87% | 140 | 73 |

---

(a) Based on average shares outstanding.

(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the
period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or
the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

See notes to financial statements.

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| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 53** |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

**To the Shareholders and the Board of Trustees of AB Corporate Income Shares:** 

***Opinion on the Financial Statements***

We have audited the accompanying statement of assets and liabilities of AB Corporate Income Shares (the "Fund") (one of the series constituting AB Corporate Shares (the "Trust")), including the portfolio of investments, as of April 30, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the series constituting AB Corporate Shares) at April 30, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

***Basis for Opinion***

These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and

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| **54 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** (continued)

disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2022, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![LOGO](g472794g91r55.jpg)

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

June 24, 2022

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|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 55** |

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**2022 FEDERAL TAX INFORMATION** 

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended April 30, 2022.

For foreign shareholders, 75.15% of ordinary dividends paid may be considered to be qualifying to be taxed as interest-related dividends. The Fund designates $2,240,925 of dividends paid as long-term capital gain dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2023.

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|:---|:---|
| **56 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**BOARD OF TRUSTEES** 

---

| | |
|:---|:---|
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President and<br> Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |

---

**OFFICERS** 

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| | |
|:---|:---|
| **Russell Wald**<sup>(2)</sup>**,** Vice President<br> **Tiffanie Wong**<sup>(2)</sup>**,** Vice President<br> **Emilie D. Wrapp,** Secretary<br> **Michael B. Reyes,** Senior Vice President | **Joseph J. Mantineo,** Treasurer and Chief Financial Officer<br> **Phyllis J. Clarke,** Controller<br> **Vincent S. Noto,** Chief Compliance Officer |

---

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| | |
|:---|:---|
| **Custodian and Accounting Agent**<br> State Street Bank and Trust Company<br>State Street Corporation CCB/5<br>1 Iron Street<br>Boston, MA 02210<br>**Principal Underwriter**<br> AllianceBernstein Investments, Inc.<br> 501 Commerce Street<br> Nashville, TN 37203<br>| **Legal Counsel**<br> Seward & Kissel LLP<br>One Battery Park Plaza<br>New York, NY 10004<br>**Independent Registered Public Accounting Firm**<br> Ernst & Young LLP<br> One Manhattan West<br> New York, NY 10001 |
| **Transfer Agent**<br> AllianceBernstein Investor Services,<br> Inc.<br>P.O. Box 786003<br>San Antonio, TX 78278<br>Toll-Free (800) 221-5672 | **Transfer Agent**<br> AllianceBernstein Investor Services,<br> Inc.<br>P.O. Box 786003<br>San Antonio, TX 78278<br>Toll-Free (800) 221-5672 |

---

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund's portfolio are made by the Adviser's Corporate Income Shares Investment Team. Mr. Wald and Ms. Wong are the investment professionals primarily responsible for the day-to-day management of the Fund's Portfolio.

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|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 57** |

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**TRUSTEES AND OFFICERS INFORMATION** 

**Board of Trustees Information** 

The business and affairs of the Trust are managed under the direction of the Board of Trustees. Certain information concerning the Trust's Trustees is set forth below.

---

| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED)\*\*** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER<br>PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY HELD<br>BY TRUSTEE** |
| **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** |  |  |
| Onur Erzan,<sup>#</sup><br> 46<br> (2021) | Senior Vice President of AllianceBernstein L.P. (the "Adviser") and Head of the Global Client Group overseeing AB's institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey, most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey's Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally. | 73 |  |

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| **58 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**TRUSTEES AND OFFICERS INFORMATION** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED)\*\*** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER<br>PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY HELD<br>BY TRUSTEE** |
| **INDEPENDENT TRUSTEE** | **INDEPENDENT TRUSTEE** |  |  |
| Marshall C. Turner, Jr.,<sup>##</sup><br>*Chairman of the Board*<br> 80<br>(2005) | Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of the AB Funds since February 2014. | 73 |  |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 59** |

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**TRUSTEES AND OFFICERS INFORMATION** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED)\*\*** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER<br>PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY HELD<br>BY TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Jorge A. Bermudez,<sup>##</sup><br> 71<br> (2020) | Private Investor since prior to 2017. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup's Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020. | 73 | Moody's Corporation since April 2011 |
| Michael J. Downey,<sup>##</sup>78<br>(2005) | Private Investor since prior to 2017. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005. | 73 |  |

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|:---|:---|
| **60 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**TRUSTEES AND OFFICERS INFORMATION** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED)\*\*** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER<br>PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY HELD<br>BY TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Nancy P. Jacklin,<sup>##</sup><br>74<br>(2006) | Private Investor since prior to 2017. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014. | 73 |  |
| Jeanette W. Loeb,<sup>##</sup><br>70<br>(2020) | Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as a Director of the AB Funds since April 2020. | 73 | Apollo Investment Corp. (business development company) since August 2011 |

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|:---|:---|
| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 61** |

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**TRUSTEES AND OFFICERS INFORMATION** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED)\*\*** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER<br>PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY HELD<br>BY TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Carol C. McMullen,<sup>##</sup><br>66<br>(2016) | Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016. | 73 |  |

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| **62 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**TRUSTEES AND OFFICERS INFORMATION** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED)\*\*** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER<br>PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY HELD<br>BY TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Garry L. Moody,<sup>##</sup><br>70<br>(2008) | Private Investor since prior to 2017. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute's Board of Governors and the Independent Directors Council's Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008. | 73 |  |

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\* The address for each of the Trust's disinterested Trustees is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department, Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

\*\* There is no stated term of office for the Trust's Trustees.

\*\*\* The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the Trust. 

# Mr. Erzan is an "interested person" of the Trust, as defined in the 1940 Act, due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

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| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 63** |

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**TRUSTEES AND OFFICERS INFORMATION** (continued)

**Officer Information** 

Certain information concerning the Trust's officers is set forth below.

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| | | |
|:---|:---|:---|
| **NAME, ADDRESS,\***<br> **AND AGE** | **POSITION(S)**<br> **HELD WITH FUND** | **PRINCIPAL OCCUPATION<br>DURING PAST FIVE YEARS** |
| Onur Erzan<br> 46 | President and Chief Executive Officer | See biography above. |
| Russell Wald<br>31 | Vice President | Vice President of the Adviser,\*\* with which he has been associated since prior to 2017. |
| Tiffanie Wong<br> 36 | Vice President | Senior Vice President of the Adviser,\*\* with which she has been associated since prior to 2017. She is also Director – Fixed Income Responsible Investing Portfolio Management; and Director – US Investment-Grade Credit. |
| Emilie D. Wrapp<br>66 | Secretary | Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI,\*\* with which she has been associated since prior to 2017. |
| Michael B. Reyes<br>45 | Senior Vice President | Vice President of the Adviser,\*\* with which he has been associated since prior to 2017. |
| Joseph J. Mantineo<br>63 | Treasurer and Chief Financial Officer | Senior Vice President of AllianceBernstein Investor Services, Inc. ("ABIS"),\*\* with which he has been associated since prior to 2017. |
| Phyllis J. Clarke<br>61 | Controller | Vice President of ABIS,\*\* with which she has been associated since prior to 2017. |
| Vincent S. Noto<br> 57 | Chief Compliance Officer | Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser\*\* since prior to 2017. |

---

\* The address for each of the Trust's Officers is 1345 Avenue of the Americas, New York, NY 10105.

\*\* The Adviser, ABI and ABIS are affiliates of the Trust.

The Fund's Statement of Additional Information ("SAI") has additional information about the Trust's Trustees and Officers and is available without charge upon request. Contact your financial representative or ABI at (800)-227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

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| **64 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**Operation and Effectiveness of the Fund's Liquidity Risk Management Program:** 

In October 2016, the Securities and Exchange Commission ("SEC") adopted the open-end fund liquidity rule (the "Liquidity Rule"). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program ("LRMP") in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund's Liquidity Risk Management Program. The Administrator of the Fund's LRMP is AllianceBernstein L.P., the Fund's investment adviser (the "Adviser"). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the "Committee").

Another requirement of the Liquidity Rule is for the Fund's Board of Trustees (the "Fund Board") to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the fund's LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2022, which covered the period January 1, 2021 through December 31, 2021 (the "Program Reporting Period").

The LRMP's principal objectives include supporting the Fund's compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund's strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum ("HLIM"). The Committee also incorporated the following information when determining the Fund's reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund's concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Funds' LRMP is adequately designed, has been implemented as intended,

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| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 65** |

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID 19 impacts. As such, the Program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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| **66 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**Information Regarding the Review and Approval of the Fund's Advisory Agreement** 

The disinterested trustees (the "directors") of AB Corporate Shares (the "Company") unanimously approved the continuance of the Company's Advisory Agreement with the Adviser in respect of AB Corporate Income Shares (the "Fund") at a meeting held by video conference on November 2-4, 2021 (the "Meeting").

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors noted that the Fund is designed as a vehicle for the wrap fee account market (where investors pay fees to a wrap fee sponsor which pays investment fees and expenses from such fee). The directors also noted that no advisory fee is payable by the Fund, that the Advisory Agreement does not include the reimbursement provision for certain administrative expenses included in the advisory agreements of most of the open-end AB Funds, and that the Adviser is responsible for payment of the Fund's ordinary expenses. The directors noted that the Company acknowledges in the Advisory Agreement that the Adviser and its affiliates expect to receive compensation from third parties in connection with services provided under the Advisory Agreement. The directors further noted that the Adviser receives payments from the wrap fee program sponsors (the "Sponsors") that use the Fund as an investment vehicle for their clients.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser's integrity and competence they have gained from that experience, the Adviser's initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser's willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund.

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of

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| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 67** |

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the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors' determinations included the following:

**Nature, Extent and Quality of Services Provided** 

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund's investment strategies and from time to time proposes changes intended to improve the Fund's relative or absolute performance for the directors' consideration. They also noted the professional experience and qualifications of the Fund's portfolio management team and other senior personnel of the Adviser. The quality of administrative and other services, including the Adviser's role in coordinating the activities of the Fund's other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

**Costs of Services Provided and Profitability** 

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2019 and 2020 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser's relationship with the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser's relationship with the Fund before taxes and distribution expenses. The directors concluded that the Adviser's level of profitability from its relationship with the Fund was not unreasonable.

**Fall-Out Benefits** 

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund. The directors noted that the Adviser

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| **68 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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is compensated by the Sponsors. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

**Investment Results** 

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the "15(c) service provider"), showing the performance of the Fund against a group of similar funds ("peer group") and a larger group of similar funds ("peer universe"), each selected by the 15(c) service provider, and information prepared by the Adviser showing the Fund's performance against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended July 31, 2021 and (in the case of comparisons with the broad-based securities market index) for the period from inception. The directors were cognizant that the Fund was neither designed nor offered as a standalone investment and was intended to serve solely as a component of certain separately managed accounts ("SMAs"). The Adviser had explained that this attribute made it difficult to select an appropriate benchmark for the Fund. At the directors' request, the Adviser provided information showing the weighting of the Fund in a current SMA and the overall performance of the SMA versus its stated benchmark. Based on their review, the directors concluded that the Fund's investment performance was acceptable.

**Advisory Fees** 

The directors considered the advisory fee rate payable by the Fund to the Adviser (zero) and information provided by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds.

The directors noted the unusual arrangements in the Advisory Agreement providing for no advisory fee but were cognizant that the Adviser is indirectly compensated by the Sponsors for its services to the Fund. The directors reviewed the fee arrangements between the Adviser and each of the current Sponsors and noted that such fees were negotiated on an arm's length basis and were within the range of fees paid by wrap fee sponsors to other advisers of similar funds. While the Adviser's fee arrangements with the Sponsors vary, the directors acknowledged the Adviser's view that a portion of such fees (less the expenses of the Fund paid by the Adviser) may reasonably be viewed as compensating the Adviser for advisory services it provides to the Fund (the "implied fee") and that the Adviser believes that while the Sponsors pay the Adviser different

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| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 69** |

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fee rates, the rate of fee attributable to Fund management at the Fund level is the same for all Sponsors. The directors also considered the fee rate schedules used by other registered investment companies that invest in fixed income securities that are advised by the Adviser.

The directors also considered the Adviser's fee schedule for other clients utilizing investment strategies similar to those of the Fund. For this purpose, they reviewed the relevant advisory fee information from the Adviser's Form ADV and in a report from the Fund's Senior Analyst and noted the differences between the Fund's fee schedule, on the one hand, and the Adviser's institutional fee schedule, on the other. The directors recognized that such information was of limited utility in light of the Fund's unusual fee arrangement. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional clients. In this regard, the Adviser noted, among other things, that, compared to institutional accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional clients as compared to the Fund, and the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

The directors did not consider comparative expense information for the Fund because the Fund does not bear ordinary expenses.

**Economies of Scale** 

The directors did not consider the extent to which fee levels in the Advisory Agreement for the Fund reflect economies of scale because the Advisory Agreement does not provide for any compensation to be paid to the Adviser by the Fund and the Fund's expense ratio is zero. They did note, however, that the fee payable to the Adviser by the current Sponsors declines at a breakpoint based on either individual account sizes or on total assets managed by the Adviser for the Sponsor.

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| **70 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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**This page is not part of the Shareholder Report or the Financial Statements.** 

------

**AB FAMILY OF FUNDS** 

**US EQUITY** 

**CORE** 

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio<sup>1</sup>

**GROWTH** 

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

**VALUE** 

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

**INTERNATIONAL/ GLOBAL EQUITY** 

**CORE** 

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

**GROWTH** 

Concentrated International Growth Portfolio

**VALUE** 

All China Equity Portfolio

International Value Fund

**FIXED INCOME** 

**MUNICIPAL** 

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

**TAXABLE** 

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

**ALTERNATIVES** 

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

**MULTI-ASSET** 

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio<sup>1</sup>

Tax-Managed All Market Income Portfolio

**CLOSED-END FUNDS** 

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

**We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.** 

**Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.** 

1 Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee<sup>™</sup> US Thematic Portfolio. Prior to December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy.

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| **abfunds.com** | **AB CORPORATE INCOME SHARES <sup>\|</sup> 71** |

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**NOTES** 

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| **72 <sup>\|</sup> AB CORPORATE INCOME SHARES** | **abfunds.com** |

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![LOGO](g472794g43p34.jpg)

AB CORPORATE INCOME SHARES

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

CIS-0151-0422 ![LOGO](g472794g22c48.jpg)

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**APR** <sup>04.30.22</sup>

![LOGO](g473077g43p34.jpg)

ANNUAL REPORT

## AB IMPACT MUNICIPAL INCOME SHARES
![LOGO](g473077covart_7682.jpg)

As of January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund's annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

------

 <br> Investment Products Offered   <u> • Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed</u>

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund's prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund's proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB's website at www.abfunds.com, or go to the Securities and Exchange Commission's (the "Commission") website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund's Form N-PORT reports are available on the Commission's website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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|:---|:---|
| **FROM THE PRESIDENT** | ![LOGO](g473077g92f19.jpg) |

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Dear Shareholder,

We're pleased to provide this report for AB Impact Municipal Income Shares (the "Fund"). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund's investment strategy.

At AB, we're striving to help our clients achieve better outcomes by:

<sup>+</sup> Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

<sup>+</sup> Applying differentiated investment insights through a connected global research network

<sup>+</sup> Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you're an individual investor or a multibillion-dollar institution, we're putting our knowledge and experience to work for you every day.

For more information about AB's comprehensive range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

![LOGO](g473077g55d83.jpg)

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 1** |

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**ANNUAL REPORT** 

**June 6, 2022** 

This report provides management's discussion of fund performance for AB Impact Municipal Income Shares for the annual reporting period ended April 30, 2022. Please note, shares of this Fund are available only to separately managed accounts or participants in "wrap fee" programs or other investment programs approved by the Adviser.

**The investment objective of the Fund is to earn the highest level of current income, exempt from federal taxation, that is available consistent with what the Adviser considers to be an appropriate level of risk.** 

**NAV RETURNS AS OF APRIL 30, 2022** (unaudited)

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|:---|:---|:---|
|  | 6 Months | 12 Months |
| **AB IMPACT MUNICIPAL INCOME SHARES** | -9.17% | -8.23% |
| Bloomberg Municipal Bond Index | -7.90% | -7.88% |

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**INVESTMENT RESULTS** 

The table above shows the Fund's performance compared to its benchmark, the Bloomberg Municipal Bond Index, for the six- and 12-month periods ended April 30, 2022.

During both periods, the Fund underperformed its benchmark. Yield-curve positioning, specifically overweights to the long part of the curve, detracted, relative to the benchmark. The Fund's overweight to municipal credit contributed. For the 12-month period, security selection in the not-for-profit health-care sector contributed, while selection in toll roads/transit detracted.

For the six-month period, security selection in not-for-profit health care contributed, and there were no other material detractors.

The Fund utilized derivatives for hedging purposes in the form of interest rate swaps, which had no material impact on performance for either period, and Consumer Price Index swaps, which added to absolute performance for the 12-month period and had no material impact on the six-month period.

**MARKET REVIEW AND INVESTMENT STRATEGY** 

Yields rose toward the end of both the six- and 12-month periods ended April 30, 2022. During the 12-month period, the yield on a 10-Year AAA municipal bond rose to 2.72% from 0.99% and the yield on the 10-Year US Treasury rose to 2.89% from 1.65%. While demand for income

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| **2 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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remained strong during the first half of the 12-month reporting period, demand weakened during the first quarter of 2022 and into the second quarter, as investors pulled approximately $48 billion from the municipal market as of April 30, 2022.

In addition to broader fixed-income market volatility, these municipal market outflows contributed to municipal underperformance versus US Treasuries, with 10-Year AAA Muni/Treasury after-tax spreads widening 95 basis points ("b.p.") during the 12-month period and 67 b.p. during the six-month period. Credit spreads were relatively unchanged during the 12-month period, but widened modestly during the six-month period.

The underlying goals of the Fund are to make environmentally, socially and financially productive investments in historically marginalized and underserved communities to reduce gaps that exist in such areas as academic achievement, economic development or the provision of health care. Essentially, the Fund's Senior Investment Management Team is looking to create a better tomorrow. Inherent in these goals is to make investments toward improving the quality of life for all by enhancing and promoting civic engagement, an informed citizenry, culture, and the physical and natural sciences.

The Fund may purchase municipal securities that are insured under policies issued by certain insurance companies. Historically, insured municipal securities typically received a higher credit rating, which meant that the issuer of the securities paid a lower interest rate. As a result of declines in the credit quality and associated downgrades of most bond insurers, insurance has less value than it did in the past. The market now values insured municipal securities primarily based on the credit quality of the issuer of the security, with little value given to the insurance feature. In purchasing such insured securities, the Adviser evaluates the risk and return of municipal securities through its own research. If an insurance company's rating is downgraded or the company becomes insolvent, the prices of municipal securities insured by the insurance company may decline. As of April 30, 2022, the Fund's percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity were 15.49% and 0.00%, respectively.

**INVESTMENT POLICIES** 

The Fund pursues its objective by investing principally in high-yielding municipal securities of any credit quality that (i) score highly on the Adviser's environmental, social and corporate governance ("ESG") criteria and (ii) are deemed by the Adviser to have an environmental or social impact in underserved or low socio-economic communities. As

(continued on next page)

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 3** |

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a matter of fundamental policy, the Fund invests, under normal circumstances, at least 80% of its net assets in municipal securities that pay interest that is exempt from federal income tax. These securities may pay interest that is subject to the federal alternative minimum tax for certain taxpayers.

The Adviser evaluates each security in which the Fund invests using both a traditional municipal bond credit analysis and a consideration of the security's overall ESG score under the Adviser's ESG evaluation criteria. Under this ESG evaluation, to arrive at an overall ESG score, each security is scored on environmental, social and governance factors, and the scores are weighted based on the Adviser's assessment of the relevance of each factor within a given sector (e.g., education, health care, renewable energy and mass transit). For example, social factors are weighted more heavily in the overall ESG score for a security of an issuer in the education sector than they are for a security of an issuer in the mass transit sector, where environmental factors predominate. The Adviser regularly reviews the overall ESG scores assigned to securities under consideration for purposes of determining the securities in which to invest for the Fund.

The Adviser's ESG evaluation is conducted on an industry sector basis and includes the use of key performance indicators that vary in materiality by sector. The Adviser's environmental evaluation covers issues such as clean and renewable energy, climate change and water conservation. The Adviser's social evaluation covers issues such as economic impact, high quality safety-net health care and overall community health needs, and the reduction of achievement gaps between wealthy and poor school districts. The Adviser's governance evaluation covers issues such as stewardship of debt and capital, board governance and transparency.

The Adviser also assesses a security's risk and return characteristics as well as a security's impact on the overall risk and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors including the credit quality, maturity, sensitivity to interest rates and the expected after-tax returns of the security under consideration and of the Fund's other holdings.

The Fund may invest without limit in lower-rated securities ("junk bonds"), which may include securities having the lowest rating, and in unrated securities that, in the Adviser's judgment, would be lower-rated securities if rated. The Fund may invest in fixed-income securities with any maturity or duration. The Fund will seek to increase income for shareholders by investing in longer-maturity bonds. Consistent with its objective of seeking a higher level of income, the

(continued on next page)

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| **4 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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Fund may experience greater volatility and a higher risk of loss of principal than other municipal funds.

The Fund may also invest in tender option bond transactions ("TOBs"); forward commitments; zero-coupon municipal securities and variable-, floating- and inverse-floating-rate municipal securities; certain types of mortgage-related securities; and derivatives, such as options, futures contracts, forwards and swaps.

The Fund may make short sales of securities or maintain a short position, and may use other investment techniques. The Fund may use leverage for investment purposes to increase income through the use of TOBs and derivative instruments, such as interest rate swaps.

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 5** |

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**DISCLOSURES AND RISKS** 

**Benchmark Disclosure** 

**The Bloomberg Municipal Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a fund.** The Bloomberg Municipal Bond Index represents the performance of the long-term tax-exempt bond market consisting of investment-grade bonds. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

**A Word About Risk** 

**Market Risk:** The value of the Fund's assets will fluctuate as the stock or bond market fluctuates. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

**ESG Risk:** Applying ESG and sustainability criteria to the investment process may exclude securities of certain issuers for non-investment reasons and, therefore, the Fund may forgo some market opportunities available to funds that do not use ESG or sustainability criteria. Securities selected based on ESG factors may shift into and out of favor depending on market and economic conditions, and the Fund's performance may at times be better or worse than the performance of funds that do not use ESG or sustainability criteria. Furthermore, "sustainability" is not a uniformly defined characteristic, and the Fund's sustainability criteria may differ from those used by other funds. In addition, in evaluating an investment, the investment adviser is dependent upon information and data that may be incomplete, inaccurate or unavailable, which could adversely affect the analysis of the ESG and sustainability factors relevant to a particular investment.

**Credit Risk:** An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and any accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

**Municipal Market Risk:** This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the

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| **6 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**DISCLOSURES AND RISKS** (continued)

yield or value of the Fund's investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state's municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer's ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may continue or worsen, adversely affecting the performance of the Fund. The Fund's investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project's ability to make payments of principal and interest on these securities.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the US federal income tax treatment of certain types of municipal securities.

**Tax Risk:** There is no guarantee that all of the Fund's income will remain exempt from federal or state income taxes. From time to time, the US government and the US Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund's net asset value ("NAV") could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax-exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund's yield. The federal income tax treatment of payments in respect of certain derivative contracts is unclear.

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 7** |

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**DISCLOSURES AND RISKS** (continued)

**Below Investment-Grade Securities Risk:** Investments in fixed-income securities with lower ratings (commonly known as "junk bonds") tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest-rate sensitivity, negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

**Interest-Rate Risk:** Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations. The current historically low interest rate environment heightens the risks associated with rising interest rates.

**Inflation Risk:** This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund's assets can decline as can the value of the Fund's distributions. This risk is significantly greater for fixed-income securities with longer maturities.

**Leverage Risk:** To the extent the Fund uses leveraging techniques, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund's investments.

**Illiquid Investments Risk:** Illiquid investments risk exists when particular investments, such as lower-rated securities, are or become difficult to purchase or sell, possibly preventing the Fund from selling such investments at an advantageous price. The Fund is subject to illiquid investments risk because the market for municipal securities is generally smaller than many other markets. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk than most other types of investments.

**Derivatives Risk:** Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

**Management Risk:** The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is

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| **8 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**DISCLOSURES AND RISKS** (continued)

no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

These risks are fully discussed in the Fund's prospectus. As with all investments, you may lose money by investing in the Fund.

**An Important Note About Historical Performance** 

**The performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by calling (800) 227 4618. The investment return and principal value of an investment in the Fund will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. Performance assumes reinvestment of distributions and does not account for taxes.** 

**Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus and/or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AllianceBernstein Investments representative. Please read the prospectus and/or summary prospectus carefully before investing.** 

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 9** |

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**HISTORICAL PERFORMANCE** 

**GROWTH OF A $10,000 INVESTMENT IN THE FUND** (unaudited)

9/12/2017<sup>1</sup> TO 4/30/2022

![LOGO](g473077g54p98.jpg)

This chart illustrates the total value of an assumed $10,000 investment in AB Impact Municipal Income Shares (from 9/12/2017<sup>1</sup> to 4/30/2022) as compared to the performance of its benchmark. The chart assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 9/12/2017.

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| **10 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** (continued)

**AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2022** (unaudited)

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|:---|:---|
|  | NAV Returns |
| 1 Year | -8.23% |
| Since Inception<sup>1</sup> | 2.44% |

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**AVERAGE ANNUAL RETURNS** 

**AS OF THE MOST RECENT CALENDAR QUARTER-END** 

**MARCH 31, 2022** (unaudited)

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|:---|:---|
|  | NAV Returns |
| 1 Year | -2.96% |
| Since Inception<sup>1</sup> | 3.45% |

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**The prospectus fee table shows the fees and the total operating expenses of the Fund as 0.01% because the Adviser does not charge any fees or expenses and reimburses Fund operating expenses except certain extraordinary expenses, taxes, brokerage costs and the interest on borrowings or certain leveraged transactions. Participants in a wrap fee program or other investment program eligible to invest in the Fund pay fees to the program sponsor and should review the program brochure or other literature provided by the sponsor for a discussion of fees and expenses charged.** 

1 Inception date: 9/12/2017.

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 11** |

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**EXPENSE EXAMPLE** 

(unaudited)

As a shareholder of the Fund, you may incur various ongoing non-operating and extraordinary costs. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

**Actual Expenses** 

The table below provides information about actual account values and actual expenses. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

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|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account Value<br>November 1, 2021** | **Ending<br>Account Value<br>April 30, 2022** | **Expenses Paid<br>During Period\*** | **Annualized<br>Expense Ratio\*** |
|  Actual | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000 | $908.30 | $– 0 – | 0.00% |
|  Hypothetical\*\* | $1000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1024.79 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 – | 0.00% |

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\* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The Fund's operating expenses are borne by the Adviser or its affiliates.

\*\* Assumes 5% annual return before expenses. 

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| **12 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO SUMMARY** 

**April 30, 2022** (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $516.9

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![LOGO](g473077g80k01.jpg)

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| 1 | All data are as of April 30, 2022. The Fund's quality rating breakdown is expressed as a percentage of the Fund's total investments in municipal securities and may vary over time. The quality ratings are determined by using the S&P Global Ratings ("S&P"), Moody's Investors Services, Inc.("Moody's") and Fitch Ratings, Ltd.("Fitch"). The Fund considers the credit ratings issued by S&P, Moody's and Fitch and uses the highest rating issued by the agencies. These ratings are a measure of the quality and safety of a bond or portfolio, based on the issuer's financial condition. AAA is the highest (best) and D is the lowest (worst). If applicable, the pre-refunded category includes bonds which are secured by U.S. Government securities and therefore are deemed high-quality investment-grade by the Adviser. If applicable, Not Applicable (N/A) includes non-creditworthy investments such as equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a nationally recognized statistical rating organization. The Adviser evaluates the creditworthiness of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment.  |

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 13** |

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**PORTFOLIO OF INVESTMENTS** 

**April 30, 2022** 

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **MUNICIPAL OBLIGATIONS – 93.6%** |  |  |
|  **Long-Term Municipal Bonds – 93.6%** |  |  |
|  **Alabama – 1.8%** |  |  |
|  Alabama Community College System ACCS Enhancements Fee Revenue<br>AGM Series 2021<br>4.00%, 09/01/2046-09/01/2051 | $9400 | $9278759 |
|  **American Samoa – 0.2%** |  |  |
|  American Samoa Economic Development Authority <br>(Territory of American Samoa)<br>Series 2018<br>6.00%, 09/01/2023<sup>(a)</sup> | 815 | 825706 |
|  **Arizona – 4.3%** |  |  |
|  Arizona Industrial Development Authority<br>Series 2021-A<br>4.00%, 07/01/2051 | 5840 | 5026152 |
|  Arizona Industrial Development Authority <br>(Phoenix Children's Hospital Obligated Group)<br>Series 2020<br>4.00%, 02/01/2050<br>| 4500 | 4399502 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 02/01/2034-02/01/2035 | 2400 | 2685402 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021<br>4.00%, 02/01/2038 | 1400 | 1407171 |
|  Industrial Development Authority of the County of Pima (The) <br>(TMC HealthCare Obligated Group)<br>Series 2021<br>4.00%, 04/01/2046 | 3500 | 3394236 |
|  Maricopa County Industrial Development Authority <br>(Arizona Autism Charter Schools Obligated Group)<br>Series 2020<br>5.00%, 07/01/2040-07/01/2054<sup>(a)</sup> | 2315 | 2366822 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021<br>4.00%, 07/01/2041-07/01/2061<sup>(a)</sup> | 3655 | 3089024 |
|  |  | 22368309 |
|  **California – 11.7%** |  |  |
|  Alameda Corridor Transportation Authority<br>Series 2016-B<br>5.00%, 10/01/2035-10/01/2036 | 2095 | 2208459 |

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| **14 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  California Educational Facilities Authority <br>(Mount St.Mary's University, Inc.)<br>Series 2018-A<br>5.00%, 10/01/2036-10/01/2046 | $3155 | $3404044 |
|  California Health Facilities Financing Authority <br>(On Lok Senior Health Services Obligated Group)<br>Series 2020<br>5.00%, 08/01/2050-08/01/2055 | 2200 | 2359926 |
|  California Health Facilities Financing Authority <br>(State of California Personal Income Tax Revenue)<br>Series 2022<br>4.19%, 06/01/2037 | 1000 | 968366 |
|  California Infrastructure & Economic Development Bank <br>(California Academy of Sciences)<br>Series 2021<br>0.81% (MUNIPSA + 0.35%), 08/01/2047<sup>(b)</sup> | 8000 | 7952862 |
|  California Infrastructure & Economic Development Bank <br>(California Science Center Foundation)<br>Series 2021<br>4.00%, 05/01/2046-05/01/2055 | 15000 | 14358666 |
|  California Municipal Finance Authority <br>(Community Health Centers of The Central Coast, Inc.)<br>Series 2021-A<br>5.00%, 12/01/2036-12/01/2054<sup>(a)</sup> | 2840 | 2954422 |
|  California Municipal Finance Authority <br>(Healthright 360)<br>Series 2019-A<br>5.00%, 11/01/2039-11/01/2049<sup>(a)</sup> | 5275 | 5332719 |
|  California Municipal Finance Authority <br>(La Maestra Family Clinic, Inc.)<br>Series 2021<br>4.00%, 09/01/2046-09/01/2051 | 5705 | 5552263 |
|  California Municipal Finance Authority <br>(Valley Health Team, Inc.)<br>Series 2021<br>4.00%, 07/01/2037-07/01/2051 | 5235 | 5234029 |
|  California School Finance Authority <br>(Bright Star Schools Obligated Group)<br>Series 2017<br>5.00%, 06/01/2037-06/01/2054<sup>(a)</sup> | 850 | 894979 |

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 15** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  California School Finance Authority <br>(Downtown College Prep Obligated Group)<br>Series 2016<br>5.00%, 06/01/2051<sup>(a)</sup> | $250 | $251087 |
|  California School Finance Authority <br>(Ednovate Obligated Group)<br>Series 2018<br>5.00%, 06/01/2048-06/01/2056<sup>(a)</sup> | 2085 | 2114924 |
|  California School Finance Authority <br>(Equitas Academy Obligated Group)<br>Series 2018-A<br>5.00%, 06/01/2048<sup>(a)</sup> | 3750 | 3800155 |
|  California School Finance Authority <br>(Girls Athletic Leadership Schools Los Angeles)<br>Series 2021<br>4.00%, 06/01/2041-06/01/2051<sup>(a)</sup> | 1955 | 1579897 |
|  California School Finance Authority <br>(Green DOT Public Schools Obligated Group)<br>Series 2018<br>5.00%, 08/01/2038<sup>(a)</sup> | 1000 | 1038713 |
|  Coalinga-Huron Joint Unified School District<br>BAM Series 2018-B<br>5.00%, 08/01/2048 | 500 | 543460 |
|  |  | 60548971 |
|  **Colorado – 0.5%** |  |  |
|  Denver Health & Hospital Authority<br>Series 2019-A<br>4.00%, 12/01/2038-12/01/2040 | 2770 | 2719381 |
|  **Connecticut – 1.2%** |  |  |
|  City of Bridgeport CT<br>Series 2017-A<br>5.00%, 11/01/2025 | 525 | 565919 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-A<br>4.00%, 08/01/2037-08/01/2040 | 2100 | 2176010 |
| &nbsp;&nbsp;&nbsp;&nbsp; BAM Series 2018-C<br>5.00%, 07/15/2036-07/15/2038 | 1620 | 1799204 |
| &nbsp;&nbsp;&nbsp;&nbsp; BAM Series 2019-A<br>5.00%, 02/01/2035 | 1500 | 1674920 |
|  |  | 6216053 |
|  **District of Columbia – 3.7%** |  |  |
|  District of Columbia <br>(Gallaudet University)<br>Series 2021<br>5.00%, 04/01/2046-04/01/2051 | 4350 | 4752777 |

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| **16 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  District of Columbia <br>(KIPP DC Obligated Group)<br>Series 2017-A<br>5.00%, 07/01/2042 | $1785 | $1843295 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-B<br>5.00%, 07/01/2037 | 625 | 649261 |
|  District of Columbia <br>(KIPP DC Public Charter Schools)<br>Series 2019<br>4.00%, 07/01/2039 | 1000 | 938319 |
|  District of Columbia <br>(Plenary Infrastructure DC LLC State Lease)<br>Series 2022<br>5.50%, 02/28/2035-02/28/2037<sup>(c)</sup> | 9300 | 10246500 |
|  District of Columbia Water & Sewer Authority<br>Series 2016-A<br>5.00%, 10/01/2035 | 820 | 884558 |
|  |  | 19314710 |
|  **Florida – 1.6%** |  |  |
|  Florida Development Finance Corp. <br>(United Cerebral Palsy of Central Florida, Inc.)<br>Series 2020<br>5.00%, 06/01/2040-06/01/2050 | 2610 | 2476427 |
|  Pinellas County School Board <br>(Pinellas County School Board COP)<br>Series 2021-A<br>5.00%, 07/01/2027-07/01/2030 | 1900 | 2122285 |
|  School District of Broward County/FL <br>(Broward County School Board/FL COP)<br>Series 2017-B<br>5.00%, 07/01/2032 | 500 | 545232 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-B<br>5.00%, 07/01/2029 | 2750 | 3134520 |
|  |  | 8278464 |
|  **Illinois – 7.4%** |  |  |
|  Chicago Transit Authority <br>(Chicago Transit Authority Sales Tax)<br>Series 2017<br>5.00%, 12/01/2051 | 5085 | 5419785 |
|  Chicago Transit Authority Sales Tax Receipts Fund<br>Series 2014<br>5.25%, 12/01/2049 | 5000 | 5240352 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-A<br>5.00%, 12/01/2045-12/01/2055 | 12510 | 13390203 |

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 17** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022-A<br>4.00%, 12/01/2049 | $4190 | $4129687 |
|  Cook County Community College District No. 508<br>Series 2013<br>5.25%, 12/01/2043 | 605 | 618165 |
| &nbsp;&nbsp;&nbsp;&nbsp; BAM Series 2017<br>5.00%, 12/01/2047 | 620 | 659923 |
|  Illinois Finance Authority <br>(Lawndale Educational & Regional Network Charter School Obligated Group)<br>Series 2021<br>4.00%, 11/01/2041-11/01/2056 | 3250 | 2886045 |
|  Illinois Finance Authority <br>(University of Illinois)<br>Series 2020<br>4.00%, 10/01/2040-10/01/2050 | 6250 | 5968269 |
|  |  | 38312429 |
|  **Indiana – 0.6%** |  |  |
|  Muncie Sanitary District<br>AGM Series 2021-A<br>5.00%, 01/01/2029-07/01/2030 | 2705 | 3049149 |
|  **Kansas – 0.1%** |  |  |
|  Seward County Unified School District No. 480 Liberal<br>Series 2017-B<br>5.00%, 09/01/2028 (Pre-refunded/ETM) | 555 | 599707 |
|  **Louisiana – 0.6%** |  |  |
|  Tangipahoa Parish Hospital Service District No. 1<br>Series 2021<br>4.00%, 02/01/2041-02/01/2042 | 3000 | 2945233 |
|  **Maryland – 3.5%** |  |  |
|  Maryland Economic Development Corp. <br>(Bowie State University)<br>Series 2020<br>4.00%, 07/01/2050 | 1200 | 1106487 |
|  Maryland Economic Development Corp. <br>(Maryland Economic Development Corp. Morgan View & Thurgood Marshall Student Hsg)<br>Series 2022<br>5.00%, 07/01/2033-07/01/2034 | 3735 | 3970488 |

---

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| | |
|:---|:---|
| **18 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Maryland Economic Development Corp. <br>(Morgan State University)<br>Series 2020<br>5.00%, 07/01/2050 | $2500 | $2570678 |
|  Maryland Economic Development Corp. <br>(Purple Line Transit Partners LLC)<br>Series 2022<br>5.25%, 06/30/2055 | 10000 | 10365827 |
|  |  | 18013480 |
|  **Massachusetts – 3.5%** |  |  |
|  Massachusetts Development Finance Agency <br>(Boston Medical Center Corp. Obligated Group)<br>Series 2015-D<br>5.00%, 07/01/2044 | 7415 | 7730546 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-E<br>5.00%, 07/01/2037 | 765 | 814813 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-F<br>5.00%, 07/01/2030 | 1475 | 1609570 |
|  Massachusetts Development Finance Agency <br>(Wellforce Obligated Group)<br>AGM Series 2019-A<br>5.00%, 07/01/2036-07/01/2044 | 5660 | 6120908 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2020-C<br>4.00%, 10/01/2045 | 1090 | 1068379 |
|  Massachusetts Development Finance Agency <br>(WGBH Educational Foundation)<br>Series 2017-A<br>4.00%, 01/01/2032 | 825 | 860866 |
|  |  | 18205082 |
|  **Michigan – 9.7%** |  |  |
|  Center Line Public Schools<br>Series 2018<br>5.00%, 05/01/2038 | 895 | 972796 |
|  City of Detroit MI<br>Series 2018<br>5.00%, 04/01/2026-04/01/2037 | 6090 | 6409339 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-A<br>4.00%, 04/01/2040 | 1050 | 965514 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 04/01/2033-04/01/2050 | 7150 | 7440854 |
|  Detroit City School District<br>Series 2020-A<br>5.00%, 05/01/2036-05/01/2040 | 4940 | 5479187 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2005-A<br>5.25%, 05/01/2030 | 4260 | 4948138 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 19** |

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------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Downriver Utility Wastewater Authority<br>AGM Series 2018<br>5.00%, 04/01/2043 | $| 1515 | $| 1666295 |
|  Ferris State University<br>Series 2019-A<br>5.00%, 10/01/2024-10/01/2026 |  | 6185 |  | 6650298 |
|  Flint Hospital Building Authority <br>(Hurley Medical Center)<br>Series 2020<br>4.00%, 07/01/2041 |  | 3500 |  | 3442761 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 07/01/2031 |  | 2405 |  | 2662560 |
|  Flint Public Library<br>AGM Series 2020<br>3.00%, 05/01/2029-05/01/2030 |  | 2260 |  | 2249878 |
|  Grand Rapids Public Schools<br>AGM Series 2017<br>5.00%, 05/01/2027 |  | 200 |  | 221399 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2019<br>5.00%, 11/01/2040 |  | 1800 |  | 2008399 |
|  Great Lakes Water Authority Water Supply System Revenue<br>Series 2016-B<br>5.00%, 07/01/2046 |  | 1225 |  | 1313174 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-C<br>5.00%, 07/01/2026 |  | 695 |  | 750943 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-B<br>5.00%, 07/01/2045-07/01/2049 |  | 2650 |  | 2922169 |
|  |  |  |  | 50103704 |
|  **Minnesota – 0.7%** | **Minnesota – 0.7%** | **Minnesota – 0.7%** | **Minnesota – 0.7%** | **Minnesota – 0.7%** |
|  City of Minneapolis MN <br>(Hennepin Schools)<br>Series 2021-A<br>4.00%, 07/01/2056 |  | 3000 |  | 2510876 |
|  Housing & Redevelopment Authority of The City of St.Paul Minnesota <br>(Metro Deaf School)<br>Series 2018-A<br>5.00%, 06/15/2048<sup>(a)</sup> |  | 1000 |  | 1007111 |
|  |  |  |  | 3517987 |
|  **Missouri – 0.0%** | **Missouri – 0.0%** | **Missouri – 0.0%** | **Missouri – 0.0%** | **Missouri – 0.0%** |
|  St. Louis Community College District<br>Series 2017<br>4.00%, 04/01/2035 |  | 200 |  | 208591 |

---

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| | |
|:---|:---|
| **20 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **New Jersey – 4.7%** | **New Jersey – 4.7%** | **New Jersey – 4.7%** |
|  Essex County Improvement Authority <br>(North Star Academy Charter School of Newark, Inc.)<br>Series 2020<br>4.00%, 07/15/2040-07/15/2050<sup>(a)</sup> | $4860 | $4342037 |
|  New Jersey Economic Development Authority <br>(Foundation Academy Charter School A NJ Nonprofit Corp.)<br>Series 2018-A<br>5.00%, 07/01/2050 | 1000 | 1011934 |
|  New Jersey Economic Development Authority <br>(New Jersey Transit Corp.)<br>Series 2020<br>4.00%, 11/01/2044 | 5500 | 5237541 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 11/01/2044 | 6925 | 7264795 |
|  New Jersey Economic Development Authority <br>(North Star Academy Charter School of Newark, Inc.)<br>Series 2017<br>5.00%, 07/15/2047 | 1170 | 1192934 |
|  New Jersey Economic Development Authority <br>(Seeing Eye, Inc. (The))<br>Series 2015<br>5.00%, 03/01/2025 | 3205 | 3417186 |
|  New Jersey Economic Development Authority <br>(State of New Jersey Division of Property Management & Construction Lease)<br>Series 2018-C<br>5.00%, 06/15/2027-06/15/2042 | 1645 | 1754279 |
|  |  | 24220706 |
|  **New York – 14.2%** | **New York – 14.2%** | **New York – 14.2%** |
|  Buffalo Sewer Authority<br>BAM Series 2021<br>1.75%, 06/15/2049 | 2000 | 1702244 |
|  Build NYC Resource Corp. <br>(Academic Leadership Charter School)<br>Series 2021<br>4.00%, 06/15/2031-06/15/2036 | 585 | 557328 |
|  Build NYC Resource Corp. <br>(Children's Aid Society (The))<br>Series 2019<br>4.00%, 07/01/2044-07/01/2049 | 1150 | 1160506 |
|  Build NYC Resource Corp. <br>(Inwood Academy for Leadership Charter School)<br>Series 2018-A<br>5.50%, 05/01/2048<sup>(a)</sup> | 500 | 521480 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 21** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Build NYC Resource Corp. <br>(Metropolitan Lighthouse Charter School)<br>Series 2017<br>5.00%, 06/01/2052<sup>(a)</sup> | $2260 | $2297370 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-A<br>5.00%, 06/01/2047<sup>(a)</sup> | 725 | 738630 |
|  City of Buffalo NY<br>Series 2021-B<br>5.00%, 04/01/2026 | 2025 | 2210302 |
|  Metropolitan Transportation Authority<br>Series 2014-D<br>5.00%, 11/15/2039 | 4000 | 4142223 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-C<br>5.00%, 11/15/2026-11/15/2033 | 7875 | 8456812 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-B<br>5.00%, 11/15/2026 | 2160 | 2323269 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-C<br>4.75%, 11/15/2045 | 14035 | 14505143 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-E<br>4.00%, 11/15/2045 | 4250 | 4090956 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 11/15/2030-11/15/2032 | 9500 | 10320140 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-A<br>4.00%, 11/15/2042 | 7500 | 7272389 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-D<br>0.511% (SOFR + 0.33%), 11/01/2035<sup>(b)</sup> | 1900 | 1885239 |
|  Monroe County Industrial Development Corp./NY <br>(Rochester Regional Health Obligated Group)<br>Series 2020<br>4.00%, 12/01/2046 | 6945 | 6518812 |
|  Monroe County Industrial Development Corp./NY <br>(True North Rochester Prep Charter School)<br>Series 2020<br>5.00%, 06/01/2040<sup>(a)</sup> | 1265 | 1302115 |
|  New York City Health and Hospitals Corp. <br>(New York City Health & Hospital Corp. Lease)<br>Series 2021-A<br>5.00%, 02/15/2030 | 1500 | 1704123 |
|  New York City Housing Development Corp.<br>Series 2017-E<br>1.50%, 05/01/2022 | 230 | 230000 |
|  New York State Dormitory Authority <br>(Montefiore Obligated Group)<br>Series 2018<br>5.00%, 08/01/2032-08/01/2034 | 1125 | 1176725 |

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| | |
|:---|:---|
| **22 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020<br>4.00%, 09/01/2045 | $| 500 | $| 451172 |
|  |  |  |  | 73566978 |
|  **North Carolina – 1.0%** | **North Carolina – 1.0%** | **North Carolina – 1.0%** | **North Carolina – 1.0%** | **North Carolina – 1.0%** |
|  North Carolina Central University<br>Series 2019<br>4.00%, 04/01/2049 |  | 2270 |  | 2288047 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 04/01/2044 |  | 2500 |  | 2696045 |
|  |  |  |  | 4984092 |
|  **Ohio – 2.0%** | **Ohio – 2.0%** | **Ohio – 2.0%** | **Ohio – 2.0%** | **Ohio – 2.0%** |
|  American Municipal Power, Inc.<br>Series 2019<br>5.00%, 02/15/2044 |  | 2150 |  | 2342720 |
|  Cleveland-Cuyahoga County Port Authority <br>(Cleveland Museum of Natural History (The))<br>Series 2021<br>4.00%, 07/01/2051 |  | 1100 |  | 1110652 |
|  County of Cuyahoga OH <br>(MetroHealth System (The))<br>Series 2017<br>5.00%, 02/15/2042 |  | 4365 |  | 4605189 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 02/15/2047 |  | 1500 |  | 1596201 |
|  County of Darke OH <br>(Wayne Hospital Co. Obligated Group)<br>Series 2019-A<br>5.00%, 09/01/2049 |  | 690 |  | 712275 |
|  |  |  |  | 10367037 |
|  **Oklahoma – 1.1%** | **Oklahoma – 1.1%** | **Oklahoma – 1.1%** | **Oklahoma – 1.1%** | **Oklahoma – 1.1%** |
|  Oklahoma Development Finance Authority <br>(OU Medicine Obligated Group)<br>Series 2018-B<br>5.00%, 08/15/2033 |  | 2000 |  | 2052758 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.50%, 08/15/2057 |  | 3365 |  | 3533978 |
|  |  |  |  | 5586736 |
|  **Oregon – 0.2%** | **Oregon – 0.2%** | **Oregon – 0.2%** | **Oregon – 0.2%** | **Oregon – 0.2%** |
|  Tri-County Metropolitan Transportation District of Oregon<br>Series 2017-A<br>5.00%, 10/01/2026 |  | 865 |  | 948559 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-A<br>5.00%, 10/01/2029 |  | 250 |  | 279871 |
|  |  |  |  | 1228430 |
|  **Pennsylvania – 8.1%** | **Pennsylvania – 8.1%** | **Pennsylvania – 8.1%** | **Pennsylvania – 8.1%** | **Pennsylvania – 8.1%** |
|  Capital Region Water Water Revenue<br>Series 2018<br>5.00%, 07/15/2025-07/15/2026 |  | 1510 |  | 1628636 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 23** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  City of Philadelphia PA Water & Wastewater Revenue<br>Series 2018-A<br>5.00%, 10/01/2048 | $3050 | $3320150 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-B<br>5.00%, 11/01/2049 | 3095 | 3388603 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-A<br>5.00%, 11/01/2045 | 5000 | 5518840 |
|  Delaware County Authority <br>(Elwyn Obligated Group)<br>Series 2017<br>5.00%, 06/01/2037 | 825 | 828636 |
|  Hospitals & Higher Education Facilities Authority of Philadelphia (The) <br>(Temple University Health System Obligated Group)<br>Series 2017<br>5.00%, 07/01/2032-07/01/2034 | 1115 | 1183892 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2022<br>4.00%, 07/01/2040 | 4475 | 4404834 |
|  Philadelphia Authority for Industrial Development <br>(City of Philadelphia PA)<br>Series 2018<br>5.00%, 05/01/2036-05/01/2038 | 4010 | 4422484 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2017<br>5.00%, 12/01/2035 | 200 | 219569 |
|  Philadelphia Authority for Industrial Development <br>(Russell Byers Charter School)<br>Series 2020<br>5.00%, 05/01/2040 | 1050 | 1073570 |
|  Pittsburgh Water & Sewer Authority<br>AGM Series 2019-A<br>5.00%, 09/01/2044 | 2000 | 2227470 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2020-B<br>4.00%, 09/01/2045-09/01/2050 | 4750 | 4753805 |
|  School District of the City of Erie (The)<br>AGM Series 2019-A<br>5.00%, 04/01/2031 | 405 | 457859 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2019-C<br>5.00%, 04/01/2028-04/01/2029 | 2850 | 3174452 |
|  Southeastern Pennsylvania Transportation Authority<br>Series 2020<br>5.00%, 06/01/2029 | 3120 | 3470175 |

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| | |
|:---|:---|
| **24 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Wilkes-Barre Area School District/PA<br>BAM Series 2019<br>5.00%, 04/15/2059 | $| 1620 | $| 1770813 |
|  |  |  |  | 41843788 |
|  **Rhode Island – 3.1%** | **Rhode Island – 3.1%** | **Rhode Island – 3.1%** | **Rhode Island – 3.1%** | **Rhode Island – 3.1%** |
|  Providence Public Building Authority <br>(City of Providence RI Lease)<br>AGM Series 2020-A<br>5.00%, 09/15/2030-09/15/2031 |  | 8000 |  | 8920697 |
|  Rhode Island Health and Educational Building Corp. <br>(City of Providence RI)<br>BAM Series 2021-D<br>4.00%, 05/15/2038-05/15/2041 |  | 6790 |  | 6992399 |
|  |  |  |  | 15913096 |
|  **Texas – 1.1%** | **Texas – 1.1%** | **Texas – 1.1%** | **Texas – 1.1%** | **Texas – 1.1%** |
|  City of Mission TX<br>BAM Series 2021<br>5.00%, 02/15/2028-02/15/2029 |  | 2000 |  | 2233170 |
|  Dallas Area Rapid Transit <br>(Dallas Area Rapid Transit Sales Tax)<br>Series 2021-B<br>5.00%, 12/01/2047 |  | 2000 |  | 2228317 |
|  El Paso County Hospital District<br>Series 2017<br>5.00%, 08/15/2037 |  | 370 |  | 400048 |
|  Newark Higher Education Finance Corp. <br>(Austin Achieve Public Schools, Inc.)<br>Series 2018<br>5.00%, 06/15/2048 |  | 735 |  | 736345 |
|  |  |  |  | 5597880 |
|  **Utah – 0.7%** | **Utah – 0.7%** | **Utah – 0.7%** | **Utah – 0.7%** | **Utah – 0.7%** |
|  Ogden City School District Municipal Building Authority <br>(Ogden City School District)<br>Series 2018<br>5.00%, 01/15/2038 |  | 3490 |  | 3815624 |
|  **Washington – 0.7%** | **Washington – 0.7%** | **Washington – 0.7%** | **Washington – 0.7%** | **Washington – 0.7%** |
|  Pend Oreille County Public Utility District No. 1 Box Canyon<br>Series 2018<br>5.00%, 01/01/2044 |  | 3600 |  | 3780017 |
|  **West Virginia – 1.5%** | **West Virginia – 1.5%** | **West Virginia – 1.5%** | **West Virginia – 1.5%** | **West Virginia – 1.5%** |
|  Morgantown Utility Board, Inc.<br>BAM Series 2018-B<br>5.00%, 12/01/2043 |  | 2555 |  | 2824142 |

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| | |
|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 25** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  West Virginia Hospital Finance Authority <br>(West Virginia United Health System Obligated Group)<br>Series 2016-A<br>4.00%, 06/01/2031 | $| 2800 | $| 2832703 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-A<br>5.00%, 06/01/2047 |  | 1775 |  | 1916467 |
|  |  |  |  | 7573312 |
|  **Wisconsin – 4.1%** | **Wisconsin – 4.1%** | **Wisconsin – 4.1%** | **Wisconsin – 4.1%** | **Wisconsin – 4.1%** |
|  City of Milwaukee WI Sewerage System Revenue<br>Series 2021-S<br>5.00%, 06/01/2030-06/01/2031 |  | 2000 |  | 2319099 |
|  Milwaukee Redevelopment Authority <br>(Milwaukee Public Schools Lease)<br>Series 2017<br>5.00%, 11/15/2025 |  | 200 |  | 215600 |
|  Wisconsin Health & Educational Facilities Authority <br>(Hmong American Peace Academy Ltd.)<br>Series 2020<br>5.00%, 03/15/2050 |  | 1175 |  | 1198996 |
|  Wisconsin Public Finance Authority <br>(Bancroft Neurohealth Obligated Group)<br>Series 2016<br>5.125%, 06/01/2048<sup>(a)</sup> |  | 4430 |  | 4489118 |
|  Wisconsin Public Finance Authority <br>(NC A&T Real Estate Foundation LLC)<br>Series 2019<br>5.00%, 06/01/2044 |  | 4450 |  | 4690950 |
|  Wisconsin Public Finance Authority <br>(Scotland Health Care System Obligated Group)<br>Series 2021-A<br>4.00%, 10/01/2047 |  | 8255 |  | 8073223 |
|  |  |  |  | 20986986 |
|  Total Municipal Obligations <br>(cost $520,131,243) |  |  |  | 483970397 |
|  **CORPORATES - INVESTMENT GRADE – 2.5%** |  |  |  |  |
|  **Industrial – 1.4%** | **Industrial – 1.4%** | **Industrial – 1.4%** | **Industrial – 1.4%** | **Industrial – 1.4%** |
|  **Consumer Cyclical - Other – 0.6%** | **Consumer Cyclical - Other – 0.6%** | **Consumer Cyclical - Other – 0.6%** | **Consumer Cyclical - Other – 0.6%** | **Consumer Cyclical - Other – 0.6%** |
|  Conservation Fund A Nonprofit Corp. (The)<br>Series 2019<br>3.474%, 12/15/2029 |  | 3267 |  | 3035206 |

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| | |
|:---|:---|
| **26 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Consumer Non-Cyclical – 0.1%** |  |  |
|  YMCA of Greater New York<br>Series 2018<br>3.985%, 08/01/2022 | $500 | $500785 |
|  **Other Industrial – 0.5%** |  |  |
|  Howard University<br>Series 2020<br>2.516%, 10/01/2025 | 1000 | 943100 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.991%, 10/01/2025 | 1000 | 925280 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.291%, 10/01/2026 | 1000 | 915770 |
|  |  | 2784150 |
|  **Services – 0.2%** |  |  |
|  Bush Foundation<br>2.754%, 10/01/2050 | 1000 | 779494 |
|  |  | 7099635 |
|  **Financial Institutions – 1.1%** |  |  |
|  **Finance – 1.1%** |  |  |
|  BlueHub Loan Fund, Inc.<br>Series 2020<br>3.099%, 01/01/2030 | 1000 | 951597 |
|  Low Income Investment Fund<br>Series 2019<br>3.711%, 07/01/2029 | 5000 | 4866149 |
|  |  | 5817746 |
|  Total Corporates - Investment Grade <br>(cost $13,767,000) |  | 12917381 |
|  | **Shares** |  |
|  **SHORT-TERM INVESTMENTS – 3.9%** |  |  |
|  **Investment Companies – 3.9%** |  |  |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.22%<sup>(d)(e)(f)</sup> <br>(cost $20,057,240) | 20057240 | 20057240 |
|  **Total Investments – 100.0%** <br> (cost $553,955,483) |  | 516945018 |
|  Other assets less liabilities – 0.0% |  | (13576) |
|  **Net Assets – 100.0%** |  | $**516931442** |

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| | |
|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 27** |

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**PORTFOLIO OF INVESTMENTS** (continued)

**CENTRALLY CLEARED INFLATION (CPI) SWAPS (see Note C)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Rate Type** | **Rate Type** | | | | |
| **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** |<br>**Termination<br>Date** | **Payments<br>made<br>by the<br>Fund** | **Payments<br>received<br>by the<br>Fund** | <br>**Payment<br>Frequency**<br> **Paid/**<br> **Received** |<br>**Market<br>Value** |<br>**Upfront<br>Premiums<br>Paid/<br>(Received)** |<br>**Unrealized<br>Appreciation/<br>(Depreciation)** |
| USD | 3750 | 01/15/2025 | 4.028% | CPI# | Maturity | $171770 | $– 0 | $171770 |
| USD | 2800 | 01/15/2027 | CPI# | 3.466% | Maturity | (161456) | (7198) | (154258) |
| USD | 19100 | 01/15/2029 | CPI# | 3.735% | Maturity | (376185) | – 0 | (376185) |
| USD | 17000 | 01/15/2030 | 2.650% | CPI# | Maturity | 1883674 | – 0 | 1883674 |
| USD | 7500 | 01/15/2031 | 2.782% | CPI# | Maturity | 738259 | – 0 | 738259 |
| USD | 4400 | 01/15/2031 | 2.989% | CPI# | Maturity | 340323 | – 0 | 340323 |
| USD | 5570 | 01/15/2032 | CPI# | 3.064% | Maturity | (370945) | – 0 | (370945) |
| USD | 5180 | 04/15/2032 | CPI# | 2.971% | Maturity | (381992) | – 0 | (381992) |
|  |  |  |  |  |  | $1843448 | $(7198) | $1850646 |

---

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

**CENTRALLY CLEARED INTEREST RATE SWAPS (see Note C)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Rate Type** | **Rate Type** | | | | |
| **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** |<br>**Termination<br>Date** | **Payments<br>made<br>by the<br>Fund** | **Payments<br>received<br>by the<br>Fund** | <br>**Payment<br>Frequency**<br> **Paid/**<br> **Received** |<br>**Market<br>Value** |<br>**Upfront<br>Premiums<br>Paid/<br>(Received)** |<br>**Unrealized<br>Appreciation/<br>(Depreciation)** |
| USD | 16500 | 05/15/2026 | 0.903% | 3 Month<br>LIBOR | Semi-Annual/<br> Quarterly | $1288949 | $– 0 | $1288949 |
| USD | 33000 | 01/15/2027 | 1 Day<br>SOFR | 2.458% | Annual | (358563) | – 0 | (358563) |
| USD | 17500 | 01/15/2027 | 1 Day<br>SOFR | 2.467% | Annual | (183066) | – 0 | (183066) |
| USD | 24000 | 01/15/2028 | 1.087% | 3 Month<br>LIBOR | Semi-Annual/<br> Quarterly | 2355196 | – 0 | 2355196 |
| USD | 20000 | 01/15/2028 | 1.027% | 3 Month<br>LIBOR | Semi-Annual/<br> Quarterly | 2029951 | – 0 | 2029951 |
| USD | 14000 | 01/15/2028 | 1.061% | 3 Month<br>LIBOR | Semi-Annual/<br> Quarterly | 1393704 | – 0 | 1393704 |
| USD | 6200 | 02/15/2041 | 1.630% | 3 Month<br>LIBOR | Semi-Annual/<br> Quarterly | 1179405 | – 0 | 1179405 |
| USD | 5000 | 02/15/2041 | 1.760% | 3 Month<br>LIBOR | Semi-Annual/<br> Quarterly | 854895 | – 0 | 854895 |
|  |  |  |  |  |  | $8560471 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $8560471 |

---

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are
considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2022, the aggregate market value of these securities amounted to $38,946,309 or 7.5% of net assets.

(b) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at April 30, 2022.

(c) When-Issued or delayed delivery security.

(d) Affiliated investments.

(e) The rate shown represents the 7-day yield as of period end.

(f) To obtain a copy of the fund's shareholder report, please go to the Securities and Exchange Commission's website
at www.sec.gov, or call AB at (800) 227-4618.

---

| | |
|:---|:---|
| **28 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

As of April 30, 2022, the Fund's percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity are 15.5% and 0.0%, respectively.

Glossary:

AGM – Assured Guaranty Municipal

BAM – Build American Mutual

COP – Certificate of Participation

CPI – Consumer Price Index

DOT – Department of Transportation

ETM – Escrowed to Maturity

LIBOR – London Interbank Offered Rate

MUNIPSA – SIFMA Municipal Swap Index

SOFR – Secured Overnight Financing Rate

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 29** |

---

------

**STATEMENT OF ASSETS & LIABILITIES** 

**April 30, 2022** 

---

| | |
|:---|:---|
| **Assets** | **Assets** |
|  Investments in securities, at value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (cost $533,898,243) | $496887778 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers (cost $20,057,240) | 20057240 |
|  Cash collateral due from broker | 2336136 |
|  Interest receivable | 6690272 |
|  Receivable for shares of beneficial interest sold | 2833290 |
|  Receivable for variation margin on centrally cleared swaps | 31938 |
|  Receivable due from Adviser | 1784 |
|  Total assets | 528838438 |
| **Liabilities** | **Liabilities** |
|  Due to custodian | 2512 |
|  Payable for investment securities purchased | 10505766 |
|  Dividends payable | 1276777 |
|  Payable for shares of beneficial interest redeemed | 121941 |
|  Total liabilities | 11906996 |
|  Net Assets | $**516931442** |
| **Composition of Net Assets** | **Composition of Net Assets** |
|  Shares of beneficial interest, at par | $530 |
|  Additional paid-in capital | 552183619 |
|  Accumulated loss | (35252707) |
|  Net Assets | $**516931442** |
|  **Net Asset Value Per Share**—unlimited shares of beneficial interest authorized, $.00001 par value (based on 52,973,185 common shares outstanding) | $**9.76** |

---

See notes to financial statements.

---

| | |
|:---|:---|
| **30 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**STATEMENT OF OPERATIONS** 

**Year Ended April 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Investment Income** |  |  |
|  Interest | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13110329 |  |
|  Dividends—Affiliated issuers | 5915 |  |
|  Other income<sup>(a)</sup> | 8340 |  |
|  Total investment income |  | $13124584 |
| **Realized and Unrealized Gain (Loss) on Investment Transactions** |  |  |
|  Net realized loss on: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment transactions |  | (1162158) |
| &nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | (6537609) |
|  Net change in unrealized appreciation/depreciation of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments |  | (61780001) |
| &nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 10411117 |
|  Net loss on investment transactions |  | (59068651) |
|  **Net Decrease in Net Assets from Operations** |  | $**(45944067)** |

---

(a) Other income includes a reimbursement for investment in affiliated issuer (see Note B).

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 31** |

---

------

**STATEMENT OF CHANGES IN NET ASSETS** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>April 30,<br>2022** | **Year Ended<br>April 30,<br>2021** |
| **Increase (Decrease) in Net Assets from Operations** |  |  |
|  Net investment income | $13124584 | $10276212 |
|  Net realized loss on investment transactions | (7699767) | (701257) |
|  Net change in unrealized appreciation/depreciation of investments | (51368884) | 30359376 |
|  Contributions from Affiliates (see Note B) | – 0 | 830 |
|  Net increase (decrease) in net assets from operations | (45944067) | 39935161 |
|  Distribution to Shareholders | (12908351) | (10276212) |
| **Transactions in Shares of Beneficial Interest** |  |  |
|  Net increase | 117602750 | 183225502 |
|  Total increase | 58750332 | 212884451 |
| **Net Assets** | **Net Assets** | **Net Assets** |
|  Beginning of period | 458181110 | 245296659 |
|  End of period | $**516931442** | $**458181110** |

---

See notes to financial statements.

---

| | |
|:---|:---|
| **32 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** 

**April 30, 2022** 

**NOTE A** 

**Significant Accounting Policies** 

AB Corporate Shares (the "Trust") is registered under the Investment Company Act of 1940, as an open-end, diversified management investment company. The Trust, which is a Massachusetts Business Trust, operates as a "series" company currently offering five separate portfolios: AB Corporate Income Shares, AB Municipal Income Shares, AB Taxable Multi-Sector Income Shares, AB Impact Municipal Income Shares and AB Tax-Aware Real Return Income Shares. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to AB Impact Municipal Income Shares (the "Fund").

Shares of the Fund are offered exclusively to holders of accounts established under wrap fee programs sponsored and maintained by certain registered investment advisers approved by AllianceBernstein L.P. (the "Adviser"). The Fund's shares may be purchased at the relevant net asset value without a sales charge or other fee. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("U.S. GAAP"), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

**1. Security Valuation** 

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at "fair value" as determined in accordance with procedures established by and under the general supervision of the Trust's Board of Trustees (the "Board").

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. ("NASDAQ")) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter ("OTC") market put or call options are valued at the mid level

---

| | |
|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 33** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the "Committee") must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer's financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund 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 and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

---

| | |
|:---|:---|
| **34 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**2. Fair Value Measurements** 

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund's own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1—quoted prices in active markets for identical investments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates,
prepayment speeds, credit risk, etc.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value
of investments)

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more

---

| | |
|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 35** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund's investments by the above fair value hierarchy levels as of April 30, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in**<br> **Securities:** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
|  Long-Term Municipal Bonds | $– 0 | $483970397 | $– 0 | $483970397 |
|  Corporates – Investment Grade | – 0 | 12917381 | – 0 | 12917381 |
|  Short-Term Investments | 20057240 | – 0 | – 0 | 20057240 |
|  Total Investments in Securities | 20057240 | 496887778 | – 0 | 516945018 |
|  **Other Financial Instruments<sup>(a)</sup>:** |  |  |  |  |
|  **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
|  Centrally Cleared Inflation (CPI) Swaps | – 0 | 3134026 | – 0 | 3134026 <sup>(b)</sup> |
|  Centrally Cleared Interest Rate Swaps | – 0 | 9102100 | – 0 | 9102100 <sup>(b)</sup> |
|  **Liabilities:** | **Liabilities:** | **Liabilities:** | **Liabilities:** | **Liabilities:** |
|  Centrally Cleared Inflation (CPI) Swaps | – 0 | (1290578) | – 0 | (1290578)<sup>(b)</sup> |
|  Centrally Cleared Interest Rate Swaps | – 0 | (541629) | – 0 | (541629)<sup>(b)</sup> |
|  **Total** | $**20057240** | $**507291697** | $**– 0** | $**527348937** |

---

(a) Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the
unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This
amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

**3. Taxes** 

It is the Fund's policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund's tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior tax year) and has concluded that no provision for income tax is required in the Fund's financial statements.

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| | |
|:---|:---|
| **36 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**4. Investment Income and Investment Transactions** 

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

**5. Dividends and Distributions** 

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

**NOTE B** 

**Advisory Fee and Other Transactions with Affiliates** 

Under the terms of the advisory agreement, the Fund pays no advisory fee to the Adviser and the Adviser reimburses or pays for the Fund's operating expenses. The Fund is an integral part of separately managed accounts in wrap fee programs and other investment programs. Typically, participants in these programs pay a fee to their investment adviser for all costs and expenses of the separately managed account, including costs and expenses associated with the Fund, and a fee is paid by their investment adviser to the Adviser. In certain cases, participants may have a direct relationship with the Adviser without the involvement of a third party investment adviser, in which case the participant would pay a fee directly to the Adviser. The Adviser serves as investment manager and adviser of the Fund and continuously furnishes an investment program for the Fund and manages, supervises and conducts the affairs of the Fund, subject to the supervisions of the Fund's Board. The advisory agreement provides that the Adviser or an affiliate will furnish, or pay the expenses of the Fund for, office space, facilities and equipment, services of executive and other personnel of the Fund and certain administrative services.

The Fund has entered into a distribution agreement with AllianceBernstein Investments, Inc., the Fund's principal underwriter (the "Underwriter"), to permit the Underwriter to distribute the Fund's shares, which are sold at their net asset value without any sales charge. The Fund does not pay a fee for this service. The Underwriter is a wholly owned subsidiary of the Adviser.

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| | |
|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 37** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

AllianceBernstein Investor Services, Inc. ("ABIS"), a wholly-owned subsidiary of the Adviser, acts as the Fund's registrar, transfer agent and dividend-disbursing agent. ABIS registers the transfer, issuance and redemption of Fund shares and disburses dividends and other distributions to Fund shareholders. The Fund does not pay a fee for this service.

The Fund may invest in AB Government Money Market Portfolio (the "Government Money Market Portfolio") which has a contractual annual advisory fee rate of ..20% of the portfolio's average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2022. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to reimburse the Fund in an amount equal to the Fund's pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended April 30, 2022, such reimbursement amounted to $8,340.

A summary of the Fund's transactions in AB mutual funds for the year ended April 30, 2022 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Market Value<br>4/30/21<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Sales<br>Proceeds<br>(000)** | **Market Value<br>4/30/22<br>(000)** | **Dividend<br>Income<br>(000)** |
|  Government Money Market Portfolio | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20193 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;179614 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;179750 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20057 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6 |

---

During the year ended April 30, 2021, the Adviser reimbursed the Fund $830 for trading losses incurred due to a trade entry error.

**NOTE C** 

**Investment Transactions** 

Purchases and sales of investment securities (excluding short-term investments) for the year ended April 30, 2022 were as follows:

---

| | | |
|:---|:---|:---|
|  | **Purchases** | **Sales** |
|  Investment securities (excluding U.S. government securities) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;195505592 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65148067 |
|  U.S. government securities | – 0 | – 0 |

---

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| | |
|:---|:---|
| **38 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

---

| | |
|:---|:---|
|  Cost | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;553955483 |
|  Gross unrealized appreciation | $14232133 |
|  Gross unrealized depreciation | (40666702) |
|  Net unrealized depreciation | $(26434569) |

---

**1. Derivative Financial Instruments** 

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, "investment purposes"), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **Swaps** 

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk, equity markets or currencies. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund's exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement

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| | |
|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 39** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants ("FCMs") that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

**Interest Rate Swaps:** 

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

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|:---|:---|
| **40 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (*e.g.*, an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or "notional") amount. Interest rate swaps are entered into on a net basis (*i.e.*, the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended April 30, 2022, the Fund held interest rate swaps for hedging purposes.

**Inflation (CPI) Swaps:** 

Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.

During the year ended April 30, 2022, the Fund held inflation (CPI) swaps for hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreement") with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund's net liability, held by the defaulting party, may be delayed or denied.

The Fund's ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels ("net asset contingent features"). If these levels are triggered, the Fund's OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a

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|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 41** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended April 30, 2022, the Fund had entered into the following derivatives:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives** | **Liability Derivatives** |
| **Derivative Type** | **Statement of<br>Assets and<br>Liabilities<br>Location** | **Fair Value** | **Statement of<br>Assets and<br>Liabilities<br>Location** | **Fair Value** |
|  Interest rate contracts | Receivable/Payable for variation margin on centrally cleared swaps | $12236126<br> \*  | Receivable/Payable for variation margin on centrally cleared swaps | $1825009<br> \*  |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;12236126 |  | $&nbsp;&nbsp;&nbsp;&nbsp;1825009 |

---

\* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. 

---

| | | | |
|:---|:---|:---|:---|
| **Derivative Type** | **Location of Gain or<br>(Loss) on Derivatives<br>Within Statement of<br>Operations** | **Realized Gain<br>or (Loss) on<br>Derivatives** | **Change in<br>Unrealized<br>Appreciation or<br>(Depreciation)** |
|  Interest rate contracts | Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps | $(6537609) | $10411117 |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;(6537609) | $&nbsp;&nbsp;&nbsp;&nbsp;10411117 |

---

The following table represents the average monthly volume of the Fund's derivative transactions during the year ended April 30, 2022:

---

| | |
|:---|:---|
|  Centrally Cleared Interest Rate Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount | $103670833.0 |
|  Centrally Cleared Inflation Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount | $42457500.0 |

---

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|:---|:---|
| **42 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE D** 

**Shares of Beneficial Interest** 

Transactions in shares of beneficial interest were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>April 30,<br>2022 | Year Ended<br>April 30,<br>2021 | Year Ended<br>April 30,<br>2022 | Year Ended<br>April 30,<br>2021 |
|  Shares sold | 17035551 | 19750896 | $182792266 | $210006439 |
|  Shares redeemed | (6075323) | (2499247) | (65189516) | (26780937) |
|  **Net increase** | **10960228** | **17251649** | $**117602750** | $**183225502** |

---

**NOTE E** 

**Risks Involved in Investing in the Fund** 

**Market Risk**—The value of the Fund's assets will fluctuate as the stock or bond market fluctuates. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

**ESG Risk**—Applying environmental, social and corporate governance ("ESG") and sustainability criteria to the investment process may exclude securities of certain issuers for non-investment reasons and, therefore, the Fund may forgo some market opportunities available to funds that do not use ESG or sustainability criteria. Securities selected based on ESG factors may shift into and out of favor depending on market and economic conditions, and the Fund's performance may at times be better or worse than the performance of funds that do not use ESG or sustainability criteria. Furthermore, "sustainability" is not a uniformly defined characteristic, and the Fund's sustainability criteria may differ from those used by other funds. In addition, in evaluating an investment, the investment adviser is dependent upon information and data that may be incomplete, inaccurate or unavailable, which could adversely affect the analysis of the ESG and sustainability factors relevant to a particular investment.

**Credit Risk**—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

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|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 43** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**Municipal Market Risk**—This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund's investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state's municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer's ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may continue or worsen, adversely affecting the performance of the Fund. The Fund's investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project's ability to make payments of principal and interest on these securities.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the U.S. federal income tax treatment of certain types of municipal securities.

**Tax Risk**—There is no guarantee that all of the Fund's income will remain exempt from federal or state income taxes. From time to time, the U.S. Government and the U.S. Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund's net asset value, or NAV, could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund's yield. The federal income tax treatment of payments in respect of certain derivative contracts is unclear.

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|:---|:---|
| **44 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**Below Investment-Grade Securities Risk**—Investments in fixed-income securities with lower ratings (commonly known as "junk bonds") tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

**Interest-Rate Risk**—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The current historically low interest rate environment heightens the risks associated with rising interest rates.

**Inflation Risk**—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund's assets can decline as can the value of the Fund's distributions. This risk is significantly greater for fixed-income securities with longer maturities.

**Leverage Risk**—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund's investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

**Illiquid Investments Risk**—Illiquid investments risk exists when particular investments, such as lower-rated securities, are or become difficult to purchase or sell, possibly preventing the Fund from selling such investments at an advantageous price. The Fund is subject to illiquid investments risk because the market for municipal securities is generally smaller than many other markets. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk than most other types of investments.

**Derivatives Risk**—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the

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|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 45** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

**LIBOR Transition and Associated Risk**—A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or "LIBOR," as a "benchmark" or "reference rate" for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority ("FCA"), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR's administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a "synthetic" basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve's Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

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 a 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, potentially adversely affecting a 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. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

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|:---|:---|
| **46 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**Indemnification Risk**—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

**Management Risk**—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

**NOTE F** 

**Joint Credit Facility** 

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the "Facility") intended to provide short-term financing, if necessary, subject to certain restrictions in connection with abnormal redemption activity. Commitment fees related to the Facility are paid by the Adviser. The Fund did not utilize the Facility during the year ended April 30, 2022.

**NOTE G** 

**Distributions to Shareholders** 

The tax character of distributions paid during the fiscal years ended April 30, 2022 and April 30, 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Distributions paid from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ordinary income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;846774 | $485107 |
|  Total taxable distributions | 846774 | 485107 |
|  Tax exempt distributions | 12061577 | 9791105 |
|  Total distributions paid | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12908351 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10276212 |

---

As of April 30, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:

---

| | |
|:---|:---|
|  Undistributed tax-exempt income | $1275445 |
|  Accumulated capital and other losses | (8816806)<sup>(a)</sup> |
|  Unrealized appreciation/(depreciation) | (26434569)<sup>(b)</sup> |
|  Total accumulated earnings/(deficit) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(33975930)<sup>(c)</sup> |

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(a) As of April 30, 2022, the Fund had a net capital loss carryforward of $8,816,806.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the
tax treatment of swaps.

(c) The difference between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily to
dividends payable.

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|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 47** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of April 30, 2022, the Fund had a net short-term capital loss carryforward of $8,715,816 and a net long-term capital loss carryforward of $100,990, which may be carried forward for an indefinite period.

During the current fiscal year, there were no permanent differences that resulted in adjustments to accumulated loss or additional paid-in capital.

**NOTE H** 

**Recent Accounting Pronouncements** 

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, "Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

**NOTE I** 

**Subsequent Events** 

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund's financial statements through this date.

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|:---|:---|
| **48 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**FINANCIAL HIGHLIGHTS** 

**Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended April 30,** | **Year Ended April 30,** | **Year Ended April 30,** | **Year Ended April 30,** | **September 12,<br>2017<sup>(a)</sup> to<br>April 30,**<br> **2018** |
|  | **2022** | **2021** | **2020** | **2019** | **September 12,<br>2017<sup>(a)</sup> to<br>April 30,**<br> **2018** |
|  Net asset value, beginning of period | $10.91 | $9.91 | $10.19 | $9.79 | $10.00 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income<sup>(b)</sup> | .28 | .31 | .33 | .33 | .18 |
|  Net realized and unrealized gain (loss) on investment transactions | (1.16) | 1.00 | (.27 | .40 | (.22 |
|  Contributions from Affiliates | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (.88 | 1.31 | .06 | .73 | (.04 |
|  **Less: Dividends** |  |  |  |  |  |
|  Dividends from net investment income | (.27 | (.31) | (.34 | (.33 | (.17 |
|  Net asset value, end of period | **$9.76** | **$10.91** | **$9.91** | **$10.19** | **$9.79** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup> | (8.23) | 13.32% | .40 | 7.56 | (.44 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $516931 | $458181 | $245297 | $132964 | $37341 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 2.59 | 2.88% | 3.18 | 3.35 | 2.89 |
|  Portfolio turnover rate | 13 | 14% | 2 | 23 | 8 |

---

(a) Commencement of operations.

(b) Based on average shares outstanding.

(c) Amount is less than $.005.

(d) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the
period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or
the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

^ Annualized.

See notes to financial statements.

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|:---|:---|
| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 49** |

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**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** 

**To the Shareholders and the Board of Trustees of** 

**AB Impact Municipal Income Shares:** 

***Opinion on the Financial Statements***

We have audited the accompanying statement of assets and liabilities of AB Impact Municipal Income Shares (the "Fund") (one of the series constituting AB Corporate Shares (the "Trust")), including the portfolio of investments, as of April 30, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the four years in the period then ended and the period from September 12, 2017 (commencement of operations) to April 30, 2018 and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the series constituting AB Corporate Shares) at April 30, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the four years in the period then ended and the period from September 12, 2017 (commencement of operations) to April 30, 2018, in conformity with U.S. generally accepted accounting principles.

***Basis for Opinion***

These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.

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|:---|:---|
| **50 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** (continued)

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2022, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![LOGO](g473077g91r55.jpg)

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

June 24, 2022

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 51** |

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**BOARD OF TRUSTEES** 

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| | |
|:---|:---|
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President and<br> Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |

---

**OFFICERS** 

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| | |
|:---|:---|
| **Matthew J. Norton**<sup>(2)</sup>**,** Vice President<br> **Marc Uy**<sup>(2)</sup>**,** Vice President<br> **Emilie D. Wrapp,** Secretary<br> **Michael B. Reyes,** Senior Vice President  | **Joseph J. Mantineo,** Treasurer and Chief Financial Officer<br> **Phyllis J. Clarke,** Controller<br> **Vincent S. Noto,** Chief Compliance Officer |

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| | |
|:---|:---|
| **Custodian and Accounting Agent**<br> State Street Bank and Trust Company<br>State Street Corporation CCB/5<br>1 Iron Street<br>Boston, MA 02210<br>**Principal Underwriter**<br> AllianceBernstein Investments, Inc.<br>501 Commerce Street<br>Nashville, TN 37203<br>| **Legal Counsel**<br> Seward & Kissel LLP<br>One Battery Park Plaza<br>New York, NY 10004<br>**Independent Registered Public Accounting Firm**<br> Ernst & Young LLP<br> One Manhattan West<br> New York, NY 10001 |
| **Transfer Agent**<br> AllianceBernstein Investor Services, Inc.<br> P.O. Box 786003<br>San Antonio, TX 78278<br>Toll-Free (800) 221-5672 |  |

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1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund's portfolio are made by the Adviser's Municipal Impact Investment Team. Messrs. Norton and Uy are the investment professionals primarily responsible for the day-to-day management of the Fund's Portfolio.

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|:---|:---|
| **52 <sup>\|</sup> AB IMPACT MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**MANAGEMENT OF THE FUND** 

**Board of Trustees Information** 

The business and affairs of the Trust are managed under the direction of the Board of Trustees. Certain information concerning the Trust's Trustee is set forth below.

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|:---|:---|:---|:---|
| **NAME,**<br> **ADDRESS\*, AGE AND**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S),**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER<br>PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY**<br> **TRUSTEE** |
| **INTERESTED TRUSTEE** |  |  |  |
| Onur Erzan,<sup>#</sup><br> 46<br> (2021) | Senior Vice President of AllianceBernstein L.P. (the "Adviser") and Head of the Global Client Group overseeing AB's institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey, most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey's Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally. | 73 |  |

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 53** |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,**<br> **ADDRESS\*, AGE AND**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S),**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER<br>PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY**<br> **TRUSTEE** |
| **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** |  |  |
| Marshall C. Turner, Jr.,<sup>##</sup> <br>*Chairman of the Board* <br> 80 <br>(2005) | Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of the AB Funds since February 2014. | 73 |  |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,**<br> **ADDRESS\*, AGE AND**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S),**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER<br>PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY**<br> **TRUSTEE** |
| **INDEPENDENT TRUSTEES<br>(continued)** | **INDEPENDENT TRUSTEES<br>(continued)** |  |  |
| Jorge A. Bermudez,<sup>##</sup><br>71<br>(2020) | Private Investor since prior to 2017. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup's Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020. | 73 | Moody's Corporation since April 2011 |
| Michael J. Downey,<sup>##</sup> <br>78<br> (2005) <br>| Private Investor since prior to 2017. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 until 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005. | 73 |  |

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 55** |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,**<br> **ADDRESS\*, AGE AND**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S),**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER<br>PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY**<br> **TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Nancy P. Jacklin,<sup>##</sup> <br>74<br>(2006) | Private Investor since prior to 2017. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014. | 73 |  |
| Jeanette W. Loeb,<sup>##</sup><br>70<br>(2020) | Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as a Director of the AB Funds since April 2020. | 73 | Apollo Investment Corp. (business development company) since August 2011 |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,**<br> **ADDRESS\*, AGE AND**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S),**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER<br>PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY**<br> **TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Carol C. McMullen,<sup>##</sup><br> 66<br>(2016) | Managing Director of Slalom Consulting (consulting) since 2014, private investor and<br> a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016. | 73 |  |

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 57** |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,**<br> **ADDRESS\*, AGE AND**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S),**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER<br>PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY**<br> **TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Garry L. Moody,<sup>##</sup> <br>70<br> (2008) | Private Investor since prior to 2017. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute's Board of Governors and the Independent Directors Council's Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008. | 73 |  |

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\* The address for each of the Company's independent Trustees is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department – Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

\*\* There is no stated term of office for the Trustees.

\*\*\* The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the Trust. 

# Mr. Erzan is an "interested person" of the Trust, as defined in the 1940 Act, due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

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**MANAGEMENT OF THE FUND** (continued)

**Officer Information** 

Certain information concerning the Fund's Officers is listed below.

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| | | |
|:---|:---|:---|
| **NAME, ADDRESS\*<br>AND AGE** | **POSITION(S)<br>HELD WITH FUND** | **PRINCIPAL OCCUPATION**<br>**DURING PAST 5 YEARS** |
| Onur Erzan<br> 46 | President and Chief Executive Officer | See biography above. |
| Marc Uy<br> 41 | Vice President | Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. |
| Matthew J. Norton<br> 39 | Vice President | Senior Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. He is also Chief Investment Officer — Municipal Bonds. |
| Emilie D. Wrapp<br> 66 | Secretary | Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI\*\*, with which she has been associated since prior to 2017. |
| Michael B. Reyes<br> 45 | Senior Vice President | Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. |
| Joseph J. Mantineo<br> 63 | Treasurer and Chief Financial Officer | Senior Vice President of AllianceBernstein Investor Services, Inc. ("ABIS")\*\*, with which he has been associated since prior to 2017. |
| Phyllis J. Clarke<br> 61 | Controller | Vice President of ABIS\*\*, with which she has been associated since prior to 2016. |
| Vincent S. Noto<br> 57 | Chief Compliance Officer | Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser\*\* since prior to 2017. |

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\* The address for each of the Portfolio's Officers is 1345 Avenue of the Americas, New York, NY 10105.

\*\* The Adviser, ABI and ABIS are affiliates of the Trust.

The Trust's Statement of Additional Information ("SAI") has additional information about the Trust's Trustees and Officers and is available without charge upon request. Contact your financial representative or ABI at (800) 227-4618, or visit, www.abfunds.com. for a free prospectus or SAI.

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 59** |

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**Operation and Effectiveness of the Fund's Liquidity Risk Management Program:** 

In October 2016, the Securities and Exchange Commission ("SEC") adopted the open-end fund liquidity rule (the "Liquidity Rule"). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program ("LRMP") in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund's Liquidity Risk Management Program. The Administrator of the Fund's LRMP is AllianceBernstein L.P., the Fund's investment adviser (the "Adviser"). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the "Committee").

Another requirement of the Liquidity Rule is for the Fund's Board of Trustees (the "Fund Board") to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the fund's LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2022, which covered the period January 1, 2021 through December 31, 2021 (the "Program Reporting Period").

The LRMP's principal objectives include supporting the Fund's compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund's strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum ("HLIM"). The Committee also incorporated the following information when determining the Fund's reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund's concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Funds' LRMP is adequately designed, has been implemented as intended, and has operated effectively since its inception. No material exceptions

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have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID 19 impacts. As such, the Program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 61** |

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**Information Regarding the Review and Approval of the Fund's Advisory Agreement** 

The disinterested trustees (the "directors") of AB Corporate Shares (the "Company") unanimously approved the continuance of the Company's Advisory Agreement with the Adviser in respect of AB Impact Municipal Income Shares (the "Fund") at a meeting held by video conference on November 2-4, 2021 (the "Meeting").

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors noted that the Fund is designed as a vehicle for the wrap fee account market (where investors pay fees to a wrap fee sponsor which pays investment fees and expenses from such fee). The directors also noted that no advisory fee is payable by the Fund, that the Advisory Agreement does not include the reimbursement provision for certain administrative expenses included in the advisory agreements of most of the open-end AB Funds, and that the Adviser is responsible for payment of the Fund's ordinary expenses. The directors noted that the Company acknowledges in the Advisory Agreement that the Adviser and its affiliates expect to receive compensation from third parties in connection with services provided under the Advisory Agreement. The directors further noted that the Adviser receives payments from the wrap fee program sponsors (the "Sponsors") that use the Fund as an investment vehicle for their clients.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser's integrity and competence they have gained from that experience, the Adviser's initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser's willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the money market fund advised by the Adviser in which the Fund invests a portion of its assets.

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The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors' determinations included the following:

**Nature, Extent and Quality of Services Provided** 

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund's investment strategies and from time to time proposes changes intended to improve the Fund's relative or absolute performance for the directors' consideration. They also noted the professional experience and qualifications of the Fund's portfolio management team and other senior personnel of the Adviser. The quality of administrative and other services, including the Adviser's role in coordinating the activities of the Fund's other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

**Costs of Services Provided and Profitability** 

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2019 and 2020 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser's relationship with the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser's relationship with the Fund before taxes and distribution expenses. The directors concluded that the Adviser's level of profitability from its relationship with the Fund was not unreasonable.

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| **abfunds.com** | **AB IMPACT MUNICIPAL INCOME SHARES <sup>\|</sup> 63** |

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**Fall-Out Benefits** 

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised by the Adviser in which the Fund invests. The directors noted that the Adviser is compensated by the Sponsors. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

**Investment Results** 

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the "15(c) service provider"), showing the performance of the Fund against a group of similar funds ("peer group") and a larger group of similar funds ("peer universe"), each selected by the 15(c) service provider, and information prepared by the Adviser showing the Fund's performance against a broad-based securities market index, in each case for the 1- and 3-year periods ended July 31, 2021 and (in the case of comparisons with the broad-based securities market index) for the period from inception. The directors were cognizant that the Fund was neither designed nor offered as a standalone investment and was intended to serve solely as a component of certain separately managed accounts ("SMAs"). The Adviser had explained that this attribute made it difficult to select an appropriate benchmark for the Fund. At the directors' request, the Adviser provided information showing the weighting of the Fund in a current SMA and the overall performance of the SMA versus its stated benchmark. Based on their review, the directors concluded that the Fund's investment performance was acceptable.

**Advisory Fees** 

The directors considered the advisory fee rate payable by the Fund to the Adviser (zero) and information provided by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds.

The directors noted the unusual arrangements in the Advisory Agreement providing for no advisory fee but were cognizant that the Adviser is indirectly compensated by the Sponsors for its services to the Fund. The directors reviewed the fee arrangements between the Adviser and each of the current Sponsors and noted that such fees were negotiated on an arm's length basis and were within the range of fees paid by wrap fee sponsors to other advisers of similar funds. While the Adviser's fee arrangements with the Sponsors vary, the directors acknowledged the

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Adviser's view that a portion of such fees (less the expenses of the Fund paid by the Adviser) may reasonably be viewed as compensating the Adviser for advisory services it provides to the Fund (the "implied fee") and that the Adviser believes that while the Sponsors pay the Adviser different fee rates, the rate of fee attributable to Fund management at the Fund level is the same for all Sponsors. The directors also considered the fee rate schedules used by other registered investment companies that invest in fixed income securities that are advised by the Adviser.

The Adviser informed the directors that there were no institutional products managed by the Adviser that utilize investment strategies similar to those of the Fund.

The directors did not consider comparative expense information for the Fund because the Fund does not bear ordinary expenses.

**Economies of Scale** 

The directors did not consider the extent to which fee levels in the Advisory Agreement for the Fund reflect economies of scale because the Advisory Agreement does not provide for any compensation to be paid to the Adviser by the Fund and the Fund's expense ratio is zero. They did note, however, that the fee payable to the Adviser by the current Sponsors declines at a breakpoint based on either individual account sizes or on total assets managed by the Adviser for the Sponsor.

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**This page is not part of the Shareholder Report or the Financial Statements.** 

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**AB FAMILY OF FUNDS** 

**US EQUITY** 

**CORE** 

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio<sup>1</sup>

**GROWTH** 

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

**VALUE** 

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

**INTERNATIONAL/ GLOBAL EQUITY** 

**CORE** 

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

**GROWTH** 

Concentrated International Growth Portfolio

**VALUE** 

All China Equity Portfolio

International Value Fund

**FIXED INCOME** 

**MUNICIPAL** 

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

**TAXABLE** 

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

**ALTERNATIVES** 

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

**MULTI-ASSET** 

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio<sup>1</sup>

Tax-Managed All Market Income Portfolio

**CLOSED-END FUNDS** 

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

**We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.** 

**Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.** 

1 Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee<sup>™</sup> US Thematic Portfolio. Prior to December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy.

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**NOTES** 

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**NOTES** 

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![LOGO](g473077g43p34.jpg)

AB IMPACT MUNICIPAL INCOME SHARES

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

IMISH-0151-0422 ![LOGO](g473077g22c48.jpg)

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**APR** <sup>04.30.22</sup>

![LOGO](g466642g43p34.jpg)

ANNUAL REPORT

## AB MUNICIPAL INCOME SHARES
![LOGO](g466642covart_7682.jpg)

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 <br> Investment Products Offered   <u> • Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed</u>

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund's prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund's proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB's website at www.abfunds.com, or go to the Securities and Exchange Commission's (the "Commission") website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund's Form N-PORT reports are available on the Commission's website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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| **FROM THE PRESIDENT** | ![LOGO](g466642g92f19.jpg) |

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Dear Shareholder,

We're pleased to provide this report for AB Municipal Income Shares (the "Fund"). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund's investment strategy.

At AB, we're striving to help our clients achieve better outcomes by:

<sup>+</sup> Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

<sup>+</sup> Applying differentiated investment insights through a connected global research network

<sup>+</sup> Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you're an individual investor or a multibillion-dollar institution, we're putting our knowledge and experience to work for you every day.

For more information about AB's comprehensive range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

![LOGO](g466642g55d83.jpg)

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 1** |

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**ANNUAL REPORT** 

**June 7, 2022** 

This report provides management's discussion of fund performance for AB Municipal Income Shares for the annual reporting period ended April 30, 2022. Please note, shares of this Fund are available only to separately managed accounts or participants in "wrap fee" programs or other investment programs approved by the Adviser.

**The investment objective of the Fund is to earn the highest level of current income, exempt from federal taxation, that is available consistent with what the Adviser considers to be an appropriate level of risk.** 

**NAV RETURNS AS OF APRIL 30, 2022** (unaudited)

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|:---|:---|:---|
|  | 6 Months | 12 Months |
| **AB MUNICIPAL INCOME SHARES** | -9.26% | -7.52% |
| Bloomberg Municipal Bond Index | -7.90% | -7.88% |

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**INVESTMENT RESULTS** 

The table above shows the Fund's performance compared to its benchmark, the Bloomberg Municipal Bond Index, for the six- and 12-month periods ended April 30, 2022.

The Fund outperformed the benchmark for the 12-month period, but underperformed for the six-month period. The Fund is generally used to provide exposure to lower-rated municipal bonds and longer-duration bonds within separately managed account strategies. The Fund was overweight lower-rated (noninvestment-grade) bonds, relative to the benchmark, which is fully composed of investment-grade bonds. This overweight was beneficial over both periods. The Fund was overweight long-duration bonds, which detracted over both periods.

During both periods, the Fund's holdings in below investment-grade bonds benefited performance. Security selection within the not-for-profit health-care sector contributed, while selection in multi-family housing detracted. Yield-curve positioning detracted overall, though underweights to the intermediate part of the curve contributed.

Additionally, the Fund's inflation hedges in tax-efficient Consumer Price Index ("CPI") swaps were additive to relative performance as the market priced in potentially higher inflation. Five-year inflation break-even rates increased 41 basis points ("b.p.") during the six-month period and 73 b.p. during the 12-month period, and were marked at 3.30% at month-end.

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| **2 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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The Fund utilized derivatives for hedging purposes in the form of CPI swaps, which added to absolute performance for the 12-month period and had no material impact on the six-month period, as well as interest rate swaps, which detracted for the 12-month period but had no material impact for the six-month period, and credit default swaps, which had no material impact for either period.

**MARKET REVIEW AND INVESTMENT STRATEGY** 

Yields rose toward the end of both the six- and 12-month periods ended April 30, 2022. During the 12-month period, the yield on a 10-Year AAA municipal bond rose to 2.72% from 0.99% and the yield on the 10-Year US Treasury rose to 2.89% from 1.65%. While demand for income remained strong during the first half of the 12-month reporting period, demand weakened during the first quarter of 2022 and into the second quarter, as investors pulled approximately $48 billion from the municipal market as of April 30, 2022.

In addition to broader fixed-income market volatility, these municipal market outflows contributed to municipal underperformance versus US Treasuries, with 10-Year AAA Muni/Treasury after-tax spreads widening 95 b.p. during the 12-month period and 67 b.p. during the six-month period. Credit spreads were relatively unchanged during the 12-month period, but widened modestly during the six-month period.

The Fund's Senior Investment Management Team relies on an investment process that combines quantitative and fundamental research to build effective municipal bond portfolios.

The Fund may purchase municipal securities that are insured under policies issued by certain insurance companies. Historically, insured municipal securities typically received a higher credit rating, which meant that the issuer of the securities paid a lower interest rate. As a result of declines in the credit quality and associated downgrades of most bond insurers, insurance has less value than it did in the past. The market now values insured municipal securities primarily based on the credit quality of the issuer of the security, with little value given to the insurance feature. In purchasing such insured securities, the Adviser evaluates the risk and return of municipal securities through its own research. If an insurance company's rating is downgraded or the company becomes insolvent, the prices of municipal securities insured by the insurance company may decline. As of April 30, 2022, the Fund's percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity were 1.93% and 0.00%, respectively.

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 3** |

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**INVESTMENT POLICIES** 

The Fund pursues its objective by investing principally in high-yielding municipal securities that may be noninvestment grade or investment-grade. As a matter of fundamental policy, the Fund invests, under normal circumstances, at least 80% of its net assets in municipal securities that pay interest that is exempt from federal income tax. These securities may pay interest that is subject to the federal alternative minimum tax for certain taxpayers.

The Adviser selects securities for purchase or sale based on its assessment of the securities' risk and return characteristics as well as the securities' impact on the overall risk and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Fund's other holdings.

The Fund may invest without limit in lower-rated securities ("junk bonds"), which may include securities having the lowest rating, and in unrated securities that, in the Adviser's judgment, would be lower-rated securities if rated. The Fund may invest in fixed-income securities with any maturity or duration. The Fund will seek to increase income for shareholders by investing in longer maturity bonds. Consistent with its objective of seeking a higher level of income, the Fund may experience greater volatility and a higher risk of loss of principal than other municipal funds.

The Fund may also invest in tender option bond transactions ("TOBs"); forward commitments; zero-coupon municipal securities and variable-, floating- and inverse-floating-rate municipal securities; certain types of mortgage-related securities; and derivatives, such as options, futures contracts, forwards and swaps.

The Fund may make short sales of securities or maintain a short position, and may use other investment techniques. The Fund may use leverage for investment purposes to increase income through the use of TOBs and derivative instruments, such as interest rate swaps.

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| **4 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**DISCLOSURES AND RISKS** 

**Benchmark Disclosure** 

**The Bloomberg Municipal Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a fund.** The Bloomberg Municipal Bond Index represents the performance of the long-term tax-exempt bond market consisting of investment-grade bonds. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

**A Word About Risk** 

**Market Risk:** The value of the Fund's assets will fluctuate as the stock or bond market fluctuates. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

**Credit Risk:** An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and any accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

**Municipal Market Risk:** This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund's investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state's municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer's ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 5** |

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**DISCLOSURES AND RISKS** (continued)

state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may continue or worsen, adversely affecting the performance of the Fund. The Fund's investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project's ability to make payments of principal and interest on these securities.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the US federal income tax treatment of certain types of municipal securities.

**Tax Risk:** There is no guarantee that all of the Fund's income will remain exempt from federal or state income taxes. From time to time, the US government and the US Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund's net asset value ("NAV") could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax-exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund's yield. The federal income tax treatment of payments in respect of certain derivative contracts is unclear.

**Below Investment-Grade Securities Risk:** Investments in fixed-income securities with lower ratings (commonly known as "junk bonds") tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest-rate sensitivity and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

**Interest-Rate Risk:** Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations. The current historically low interest rate environment heightens the risks associated with rising interest rates.

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| **6 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**DISCLOSURES AND RISKS** (continued)

**Inflation Risk:** This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund's assets can decline as can the value of the Fund's distributions. This risk is significantly greater for fixed-income securities with longer maturities.

**Leverage Risk:** To the extent the Fund uses leveraging techniques, its NAV may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund's investments.

**Illiquid Investments Risk:** Illiquid investments risk exists when particular investments, such as lower-rated securities, are or become difficult to purchase or sell, possibly preventing the Fund from selling such investments at an advantageous price. The Fund is subject to illiquid investments risk because the market for municipal securities is generally smaller than many other markets. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk than most other types of investments.

**Derivatives Risk:** Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

**Management Risk:** The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

These risks are fully discussed in the Fund's prospectus. As with all investments, you may lose money by investing in the Fund.

**An Important Note About Historical Performance** 

**The performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by calling (800) 227 4618. The investment return and principal value of an investment in the Fund will fluctuate, so that your shares, when redeemed, may be worth more or less than their** 

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 7** |

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**DISCLOSURES AND RISKS** (continued)

**original cost. Performance assumes reinvestment of distributions and does not account for taxes.** 

**Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus and/or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AllianceBernstein Investments representative. Please read the prospectus and/or summary prospectus carefully before investing.** 

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| **8 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** 

**GROWTH OF A $10,000 INVESTMENT IN THE FUND** (unaudited)

4/30/2012 TO 4/30/2022

![LOGO](g466642g54x80.jpg)

This chart illustrates the total value of an assumed $10,000 investment in AB Municipal Income Shares (from 4/30/2012 to 4/30/2022) as compared to the performance of its benchmark. The chart assumes the reinvestment of dividends and capital gains distributions.

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 9** |

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**HISTORICAL PERFORMANCE** (continued)

**AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2022** (unaudited)

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|:---|:---|
|  | NAV Returns |
| 1 Year | -7.52% |
| 5 Years | 3.97% |
| 10 Years | 5.02% |

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**AVERAGE ANNUAL RETURNS AS OF THE MOST RECENT CALENDAR QUARTER-END MARCH 31, 2022** (unaudited)

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|:---|:---|
|  | NAV Returns |
| 1 Year | -2.47% |
| 5 Years | 4.95% |
| 10 Years | 5.64% |

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**The prospectus fee table shows the fees and the total operating expenses of the Fund as 0.07% because the Adviser does not charge any fees or expenses and reimburses Fund operating expenses except certain extraordinary expenses, taxes, brokerage costs and the interest on borrowings or certain leveraged transactions. Participants in a wrap fee program or other investment program eligible to invest in the Fund pay fees to the program sponsor and should review the program brochure or other literature provided by the sponsor for a discussion of fees and expenses charged.** 

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| **10 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**EXPENSE EXAMPLE** 

(unaudited)

As a shareholder of the Fund, you may incur various ongoing non-operating and extraordinary costs. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

**Actual Expenses** 

The table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

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|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account Value<br>November 1, 2021** | **Ending<br>Account Value<br>April 30, 2022** | **Expenses Paid<br>During Period\*** | **Annualized<br>Expense Ratio\*** |
|  Actual | $1000 | $907.40 | $0.38 | 0.08% |
|  Hypothetical\*\* | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1024.40 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.40 | 0.08% |

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\* Expenses are equal to the Fund's annualized expense ratio (interest expense incurred) multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The Fund's operating expenses are borne by the Adviser or its affiliates.

\*\* Assumes 5% annual return before expenses. 

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 11** |

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**PORTFOLIO SUMMARY** 

**April 30, 2022** (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $7,305.7

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![LOGO](g466642g93o18.jpg)

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| 1 | All data are as of April 30, 2022. The Fund's quality rating breakdown is expressed as a percentage of the Fund's total investments in municipal securities and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see "Portfolio of Investments" section of the report for additional details). The quality ratings are determined by using the S&P Global Ratings ("S&P"), Moody's Investors Services, Inc. ("Moody's") and Fitch Ratings, Ltd. ("Fitch"). The Fund considers the credit ratings issued by S&P, Moody's and Fitch and uses the highest rating issued by the agencies. These ratings are a measure of the quality and safety of a bond or portfolio, based on the issuer's financial condition. AAA is the highest (best) and D is the lowest (worst). If applicable, the pre-refunded category includes bonds which are secured by U.S. Government securities and therefore are deemed high-quality investment-grade by the Adviser. If applicable, Not Applicable (N/A) includes non-creditworthy investments such as equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a nationally recognized statistical rating organization. The Adviser evaluates the creditworthiness of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment.  |

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| **12 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** 

**April 30, 2022** 

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|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **MUNICIPAL OBLIGATIONS – 106.4%** | **MUNICIPAL OBLIGATIONS – 106.4%** | **MUNICIPAL OBLIGATIONS – 106.4%** |
|  **Long-Term Municipal Bonds – 106.4%** | **Long-Term Municipal Bonds – 106.4%** | **Long-Term Municipal Bonds – 106.4%** |
|  **Alabama – 1.5%** | **Alabama – 1.5%** | **Alabama – 1.5%** |
|  Black Belt Energy Gas District<br>(Goldman Sachs Group, Inc. (The)) <br>Series 2021 <br>4.00%, 10/01/2052 | $22000 | $22358433 |
|  County of Jefferson AL Sewer Revenue <br>Series 2013-D <br>6.00%, 10/01/2042 | 11645 | 12768204 |
|  Infirmary Health System Special Care Facilities Financing Authority of Mobile<br>(Infirmary Health System Obligated Group) <br>Series 2016 <br>5.00%, 02/01/2036-02/01/2041 | 10000 | 10604418 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021 <br>4.00%, 02/01/2041-02/01/2046 | 13010 | 12840014 |
|  Jefferson County Board of Education/AL <br>Series 2018 <br>5.00%, 02/01/2039-02/01/2046 | 28280 | 30824402 |
|  Southeast Alabama Gas Supply District (The)<br>(Goldman Sachs Group, Inc. (The)) <br>Series 2018-A <br>4.00%, 04/01/2049 | 13350 | 13504743 |
|  Tuscaloosa County Industrial Development Authority<br>(Hunt Refining Co.) <br>Series 2019-A <br>5.25%, 05/01/2044<sup>(a)</sup> | 7735 | 7616009 |
|  |  | 110516223 |
|  **Alaska – 0.1%** | **Alaska – 0.1%** | **Alaska – 0.1%** |
|  State of Alaska International Airports System <br>Series 2016-B <br>5.00%, 10/01/2033-10/01/2034 | 9000 | 9580351 |
|  **American Samoa – 0.2%** | **American Samoa – 0.2%** | **American Samoa – 0.2%** |
|  American Samoa Economic Development Authority<br>(Territory of American Samoa) <br>Series 2015-A <br>6.625%, 09/01/2035 | 3235 | 3527884 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018 <br>7.125%, 09/01/2038<sup>(a)</sup> | 8315 | 9807512 |
|  |  | 13335396 |

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 13** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Arizona – 2.1%** | **Arizona – 2.1%** | **Arizona – 2.1%** |
|  Arizona Industrial Development Authority<br>(Arizona Industrial Development Authority)<br>Series 2019-2 <br>3.625%, 05/20/2033 | $15143 | $14881448 |
|  Arizona Industrial Development Authority<br>(Equitable School Revolving Fund LLC Obligated Group) <br>Series 2021 <br>4.00%, 11/01/2051<sup>(a)</sup> | 11325 | 10314253 |
|  Arizona Industrial Development Authority<br>(Kipp New York, Inc. Jerome Facility) <br>Series 2021-B <br>4.00%, 07/01/2051 | 1000 | 860643 |
|  Arizona Industrial Development Authority<br>(Legacy Cares, Inc.) <br>Series 2020 <br>7.75%, 07/01/2050<sup>(a)</sup> | 18270 | 20150336 |
|  Arizona Industrial Development Authority<br>(North Carolina Central University Project) <br>BAM Series 2019 <br>5.00%, 06/01/2049-06/01/2054 | 4285 | 4617778 |
|  Arizona Industrial Development Authority<br>(Pinecrest Academy of Nevada) <br>Series 2020-A <br>4.00%, 07/15/2030<sup>(a)</sup> | 1250 | 1214988 |
|  Arizona Industrial Development Authority<br>(Provident Group – EMU Properties LLC) <br>Series 2018 <br>5.00%, 05/01/2051 | 1100 | 964267 |
|  Arizona Sports & Tourism Authority <br>Series 2012-A <br>5.00%, 07/01/2029 | 3670 | 3687176 |
|  City of Glendale AZ<br>(City of Glendale AZ COP) <br>Series 2021 <br>2.442%, 07/01/2032<sup>(b)</sup> | 5000 | 4320484 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.542%, 07/01/2033<sup>(b)</sup> | 5000 | 4282247 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.642%, 07/01/2034<sup>(b)</sup> | 6795 | 5783629 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.742%, 07/01/2035<sup>(b)</sup> | 10000 | 8432565 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.842%, 07/01/2036<sup>(b)</sup> | 13000 | 10858736 |
|  City of Tempe AZ <br>2.321%, 07/01/2034<sup>(b)</sup> | 10500 | 8531278 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.421%, 07/01/2035<sup>(b)</sup> | 10325 | 8322101 |

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| **14 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Glendale Industrial Development Authority<br>(Beatitudes Campus Obligated Group (The)) <br>Series 2017 <br>5.00%, 11/15/2036 | $| 1000 | $| 986776 |
|  Glendale Industrial Development Authority<br>(Royal Oaks Life Care Community) <br>Series 2016 <br>5.00%, 05/15/2039 |  | 2700 |  | 2777401 |
|  Industrial Development Authority of the City of Phoenix (The)<br>(GreatHearts Arizona Obligated Group) <br>Series 2014 <br>5.00%, 07/01/2044 |  | 3875 |  | 3917983 |
|  Industrial Development Authority of the County of Pima (The)<br>(Edkey, Inc. Obligated Group) <br>Series 2020 <br>5.00%, 07/01/2049-07/01/2055<sup>(a)</sup> |  | 10590 |  | 9858565 |
|  Maricopa County Industrial Development Authority<br>(Benjamin Franklin Charter School Ltd.) <br>Series 2018-A <br>6.00%, 07/01/2052<sup>(a)</sup> |  | 19500 |  | 21210286 |
|  Maricopa County Industrial Development Authority<br>(Commercial Metals Co.) <br>Series 2022 <br>4.00%, 10/15/2047<sup>(a)</sup> |  | 2100 |  | 1909199 |
|  Salt Verde Financial Corp.<br>(Citigroup, Inc.) <br>Series 2007 <br>5.00%, 12/01/2032 |  | 4805 |  | 5245178 |
|  Tempe Industrial Development Authority<br>(Friendship Village of Tempe) <br>Series 2019 <br>5.00%, 12/01/2054 |  | 1185 |  | 1199862 |
|  Tempe Industrial Development Authority<br>(Mirabella at ASU, Inc.) <br>Series 2017-A <br>6.125%, 10/01/2047<sup>(a)</sup> |  | 1065 |  | 1065636 |
|  |  |  |  | 155392815 |
|  **Arkansas – 0.2%** | **Arkansas – 0.2%** | **Arkansas – 0.2%** | **Arkansas – 0.2%** | **Arkansas – 0.2%** |
|  Arkansas Development Finance Authority<br>(Baptist Memorial Health Care Obligated Group) <br>Series 2020 <br>5.00%, 09/01/2044 |  | 16250 |  | 17127831 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 15** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **California – 11.1%** | **California – 11.1%** | **California – 11.1%** |
|  Alameda Corridor Transportation Authority <br>Series 2016-B <br>5.00%, 10/01/2034-10/01/2037 | $26130 | $27557830 |
|  Anaheim Public Financing Authority <br>Series 2014-A <br>5.00%, 05/01/2031 (Pre-refunded/ETM) | 1460 | 1536531 |
|  ARC70 II TRUST <br>Series 2021 <br>4.00%, 12/01/2059 | 7860 | 6997139 |
|  Bay Area Toll Authority <br>Series 2013-S <br>5.00%, 04/01/2027 (Pre-refunded/ETM) | 1000 | 1027774 |
|  California Community Housing Agency<br>(California Community Housing Agency Aster Apartments) <br>Series 2021-A <br>4.00%, 02/01/2056<sup>(a)</sup> | 8200 | 7258178 |
|  California Community Housing Agency<br>(California Community Housing Agency Brio Apartments & Next on Lex Apartments) <br>Series 2021 <br>4.00%, 02/01/2056<sup>(a)</sup> | 39600 | 34748014 |
|  California Community Housing Agency<br>(California Community Housing Agency Fountains at Emerald Park) <br>Series 2021 <br>3.00%, 08/01/2056<sup>(a)</sup> | 8200 | 5783911 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 08/01/2046<sup>(a)</sup> | 7675 | 6112492 |
|  California Educational Facilities Authority (Chapman University) <br>Series 2015 <br>5.00%, 04/01/2033-04/01/2034 | 8210 | 8674951 |
|  California Educational Facilities Authority<br>(Loma Linda University) <br>Series 2017-A <br>5.00%, 04/01/2031-04/01/2042 | 2000 | 2161295 |
|  California Enterprise Development Authority<br>(Rocketship Education Obligated Group)<br>Series 2022 <br>4.00%, 06/01/2042<sup>(a)</sup> | 5000 | 4517978 |

---

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| | |
|:---|:---|
| **16 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  California Health Facilities Financing Authority<br>(Cedars-Sinai Medical Center Obligated Group) <br>Series 2021 <br>4.00%, 08/15/2040 | $10000 | $10020191 |
|  California Health Facilities Financing Authority<br>(Children's Hospital Los Angeles) <br>Series 2017-A <br>5.00%, 08/15/2037 | 1700 | 1848369 |
|  California Health Facilities Financing Authority<br>(CommonSpirit Health) <br>Series 2020-A <br>4.00%, 04/01/2044 | 12500 | 12138592 |
|  California Health Facilities Financing Authority<br>(Lucile Salter Packard Children's Hospital at Stanford Obligated Group) <br>Series 2022-A <br>4.00%, 05/15/2051<sup>(c)</sup> | 15000 | 14492689 |
|  California Housing Finance Agency <br>Series 2019-2 <br>4.00%, 03/20/2033 | 14796 | 15197695 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-1, Class A <br>3.50%, 11/20/2035 | 9366 | 9365909 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-2 <br>1.00%, 03/25/2035 | 23000 | 1376787 |
|  California Infrastructure & Economic Development Bank<br>(Equitable School Revolving Fund LLC Obligated Group) <br>Series 2020-B <br>4.00%, 11/01/2045-11/01/2050 | 1710 | 1657257 |
|  California Municipal Finance Authority<br>(CHF-Riverside II LLC) <br>Series 2019 <br>5.00%, 05/15/2039-05/15/2040 | 3030 | 3226076 |
|  California Municipal Finance Authority<br>(Community Hospitals of Central California Obligated Group) <br>Series 2021-A <br>4.00%, 02/01/2051 | 5000 | 4775141 |
|  California Municipal Finance Authority<br>(Goodwill Industries of Sacramento Valley & Northern Nevada, Inc.) <br>Series 2012-A <br>6.625%, 01/01/2032<sup>(a)</sup> | 960 | 960057 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 17** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2014 <br>5.00%, 01/01/2035 | $1085 | $948482 |
|  California Municipal Finance Authority<br>(LAX Integrated Express Solutions LLC) <br>Series 2018 <br>5.00%, 12/31/2043 | 3625 | 3789643 |
|  California Municipal Finance Authority<br>(Partnerships to Uplift Communities Lakeview Terrace and Los Angeles Project) <br>Series 2012-A <br>5.30%, 08/01/2047 | 1025 | 1026379 |
|  California Pollution Control Financing Authority<br>(Poseidon Resources Channelside LP) <br>Series 2012 <br>5.00%, 11/21/2045<sup>(a)</sup> | 4675 | 4712729 |
|  California Pollution Control Financing Authority<br>(Rialto Bioenergy Facility LLC) <br>Series 2019 <br>7.50%, 12/01/2040<sup>(a)</sup> | 785 | 525980 |
|  California Public Finance Authority<br>(Enso Village) <br>Series 2021 <br>2.125%, 11/15/2027<sup>(a)</sup> | 2500 | 2369571 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.375%, 11/15/2028<sup>(a)</sup> | 3000 | 2819500 |
|  California School Finance Authority<br>(Equitas Academy Obligated Group) <br>Series 2018-A <br>5.00%, 06/01/2056<sup>(a)</sup> | 8850 | 8932552 |
|  California School Finance Authority<br>(Partnerships to Uplift Communities Valley Project)<br>Series 2014-A <br>6.40%, 08/01/2034<sup>(a)</sup> | 3000 | 3124043 |
|  California State University <br>2.719%, 11/01/2052<sup>(b)</sup> | 5000 | 3901804 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-B <br>2.374%, 11/01/2035<sup>(b)</sup> | 10000 | 8038393 |
|  California Statewide Communities Development Authority <br>Series 2012-A <br>6.00%, 10/01/2047 (Pre-refunded/ETM) | 250 | 254525 |

---

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| | |
|:---|:---|
| **18 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  California Statewide Communities Development Authority<br>(CHF-Irvine LLC) <br>BAM Series 2021 <br>3.00%, 05/15/2051 | $13000 | $10103999 |
|  California Statewide Communities Development Authority<br>(Eskaton Properties, Inc. Obligated Group) <br>Series 2012 <br>5.25%, 11/15/2034 | 530 | 533872 |
|  California Statewide Communities Development Authority<br>(Loma Linda University Medical Center) <br>Series 2016-A <br>5.00%, 12/01/2041<sup>(a)</sup> | 6160 | 6395583 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 12/01/2056<sup>(a)</sup> | 12590 | 13046787 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018 <br>5.25%, 12/01/2038-12/01/2048<sup>(a)</sup> | 7440 | 7830511 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-A <br>5.00%, 12/01/2033<sup>(a)</sup> | 1350 | 1435774 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.50%, 12/01/2058<sup>(a)</sup> | 17615 | 18647369 |
|  California Statewide Communities Development Authority<br>(Moldaw Residences) <br>Series 2014-A <br>5.25%, 11/01/2044<sup>(a)</sup> | 1200 | 1166068 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 11/01/2049<sup>(a)</sup> | 1000 | 979606 |
|  California Statewide Communities Development Authority<br>(NCCD-Hooper Street LLC) <br>Series 2019 <br>5.25%, 07/01/2049<sup>(a)</sup> | 1125 | 1013897 |
|  City of Los Angeles Department of Airports <br>5.00%, 05/15/2036-05/15/2044<sup>(b)</sup> | 25415 | 27405871 |
|  City of Roseville CA<br>(HP Campus Oaks Community Facilities District No. 1) <br>Series 2016 <br>5.50%, 09/01/2046 | 850 | 896654 |
|  City of Vernon CA Electric System Revenue Series 2022-2 <br>5.00%, 08/01/2039-08/01/2041<sup>(c)</sup> | 1220 | 1297459 |
|  CMFA Special Finance Agency <br>Series 2022-A <br>4.00%, 08/01/2058<sup>(a)</sup> | 15000 | 12221863 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 19** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  CMFA Special Finance Agency<br>(CMFA Special Finance Agency Latitude33)<br>Series 2021-A <br>3.00%, 12/01/2056<sup>(a)</sup> | $4000 | $2734690 |
|  CMFA Special Finance Agency<br>(CMFA Special Finance Agency Solana at Grand) <br>Series 2021-A <br>4.00%, 08/01/2056<sup>(a)</sup> | 8650 | 7557365 |
|  CMFA Special Finance Agency VIII Elan Huntington Beach <br>Series 2021 <br>3.00%, 08/01/2056<sup>(a)</sup> | 7000 | 4993895 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 08/01/2047<sup>(a)</sup> | 4000 | 3073343 |
|  CSCDA Community Improvement Authority<br>(CSCDA Community Improvement Authority 1818 Platinum Triangle-Anaheim) <br>Series 2021 <br>3.25%, 04/01/2057<sup>(a)</sup> | 3890 | 2878823 |
|  CSCDA Community Improvement Authority<br>(CSCDA Community Improvement Authority 777 Place-Pomona) <br>Series 2021 <br>3.25%, 05/01/2057<sup>(a)</sup> | 11150 | 8085373 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 05/01/2057<sup>(a)</sup> | 15550 | 11523822 |
|  CSCDA Community Improvement Authority<br>(CSCDA Community Improvement Authority Acacia on Santa Rosa Creek) <br>Series 2021 <br>4.00%, 10/01/2056<sup>(a)</sup> | 14000 | 12282046 |
|  CSCDA Community Improvement Authority<br>(CSCDA Community Improvement Authority Altana Apartments) <br>Series 2021 <br>4.00%, 10/01/2056<sup>(a)</sup> | 15200 | 12542993 |
|  CSCDA Community Improvement Authority<br>(CSCDA Community Improvement Authority Crescent)<br>Series 2022 <br>4.30%, 07/01/2059<sup>(a)</sup> | 11400 | 9818879 |
|  CSCDA Community Improvement Authority<br>(CSCDA Community Improvement Authority Jefferson Platinum Triangle Apartments) <br>Series 2021-A2 <br>3.125%, 08/01/2056<sup>(a)</sup> | 3025 | 2189523 |

---

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| | |
|:---|:---|
| **20 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  CSCDA Community Improvement Authority<br>(CSCDA Community Improvement Authority Millennium South Bay-Hawthorne)<br>Series 2021 <br>3.25%, 07/01/2056<sup>(a)</sup> | $10000 | $7363311 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 07/01/2058<sup>(a)</sup> | 6000 | 4459151 |
|  CSCDA Community Improvement Authority<br>(CSCDA Community Improvement Authority Oceanaire Apartments) <br>Series 2021 <br>4.00%, 09/01/2056<sup>(a)</sup> | 5000 | 4399949 |
|  CSCDA Community Improvement Authority<br>(CSCDA Community Improvement Authority Park Crossing Apartments) <br>Series 2021 <br>3.25%, 12/01/2058<sup>(a)</sup> | 12700 | 8901976 |
|  CSCDA Community Improvement Authority<br>(CSCDA Community Improvement Authority Pasadena Portfolio) <br>Series 2021 <br>3.00%, 12/01/2056<sup>(a)</sup> | 6500 | 4612331 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 12/01/2056<sup>(a)</sup> | 2400 | 1798114 |
|  CSCDA Community Improvement Authority<br>(CSCDA Community Improvement Authority Theo Apartments) <br>Series 2021 <br>4.00%, 05/01/2057<sup>(a)</sup> | 5400 | 4008302 |
|  CSCDA Community Improvement Authority<br>(CSCDA Community Improvement Authority Union South Bay) <br>Series 2021-A2 <br>4.00%, 07/01/2056<sup>(a)</sup> | 25950 | 22362716 |
|  CSCDA Community Improvement Authority<br>(CSCDA Community Improvement Authority Waterscape Apartments) <br>Series 2021-A <br>3.00%, 09/01/2056<sup>(a)</sup> | 1000 | 707753 |
|  Golden State Tobacco Securitization Corp. <br>2.746%, 06/01/2034<sup>(b)</sup> | 14780 | 12807133 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.115%, 06/01/2038<sup>(b)</sup> | 29325 | 24348336 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.293%, 06/01/2042<sup>(b)</sup> | 6850 | 5490905 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-A <br>5.00%, 06/01/2047 (Pre-refunded/ETM) | 59495 | 59667945 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 06/01/2047 (Pre-refunded/ETM) | 2400 | 2407275 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 21** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021 <br>3.85%, 06/01/2050 | $22000 | $20355854 |
|  Hastings Campus Housing Finance Authority <br>Series 2020-A <br>5.00%, 07/01/2061 | 28625 | 29591861 |
|  Los Angeles County Public Works Financing Authority<br>(County of Los Angeles CA Lease) <br>Series 2022-G <br>5.00%, 12/01/2036-12/01/2039<sup>(c)</sup> | 13750 | 15743037 |
|  Los Angeles Department of Water & Power Water System Revenue <br>Series 2021-C <br>5.00%, 07/01/2040 | 10530 | 11870866 |
|  M-S-R Energy Authority<br>(Citigroup, Inc.) <br>Series 2009-B <br>6.50%, 11/01/2039 | 17685 | 21960817 |
|  Oakland Unified School District/Alameda County <br>Series 2015-A <br>5.00%, 08/01/2030 | 1275 | 1360571 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 08/01/2034 (Pre-refunded/ETM) | 1440 | 1557106 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 08/01/2040 (Pre-refunded/ETM) | 3500 | 3784633 |
|  Palomar Health<br>(Palomar Health Obligated Group) <br>Series 2016 <br>5.00%, 11/01/2039 | 3990 | 4265993 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017 <br>5.00%, 11/01/2042 | 3375 | 3666122 |
|  Riverside County Transportation Commission <br>Series 2021 <br>4.00%, 06/01/2040 | 3875 | 3799965 |
|  Sacramento County Water Financing Authority<br>(Sacramento County Water Agency) <br>NATL Series 2007-B <br>0.92% (LIBOR 3 Month + 0.57%), 06/01/2039<sup>(d)</sup> | 33680 | 29986533 |
|  San Diego County Regional Airport Authority <br>Series 2021-B <br>4.00%, 07/01/2046-07/01/2051 | 15000 | 14224844 |

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| | |
|:---|:---|
| **22 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  San Diego Unified School District/CA <br>Series 2021-N <br>4.00%, 07/01/2046 | $5000 | $4991073 |
|  San Francisco City & County Airport Comm<br>3.053%, 05/01/2034<sup>(b)</sup> | 3500 | 3050694 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.183%, 05/01/2035<sup>(b)</sup> | 5500 | 4788118 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.333%, 05/01/2037<sup>(b)</sup> | 2250 | 1941327 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-E <br>5.00%, 05/01/2038<sup>(b)</sup> | 11000 | 11921956 |
|  San Francisco City & County Redevelopment Agency Successor Agency<br>(Mission Bay South Public Imp) <br>Series 2013-A <br>5.00%, 08/01/2031 | 1000 | 1003471 |
|  San Francisco Intl Airport <br>Series 2020-E <br>5.00%, 05/01/2037<sup>(b)</sup> | 8525 | 9254694 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022-A <br>5.00%, 05/01/2052 | 14000 | 15060228 |
|  San Joaquin Hills Transportation Corridor Agency <br>Series 2014-B <br>5.25%, 01/15/2044 | 1000 | 1044056 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-A <br>4.00%, 01/15/2044 | 1429 | 1379997 |
|  Southern California Logistics Airport Authority <br>XLCA INS Series 2006 <br>5.00%, 12/01/2036-12/01/2043 | 1685 | 1729621 |
|  State of California <br>Series 2021 <br>4.00%, 10/01/2035-10/01/2036 | 19375 | 20078878 |
|  Tobacco Securitization Authority of Northern California<br>(Sacramento County Tobacco Securitization Corp.) <br>Series 2021 <br>Zero Coupon, 06/01/2060 | 5050 | 787573 |
|  Tobacco Securitization Authority of Southern California <br>Series 2019 <br>Zero Coupon, 06/01/2054 | 10480 | 1823250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 06/01/2039 | 1555 | 1662865 |
|  |  | 808555722 |

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 23** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Colorado – 2.8%** | **Colorado – 2.8%** | **Colorado – 2.8%** |
|  Aurora Highlands Community Authority Board<br>Series 2021-A <br>5.75%, 12/01/2051 | $15000 | $13805632 |
|  Centerra Metropolitan District No. 1 <br>Series 2017 <br>5.00%, 12/01/2037<sup>(a)</sup> | 5000 | 5025761 |
|  City & County of Denver CO<br>(United Airlines, Inc.) <br>Series 2017 <br>5.00%, 10/01/2032 | 645 | 658948 |
|  City & County of Denver CO. Airport System Revenue<br>(Denver Intl Airport) <br>Series 2018-A <br>5.00%, 12/01/2031 | 7180 | 7741038 |
|  Colorado Educational & Cultural Facilities Authority<br>(Vega Collegiate Academy) <br>Series 2021 <br>5.00%, 02/01/2051-02/01/2061<sup>(a)</sup> | 3135 | 2837860 |
|  Colorado Health Facilities Authority <br>(Aberdeen Ridge, Inc. Obligated Group)<br>Series 2021-A<br>5.00%, 05/15/2049-05/15/2058 | 4300 | 3683852 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-B <br>2.125%, 05/15/2028 | 1500 | 1398802 |
|  Colorado Health Facilities Authority<br>(CommonSpirit Health) <br>Series 2019-A <br>4.00%, 08/01/2037-08/01/2038 | 8295 | 8052691 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 08/01/2044<sup>(b)</sup> | 74345 | 80124967 |
|  Colorado Health Facilities Authority<br>(Frasier Meadows Manor, Inc. Obligated Group) <br>Series 2023-2 <br>4.00%, 05/15/2048<sup>(c)</sup> | 2100 | 1760806 |
|  Colorado Health Facilities Authority<br>(Parkview Medical Center, Inc. Obligated Group) <br>Series 2015-B <br>5.00%, 09/01/2030 | 1150 | 1224821 |
|  Colorado Health Facilities Authority<br>(Sanford Obligated Group) <br>Series 2019-A <br>5.00%, 11/01/2049 | 7050 | 7588982 |

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| | |
|:---|:---|
| **24 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Copper Ridge Metropolitan District <br>Series 2019 <br>5.00%, 12/01/2039-12/01/2043 | $3660 | $3449911 |
|  Douglas County Housing Partnership<br>(Bridgewater Castle Rock ALF LLC) <br>Series 2021 <br>5.375%, 01/01/2041<sup>(a)</sup> | 19590 | 15966224 |
|  Johnstown Plaza Metropolitan District <br>Series 2022 <br>4.25%, 12/01/2046 | 10000 | 8609278 |
|  Longs Peak Metropolitan District <br>Series 2021 <br>5.25%, 12/01/2051<sup>(a)</sup> | 5000 | 4235488 |
|  Plaza Metropolitan District No. 1 <br>Series 2013 <br>5.00%, 12/01/2040<sup>(a)</sup> | 1500 | 1501978 |
|  Pueblo Urban Renewal Authority <br>Series 2021 <br>4.75%, 12/01/2045<sup>(a)</sup> | 8010 | 7471207 |
|  Regional Transportation District<br>(Denver Transit Partners LLC) <br>Series 2020 <br>4.00%, 07/15/2034-07/15/2035 | 2180 | 2153855 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 01/15/2032 | 2300 | 2483972 |
|  Regional Transportation District Sales Tax Revenue <br>Series 2021 <br>4.00%, 11/01/2039 | 15000 | 15727848 |
|  Riverwalk Metropolitan District No. 2 <br>Series 2022-A <br>5.00%, 12/01/2042-12/01/2052 | 5500 | 4999846 |
|  STC Metropolitan District No. 2 <br>Series 2019-A <br>5.00%, 12/01/2038-12/01/2049 | 1940 | 1932672 |
|  Sterling Ranch Community Authority Board<br>(Sterling Ranch Colorado Metropolitan District No. 2)<br>Series 2020-A <br>4.25%, 12/01/2050 | 2250 | 1933360 |
|  Sterling Ranch Community Authority Board<br>(Sterling Ranch Metropolitan District No. 3) <br>Series 2017-A <br>5.00%, 12/01/2038-12/01/2047 | 2000 | 2034734 |
|  Vauxmont Metropolitan District <br>AGM Series 2019 <br>3.25%, 12/15/2050 | 772 | 672941 |

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 25** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2020 <br>5.00%, 12/01/2033-12/01/2050 | $| 805 | $| 901788 |
|  |  |  |  | 207979262 |
|  **Connecticut – 2.1%** | **Connecticut – 2.1%** | **Connecticut – 2.1%** | **Connecticut – 2.1%** | **Connecticut – 2.1%** |
|  City of New Haven CT <br>AGM Series 2019-A <br>5.00%, 08/01/2039 |  | 1650 |  | 1827097 |
|  Connecticut State Health & Educational Facilities Authority<br>(Hartford HealthCare Obligated Group) <br>Series 2020-A <br>4.00%, 07/01/2036-07/01/2038 |  | 3850 |  | 3849135 |
|  Connecticut State Health & Educational Facilities Authority<br>(Quinnipiac University) <br>Series 2015-L <br>5.00%, 07/01/2045 |  | 5750 |  | 5999967 |
|  Connecticut State Health & Educational Facilities Authority<br>(Sacred Heart University, Inc.) <br>Series 2017-I1 <br>5.00%, 07/01/2035-07/01/2037 |  | 2095 |  | 2253823 |
|  Connecticut State Health & Educational Facilities Authority<br>(Seabury Retirement Community) <br>Series 2016-A <br>5.00%, 09/01/2046-09/01/2053<sup>(a)</sup> |  | 2475 |  | 2494199 |
|  Connecticut State Health & Educational Facilities Authority<br>(University of Hartford (The)) <br>Series 2019 <br>4.00%, 07/01/2044-07/01/2049 |  | 18035 |  | 16353217 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 07/01/2033-07/01/2034 |  | 765 |  | 806280 |
|  Connecticut State Health & Educational Facilities Authority<br>(University of New Haven, Inc.) <br>Series 2018 <br>5.00%, 07/01/2034 |  | 1000 |  | 1051273 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-K1 <br>5.00%, 07/01/2028-07/01/2038 |  | 7090 |  | 7443797 |
|  State of Connecticut <br>Series 2013-E <br>5.00%, 08/15/2031<sup>(b)</sup> |  | 1000 |  | 1031518 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-F <br>5.00%, 11/15/2032 |  | 2875 |  | 3074183 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-A <br>5.00%, 03/15/2032 |  | 8165 |  | 8764234 |

---

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| | |
|:---|:---|
| **26 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-E<br>5.00%, 10/15/2028-10/15/2034<sup>(b)</sup> | $| 12845 | $| 13970970 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-F <br>5.00%, 10/15/2031<sup>(b)</sup> |  | 10205 |  | 11064218 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-A <br>5.00%, 04/15/2029-04/15/2034<sup>(b)</sup> |  | 27825 |  | 30389793 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-A <br>5.00%, 04/15/2034-04/15/2037 |  | 7930 |  | 8738700 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-C <br>5.00%, 06/15/2031-06/15/2038 |  | 7490 |  | 8290156 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-E <br>5.00%, 09/15/2037 |  | 1035 |  | 1142706 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-A <br>5.00%, 01/15/2040 |  | 8300 |  | 9202613 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-C <br>4.00%, 06/01/2035-06/01/2038 |  | 3775 |  | 3904688 |
|  State of Connecticut Special Tax Revenue <br>Series 2012-A <br>5.00%, 01/01/2031 |  | 5000 |  | 5082983 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020 <br>5.00%, 05/01/2038-05/01/2040 |  | 4530 |  | 5051158 |
|  |  |  |  | 151786708 |
|  **Delaware – 0.2%** | **Delaware – 0.2%** | **Delaware – 0.2%** | **Delaware – 0.2%** | **Delaware – 0.2%** |
|  Delaware River & Bay Authority <br>Series 2021 <br>4.00%, 01/01/2042 |  | 550 |  | 567710 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022 <br>5.00%, 01/01/2027-01/01/2041<sup>(c)</sup> |  | 6085 |  | 6701459 |
|  Delaware State Economic Development Authority <br>Series 2014 <br>5.00%, 09/01/2044 (Pre-refunded/ETM) |  | 1125 |  | 1186860 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 09/01/2049 (Pre-refunded/ETM) |  | 1315 |  | 1387308 |
|  Delaware State Economic Development Authority<br>(Newark Charter School, Inc.) <br>Series 2020 <br>5.00%, 09/01/2050 |  | 1125 |  | 1160818 |
|  |  |  |  | 11004155 |
|  **District of Columbia – 0.6%** | **District of Columbia – 0.6%** | **District of Columbia – 0.6%** | **District of Columbia – 0.6%** | **District of Columbia – 0.6%** |
|  District of Columbia <br>Series 2012 <br>5.00%, 06/01/2042 (Pre-refunded/ETM) |  | 1420 |  | 1444992 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 27** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  District of Columbia<br>(Friendship Public Charter School, Inc.) <br>Series 2016-A <br>5.00%, 06/01/2041-06/01/2046 | $| 1900 | $| 1935692 |
|  District of Columbia<br>(KIPP DC Obligated Group) <br>Series 2017-A <br>5.00%, 07/01/2042-07/01/2048 |  | 8580 |  | 8818147 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-B <br>5.00%, 07/01/2037 |  | 1465 |  | 1521867 |
|  District of Columbia<br>(Rocketship DC Obligated Group) <br>Series 2021 <br>5.00%, 06/01/2051-06/01/2061<sup>(a)</sup> |  | 2000 |  | 2032576 |
|  District of Columbia Tobacco Settlement Financing Corp. <br>Series 2006 <br>Zero Coupon, 06/15/2055 |  | 182000 |  | 13272874 |
|  Metropolitan Washington Airports Authority Aviation Revenue <br>Series 2018-A <br>5.00%, 10/01/2048 |  | 7400 |  | 7837001 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-A <br>4.00%, 10/01/2035-10/01/2039 |  | 3750 |  | 3753359 |
|  |  |  |  | 40616508 |
|  **Florida – 6.7%** | **Florida – 6.7%** | **Florida – 6.7%** | **Florida – 6.7%** | **Florida – 6.7%** |
|  Alachua County Health Facilities Authority<br>(Oak Hammock at the University of Florida, Inc.) <br>Series 2012-A <br>8.00%, 10/01/2046 |  | 435 |  | 454712 |
|  Alachua County Health Facilities Authority<br>(Shands Teaching Hospital & Clinics Obligated Group) <br>Series 2014-A <br>5.00%, 12/01/2044 |  | 1000 |  | 1035425 |
|  Align Affordable Housing Bond Fund LP<br>(SHI – Lake Worth LLC) <br>Series 2021 <br>3.25%, 12/01/2051<sup>(a)</sup> |  | 26000 |  | 18883922 |
|  Bexley Community Development District <br>Series 2016 <br>4.875%, 05/01/2047 |  | 985 |  | 986590 |
|  Cape Coral Health Facilities Authority<br>(Gulf Care, Inc. Obligated Group) <br>Series 2015 <br>5.875%, 07/01/2040<sup>(a)</sup> |  | 1400 |  | 1402865 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.00%, 07/01/2045-07/01/2050<sup>(a)</sup> |  | 4110 |  | 4114838 |

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| | |
|:---|:---|
| **28 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Capital Projects Finance Authority/FL<br>(CAPFA Capital Corp. 2000F) <br>Series 2020-A <br>5.00%, 10/01/2026-10/01/2033 | $5700 | $6063605 |
|  Capital Trust Agency, Inc.<br>(Aviva Senior Life) <br>Series 2017 <br>5.00%, 07/01/2046<sup>(a)</sup> | 1300 | 1150255 |
|  Capital Trust Agency, Inc.<br>(Educational Growth Fund LLC) <br>Series 2021 <br>5.00%, 07/01/2056<sup>(a)</sup> | 6650 | 6727453 |
|  Capital Trust Agency, Inc.<br>(Team Success A School of Excellence, Inc.) <br>Series 2020 <br>5.00%, 06/01/2045-06/01/2055<sup>(a)</sup> | 3865 | 3522023 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022 <br>5.50%, 06/01/2057<sup>(a)</sup> | 3000 | 2724615 |
|  City of Jacksonville FL<br>(Genesis Health, Inc. Obligated Group) <br>Series 2020 <br>4.00%, 11/01/2039-11/01/2045 | 11325 | 11186063 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 11/01/2050 | 8230 | 8882339 |
|  City of Lakeland FL<br>(Florida Southern College) <br>Series 2012-A <br>5.00%, 09/01/2037-09/01/2042 | 2350 | 2361662 |
|  City of Lakeland FL<br>(Lakeland Regional Health Systems Obligated Group) <br>Series 2015 <br>5.00%, 11/15/2040 | 5610 | 5833579 |
|  City of South Miami Health Facilities Authority, Inc.<br>(Baptist Health South Florida Obligated Group) <br>Series 2017 <br>5.00%, 08/15/2037-08/15/2047<sup>(b)</sup> | 14530 | 15584738 |
|  City of Tallahassee FL<br>(Tallahassee Memorial HealthCare, Inc.) <br>Series 2015-A <br>5.00%, 12/01/2044 | 1200 | 1268472 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016 <br>5.00%, 12/01/2055 | 3535 | 3732460 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 29** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  City of Tampa FL<br>(State of Florida Cigarette Tax Revenue) <br>Series 2020-A <br>Zero Coupon, 09/01/2036-09/01/2049 | $6580 | $2725914 |
|  County of Broward FL Airport System Revenue <br>Series 2019-A <br>4.00%, 10/01/2044 | 12170 | 11796071 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 10/01/2038-10/01/2044 | 6095 | 6513476 |
|  County of Broward FL Airport System Revenue<br>(Fort Lauderdale Hollywood Intl Airport) <br>Series 2017 <br>5.00%, 10/01/2042-10/01/2047 | 7880 | 8290066 |
|  County of Lake FL<br>(Waterman Communities, Inc.) <br>Series 2020 <br>5.75%, 08/15/2050-08/15/2055 | 8905 | 8698179 |
|  County of Miami-Dade FL Aviation Revenue<br>Series 2014-A <br>5.00%, 10/01/2033<sup>(b)</sup> | 10000 | 10319167 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-A <br>5.00%, 10/01/2031 | 1100 | 1151949 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-B <br>5.00%, 10/01/2040 | 9025 | 9476412 |
|  County of Miami-Dade Seaport Department <br>Series 2021-B <br>4.00%, 01/10/2046-01/10/2050 | 20000 | 19438537 |
|  County of Osceola FL Transportation Revenue <br>Series 2020-A <br>Zero Coupon, 10/01/2035-10/01/2039 | 6045 | 3052208 |
|  County of Palm Beach FL<br>(Provident Group-PBAU Properties LLC)<br>Series 2019 <br>5.00%, 04/01/2039-04/01/2051<sup>(a)</sup> | 4030 | 4029453 |
|  Florida Development Finance Corp. <br>Series 2022-A <br>5.00%, 06/15/2047 | 2310 | 2356785 |
|  Florida Development Finance Corp. <br>(Brightline Trains Florida LLC)<br>Series 2020<br>7.375%, 01/01/2049<sup>(a)</sup> | 4000 | 4089564 |

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| | |
|:---|:---|
| **30 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Florida Development Finance Corp.<br>(Mater Academy, Inc.) <br>Series 2020-A <br>5.00%, 06/15/2040-06/15/2055 | $8150 | $8305228 |
|  Florida Development Finance Corp.<br>(Mayflower Retirement Center, Inc. Obligated Group) <br>Series 2020 <br>5.25%, 06/01/2050-06/01/2055<sup>(a)</sup> | 10500 | 10691612 |
|  Florida Development Finance Corp.<br>(River City Education Obligated Group) <br>Series 2022 <br>5.00%, 07/01/2042-02/01/2057 | 1405 | 1421125 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 07/01/2042-07/01/2057<sup>(c)</sup> | 1790 | 1680420 |
|  Florida Higher Educational Facilities Financial Authority<br>(Florida Institute of Technology, Inc.) <br>Series 2019 <br>4.00%, 10/01/2037 | 1000 | 942608 |
|  Florida Higher Educational Facilities Financial Authority<br>(Ringling College of Art and Design, Inc.)<br>Series 2019 <br>5.00%, 03/01/2044-03/01/2049 | 9490 | 10041884 |
|  Florida Municipal Power Agency<br>(Florida Municipal Power Agency All-Requirements Power Supply Project Revenue) <br>Series 2021 <br>1.425%, 10/01/2026 | 2700 | 2473478 |
|  Florida State Board of Education<br>(State of Florida) <br>Series 2022-A <br>5.00%, 06/01/2032-06/01/2033 | 27465 | 32793279 |
|  Greater Orlando Aviation Authority <br>5.00%, 10/01/2034-10/01/2044<sup>(b)</sup> | 15000 | 16130186 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-A <br>5.00%, 10/01/2031-10/01/2036<sup>(b)</sup> | 15500 | 16485883 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-A <br>5.00%, 10/01/2036-10/01/2054<sup>(b)</sup> | 13500 | 14433473 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022-A <br>4.00%, 10/01/2052 | 15000 | 14387209 |
|  Highlands County Health Facilities Authority<br>(Trousdale Foundation Obligated Group)<br>Series 2018 <br>6.00%, 04/01/2038<sup>(e)(f)</sup> | 1530 | 719100 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.25%, 04/01/2049<sup>(e)(f)</sup> | 1820 | 855400 |

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 31** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Lakewood Ranch Stewardship District <br>Series 2018 <br>5.30%, 05/01/2039 | $1000 | $1030605 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.45%, 05/01/2048 | 1525 | 1565155 |
|  Lee County Industrial Development Authority/FL<br>(Cypress Cove at Healthpark Florida Obligated Group) <br>Series 2022 <br>5.25%, 10/01/2052-10/01/2057 | 5000 | 4942019 |
|  Manatee County School District<br>(Manatee County School District Sales Tax) <br>AGM Series 2017 <br>5.00%, 10/01/2030 | 2700 | 2982319 |
|  Marshall Creek Community Development District<br>(Marshall Creek Community Development District 2015A) <br>Series 2015-A <br>5.00%, 05/01/2032 | 1395 | 1404423 |
|  Miami Beach Health Facilities Authority <br>Series 2012 <br>5.00%, 11/15/2029 (Pre-refunded/ETM) | 2885 | 2936999 |
|  Miami Beach Health Facilities Authority<br>(Mount Sinai Medical Center of Florida, Inc.) <br>Series 2014 <br>5.00%, 11/15/2039 | 2000 | 2080471 |
|  Miami-Dade County Expressway Authority <br>Series 2014-A <br>5.00%, 07/01/2034 | 4000 | 4177302 |
|  Mid-Bay Bridge Authority <br>Series 2015-A <br>5.00%, 10/01/2028-10/01/2040 | 3600 | 3772029 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-C <br>5.00%, 10/01/2035-10/01/2040 | 2750 | 2856311 |
|  North Broward Hospital District <br>Series 2017-B <br>5.00%, 01/01/2037-01/01/2048 | 21590 | 23005961 |
|  Orange County Health Facilities Authority<br>(Orlando Health Obligated Group) <br>Series 2022 <br>4.00%, 10/01/2052 | 20000 | 19182946 |

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| | |
|:---|:---|
| **32 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Orange County Health Facilities Authority<br>(Presbyterian Retirement Communities, Inc. Obligated Group) <br>Series 2023 <br>4.00%, 08/01/2042<sup>(c)</sup> | $5750 | $5228641 |
|  Palm Beach County Educational Facilities Authority<br>(Palm Beach Atlantic University Obligated Group) <br>Series 2021 <br>4.00%, 10/01/2041-10/01/2051 | 5360 | 4917343 |
|  Palm Beach County Health Facilities Authority<br>(ACTS Retirement-Life Communities, Inc. Obligated Group) <br>Series 2020-B <br>5.00%, 11/15/2042 | 1000 | 1090575 |
|  Palm Beach County Health Facilities Authority<br>(Federation CCRC Operations Corp. Obligated Group) <br>Series 2020 <br>2.625%, 06/01/2025 | 2045 | 1981569 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 06/01/2055 | 2880 | 2925110 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022 <br>4.25%, 06/01/2056 | 2700 | 2447748 |
|  Pinellas County Industrial Development Authority <br>Series 2019 <br>5.00%, 07/01/2039 | 1955 | 2006933 |
|  Polk County Industrial Development Authority<br>(Mineral Development LLC) <br>Series 2020 <br>5.875%, 01/01/2033<sup>(a)</sup> | 4000 | 4252200 |
|  St. Johns County Industrial Development Authority<br>(Presbyterian Retirement Communities, Inc. Obligated Group) <br>Series 2020 <br>4.00%, 08/01/2055 | 5300 | 5414366 |
|  Tampa Florida Hospitals <br>5.00%, 07/01/2050<sup>(b)</sup> | 18325 | 19713839 |
|  Town of Davie FL <br>Series 2013-A <br>5.625%, 04/01/2043 (Pre-refunded/ETM) | 3765 | 3886547 |

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 33** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Town of Davie FL<br>(Nova Southeastern University, Inc.) <br>Series 2018 <br>5.00%, 04/01/2048 | $| 24650 | $| 26652290 |
|  Village Community Development District No. 13 <br>Series 2019 <br>3.00%, 05/01/2029 |  | 970 |  | 917815 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.375%, 05/01/2034 |  | 1455 |  | 1331489 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.55%, 05/01/2039 |  | 2535 |  | 2261575 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.70%, 05/01/2050 |  | 9680 |  | 8274317 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020 <br>3.50%, 05/01/2051<sup>(a)</sup> |  | 4955 |  | 4099124 |
|  Volusia County School Board<br>(Volusia County School Board COP) <br>Series 2014-B <br>5.00%, 08/01/2031 |  | 1625 |  | 1705281 |
|  |  |  |  | 488257584 |
|  **Georgia – 1.5%** | **Georgia – 1.5%** | **Georgia – 1.5%** | **Georgia – 1.5%** | **Georgia – 1.5%** |
|  Cedartown Polk County Hospital Authority <br>Series 2016 <br>5.00%, 07/01/2039 (Pre-refunded/ETM) |  | 4000 |  | 4376146 |
|  City of Atlanta GA Department of Aviation <br>Series 2014-A <br>5.00%, 01/01/2033 |  | 1820 |  | 1883169 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-C <br>4.00%, 07/01/2040 |  | 2305 |  | 2283405 |
|  Clarke County Hospital Authority<br>(Piedmont Healthcare, Inc. Obligated Group) <br>Series 2016 <br>5.00%, 07/01/2031 |  | 2500 |  | 2683986 |
|  Development Authority for Fulton County<br>(Piedmont Healthcare, Inc. Obligated Group) <br>Series 2016-A <br>5.00%, 07/01/2032 |  | 2000 |  | 2143150 |
|  Development Authority of Gwinnett County<br>(Board of Regents of the University System of Georgia Lease) <br>Series 2017-A <br>5.00%, 07/01/2032-07/01/2037<sup>(b)</sup> |  | 10855 |  | 11869440 |
|  Fayette County Hospital Authority/GA <br>(Piedmont Healthcare, Inc. Obligated Group)<br>Series 2016 <br>5.00%, 07/01/2034-07/01/2036 |  | 10710 |  | 11431916 |

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| | |
|:---|:---|
| **34 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  George L Smith II Congress Center Authority<br>(Signia Hotel Management LLC) <br>Series 2021 <br>4.00%, 01/01/2054 | $| 1485 | $| 1334817 |
|  Glynn-Brunswick Memorial Hospital Authority<br>(Southeast Georgia Health System Obligated Group) <br>Series 2017 <br>5.00%, 08/01/2043-08/01/2047 |  | 12680 |  | 13440915 |
|  Main Street Natural Gas, Inc.<br>(Citadel LP) <br>Series 2022-C <br>4.00%, 08/01/2052<sup>(a)</sup> |  | 15500 |  | 15454484 |
|  Main Street Natural Gas, Inc.<br>(Royal Bank of Canada) <br>Series 2018-A <br>4.00%, 04/01/2048 |  | 12175 |  | 12375275 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-C <br>4.00%, 08/01/2048 |  | 12245 |  | 12470437 |
|  Municipal Electric Authority of Georgia <br>Series 2019 <br>5.00%, 01/01/2038-01/01/2059 |  | 16960 |  | 18032939 |
|  Private Colleges & Universities Authority<br>(Corp. of Mercer University (The)) <br>Series 2021 <br>4.00%, 10/01/2050 |  | 2700 |  | 2608315 |
|  |  |  |  | 112388394 |
|  **Guam – 0.7%** | **Guam – 0.7%** | **Guam – 0.7%** | **Guam – 0.7%** | **Guam – 0.7%** |
|  Guam Government Waterworks Authority <br>Series 2020-A <br>5.00%, 01/01/2050 |  | 3925 |  | 4236707 |
|  Guam Power Authority <br>Series 2022-A <br>5.00%, 10/01/2043<sup>(c)</sup> |  | 3300 |  | 3457228 |
|  Territory of Guam <br>Series 2019 <br>5.00%, 11/15/2031 |  | 2015 |  | 2076210 |
|  Territory of Guam<br>(Guam Section 30 Income Tax) <br>Series 2016-A <br>5.00%, 12/01/2029-12/01/2032 |  | 9015 |  | 9627841 |

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 35** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Territory of Guam<br>(Territory of Guam Business Privilege Tax) <br>Series 2015-D <br>5.00%, 11/15/2032-11/15/2035 | $| 25505 | $| 26837574 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-F <br>4.00%, 01/01/2036 |  | 4050 |  | 3786982 |
|  |  |  |  | 50022542 |
|  **Hawaii – 0.1%** | **Hawaii – 0.1%** | **Hawaii – 0.1%** | **Hawaii – 0.1%** | **Hawaii – 0.1%** |
|  City & County of Honolulu HI <br>Series 2022-A <br>5.00%, 11/01/2027-11/01/2028<sup>(c)</sup> |  | 6500 |  | 7208651 |
|  **Idaho – 0.0%** | **Idaho – 0.0%** | **Idaho – 0.0%** | **Idaho – 0.0%** | **Idaho – 0.0%** |
|  Idaho Housing & Finance Association<br>(Battelle Energy Alliance LLC) <br>Series 2010-A <br>7.00%, 02/01/2036 |  | 200 |  | 200382 |
|  **Illinois – 9.5%** | **Illinois – 9.5%** | **Illinois – 9.5%** | **Illinois – 9.5%** | **Illinois – 9.5%** |
|  Chicago Board of Education <br>Series 2012-A <br>5.00%, 12/01/2042 |  | 5630 |  | 5692592 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-C <br>5.25%, 12/01/2035-12/01/2039 |  | 10315 |  | 10682604 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-E <br>5.125%, 12/01/2032 |  | 1000 |  | 1035447 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-A <br>7.00%, 12/01/2044 |  | 1400 |  | 1542087 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-B <br>6.50%, 12/01/2046 |  | 1900 |  | 2099655 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-G <br>5.00%, 12/01/2034 |  | 4150 |  | 4353811 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-H <br>5.00%, 12/01/2036-12/01/2046 |  | 5795 |  | 6006286 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-A <br>5.00%, 12/01/2026-12/01/2028 |  | 17705 |  | 18857290 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-A <br>5.00%, 12/01/2029-12/01/2030 |  | 6070 |  | 6462129 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-B <br>5.00%, 12/01/2030-12/01/2033 |  | 3100 |  | 3282468 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-A <br>5.00%, 12/01/2036-12/01/2040 |  | 7490 |  | 7830431 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022-A <br>5.00%, 12/01/2043 |  | 7965 |  | 8284409 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022-B <br>4.00%, 12/01/2040-12/01/2041 |  | 34800 |  | 31580441 |

---

---

| | |
|:---|:---|
| **36 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Chicago O'Hare International Airport <br>Series 2015-C <br>5.00%, 01/01/2034 | $1665 | $1721006 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-B <br>5.00%, 01/01/2034<sup>(b)</sup> | 5000 | 5324431 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-C <br>5.00%, 01/01/2035-01/01/2038<sup>(b)</sup> | 9250 | 9809332 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-B <br>5.00%, 01/01/2035-01/01/2037<sup>(b)</sup> | 33445 | 35875124 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-B <br>5.00%, 01/01/2053 | 6000 | 6372690 |
|  Chicago O'Hare International Airport<br>(TrIPs Obligated Group) <br>Series 2018 <br>5.00%, 07/01/2033-07/01/2048 | 7145 | 7462717 |
|  Chicago Transit Authority<br>(Chicago Transit Authority Sales Tax) <br>Series 2020-A <br>4.00%, 12/01/2050<sup>(b)</sup> | 12340 | 12162203 |
|  Chicago Transit Authority Sales Tax Receipts Fund <br>Series 2020-A <br>5.00%, 12/01/2045-12/01/2055<sup>(b)</sup> | 11000 | 11773049 |
|  City of Chicago IL<br>(Goldblatts Supportive Living Project) <br>Series 2013 <br>6.375%, 12/01/2052 | 1050 | 688640 |
|  Illinois Finance Authority <br>Series 2015 <br>5.25%, 05/15/2050 (Pre-refunded/ETM) | 2000 | 2150651 |
|  Illinois Finance Authority<br>(Acero Charter Schools, Inc. Obligated Group) <br>Series 2021 <br>4.00%, 10/01/2042<sup>(a)</sup> | 1250 | 1107865 |
|  Illinois Finance Authority<br>(Ascension Health Credit Group) <br>Series 2016-C <br>5.00%, 02/15/2041 | 2835 | 3034270 |
|  Illinois Finance Authority<br>(Illinois Institute of Technology) <br>Series 2019 <br>4.00%, 09/01/2035-09/01/2041 | 4280 | 4101820 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 09/01/2036-09/01/2040 | 3495 | 3679053 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 37** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Illinois Finance Authority<br>(Park Place of Elmhurst Obligated Group) <br>Series 2021 <br>5.125%, 05/15/2060 | $3515 | $2907910 |
|  Illinois Finance Authority<br>(Rosalind Franklin University of Medicine and Science) <br>Series 2017-A <br>5.00%, 08/01/2042-08/01/2047 | 3000 | 3139370 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-C <br>5.00%, 08/01/2046 | 1000 | 1045319 |
|  Illinois Finance Authority<br>(Silver Cross Hospital Obligated Group) <br>Series 2015-C <br>5.00%, 08/15/2035 | 4750 | 5015602 |
|  Illinois Finance Authority<br>(State of Illinois Water Revolving Fund – Clean Water Program) <br>Series 2020 <br>5.00%, 07/01/2036 | 13015 | 14611797 |
|  Illinois Finance Authority<br>(Washington and Jane Smith Home (The)) <br>Series 2022 <br>4.00%, 10/15/2044 | 10890 | 9673061 |
|  Illinois State Toll Highway Authority <br>Series 2015-A <br>5.00%, 01/01/2031-01/01/2032 | 3125 | 3336229 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-B <br>5.00%, 01/01/2036 | 2850 | 3050530 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-A <br>5.00%, 12/01/2032 | 7000 | 7515184 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-B <br>5.00%, 01/01/2041 | 3450 | 3694152 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-A <br>5.00%, 01/01/2045 | 10000 | 11038941 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-A <br>4.00%, 01/01/2046 | 19700 | 19575857 |
|  Metropolitan Pier & Exposition Authority<br>Series 2012 <br>Zero Coupon, 12/15/2041-12/15/2051 | 20785 | 5738784 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-B <br>5.00%, 12/15/2045 | 13300 | 13695707 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-B <br>Zero Coupon, 12/15/2054 | 9850 | 1683565 |

---

---

| | |
|:---|:---|
| **38 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020 <br>4.00%, 06/15/2050 | $2525 | $2317118 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 06/15/2050 | 47895 | 49686129 |
|  State of Illinois <br>Series 2010 <br>7.35%, 07/01/2035 | 12865 | 14362464 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2012 <br>5.00%, 08/01/2025 | 1300 | 1311701 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2014 <br>5.00%, 05/01/2023-05/01/2031 | 14800 | 15177658 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016 <br>5.00%, 02/01/2024-11/01/2035 | 40840 | 43257571 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-A <br>5.00%, 12/01/2025-12/01/2034 | 14795 | 15769109 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-C <br>5.00%, 11/01/2029 | 29335 | 31321337 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-D <br>5.00%, 11/01/2024-11/01/2028 | 73540 | 78452737 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-A <br>5.00%, 10/01/2027-05/01/2030 | 24750 | 26682900 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-B <br>5.00%, 10/01/2026 | 5000 | 5354621 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-B <br>4.00%, 11/01/2033-11/01/2037 | 42795 | 41243214 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 11/01/2030 | 8225 | 8907761 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020 <br>5.50%, 05/01/2030 | 2750 | 3066605 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.75%, 05/01/2045 | 2500 | 2741407 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-B <br>5.00%, 10/01/2030-10/01/2031 | 4100 | 4458125 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-A <br>5.00%, 03/01/2035-03/01/2046 | 18700 | 19744569 |
|  Village of Antioch IL Special Service Areas No. 1 & 2<br>Series 2016-A <br>4.50%, 03/01/2033 | 3376 | 3184332 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-B <br>7.00%, 03/01/2033 | 1554 | 1482494 |
|  Village of Pingree Grove IL Special Service Area No. 7 <br>Series 2015 <br>4.50%, 03/01/2025 | 482 | 485084 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 03/01/2036 | 2957 | 2930599 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-B <br>6.00%, 03/01/2036 | 857 | 868898 |
|  |  | 691500942 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 39** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Indiana – 1.4%** | **Indiana – 1.4%** | **Indiana – 1.4%** |
|  Indiana Finance Authority <br>Series 2013-A <br>5.00%, 07/01/2040 (Pre-refunded/ETM) | $2400 | $2466549 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 07/01/2044 (Pre-refunded/ETM) | 6070 | 6238314 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 07/01/2048 (Pre-refunded/ETM) | 2500 | 2569322 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 09/01/2029-09/01/2032 | 7570 | 7720965 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 09/01/2044-09/01/2057 | 12010 | 11882987 |
|  Indiana Finance Authority<br>(Baptist Healthcare System Obligated Group) <br>Series 2017 <br>5.00%, 08/15/2051 | 3905 | 4208658 |
|  Indiana Finance Authority<br>(Brightmark Plastics Renewal Indiana LLC) <br>Series 2019 <br>7.00%, 03/01/2039<sup>(a)</sup> | 28795 | 21375603 |
|  Indiana Finance Authority<br>(Good Samaritan Hospital Obligated Group) <br>Series 2022 <br>4.00%, 04/01/2037-04/01/2042 | 8955 | 8566786 |
|  Indiana Finance Authority<br>(Greencroft Goshen Obligated Group) <br>Series 2023-2 <br>4.00%, 11/15/2024-11/15/2037<sup>(c)</sup> | 5690 | 5358056 |
|  Indiana Finance Authority<br>(Indiana Finance Authority State Revolving Fund) <br>Series 2021-B <br>4.00%, 02/01/2039-02/01/2040 | 10000 | 10623653 |
|  Indiana Finance Authority<br>(Marquette Manor) <br>Series 2015-A <br>5.00%, 03/01/2030 | 1000 | 1032648 |
|  Indiana Finance Authority<br>(Ohio Valley Electric Corp.) <br>Series 2020 <br>3.00%, 11/01/2030 | 11725 | 10509529 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-A <br>3.00%, 11/01/2030 | 7290 | 6534283 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-B <br>2.50%, 11/01/2030 | 5065 | 4365904 |
|  |  | 103453257 |

---

---

| | |
|:---|:---|
| **40 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Iowa – 1.5%** | **Iowa – 1.5%** | **Iowa – 1.5%** |
|  Iowa Finance Authority<br>(Iowa Fertilizer Co. LLC) <br>Series 2018-B <br>5.25%, 12/01/2050 | $6405 | $6818410 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022 <br>5.00%, 12/01/2050<sup>(c)</sup> | 47900 | 49082617 |
|  Iowa Finance Authority<br>(Lifespace Communities, Inc. Obligated Group) <br>Series 2018-A <br>5.00%, 05/15/2043-05/15/2048 | 14405 | 14467601 |
|  Iowa Finance Authority<br>(Wesley Retirement Services, Inc. Obligated Group) <br>Series 2021 <br>4.00%, 12/01/2031-12/01/2051 | 28285 | 25462293 |
|  Iowa Higher Education Loan Authority<br>(Simpson College) <br>Series 2020 <br>5.50%, 11/01/2051 | 7160 | 7057190 |
|  Iowa Tobacco Settlement Authority <br>Series 2021-A <br>4.00%, 06/01/2049 | 4000 | 3676889 |
|  |  | 106565000 |
|  **Kansas – 0.3%** | **Kansas – 0.3%** | **Kansas – 0.3%** |
|  Kansas Development Finance Authority<br>(State of Kansas Department of Administration Lease) <br>BAM Series 2021-K <br>2.39%, 05/01/2036 | 8000 | 6294933 |
|  Overland Park Development Corp.<br>(City of Overland Park KS) <br>Series 2019 <br>5.00%, 03/01/2035-03/01/2049 | 13035 | 12778818 |
|  Wyandotte County-Kansas City Unified Government<br>(Wyandotte County-Kansas City Unified Government Sales Tax) <br>Series 2018 <br>4.50%, 06/01/2040 | 1575 | 1422744 |
|  |  | 20496495 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 41** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Kentucky – 1.9%** | **Kentucky – 1.9%** | **Kentucky – 1.9%** |
|  City of Ashland KY<br>(Ashland Hospital Corp. Obligated Group) <br>Series 2019 <br>4.00%, 02/01/2035 | $930 | $933542 |
|  City of Henderson KY<br>(Pratt Paper LLC) <br>Series 2022 <br>4.45%, 01/01/2042<sup>(a)</sup> | 9000 | 8679219 |
|  County of Trimble KY<br>(Louisville Gas and Electric Co.) <br>Series 2020 <br>1.30%, 09/01/2044 | 8500 | 7152146 |
|  Kentucky Economic Development Finance Authority<br>(Baptist Healthcare System Obligated Group) <br>Series 2017-B <br>5.00%, 08/15/2034-08/15/2046<sup>(b)</sup> | 15780 | 17169720 |
|  Kentucky Economic Development Finance Authority<br>(CommonSpirit Health) <br>Series 2019-A <br>4.00%, 08/01/2038-08/01/2039 | 2135 | 2066638 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 08/01/2044-08/01/2049<sup>(b)</sup> | 13765 | 14782805 |
|  Kentucky Economic Development Finance Authority<br>(Masonic Homes of Kentucky, Inc. Obligated Group) <br>Series 2012 <br>5.375%, 11/15/2042 | 1685 | 1521126 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.50%, 11/15/2045 | 1000 | 901357 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-A <br>5.00%, 05/15/2046-05/15/2051 | 3100 | 2861166 |
|  Kentucky Economic Development Finance Authority<br>(Owensboro Health, Inc. Obligated Group) <br>Series 2015 <br>5.25%, 06/01/2050 | 21590 | 22582712 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-A <br>5.00%, 06/01/2031-06/01/2045 | 21375 | 22853871 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 06/01/2041 | 6750 | 7310020 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-B <br>5.00%, 06/01/2040 | 5000 | 5342852 |

---

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| | |
|:---|:---|
| **42 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Kentucky Economic Development Finance Authority<br>(Rosedale Green) <br>Series 2015 <br>5.50%, 11/15/2035 | $| 2265 | $| 2086063 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.75%, 11/15/2045 |  | 3350 |  | 3019426 |
|  Kentucky Public Energy Authority<br>(Morgan Stanley) <br>Series 2022-A <br>4.00%, 08/01/2052<sup>(b)</sup> |  | 10000 |  | 10182452 |
|  Louisville/Jefferson County Metropolitan Government<br>(Norton Healthcare Obligated Group) <br>Series 2016 <br>5.00%, 10/01/2033 |  | 8205 |  | 8908551 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020 <br>5.00%, 10/01/2047 |  | 1965 |  | 2196294 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-A <br>5.00%, 10/01/2038 |  | 965 |  | 1077046 |
|  |  |  |  | 141627006 |
|  **Louisiana – 1.2%** | **Louisiana – 1.2%** | **Louisiana – 1.2%** | **Louisiana – 1.2%** | **Louisiana – 1.2%** |
|  Jefferson Sales Tax District <br>AGM Series 2017-B <br>5.00%, 12/01/2034-12/01/2036 |  | 3400 |  | 3763832 |
|  Louisiana Local Government Environmental Facilities & Community Development Auth<br>(St. James Place of Baton Rouge) <br>Series 2015-A <br>6.00%, 11/15/2035 |  | 2100 |  | 2138640 |
|  Louisiana Local Government Environmental Facilities & Community Development Auth<br>(Woman's Hospital Foundation) <br>Series 2017 <br>5.00%, 10/01/2034-10/01/2044<sup>(b)</sup> |  | 27600 |  | 30082425 |
|  Louisiana Public Facilities Authority <br>Series 2016 <br>5.00%, 05/15/2047 (Pre-refunded/ETM) |  | 10 |  | 10877 |
|  Louisiana Public Facilities Authority<br>(Louisiana Pellets, Inc.) <br>Series 2013-B <br>10.50%, 07/01/2039<sup>(f)(g)</sup> |  | 2750 |  | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2014-A <br>7.50%, 07/01/2023<sup>(f)(g)</sup> |  | 1250 |  | 12 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 43** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Louisiana Public Facilities Authority <br>(Louisiana State University & Agricultural & Mechanical College Auxiliary Revenue)<br>Series 2019 <br>5.00%, 07/01/2059 | $| 10270 | $| 10916625 |
|  Louisiana Public Facilities Authority<br>(Louisiana State University & Agricultural & Mechanical College Lease) <br>Series 2017 <br>5.00%, 07/01/2042-07/01/2057 |  | 17565 |  | 18474953 |
|  New Orleans Aviation Board <br>Series 2017-B <br>5.00%, 01/01/2043 |  | 1000 |  | 1041851 |
|  Parish of St. James LA<br>(NuStar Logistics LP) <br>Series 2020-2 <br>6.35%, 07/01/2040-10/01/2040<sup>(a)</sup> |  | 7375 |  | 8391841 |
|  Parish of St. John the Baptist LA<br>(Marathon Oil Corp.) <br>Series 2019 <br>2.00%, 06/01/2037 |  | 4855 |  | 4797892 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.10%, 06/01/2037 |  | 2465 |  | 2392721 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.20%, 06/01/2037 |  | 3700 |  | 3472680 |
|  Port New Orleans Board of Commissioners<br>Series 2013-B <br>5.00%, 04/01/2029 (Pre-refunded/ETM) |  | 540 |  | 552426 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 04/01/2031 (Pre-refunded/ETM) |  | 1000 |  | 1023011 |
|  |  |  |  | 87059813 |
|  **Maine – 0.2%** | **Maine – 0.2%** | **Maine – 0.2%** | **Maine – 0.2%** | **Maine – 0.2%** |
|  Finance Authority of Maine<br>(Casella Waste Systems, Inc.) <br>Series 2017 <br>5.25%, 01/01/2025<sup>(a)</sup> |  | 4630 |  | 4851972 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-R2 <br>4.375%, 08/01/2035<sup>(a)</sup> |  | 1700 |  | 1753073 |
|  Maine Health & Higher Educational Facilities Authority<br>(Maine Medical Center) <br>Series 2018-A <br>5.00%, 07/01/2043-07/01/2048 |  | 9620 |  | 10516309 |
|  |  |  |  | 17121354 |

---

---

| | |
|:---|:---|
| **44 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Maryland – 2.7%** | **Maryland – 2.7%** | **Maryland – 2.7%** |
|  City of Baltimore MD<br>(East Baltimore Research Park Project) <br>Series 2017-A <br>5.00%, 09/01/2038 | $1000 | $1028160 |
|  City of Baltimore MD<br>(Harbor Point Special Taxing District) <br>Series 2019 <br>3.625%, 06/01/2046<sup>(a)</sup> | 1750 | 1482716 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-B <br>3.875%, 06/01/2046<sup>(a)</sup> | 300 | 257178 |
|  County of Frederick MD<br>(County of Frederick MD Urbana Community Development Authority) <br>Series 2020-C <br>4.00%, 07/01/2050 | 2615 | 2448417 |
|  Maryland Economic Development Corp.<br>Series 2020 <br>4.00%, 09/01/2040-09/01/2050 | 4750 | 4282276 |
|  Maryland Economic Development Corp.<br>(Purple Line Transit Partners LLC) <br>Series 2022 <br>5.00%, 12/31/2036-12/31/2038 | 12140 | 12736326 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 06/30/2047-06/30/2055 | 45125 | 47066770 |
|  Maryland Health & Higher Educational Facilities Authority<br>(Meritus Medical Center Obligated Group) <br>Series 2015 <br>5.00%, 07/01/2031 | 3245 | 3453280 |
|  Maryland Health & Higher Educational Facilities Authority<br>(TidalHealth Obligated Group) <br>Series 2020 <br>4.00%, 07/01/2036-07/01/2040 | 9880 | 9961553 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 07/01/2046 | 22040 | 24300343 |
|  Maryland Health & Higher Educational Facilities Authority<br>(UPMC Obligated Group) <br>Series 2020-B <br>4.00%, 04/15/2036-04/15/2040<sup>(b)</sup> | 16530 | 16645023 |
|  Maryland Stadium Authority<br>(Baltimore City Public School Construction Financing Fund) <br>Series 2020 <br>5.00%, 05/01/2050 | 29840 | 33717672 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 45** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Maryland State Transportation Authority <br>Series 2020 <br>4.00%, 07/01/2045 | $| 13205 | $| 13265842 |
|  State of Maryland Department of Transportation <br>Series 2022-2 <br>5.00%, 12/01/2024-12/01/2029<sup>(c)</sup> |  | 10875 |  | 11791661 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 12/01/2024-12/01/2028 |  | 12405 |  | 13721402 |
|  |  |  |  | 196158619 |
|  **Massachusetts – 1.1%** | **Massachusetts – 1.1%** | **Massachusetts – 1.1%** | **Massachusetts – 1.1%** | **Massachusetts – 1.1%** |
|  Commonwealth of Massachusetts <br>Series 2022-B <br>4.00%, 02/01/2044 |  | 10000 |  | 9980783 |
|  Massachusetts Clean Water Trust (The)<br>(Massachusetts Water Pollution Abatement Trust (The) SRF) <br>Series 2021-2 <br>5.00%, 02/01/2039-02/01/2040 |  | 22800 |  | 25946174 |
|  Massachusetts Development Finance Agency <br>Series 2012-A <br>5.25%, 07/01/2042 (Pre-refunded/ETM) |  | 5000 |  | 5031807 |
|  Massachusetts Development Finance Agency<br>(Emerson College) <br>Series 2016-A <br>5.00%, 01/01/2047 |  | 2220 |  | 2328767 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-A <br>5.00%, 01/01/2040 |  | 670 |  | 713976 |
|  Massachusetts Development Finance Agency <br>(Emmanuel College/MA)<br>Series 2016-A<br>5.00%, 10/01/2043 |  | 1760 |  | 1863633 |
|  Massachusetts Development Finance Agency<br>(Lasell University) <br>Series 2021 <br>4.00%, 07/01/2027-07/01/2029 |  | 915 |  | 910640 |
|  Massachusetts Development Finance Agency<br>(Salem Community Corp. Obligated Group) <br>Series 2022 <br>5.25%, 01/01/2050<sup>(c)</sup> |  | 2680 |  | 2693915 |

---

---

| | |
|:---|:---|
| **46 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Massachusetts Development Finance Agency<br>(Simmons University) <br>Series 2018-L <br>5.00%, 10/01/2034-10/01/2035 | $| 2360 | $| 2555622 |
|  Massachusetts Development Finance Agency<br>(South Shore Hospital, Inc. Obligated Group) <br>Series 2016-I <br>5.00%, 07/01/2031-07/01/2041 |  | 3850 |  | 4058166 |
|  Massachusetts Development Finance Agency<br>(Springfield College) <br>Series 2021 <br>4.00%, 06/01/2056 |  | 4000 |  | 3698769 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 06/01/2026-06/01/2028 |  | 2715 |  | 2910249 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-B <br>4.00%, 06/01/2035-06/01/2050 |  | 4000 |  | 3903899 |
|  Massachusetts Development Finance Agency<br>(UMass Memorial Health Care Obligated Group) <br>Series 2016 <br>5.00%, 07/01/2041-07/01/2046 |  | 3980 |  | 4209695 |
|  Massachusetts Development Finance Agency<br>(Wellforce Obligated Group) <br>Series 2013-G <br>5.00%, 07/01/2037 |  | 2550 |  | 2606176 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2019-A <br>5.00%, 07/01/2036 |  | 1000 |  | 1087444 |
|  Massachusetts Port Authority <br>Series 2021-E <br>5.00%, 07/01/2051 |  | 2260 |  | 2427699 |
|  |  |  |  | 76927414 |
|  **Michigan – 2.2%** | **Michigan – 2.2%** | **Michigan – 2.2%** | **Michigan – 2.2%** | **Michigan – 2.2%** |
|  City of Detroit MI <br>Series 2014-B <br>4.00%, 04/01/2044 |  | 10000 |  | 8320852 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018 <br>5.00%, 04/01/2033-04/01/2038 |  | 4385 |  | 4600050 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020 <br>5.50%, 04/01/2045-04/01/2050 |  | 3860 |  | 4181307 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-A <br>5.00%, 04/01/2038-04/01/2046 |  | 3130 |  | 3246693 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 47** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  City of Detroit MI Sewage Disposal System Revenue <br>Series 2012-A <br>5.00%, 07/01/2032 (Pre-refunded/ETM) | $4400 | $4426591 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 07/01/2039 (Pre-refunded/ETM) | 4825 | 4856091 |
|  Grand Rapids Economic Development Corp.<br>(Beacon Hill at Eastgate) <br>Series 2017-A <br>5.00%, 11/01/2032-11/01/2037 | 1655 | 1705908 |
|  Great Lakes Water Authority Water Supply System Revenue <br>Series 2016-A <br>5.00%, 07/01/2046 | 1025 | 1102509 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-D <br>5.00%, 07/01/2036 | 25210 | 27331858 |
|  Kalamazoo Economic Development Corp.<br>(Heritage Community of Kalamazoo Obligated Group) <br>Series 2019 <br>5.00%, 05/15/2037 | 1100 | 1128825 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020 <br>5.00%, 05/15/2055 | 6860 | 6859633 |
|  Kalamazoo Hospital Finance Authority<br>(Bronson Healthcare Group Obligated Group) <br>Series 2016 <br>4.00%, 05/15/2031-05/15/2036<sup>(b)</sup> | 20100 | 20299174 |
|  Michigan Finance Authority <br>Series 2014 <br>5.00%, 06/01/2034 (Pre-refunded/ETM) | 2000 | 2103407 |
|  Michigan Finance Authority<br>(Albion College) <br>Series 2022 <br>4.00%, 12/01/2046-12/01/2051 | 4285 | 3900037 |
|  Michigan Finance Authority<br>(Great Lakes Water Authority Water Supply System Revenue) <br>Series 2014-D4 <br>5.00%, 07/01/2029-07/01/2034 | 2100 | 2187895 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-D1 <br>5.00%, 07/01/2034 | 2000 | 2117473 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-D2 <br>5.00%, 07/01/2034 | 3400 | 3617668 |

---

---

| | |
|:---|:---|
| **48 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Michigan Finance Authority<br>(Henry Ford Health System Obligated Group) <br>Series 2016 <br>5.00%, 11/15/2032 | $| 3850 | $| 4168865 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-A <br>5.00%, 11/15/2048 |  | 6635 |  | 7237078 |
|  Michigan Finance Authority<br>(Michigan Finance Authority Tobacco Settlement Revenue) <br>Series 2020-A <br>4.00%, 06/01/2049 |  | 5000 |  | 4761257 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-B <br>Zero Coupon, 06/01/2065 |  | 27415 |  | 2819940 |
|  Michigan Finance Authority<br>(Public Lighting Authority) <br>Series 2014-B <br>5.00%, 07/01/2031-07/01/2033 |  | 7950 |  | 8139420 |
|  Michigan Strategic Fund<br>(Michigan Strategic Fund – I 75 Improvement Project) <br>Series 2018 <br>5.00%, 06/30/2048 |  | 8600 |  | 8771303 |
|  Michigan Tobacco Settlement Finance Authority <br>(Tobacco Settlement Financing Corp./MI)<br>Series 2008-C<br>Zero Coupon, 06/01/2058 |  | 116850 |  | 5425404 |
|  State of Michigan Trunk Line Revenue <br>Series 2021 <br>5.00%, 11/15/2034 |  | 10000 |  | 11658646 |
|  Wayne State University <br>Series 2018-A <br>5.00%, 11/15/2043 |  | 4000 |  | 4392850 |
|  |  |  |  | 159360734 |
|  **Minnesota – 0.1%** | **Minnesota – 0.1%** | **Minnesota – 0.1%** | **Minnesota – 0.1%** | **Minnesota – 0.1%** |
|  City of Wayzata MN<br>(Wayzata Bay Senior Housing, Inc.) <br>Series 2019 <br>5.00%, 08/01/2054 |  | 1000 |  | 1003335 |
|  Duluth Economic Development Authority<br>(Essentia Health Obligated Group) <br>Series 2018-A <br>5.00%, 02/15/2043-02/15/2048 |  | 2925 |  | 3182131 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 49** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Housing & Redevelopment Authority of The City of St. Paul Minnesota<br>(Hmong College Prep Academy) <br>Series 2020 <br>5.00%, 09/01/2040 | $| 1390 | $| 1406903 |
|  Minnesota Higher Education Facilities Authority<br>(St. Catherine University) <br>Series 2018-A <br>5.00%, 10/01/2045 |  | 1900 |  | 2012746 |
|  |  |  |  | 7605115 |
|  **Mississippi – 0.5%** | **Mississippi – 0.5%** | **Mississippi – 0.5%** | **Mississippi – 0.5%** | **Mississippi – 0.5%** |
|  Mississippi Development Bank<br>(Magnolia Regional Health Center) <br>Series 2021 <br>4.00%, 10/01/2041<sup>(a)</sup> |  | 2500 |  | 2442461 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 10/01/2024-10/01/2033<sup>(a)</sup> |  | 7650 |  | 8213644 |
|  Mississippi Hospital Equipment & Facilities Authority<br>(Baptist Memorial Health Care Obligated Group) <br>Series 2016-A <br>5.00%, 09/01/2036-09/01/2046 |  | 19910 |  | 20783699 |
|  Mississippi Hospital Equipment & Facilities Authority<br>(Forrest General Hospital, Inc.) <br>Series 2019 <br>4.00%, 01/01/2037 |  | 720 |  | 725610 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 01/01/2035 |  | 1230 |  | 1355588 |
|  |  |  |  | 33521002 |
|  **Missouri – 1.3%** | **Missouri – 1.3%** | **Missouri – 1.3%** | **Missouri – 1.3%** | **Missouri – 1.3%** |
|  Cape Girardeau County Industrial Development Authority<br>(SoutheastHEALTH Obligated Group) <br>Series 2017-A <br>5.00%, 03/01/2036 |  | 2925 |  | 3077081 |
|  Health & Educational Facilities Authority of the State of Missouri <br>(Lutheran Senior Services Obligated Group)<br>Series 2016-A <br>5.00%, 02/01/2046 |  | 1000 |  | 1024254 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019 <br>4.00%, 02/01/2042-02/01/2048 |  | 37870 |  | 35453486 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 02/01/2042-02/01/2048 |  | 3220 |  | 3372832 |

---

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| | |
|:---|:---|
| **50 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Kansas City Industrial Development Authority <br>Series 2019 <br>5.00%, 07/01/2040<sup>(a)</sup> | $3125 | $2730153 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021 <br>2.00%, 11/15/2046 | 2319 | 111292 |
|  Kansas City Industrial Development Authority<br>(Kansas City United Methodist Retirement Home Obligated Group) <br>Series 2021-A <br>10.00%, 11/15/2037 | 1601 | 1452206 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-C <br>7.50%, 11/15/2046 | 1279 | 1078306 |
|  Kansas City Industrial Development Authority<br>(Kingswood Senior Living Community) <br>Series 2021 <br>5.00%, 11/15/2046 | 5196 | 4165538 |
|  Lee's Summit Industrial Development Authority<br>(John Knox Village Obligated Group) <br>Series 2014-A <br>5.25%, 08/15/2039 | 620 | 630883 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-A <br>5.00%, 08/15/2036-08/15/2046 | 3060 | 3113781 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018 <br>5.00%, 08/15/2042 | 6940 | 7081922 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-A <br>5.00%, 08/15/2056 | 10000 | 10155172 |
|  Missouri Joint Municipal Electric Utility Commission <br>Series 2014 <br>5.00%, 01/01/2031 | 3240 | 3403175 |
|  St. Louis County Industrial Development Authority<br>(Friendship Village St. Louis Obligated Group) <br>Series 2018 <br>5.25%, 09/01/2053 | 7560 | 7652719 |
|  St. Louis County Industrial Development Authority<br>(St. Andrews Resources for Seniors Obligated Group) <br>Series 2015-A <br>5.00%, 12/01/2035 | 2000 | 2041910 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 12/01/2045 | 4500 | 4568055 |
|  |  | 91112765 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 51** |

---

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Montana – 0.0%** | **Montana – 0.0%** | **Montana – 0.0%** |
|  Montana Facility Finance Authority<br>(Benefis Health System Obligated Group) <br>Series 2016 <br>5.00%, 02/15/2034 | $1085 | $1175719 |
|  **Nebraska – 0.3%** | **Nebraska – 0.3%** | **Nebraska – 0.3%** |
|  Central Plains Energy Project<br>(Goldman Sachs Group, Inc. (The)) <br>Series 2012 <br>5.00%, 09/01/2032-09/01/2042 | 2975 | 3004227 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-A <br>5.00%, 09/01/2034-09/01/2037 | 19955 | 22123198 |
|  |  | 25127425 |
|  **Nevada – 0.6%** | **Nevada – 0.6%** | **Nevada – 0.6%** |
|  Carson City NV<br>(Carson Tahoe Regional Healthcare) <br>Series 2017 <br>5.00%, 09/01/2037-09/01/2047 | 3935 | 4178797 |
|  City of Reno NV<br>(County of Washoe NV Sales Tax Revenue) <br>Series 2018-C <br>Zero Coupon, 07/01/2058<sup>(a)</sup> | 24000 | 2689339 |
|  City of Sparks NV<br>(City of Sparks NV Sales Tax) <br>Series 2019-A <br>2.75%, 06/15/2028<sup>(a)</sup> | 3540 | 3339540 |
|  Clark County School District <br>Series 2017-C <br>5.00%, 06/15/2033-06/15/2035<sup>(b)</sup> | 13410 | 14739746 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 06/15/2036 | 3700 | 3766359 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2019-B <br>3.00%, 06/15/2037 | 5185 | 4684066 |
|  Las Vegas Redevelopment Agency <br>Series 2016 <br>5.00%, 06/15/2040 | 1800 | 1883400 |
|  State of Nevada Department of Business & Industry<br>(Fulcrum Sierra Biofuels LLC) <br>Series 2018 <br>6.95%, 02/15/2038<sup>(a)</sup> | 1890 | 1792792 |
|  Tahoe-Douglas Visitors Authority <br>Series 2020 <br>5.00%, 07/01/2040-07/01/2051 | 8050 | 8231367 |
|  |  | 45305406 |

---

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| | |
|:---|:---|
| **52 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **New Hampshire – 0.6%** | **New Hampshire – 0.6%** | **New Hampshire – 0.6%** |
|  New Hampshire Business Finance Authority <br>Series 2020-1 <br>4.125%, 01/20/2034 | $21171 | $21825061 |
|  New Hampshire Business Finance Authority<br>(Covanta Holding Corp.) <br>Series 2020-A <br>3.625%, 07/01/2043<sup>(a)</sup> | 1960 | 1670045 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-B <br>3.75%, 07/01/2045<sup>(a)</sup> | 3525 | 3052432 |
|  New Hampshire Health and Education Facilities Authority Act<br>(Dartmouth-Hitchcock Obligated Group) Series 2020-A <br>5.00%, 08/01/2059 | 15080 | 17403208 |
|  |  | 43950746 |
|  **New Jersey – 6.9%** | **New Jersey – 6.9%** | **New Jersey – 6.9%** |
|  New Jersey Economic Development Authority<br>Series 2013<br>5.00%, 03/01/2030 (Pre-refunded/ETM) | 3455 | 3540652 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2014-P <br>5.00%, 06/15/2029 (Pre-refunded/ETM) | 5000 | 5268502 |
|  New Jersey Economic Development Authority<br>(New Jersey Economic Development Authority State Lease) <br>Series 2017-D <br>5.00%, 06/15/2033-06/15/2042 | 7520 | 7944672 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-A <br>5.00%, 06/15/2042-06/15/2047 | 5885 | 6193266 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-Q <br>4.00%, 06/15/2038-06/15/2050 | 8300 | 7929561 |
|  New Jersey Economic Development Authority<br>(New Jersey Transit Corp.) <br>Series 2020 <br>4.00%, 11/01/2044 | 3450 | 3285367 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 11/01/2033 | 3770 | 4078036 |
|  New Jersey Economic Development Authority<br>(Port Newark Container Terminal LLC) <br>Series 2017 <br>5.00%, 10/01/2037-10/01/2047 | 10660 | 11156808 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 53** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  New Jersey Economic Development Authority<br>(State of New Jersey Department of the Treasury Lease) <br>Series 2019 <br>5.00%, 06/15/2030-06/15/2037 | $7740 | $8377532 |
|  New Jersey Economic Development Authority<br>(State of New Jersey Division of Property Management & Construction Lease) <br>Series 2018-C <br>5.00%, 06/15/2042 | 7085 | 7473288 |
|  New Jersey Economic Development Authority<br>(State of New Jersey Motor Vehicle Surcharge Revenue Lease) <br>Series 2017-A <br>5.00%, 07/01/2033 | 1640 | 1749567 |
|  New Jersey Economic Development Authority<br>(UMM Energy Partners LLC) <br>Series 2012-A <br>5.125%, 06/15/2043 | 735 | 736525 |
|  New Jersey Economic Development Authority<br>(United Airlines, Inc.) <br>Series 2012 <br>5.25%, 09/15/2029 | 8270 | 8390522 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2014-B <br>5.625%, 11/15/2030 | 1475 | 1544498 |
|  New Jersey Educational Facilities Authority<br>(Stevens Institute of Technology) <br>Series 2020-A <br>4.00%, 07/01/2050 | 1805 | 1732443 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 07/01/2045 | 4460 | 4789286 |
|  New Jersey Health Care Facilities Financing Authority<br>(Hackensack Meridian Health Obligated Group) <br>Series 2017-A <br>5.00%, 07/01/2035 | 1300 | 1415015 |
|  New Jersey Health Care Facilities Financing Authority <br>(Inspira Health Obligated Group)<br>Series 2017-A <br>5.00%, 07/01/2036-07/01/2042 | 8645 | 9212128 |

---

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| | |
|:---|:---|
| **54 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  New Jersey Health Care Facilities Financing Authority<br>(New Jersey Health Care Facilities Financing Authority State Lease) <br>Series 2017 <br>5.00%, 10/01/2035 | $1070 | $1136982 |
|  New Jersey Health Care Facilities Financing Authority<br>(RWJ Barnabas Health Obligated Group) Series 2014 <br>5.00%, 07/01/2044 | 2040 | 2113915 |
|  New Jersey Transportation Trust Fund Authority<br>(New Jersey Transportation Fed Hwy Grant) <br>Series 2016 <br>5.00%, 06/15/2024-06/15/2030 | 45225 | 48534718 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-A <br>5.00%, 06/15/2029-06/15/2031 | 38885 | 41454428 |
|  New Jersey Transportation Trust Fund Authority<br>(New Jersey Transportation Trust Fund Authority State Lease) <br>Series 2014-A <br>5.00%, 06/15/2038 | 1000 | 1031255 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-A <br>5.00%, 06/15/2045 | 8450 | 8758860 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-A <br>5.00%, 12/15/2030-12/15/2036 | 54405 | 58381124 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019 <br>5.00%, 06/15/2034-06/15/2046 | 8495 | 8994406 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-B <br>4.00%, 06/15/2036-06/15/2037 | 2715 | 2668518 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 06/15/2032 | 3480 | 3756106 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-A <br>4.00%, 06/15/2050 | 10000 | 9301807 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022-A <br>5.00%, 06/15/2030-06/15/2033 | 25250 | 27573471 |
|  New Jersey Turnpike Authority <br>Series 2013-A <br>5.00%, 01/01/2027 (Pre-refunded/ETM) | 2500 | 2515108 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-E <br>5.00%, 01/01/2033-01/01/2045 | 15400 | 16157042 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-A <br>5.00%, 01/01/2033 | 6500 | 6952685 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-A <br>5.00%, 01/01/2033-01/01/2034 | 15000 | 16267612 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 55** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-B <br>5.00%, 01/01/2032-01/01/2033 | $| 13540 | $| 14827267 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-A <br>5.00%, 01/01/2048<sup>(b)</sup> |  | 11320 |  | 12287147 |
|  State of New Jersey <br>Series 2020 <br>4.00%, 06/01/2031 |  | 31040 |  | 32413799 |
|  Tobacco Settlement Financing Corp./NJ <br>Series 2018-A <br>5.00%, 06/01/2031 |  | 1425 |  | 1530349 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-B<br>5.00%, 06/01/2046 |  | 91835 |  | 95836967 |
|  |  |  |  | 507311234 |
|  **New Mexico – 0.2%** | **New Mexico – 0.2%** | **New Mexico – 0.2%** | **New Mexico – 0.2%** | **New Mexico – 0.2%** |
|  City of Santa Fe NM<br>(El Castillo Retirement Residences Obligated Group) <br>Series 2019 <br>5.00%, 05/15/2039-05/15/2049 |  | 2180 |  | 2227226 |
|  New Mexico Hospital Equipment Loan Council<br>(Gerald Champion Regional Medical Center) <br>Series 2012 <br>5.50%, 07/01/2042 |  | 1060 |  | 1065248 |
|  New Mexico Hospital Equipment Loan Council<br>(Haverland Carter Lifestyle Obligated Group) <br>Series 2019 <br>5.00%, 07/01/2039-07/01/2049 |  | 6615 |  | 6413191 |
|  Winrock Town Center Tax Increment Development District No. 1 <br>Series 2022 <br>4.25%, 05/01/2040<sup>(a)</sup> |  | 2750 |  | 2380275 |
|  |  |  |  | 12085940 |
|  **New York – 9.0%** | **New York – 9.0%** | **New York – 9.0%** | **New York – 9.0%** | **New York – 9.0%** |
|  Build NYC Resource Corp.<br>(Albert Einstein College of Medicine, Inc.) Series 2016 <br>5.50%, 09/01/2045<sup>(a)</sup> |  | 34020 |  | 35756391 |
|  Build NYC Resource Corp.<br>(Integration Charter Schools) <br>Series 2021 <br>4.00%, 06/01/2025<sup>(a)</sup> |  | 355 |  | 339468 |

---

---

| | |
|:---|:---|
| **56 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Build NYC Resource Corp.<br>(Metropolitan College of New York) <br>Series 2014 <br>5.25%, 11/01/2034 | $2240 | $2328506 |
|  City of New York NY <br>Series 2018-E <br>5.00%, 03/01/2037-03/01/2038<sup>(b)</sup> | 17500 | 18957913 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-A <br>5.00%, 08/01/2030-08/01/2033<sup>(b)</sup> | 42875 | 48823109 |
|  Dutchess County Local Development Corp.<br>(Bard College) <br>Series 2020-A <br>5.00%, 07/01/2045-07/01/2051<sup>(a)</sup> | 20500 | 21276591 |
|  Dutchess County Local Development Corp.<br>(Health QuestSystems Obligated Group)<br>Series 2016-B <br>5.00%, 07/01/2046 | 13520 | 14270817 |
|  Metropolitan Transportation Authority <br>Series 2012-F <br>5.00%, 11/15/2030 | 2540 | 2575431 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2013-D <br>5.00%, 11/15/2043 | 2000 | 2051925 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2013-E <br>5.00%, 11/15/2032 | 4425 | 4560630 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-B<br>5.00%, 11/15/2032 | 3715 | 3885134 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-C <br>5.00%, 11/15/2027 | 1110 | 1177479 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 11/15/2030 | 4000 | 4262557 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-D <br>5.00%, 11/15/2031-11/15/2034 | 11915 | 12526169 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-A <br>5.00%, 11/15/2026-11/15/2032 | 5590 | 5952065 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-C <br>4.00%, 11/15/2026 | 1705 | 1762454 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-D <br>5.00%, 11/15/2027-11/15/2029 | 7445 | 7983785 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-A <br>5.00%, 11/15/2026 | 1525 | 1644107 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-B <br>5.00%, 11/15/2027 | 1185 | 1281659 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-C <br>5.00%, 11/15/2025-11/15/2033 | 35175 | 37824805 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-D <br>4.00%, 11/15/2042 | 1000 | 969756 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-B <br>5.00%, 11/15/2028 | 1340 | 1453859 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 57** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-A <br>5.00%, 11/15/2048 | $3075 | $3223459 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-C <br>5.00%, 11/15/2038 | 380 | 403089 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-A <br>4.00%, 11/15/2051 | 1625 | 1534715 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 11/15/2045-11/15/2049 | 9370 | 9979377 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-C <br>4.75%, 11/15/2045 | 3000 | 3100494 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 11/15/2050 | 8750 | 9095781 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 11/15/2055 | 2000 | 2111136 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-D <br>4.00%, 11/15/2047-11/15/2049 | 15920 | 15162071 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 11/15/2043 | 5000 | 5256660 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-E <br>4.00%, 11/15/2045 | 3000 | 2887734 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 11/15/2029-11/15/2033 | 6895 | 7486838 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-A <br>4.00%, 11/15/2042-11/15/2050 | 29625 | 28315822 |
|  Monroe County Industrial Development Corp./NY<br>(St Ann's of Greater Rochester Obligated Group) <br>Series 2019 <br>5.00%, 01/01/2050 | 6520 | 5946982 |
|  Monroe County Industrial Development Corp./NY<br>(True North Rochester Prep Charter School) <br>Series 2020 <br>5.00%, 06/01/2059<sup>(a)</sup> | 1080 | 1092924 |
|  Nassau County Industrial Development Agency<br>(Amsterdam House Continuing Care Retirement Community, Inc.) <br>Series 2021 <br>5.00%, 01/01/2058 | 525 | 370382 |
| &nbsp;&nbsp;&nbsp;&nbsp; 9.00%, 01/01/2041<sup>(a)</sup> | 270 | 238002 |
|  New York City Housing Development Corp.<br>Series 2020-A <br>2.55%, 08/01/2040 | 3645 | 2906561 |
|  New York City Transitional Finance Authority Future Tax Secured Revenue <br>Series 2022-F <br>3.75%, 02/01/2033 | 13000 | 12454420 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.85%, 02/01/2034 | 3955 | 3791721 |

---

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| | |
|:---|:---|
| **58 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  New York Counties Tobacco Trust V <br>Series 2005 <br>Zero Coupon, 06/01/2050 | $30000 | $3987111 |
|  New York Liberty Development Corp.<br>(Goldman Sachs Headquarters LLC) <br>Series 2005 <br>5.25%, 10/01/2035 | 5765 | 6543734 |
|  New York Liberty Development Corp.<br>(One Bryant Park LLC) <br>Series 2019 <br>2.80%, 09/15/2069 | 2620 | 2417845 |
|  New York State Dormitory Authority<br>(Garnet Health Medical Center Obligated Group) <br>Series 2017 <br>5.00%, 12/01/2030-12/01/2034<sup>(a)</sup> | 4200 | 4580955 |
|  New York State Dormitory Authority<br>(State of New York Pers Income Tax) <br>Series 2021 <br>2.202%, 03/15/2034<sup>(b)</sup> | 13000 | 10481740 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.252%, 03/15/2032<sup>(b)</sup> | 13000 | 10885000 |
|  New York State Dormitory Authority<br>(Wagner College) <br>Series 2022 <br>5.00%, 07/01/2057 | 12280 | 12178388 |
|  New York State Thruway Authority<br>(New York State Thruway Authority Gen Toll Road) <br>Series 2016-A <br>5.00%, 01/01/2041 | 3800 | 4049689 |
|  New York Transportation Development Corp.<br>(Delta Air Lines, Inc.) <br>Series 2018 <br>5.00%, 01/01/2027-01/01/2029 | 51325 | 54206407 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020 <br>4.00%, 10/01/2030 | 23150 | 22791823 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.375%, 10/01/2045 | 46605 | 44574392 |
|  New York Transportation Development Corp.<br>(Empire State Thruway Partners LLC) <br>Series 2021 <br>4.00%, 04/30/2053 | 2670 | 2542279 |
|  New York Transportation Development Corp.<br>(JFK International Air Terminal LLC) <br>Series 2022 <br>5.00%, 12/01/2038-12/01/2039 | 10500 | 10986011 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 59** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  New York Transportation Development Corp.<br>(Laguardia Gateway Partners LLC) <br>Series 2016-A <br>5.00%, 07/01/2041-07/01/2046 | $33055 | $34068088 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 01/01/2050 | 13885 | 14284896 |
|  Niagara Area Development Corp.<br>(Covanta Holding Corp.) <br>Series 2018-A <br>4.75%, 11/01/2042<sup>(a)</sup> | 6045 | 5882810 |
|  Orange County Funding Corp.<br>(The Hamlet at Wallkill) <br>Series 2013 <br>6.50%, 01/01/2046 | 1035 | 918955 |
|  Port Authority of New York & New Jersey <br>Series 2012 <br>5.00%, 10/01/2034 | 3900 | 3910643 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2013-178 <br>5.00%, 12/01/2033 | 5000 | 5182837 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021 <br>3.175%, 07/15/2060 | 10000 | 7735236 |
|  Triborough Bridge & Tunnel Authority <br>Series 2020-A <br>5.00%, 11/15/2054 | 3000 | 3269338 |
|  Triborough Bridge & Tunnel Authority<br>(Metropolitan Transportation Authority Payroll Mobility Tax Revenue) <br>Series 2021-A <br>2.591%, 05/15/2036<sup>(b)</sup> | 4000 | 3370556 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.917%, 05/15/2040<sup>(b)</sup> | 10000 | 8347893 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022 <br>5.00%, 05/15/2052 | 10465 | 12809979 |
|  TSASC, Inc./NY <br>Series 2017-A <br>5.00%, 06/01/2041 | 1560 | 1631618 |
|  Ulster County Capital Resource Corp.<br>(Woodland Pond at New Paltz) <br>Series 2017 <br>5.00%, 09/15/2037 | 860 | 731270 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 09/15/2042-09/15/2053 | 2330 | 1867859 |
|  Westchester County Local Development Corp.<br>(Kendal on Hudson) <br>Series 2013 <br>5.00%, 01/01/2034 | 3840 | 3882678 |

---

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| | |
|:---|:---|
| **60 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Westchester County Local Development Corp.<br>(Purchase Senior Learning Community Obligated Group) <br>Series 2021 <br>3.125%, 07/01/2025 | $| 6790 | $| 6565866 |
|  Westchester County Local Development Corp.<br>(Westchester County Health Care Corp. Obligated Group) <br>Series 2016 <br>5.00%, 11/01/2046 |  | 4230 |  | 4495479 |
|  Western Regional Off-Track Betting Corp. <br>Series 2021 <br>3.00%, 12/01/2026<sup>(a)</sup> |  | 1185 |  | 1104252 |
|  |  |  |  | 657308405 |
|  **North Carolina – 0.4%** | **North Carolina – 0.4%** | **North Carolina – 0.4%** | **North Carolina – 0.4%** | **North Carolina – 0.4%** |
|  County of New Hanover NC <br>Series 2017 <br>5.00%, 10/01/2042 (Pre-refunded/ETM) |  | 4750 |  | 5299077 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 10/01/2047 (Pre-refunded/ETM) |  | 1080 |  | 1204843 |
|  Fayetteville State University <br>Series 2023 <br>5.00%, 04/01/2027-04/01/2042<sup>(a)(c)</sup> |  | 7740 |  | 8281083 |
|  North Carolina Medical Care Commission <br>Series 2015-A <br>5.00%, 09/01/2037<br>(Pre-refunded/ETM) |  | 1735 |  | 1828388 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017 <br>5.00%, 09/01/2046<br>(Pre-refunded/ETM) |  | 1000 |  | 1064732 |
|  North Carolina Medical Care Commission<br>(Aldersgate United Methodist Retirement Community, Inc.) <br>Series 2015 <br>4.875%, 07/01/2040 |  | 5000 |  | 5017834 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 07/01/2045 |  | 1000 |  | 1004282 |
|  North Carolina Medical Care Commission<br>(Pennybyrn at Maryfield) <br>Series 2015 <br>5.00%, 10/01/2030 |  | 2250 |  | 2282018 |
|  North Carolina Turnpike Authority <br>Series 2018 <br>5.00%, 01/01/2040 |  | 5000 |  | 5361128 |
|  |  |  |  | 31343385 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 61** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **North Dakota – 0.3%** | **North Dakota – 0.3%** | **North Dakota – 0.3%** |
|  City of Grand Forks ND<br>(Altru Health System Obligated Group) <br>Series 2021 <br>4.00%, 12/01/2038-12/01/2041 | $5040 | $4963221 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 12/01/2034 | 2295 | 2532059 |
|  County of Grand Forks ND<br>(Red River Biorefinery LLC) <br>Series 2021 <br>6.625%, 12/15/2031<sup>(a)</sup> | 5195 | 3186621 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.00%, 12/15/2043<sup>(a)</sup> | 5390 | 3217453 |
|  County of Ward ND<br>(Trinity Health Obligated Group) <br>Series 2017-C <br>5.00%, 06/01/2048-06/01/2053 | 10230 | 10799500 |
|  |  | 24698854 |
|  **Ohio – 4.4%** | **Ohio – 4.4%** | **Ohio – 4.4%** |
|  Akron Bath Copley Joint Township Hospital District<br>(Summa Health System Obligated Group) <br>Series 2020 <br>3.00%, 11/15/2040 | 4500 | 3708705 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 11/15/2036-11/15/2038 | 2550 | 2510026 |
|  American Municipal Power, Inc. <br>Series 2016-A <br>5.00%, 02/15/2041-02/15/2046 | 10000 | 10585549 |
|  Buckeye Tobacco Settlement Financing Authority <br>Series 2020-A <br>4.00%, 06/01/2048 | 2000 | 1870672 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-B <br>5.00%, 06/01/2055 | 178935 | 174015128 |
|  City of Chillicothe OH<br>(Adena Health System Obligated Group)<br>Series 2017 <br>5.00%, 12/01/2037-12/01/2047 | 7500 | 7996180 |
|  County of Allen OH Hospital Facilities Revenue <br>(Bon Secours Mercy Health, Inc.)<br>Series 2020 <br>4.00%, 12/01/2040 | 10390 | 10371953 |
|  County of Cuyahoga OH<br>(MetroHealth System (The)) <br>Series 2017 <br>5.00%, 02/15/2042-02/15/2052 | 12170 | 12791955 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 02/15/2047 | 12860 | 13684761 |

---

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| | |
|:---|:---|
| **62 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  County of Franklin OH<br>(First Community Village Obligated Group) <br>Series 2019 <br>5.00%, 07/01/2049 | $3940 | $3545949 |
|  County of Hamilton OH<br>(UC Health Obligated Group) <br>Series 2020 <br>5.00%, 09/15/2050 | 18425 | 20183377 |
|  County of Hardin OH<br>(Ohio Northern University) <br>Series 2020 <br>5.25%, 05/01/2040 | 500 | 466359 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.50%, 05/01/2050 | 1000 | 916180 |
|  County of Marion OH<br>(United Church Homes, Inc. Obligated<br>Group) <br>Series 2019 <br>5.125%, 12/01/2049 | 2210 | 2208349 |
|  County of Montgomery OH<br>(Trousdale Foundation Obligated Group)<br>Series 2018 <br>6.00%, 04/01/2038<sup>(a)(e)(f)</sup> | 2000 | 940000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-A <br>6.25%, 04/01/2049<sup>(a)(e)(f)</sup> | 10105 | 4749350 |
|  County of Ross OH<br>(Adena Health System Obligated Group)<br>Series 2019 <br>5.00%, 12/01/2049 | 6000 | 6442522 |
|  Ohio Air Quality Development Authority<br>(Energy Harbor Nuclear Generation LLC)<br>Series 2009-A <br>4.375%, 06/01/2033 | 7480 | 7486264 |
|  Ohio Air Quality Development Authority<br>(Ohio Valley Electric Corp.) <br>Series 2019 <br>3.25%, 09/01/2029 | 1780 | 1654154 |
|  Ohio Higher Educational Facility Commission<br>(Kenyon College) <br>Series 2020 <br>5.00%, 07/01/2038-07/01/2042 | 9690 | 10643461 |
|  Ohio Water Development Authority Water Pollution Control Loan Fund<br>(Energy Harbor Nuclear Generation LLC)<br>Series 2016-A <br>4.375%, 06/01/2033 | 9565 | 9573010 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 63** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Port of Greater Cincinnati Development Authority <br>Series 2021 <br>4.375%, 06/15/2056 | $| 3480 | $| 3240759 |
|  Toledo-Lucas County Port Authority <br>(ParkUToledo, Inc.)<br>Series 2021<br>4.00%, 01/01/2041-01/01/2051 |  | 14500 |  | 13062481 |
|  |  |  |  | 322647144 |
|  **Oklahoma – 0.6%** | **Oklahoma – 0.6%** | **Oklahoma – 0.6%** | **Oklahoma – 0.6%** | **Oklahoma – 0.6%** |
|  Comanche County Memorial Hospital <br>Series 2015 <br>5.00%, 07/01/2022 |  | 780 |  | 783676 |
|  Oklahoma Development Finance Authority<br>(Oklahoma City University Obligated Group) <br>Series 2019 <br>5.00%, 08/01/2044-08/01/2049 |  | 15630 |  | 16204439 |
|  Oklahoma Development Finance Authority<br>(OU Medicine Obligated Group) <br>Series 2018-B <br>5.25%, 08/15/2043 |  | 11000 |  | 11382221 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.50%, 08/15/2057 |  | 14170 |  | 14881568 |
|  |  |  |  | 43251904 |
|  **Oregon – 0.4%** | **Oregon – 0.4%** | **Oregon – 0.4%** | **Oregon – 0.4%** | **Oregon – 0.4%** |
|  Clackamas County Hospital Facility Authority<br>(Rose Villa, Inc. Obligated Group) <br>Series 2020 <br>2.75%, 11/15/2025 |  | 1000 |  | 987376 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-A <br>5.125%, 11/15/2040 |  | 750 |  | 762073 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 11/15/2055 |  | 1300 |  | 1323915 |
|  Medford Hospital Facilities Authority<br>(Asante Health System Obligated Group)<br>Series 2020-A <br>5.00%, 08/15/2045-08/15/2050 |  | 10000 |  | 10889169 |
|  Oregon State Facilities Authority<br>(Samaritan Health Services, Inc. Obligated Group) <br>Series 2020 <br>5.00%, 10/01/2040 |  | 1750 |  | 1877358 |
|  Tri-County Metropolitan Transportation District of Oregon<br>Series 2021-A <br>4.00%, 09/01/2040-09/01/2041 |  | 6000 |  | 6210856 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 09/01/2032-09/01/2035 |  | 4150 |  | 4832814 |

---

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| | |
|:---|:---|
| **64 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Yamhill County Hospital Authority<br>(Friendsview Manor Obligated Group) <br>Series 2021-B <br>1.75%, 11/15/2026 | $| 1400 | $| 1315527 |
|  |  |  |  | 28199088 |
|  **Pennsylvania – 5.4%** | **Pennsylvania – 5.4%** | **Pennsylvania – 5.4%** | **Pennsylvania – 5.4%** | **Pennsylvania – 5.4%** |
|  Allegheny County Hospital Development Authority<br>(Allegheny Health Network Obligated Group) <br>Series 2018-A <br>5.00%, 04/01/2034-04/01/2036 |  | 33535 |  | 36527517 |
|  Allentown Neighborhood Improvement Zone Development Authority <br>Series 2017 <br>5.00%, 05/01/2042<sup>(a)</sup> |  | 2270 |  | 2363500 |
|  Beaver County Industrial Development Authority<br>(Energy Harbor Nuclear Generation LLC)<br>Series 2016-A <br>4.375%, 01/01/2035 |  | 1455 |  | 1456258 |
|  Bensalem Township School District <br>Series 2013 <br>5.00%, 06/01/2029 (Pre-refunded/ETM) |  | 8570 |  | 8941639 |
|  Berks County Industrial Development Authority<br>(Highlands at Wyomissing (The)) <br>Series 2018 <br>5.00%, 05/15/2048 |  | 1000 |  | 1035024 |
|  Berks County Municipal Authority (The)<br>(Tower Health Obligated Group) <br>Series 2012-A <br>4.50%, 11/01/2041 |  | 4050 |  | 4049837 |
|  Bucks County Industrial Development Authority<br>(Grand View Hospital/Sellersville PA Obligated Group) <br>Series 2021 <br>4.00%, 07/01/2051 |  | 5000 |  | 4422189 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 07/01/2031-07/01/2054 |  | 6150 |  | 6380283 |
|  Chambersburg Area Municipal Authority<br>(Wilson College) <br>Series 2018 <br>5.75%, 10/01/2043 |  | 1350 |  | 1403420 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.00%, 10/01/2048 |  | 9000 |  | 9388398 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 65** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Chester County Industrial Development Authority<br>(Woodlands at Greystone Neighborhood Improvement District) <br>Series 2018 <br>5.125%, 03/01/2048<sup>(a)</sup> | $988 | $1014189 |
|  City of Philadelphia PA <br>Series 2017 <br>5.00%, 08/01/2029-08/01/2031 | 12110 | 13254077 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-B <br>5.00%, 02/01/2035-02/01/2038 | 11300 | 12588501 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2017-A <br>5.00%, 08/01/2033-08/01/2034 | 13000 | 14149606 |
|  City of Philadelphia PA Water & Wastewater Revenue<br>2.189%, 07/01/2032<sup>(b)</sup> | 3725 | 3132706 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.289%, 07/01/2033<sup>(b)</sup> | 3060 | 2549751 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-A <br>5.00%, 10/01/2035-10/01/2036 | 5105 | 5608053 |
|  Commonwealth of Pennsylvania<br>(Commonwealth of Pennsylvania COP) <br>Series 2018-A <br>5.00%, 07/01/2038 | 1120 | 1228272 |
|  County of Lehigh PA<br>(Lehigh Valley Health Network Obligated Group) <br>Series 2016-A <br>4.00%, 07/01/2035 | 10000 | 10076213 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019 <br>5.00%, 07/01/2044 | 6885 | 7505172 |
|  Crawford County Hospital Authority<br>(Meadville Medical Center Obligated Group) <br>Series 2016-A <br>6.00%, 06/01/2046-06/01/2051 | 3375 | 3520510 |
|  Cumberland County Municipal Authority<br>(Asbury Pennsylvania Obligated Group) <br>Series 2019 <br>5.00%, 01/01/2045 | 1815 | 1829193 |
|  Geisinger Pennsylvania Authority Health System <br>5.00%, 04/01/2050<sup>(b)</sup> | 10000 | 10696069 |
|  Lancaster County Hospital Authority/PA<br>(St Anne's Retirement Community Obligated Group) <br>Series 2020 <br>5.00%, 03/01/2050 | 500 | 478263 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022 <br>5.00%, 03/01/2029 | 2170 | 2233041 |

---

---

| | |
|:---|:---|
| **66 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Lancaster County Hospital Authority/PA<br>(St. Anne's Retirement Community Obligated Group) <br>Series 2020 <br>5.00%, 03/01/2040 | $2000 | $1969718 |
|  Montgomery County Higher Education and Health Authority<br>(HumanGood Pennsylvania Obligated Group) <br>Series 2017 <br>5.00%, 12/01/2047 | 1500 | 1564374 |
|  Montgomery County Higher Education and Health Authority<br>(Thomas Jefferson University Obligated Group) <br>Series 2018 <br>5.00%, 09/01/2035 | 3600 | 3974503 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019 <br>4.00%, 09/01/2049 | 5900 | 5720813 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 09/01/2051 | 2300 | 2488287 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022 <br>5.00%, 05/01/2057<sup>(b)</sup> | 16395 | 17706525 |
|  Montgomery County Industrial Development Authority/PA<br>(ACTS Retirement-Life Communities, Inc. Obligated Group) <br>Series 2020 <br>4.00%, 11/15/2043 | 500 | 501790 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 11/15/2045 | 1560 | 1693888 |
|  Montgomery County Industrial Development Authority/PA<br>(Whitemarsh Continuing Care Retirement Community)<br>Series 2015 <br>5.00%, 01/01/2030 | 1040 | 1059110 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 01/01/2040 | 4740 | 4814851 |
|  Moon Industrial Development Authority<br>(Baptist Homes Society) <br>Series 2015 <br>5.75%, 07/01/2035 | 5135 | 5215942 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.00%, 07/01/2045 | 2000 | 2027900 |
|  Northeastern Pennsylvania Hospital and Education Authority<br>(Wilkes University) <br>Series 2016-A <br>5.00%, 03/01/2037 | 2925 | 3006694 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-B <br>5.25%, 03/01/2031-03/01/2037 | 2310 | 2411437 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 67** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Pennsylvania Economic Development Financing Authority <br>(Covanta Holding Corp.)<br>Series 2019 <br>3.25%, 08/01/2039<sup>(a)</sup> | $2330 | $1936127 |
|  Pennsylvania Economic Development Financing Authority<br>(National Railroad Passenger Corp.) <br>Series 2012-A <br>5.00%, 11/01/2041 | 1620 | 1640324 |
|  Pennsylvania Economic Development Financing Authority<br>(PA Bridges Finco LP) <br>Series 2015 <br>5.00%, 12/31/2034 | 2830 | 2963777 |
|  Pennsylvania Economic Development Financing Authority<br>(Pennsylvania Economic Development Finance Authority Sewage) <br>Series 2020 <br>3.00%, 01/01/2023 | 750 | 754057 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 01/01/2027-01/01/2032 | 3180 | 3251315 |
|  Pennsylvania Economic Development Financing Authority<br>(UPMC Obligated Group) <br>Series 2020-A <br>4.00%, 04/15/2036-04/15/2039<sup>(b)</sup> | 16155 | 16269424 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-A1 <br>4.00%, 04/15/2040<sup>(b)</sup> | 8375 | 8384386 |
|  Pennsylvania Higher Educational Facilities Authority<br>(Drexel University) <br>Series 2016 <br>5.00%, 05/01/2032 | 1000 | 1061047 |
|  Pennsylvania Higher Educational Facilities Authority<br>(University of Pennsylvania Health System Obligated Group (The)) <br>Series 2022 <br>4.00%, 08/15/2042<sup>(c)</sup> | 2050 | 2015808 |
|  Pennsylvania Turnpike Commission <br>Series 2016 <br>5.00%, 06/01/2037 | 4000 | 4245176 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-B <br>5.00%, 06/01/2035-06/01/2036 | 12850 | 13953101 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-A <br>5.00%, 12/01/2043 | 10000 | 10840347 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-A <br>5.00%, 12/01/2038-12/01/2044 | 9180 | 9962209 |

---

---

| | |
|:---|:---|
| **68 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-A <br>4.00%, 12/01/2042 | $4000 | $4026600 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-B <br>4.00%, 12/01/2043 | 1725 | 1732075 |
|  Philadelphia Authority for Industrial Development<br>(City of Philadelphia PA) <br>Series 2018 <br>5.00%, 05/01/2035 | 1000 | 1102831 |
|  Philadelphia Authority for Industrial Development<br>(MaST Community Charter School II) <br>Series 2020 <br>5.00%, 08/01/2040-08/01/2050 | 2025 | 2064263 |
|  Philadelphia Authority for Industrial Development<br>(MaST Community Charter School III) <br>Series 2021 <br>5.00%, 08/01/2050-08/01/2054 | 8560 | 8670947 |
|  Philadelphia Authority for Industrial Development<br>(Philadelphia Performing Arts Charter School) <br>Series 2020 <br>5.00%, 06/15/2050<sup>(a)</sup> | 1700 | 1692706 |
|  Philadelphia Gas Works Co. <br>Series 2017 <br>5.00%, 08/01/2042 | 5000 | 5399478 |
|  School District of Philadelphia (The) <br>Series 2015-A <br>5.00%, 09/01/2034-09/01/2035 | 2615 | 2797502 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-F <br>5.00%, 09/01/2033-09/01/2036 | 4000 | 4289632 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-A <br>5.00%, 09/01/2034-09/01/2038 | 4000 | 4388403 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018-B <br>5.00%, 09/01/2043 | 3000 | 3255877 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-A <br>4.00%, 09/01/2037-09/01/2039 | 5530 | 5673768 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 09/01/2044<sup>(b)</sup> | 17900 | 19617781 |
|  Scranton-Lackawanna Health and Welfare Authority<br>(Scranton Parking System Concession Project) <br>Series 2016-A <br>5.00%, 01/01/2051-01/01/2057<sup>(a)</sup> | 12110 | 7949903 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-B <br>6.08%, 01/01/2026<sup>(a)</sup> | 610 | 580477 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 69** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-C <br>Zero Coupon, 01/01/2036<sup>(a)</sup> | $| 2945 | $| 956973 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-D <br>Zero Coupon, 01/01/2057<sup>(h)</sup> |  | 58055 |  | 3483300 |
|  State Public School Building Authority <br>AGM Series 2016 <br>5.00%, 12/01/2029 (Pre-refunded/ETM) |  | 220 |  | 242916 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 12/01/2029-12/01/2030 |  | 8525 |  | 9294729 |
|  Union County Hospital Authority<br>(Evangelical Community Hospital Obligated Group) <br>Series 2018 <br>5.00%, 08/01/2038-08/01/2043 |  | 8435 |  | 9076820 |
|  |  |  |  | 393561592 |
|  **Puerto Rico – 4.7%** | **Puerto Rico – 4.7%** | **Puerto Rico – 4.7%** | **Puerto Rico – 4.7%** | **Puerto Rico – 4.7%** |
|  Children's Trust Fund <br>Series 2005-A <br>Zero Coupon, 05/15/2050 |  | 8370 |  | 1397786 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2008-A <br>Zero Coupon, 05/15/2057 |  | 261400 |  | 15811615 |
|  Commonwealth of Puerto Rico <br>Series 2021-A <br>Zero Coupon, 07/01/2024-07/01/2033 |  | 7107 |  | 4423065 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 07/01/2033-07/01/2046 |  | 26378 |  | 24218760 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 07/01/2023 |  | 2360 |  | 2388937 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 07/01/2025 |  | 5104 |  | 5272353 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.625%, 07/01/2027-07/01/2029 |  | 9627 |  | 10236328 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.75%, 07/01/2031 |  | 2229 |  | 2434223 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022-C <br>Zero Coupon, 11/01/2043 |  | 11259 |  | 5854527 |
|  GDB Debt Recovery Authority of Puerto Rico <br>Series 2018 <br>7.50%, 08/20/2040 |  | 7727 |  | 7118214 |
|  Puerto Rico Commonwealth Aqueduct & Sewer Authority <br>Series 2008-A <br>6.125%, 07/01/2024 |  | 5235 |  | 5411526 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2012-A <br>4.25%, 07/01/2025 |  | 8140 |  | 8175417 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 07/01/2022-07/01/2033 |  | 9700 |  | 9753837 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 07/01/2037 |  | 1155 |  | 1161641 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.25%, 07/01/2029-07/01/2042 |  | 12060 |  | 12131756 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.50%, 07/01/2028 |  | 4090 |  | 4115970 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.75%, 07/01/2037 |  | 2985 |  | 3005147 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.00%, 07/01/2047 |  | 2845 |  | 2865292 |

---

---

| | |
|:---|:---|
| **70 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Puerto Rico Custodial Trust <br>Series 2022 <br>5.50%, 07/01/2029 | $432 | $453131 |
|  Puerto Rico Electric Power Authority <br>Series 2007-T <br>5.00%, 07/01/2032-07/01/2037<sup>(e)(f)</sup> | 22285 | 21282175 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2008-W <br>5.25%, 07/01/2033<sup>(e)(f)</sup> | 1000 | 960000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.50%, 07/01/2038<sup>(e)(f)</sup> | 10490 | 10109737 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2010-A <br>5.25%, 07/01/2029-07/01/2030<sup>(e)(f)</sup> | 3990 | 3830400 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2010-C <br>5.00%, 07/01/2024<sup>(e)(f)</sup> | 1735 | 1656925 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2010-D <br>5.00%, 07/01/2021-07/01/2022<sup>(e)(f)</sup> | 2000 | 1910000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2010-X <br>5.25%, 07/01/2040<sup>(e)(f)</sup> | 12605 | 12100800 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.75%, 07/01/2036<sup>(e)(f)</sup> | 7375 | 7135312 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2010-Z <br>5.25%, 07/01/2024-07/01/2025<sup>(e)(f)</sup> | 3185 | 3057600 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2012-A <br>5.00%, 07/01/2029-07/01/2042<sup>(e)(f)</sup> | 4250 | 4058750 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2007-U <br>5.00%, 07/01/2023 | 1050 | 1068743 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2007-V <br>5.25%, 07/01/2031 | 25380 | 26337849 |
| &nbsp;&nbsp;&nbsp;&nbsp; NATL Series 2007-V <br>5.25%, 07/01/2029 | 5965 | 6141009 |
|  Puerto Rico Highway & Transportation Authority <br>AGC Series 2005-L <br>5.25%, 07/01/2041 | 8600 | 8960047 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGC Series 2007-C <br>5.50%, 07/01/2031 | 1235 | 1310815 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGC Series 2007-N <br>5.25%, 07/01/2036 | 825 | 863388 |
| &nbsp;&nbsp;&nbsp;&nbsp; AGM Series 2007-C <br>5.25%, 07/01/2036 | 1800 | 1883861 |
| &nbsp;&nbsp;&nbsp;&nbsp; NATL Series 2007 <br>5.50%, 07/01/2028 | 1000 | 1044315 |
|  Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Auth<br>(AES Puerto Rico LP) <br>Series 2000 <br>6.625%, 06/01/2026 | 23735 | 24534575 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 71** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Auth<br>(Sistema Universitario Ana G Mendez Incorporado) <br>Series 2012 <br>5.375%, 04/01/2042 | $| 335 | $| 336087 |
|  Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue <br>Series 2018-A <br>Zero Coupon, 07/01/2024-07/01/2046 |  | 16536 |  | 5387860 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-A <br>4.329%, 07/01/2040 |  | 15975 |  | 15793402 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.55%, 07/01/2040 |  | 1198 |  | 1204546 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 07/01/2058 |  | 54251 |  | 55605105 |
|  |  |  |  | 342802826 |
|  **Rhode Island – 0.0%** | **Rhode Island – 0.0%** | **Rhode Island – 0.0%** | **Rhode Island – 0.0%** | **Rhode Island – 0.0%** |
|  Rhode Island Health and Educational Building Corp.<br>(City of Woonsocket RI Lease) <br>AGM Series 2017-A <br>5.00%, 05/15/2028-05/15/2029 |  | 2000 |  | 2214593 |
|  **South Carolina – 1.9%** | **South Carolina – 1.9%** | **South Carolina – 1.9%** | **South Carolina – 1.9%** | **South Carolina – 1.9%** |
|  South Carolina Jobs-Economic Development Authority<br>(Bon Secours Mercy Health, Inc.) <br>Series 2020 <br>5.00%, 12/01/2046 |  | 9595 |  | 10339796 |
|  South Carolina Jobs-Economic Development Authority<br>(Last Step Recycling LLC) <br>Series 2021 <br>6.25%, 06/01/2040<sup>(a)</sup> |  | 5000 |  | 4276656 |
| &nbsp;&nbsp;&nbsp;&nbsp; 6.50%, 06/01/2051<sup>(a)</sup> |  | 4920 |  | 4091358 |
|  South Carolina Jobs-Economic Development Authority<br>(Lutheran Homes of South Carolina Obligated Group) <br>Series 2013 <br>5.00%, 05/01/2043 |  | 1000 |  | 878256 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 05/01/2048 |  | 1000 |  | 871340 |
|  South Carolina Public Service Authority <br>Series 2016-A <br>5.00%, 12/01/2034-12/01/2036 |  | 4815 |  | 5127509 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-B <br>5.00%, 12/01/2037-12/01/2056 |  | 38780 |  | 41182049 |

---

---

| | |
|:---|:---|
| **72 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022 <br>4.00%, 12/01/2038-12/01/2050 | $| 20517 | $| 19893222 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 12/01/2036-12/01/2038 |  | 2189 |  | 2467956 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022-A<br>4.00%, 12/01/2047-12/01/2052 |  | 45000 |  | 43607539 |
|  University of South Carolina <br>Series 2021-A <br>5.00%, 05/01/2039 |  | 5695 |  | 6528992 |
|  |  |  |  | 139264673 |
|  **South Dakota – 0.3%** | **South Dakota – 0.3%** | **South Dakota – 0.3%** | **South Dakota – 0.3%** | **South Dakota – 0.3%** |
|  County of Lincoln SD<br>(Augustana College Association (The)) <br>Series 2021 <br>4.00%, 08/01/2056-08/01/2061 |  | 5375 |  | 4628181 |
|  South Dakota Health & Educational Facilities Authority <br>Series 2017 <br>5.00%, 09/01/2040<sup>(b)</sup> |  | 15035 |  | 16263862 |
|  South Dakota Health & Educational Facilities Authority<br>(Regional Health System Obligated Group/SD) <br>Series 2017 <br>5.00%, 09/01/2033<sup>(b)</sup> |  | 3260 |  | 3544713 |
|  |  |  |  | 24436756 |
|  **Tennessee – 1.5%** | **Tennessee – 1.5%** | **Tennessee – 1.5%** | **Tennessee – 1.5%** | **Tennessee – 1.5%** |
|  Bristol Industrial Development Board<br>(Bristol Industrial Development Board Sales Tax) <br>Series 2016-A <br>5.00%, 12/01/2035<sup>(a)</sup> |  | 9080 |  | 8940044 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.125%, 12/01/2042<sup>(a)</sup> |  | 27210 |  | 26592899 |
|  Chattanooga Health Educational & Housing Facility Board<br>(CommonSpirit Health) <br>Series 2019-A <br>4.00%, 08/01/2038 |  | 1000 |  | 970192 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 08/01/2044-08/01/2049 |  | 11260 |  | 12100415 |
|  Johnson City Health & Educational Facilities Board<br>(Mountain States Health Alliance Obligated Group) <br>Series 2012 <br>5.00%, 08/15/2042 |  | 5250 |  | 5293868 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 73** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board<br>(Trousdale Foundation Obligated Group) Series 2018-A <br>6.25%, 04/01/2049<sup>(a)(e)(f)</sup> | $5040 | $2368800 |
|  Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board<br>(Vanderbilt University Medical Center Obligated Group) <br>Series 2016 <br>5.00%, 07/01/2040 | 2435 | 2605360 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-A <br>5.00%, 07/01/2048 | 2335 | 2501315 |
|  Metropolitan Government Nashville & Davidson County Industrial Development Board <br>(South Nashville Central Business Improvement District)<br>Series 2021<br>Zero Coupon, 06/01/2043<sup>(a)</sup> | 3000 | 946620 |
|  Metropolitan Government of Nashville & Davidson County TN Water & Sewer Revenue <br>Series 2021-A <br>4.00%, 07/01/2035-07/01/2046 | 17100 | 17226765 |
|  Shelby County Health Educational & Housing Facilities Board <br>Series 2012 <br>5.25%, 12/01/2042 (Pre-refunded/ETM) | 1000 | 1020196 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.375%, 12/01/2047<br>(Pre-refunded/ETM) | 800 | 816729 |
|  Tennergy Corp./TN<br>(Morgan Stanley) <br>Series 2021-A <br>4.00%, 12/01/2051 | 15000 | 15248752 |
|  Wilson County Health & Educational Facilities Board <br>Series 2021 <br>4.00%, 12/01/2039 | 10000 | 8051154 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.25%, 12/01/2024 | 6000 | 5722081 |
|  |  | 110405190 |

---

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| | |
|:---|:---|
| **74 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Texas – 5.9%** | **Texas – 5.9%** | **Texas – 5.9%** |
|  Abilene Convention Center Hotel Development Corp.<br>(City of Abilene TX Abilene Convention Center Revenue) <br>Series 2021-B <br>5.00%, 10/01/2050<sup>(a)</sup> | $5300 | $4818163 |
|  Arlington Higher Education Finance Corp.<br>(Wayside Schools) <br>Series 2021-A <br>4.00%, 08/15/2036-08/15/2046 | 1195 | 1030737 |
|  Baytown Municipal Development District<br>(Baytown Municipal Development District Baytown Convention Center Hotel Revenue) <br>Series 2021 <br>4.00%, 10/01/2045-10/01/2050 | 12360 | 12262928 |
|  Central Texas Regional Mobility Authority <br>Series 2013 <br>5.00%, 01/01/2042 (Pre-refunded/ETM) | 3500 | 3573455 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-A <br>5.00%, 01/01/2045 (Pre-refunded/ETM) | 4905 | 5282162 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020-A <br>5.00%, 01/01/2044-01/01/2049 | 6170 | 6549974 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-B <br>5.00%, 01/01/2046 | 4600 | 4922795 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-C <br>5.00%, 01/01/2027 | 7000 | 7410031 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-D <br>4.00%, 01/01/2044 | 2500 | 2470248 |
|  Central Texas Turnpike System <br>Series 2015-C <br>5.00%, 08/15/2037 | 6800 | 7010925 |
|  City of Austin TX Airport System Revenue <br>Series 2019-B <br>5.00%, 11/15/2039 | 1000 | 1073210 |
|  City of Houston TX<br>Series 2021-B <br>2.047%, 03/01/2033 | 2495 | 2062586 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.147%, 03/01/2034 | 7405 | 6028573 |
|  City of Houston TX<br>(City of Houston TX Hotel Occupancy Tax) <br>Series 2015 <br>5.00%, 09/01/2030 | 1965 | 2053530 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 75** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  City of Houston TX Airport System Revenue<br>(United Airlines, Inc.) <br>Series 2014 <br>5.00%, 07/01/2029 | $16960 | $17423827 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-B <br>5.00%, 07/15/2030-07/15/2035 | 2960 | 3070642 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2018 <br>5.00%, 07/15/2028 | 22875 | 24232316 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020 <br>5.00%, 07/01/2027-07/15/2027 | 4250 | 4499711 |
|  City of San Antonio TX Electric & Gas Systems Revenue <br>Series 2021-A <br>5.00%, 02/01/2046 | 5000 | 5536163 |
|  Clifton Higher Education Finance Corp.<br>(IDEA Public Schools) <br>Series 2012 <br>5.00%, 08/15/2042 | 530 | 533245 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2013 <br>6.00%, 08/15/2043 | 1000 | 1031102 |
|  Conroe Local Government Corp.<br>(Conroe Local Government Corp. Conroe Convention Center Hotel) <br>Series 2021 <br>4.00%, 10/01/2050 | 2525 | 2406108 |
|  Dallas County Flood Control District No. 1 <br>Series 2015 <br>5.00%, 04/01/2028<sup>(a)</sup> | 1650 | 1654873 |
|  Dallas Fort Worth International Airport <br>Series 2022-A <br>4.507%, 11/01/2051 | 2000 | 1911547 |
|  Decatur Hospital Authority<br>(Wise Regional Health System) <br>Series 2014-A <br>5.25%, 09/01/2044 | 3150 | 3298441 |
|  Grand Parkway Transportation Corp. <br>Series 2018 <br>5.00%, 02/01/2023 | 5340 | 5443153 |
|  Hidalgo County Regional Mobility Authority <br>Series 2022-A <br>Zero Coupon, 12/01/2042 | 2000 | 684871 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022-B <br>Zero Coupon, 12/01/2042-12/01/2056 | 16930 | 3499666 |

---

---

| | |
|:---|:---|
| **76 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Irving Hospital Authority<br>(Baylor Medical Center at Irving) <br>Series 2017-A <br>5.00%, 10/15/2044 | $7305 | $7809886 |
|  Lower Colorado River Authority<br>(LCRA Transmission Services Corp.) <br>Series 2022 <br>5.00%, 05/15/2034-05/15/2042 | 25825 | 28574756 |
|  Mission Economic Development Corp.<br>(Natgasoline LLC) <br>Series 2018 <br>4.625%, 10/01/2031<sup>(a)</sup> | 25410 | 26253218 |
|  New Hope Cultural Education Facilities Finance Corp. <br>Series 2017-A <br>5.00%, 04/01/2037 (Pre-refunded/ETM) | 2050 | 2266340 |
|  New Hope Cultural Education Facilities Finance Corp.<br>(BSPV – Plano LLC) <br>Series 2019 <br>7.25%, 12/01/2053<sup>(e)(f)</sup> | 7820 | 7038000 |
|  New Hope Cultural Education Facilities Finance Corp.<br>(Buckingham Senior Living Community, Inc. Obligated Group) <br>Series 2021 <br>2.00%, 11/15/2061 | 200 | 102863 |
| &nbsp;&nbsp;&nbsp;&nbsp; 7.50%, 11/15/2036-11/15/2037 | 60 | 53084 |
|  New Hope Cultural Education Facilities Finance Corp.<br>(Legacy at Midtown Park, Inc. Obligated Group) <br>Series 2018-A <br>5.50%, 07/01/2054 | 4500 | 4005882 |
|  New Hope Cultural Education Facilities Finance Corp.<br>(Morningside Ministries Obligated Group) <br>Series 2020 <br>5.00%, 01/01/2040-01/01/2055 | 3800 | 3820954 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022 <br>4.00%, 01/01/2047<sup>(c)</sup> | 4575 | 3672303 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.25%, 01/01/2057<sup>(c)</sup> | 1380 | 1061497 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 01/01/2057<sup>(c)</sup> | 2950 | 2656630 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 77** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Newark Higher Education Finance Corp.<br>(Abilene Christian University) <br>Series 2022 <br>4.00%, 04/01/2057 | $10000 | $9255778 |
|  North East Texas Regional Mobility Authority <br>Series 2016 <br>5.00%, 01/01/2046 | 4940 | 5118126 |
|  North Texas Education Finance Corp. <br>Series 2012-A <br>5.125%, 12/01/2042 (Pre-refunded/ETM) | 280 | 280842 |
|  North Texas Tollway Authority<br>(North Texas Tollway System) <br>Series 2014-B <br>5.00%, 01/01/2031 | 8975 | 9293915 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-A <br>5.00%, 01/01/2035 | 7000 | 7332415 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-B <br>5.00%, 01/01/2033-01/01/2043 | 7400 | 7931849 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2020 <br>3.079%, 01/01/2042 | 4990 | 4068191 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021 <br>3.011%, 01/01/2043<sup>(b)</sup> | 7500 | 6129238 |
|  Port Beaumont Navigation District<br>(Jefferson Railport Terminal II LLC) <br>Series 2020 <br>4.00%, 01/01/2050<sup>(a)</sup> | 3315 | 2773061 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021 <br>2.125%, 01/01/2028<sup>(a)</sup> | 540 | 486591 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.25%, 01/01/2029<sup>(a)</sup> | 800 | 707144 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.50%, 01/01/2030<sup>(a)</sup> | 905 | 794708 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.625%, 01/01/2031<sup>(a)</sup> | 500 | 434991 |
|  Red River Health Facilities Development Corp. <br>Series 2014-A <br>7.75%, 11/15/2044 (Pre-refunded/ETM) | 1315 | 1481273 |
|  Sanger Industrial Development Corp.<br>(Texas Pellets, Inc.) <br>Series 2012-B <br>8.00%, 07/01/2038<sup>(e)(f)(g)</sup> | 2180 | 545000 |
|  Tarrant County Cultural Education Facilities Finance Corp.<br>(Edgemere Retirement Senior Quality Lifestyles Corp.) <br>Series 2015-A <br>5.00%, 11/15/2045<sup>(e)(f)</sup> | 3540 | 1239000 |

---

---

| | |
|:---|:---|
| **78 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-B <br>5.00%, 11/15/2030<sup>(e)(f)</sup> | $4000 | $1400000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017 <br>5.25%, 11/15/2047<sup>(e)(f)</sup> | 1115 | 390250 |
|  Tarrant County Cultural Education Facilities Finance Corp.<br>(Stayton at Museum Way) <br>Series 2020-A <br>5.75%, 12/01/2054 | 6475 | 5893329 |
|  Tarrant County Cultural Education Facilities Finance Corp.<br>(Trinity Terrace Project) <br>Series 2014-A1 <br>5.00%, 10/01/2044-10/01/2049 | 5350 | 5467905 |
|  Texas Municipal Gas Acquisition & Supply Corp. I<br>(Bank of America Corp.) <br>Series 2008-D <br>6.25%, 12/15/2026 | 7595 | 8133900 |
|  Texas Private Activity Bond Surface Transportation Corp.<br>(Blueridge Transportation Group LLC) <br>Series 2016 <br>5.00%, 12/31/2040 | 1255 | 1317203 |
|  Texas Private Activity Bond Surface Transportation Corp.<br>(NTE Mobility Partners LLC) <br>Series 2019 <br>4.00%, 12/31/2037-12/31/2039 | 9100 | 9119917 |
|  Texas Private Activity Bond Surface Transportation Corp.<br>(NTE Mobility Partners Segments 3 LLC) Series 2013 <br>6.75%, 06/30/2043 | 3600 | 3797212 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019<br>5.00%, 06/30/2058 | 69280 | 71461357 |
|  Texas Transportation Commission <br>Series 2019 <br>5.00%, 08/01/2057 | 7500 | 7821842 |
|  Texas Water Development Board<br>(State Water Implementation Revenue Fund for Texas) <br>Series 2021 <br>4.00%, 10/15/2036-10/15/2056 | 25245 | 25898986 |
|  Uptown Development Authority <br>Series 2017-A <br>5.00%, 09/01/2035 | 1015 | 1061409 |
|  |  | 428725827 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 79** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Utah – 0.2%** | **Utah – 0.2%** | **Utah – 0.2%** |
|  City of Salt Lake City UT Airport Revenue <br>Series 2018-A <br>5.00%, 07/01/2048<sup>(b)</sup> | $7245 | $7621527 |
|  Military Installation Development Authority <br>Series 2021-A <br>4.00%, 06/01/2052 | 5000 | 3802163 |
|  Utah Infrastructure Agy Teleco <br>5.00%, 10/15/2032-10/15/2037 | 2410 | 2432522 |
|  |  | 13856212 |
|  **Vermont – 0.0%** | **Vermont – 0.0%** | **Vermont – 0.0%** |
|  Vermont Economic Development Authority (Casella Waste Systems, Inc.) <br>Series 2018 <br>4.625%, 04/01/2036<sup>(a)</sup> | 1100 | 1151212 |
|  **Virginia – 2.2%** | **Virginia – 2.2%** | **Virginia – 2.2%** |
|  Arlington County Industrial Development Authority<br>(Virginia Hospital Center Arlington Health System/VA) <br>Series 2020 <br>4.00%, 07/01/2038-07/01/2045 | 4620 | 4644157 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 07/01/2036 | 850 | 946478 |
|  Cherry Hill Community Development Authority<br>(Potomac Shores Project) <br>Series 2015 <br>5.15%, 03/01/2035<sup>(a)</sup> | 1000 | 1011719 |
|  Chesapeake Bay Bridge & Tunnel District <br>Series 2016 <br>5.00%, 07/01/2046 | 1000 | 1043725 |
|  Fairfax County Economic Development Authority <br>Series 2013-A <br>5.00%, 12/01/2047 (Pre-refunded/ETM) | 1955 | 2036678 |
|  Henrico County Economic Development Authority<br>(Westminster-Canterbury Corp. Obligated Group)<br>Series 2022 <br>5.00%, 10/01/2047-10/01/2052 | 6500 | 6878893 |
|  Tobacco Settlement Financing Corp./VA <br>Series 2007-B1 <br>5.00%, 06/01/2047 | 7490 | 7499600 |

---

---

| | |
|:---|:---|
| **80 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Virginia College Building Authority <br>(Marymount University)<br>Series 2015<br>5.25%, 07/01/2035<sup>(a)</sup> | $| 1000 | $| 1017091 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-A <br>5.00%, 07/01/2045<sup>(a)</sup> |  | 1110 |  | 1112819 |
|  Virginia Small Business Financing Authority<br>(95 Express Lanes LLC) <br>Series 2022 <br>4.00%, 01/01/2048 |  | 19520 |  | 18189519 |
|  Virginia Small Business Financing Authority<br>(Capital Beltway Express LLC) <br>Series 2022 <br>5.00%, 12/31/2047-12/31/2057 |  | 45290 |  | 48116403 |
|  Virginia Small Business Financing Authority<br>(Elizabeth River Crossings OpCo LLC) <br>Series 2012 <br>5.25%, 01/01/2032 |  | 16405 |  | 16499909 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.50%, 01/01/2042 |  | 3580 |  | 3602142 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022 <br>4.00%, 01/01/2030-01/01/2037<sup>(c)</sup> |  | 29720 |  | 29616682 |
|  Virginia Small Business Financing Authority<br>(I-66 Express Mobility Partners LLC) <br>Series 2017 <br>5.00%, 12/31/2052 |  | 2250 |  | 2311774 |
|  Virginia Small Business Financing Authority<br>(National Senior Campuses, Inc. Obligated Group) <br>Series 2020 <br>4.00%, 01/01/2051 |  | 18500 |  | 17817513 |
|  |  |  |  | 162345102 |
|  **Washington – 2.7%** | **Washington – 2.7%** | **Washington – 2.7%** | **Washington – 2.7%** | **Washington – 2.7%** |
|  Energy Northwest<br>(Bonneville Power Administration) <br>Series 2021 <br>5.00%, 07/01/2040 |  | 20000 |  | 22679900 |
|  Kalispel Tribe of Indians <br>Series 2018-A <br>5.25%, 01/01/2038<sup>(a)</sup> |  | 750 |  | 810303 |
|  King County Public Hospital District No. 4 <br>Series 2015-A <br>5.00%, 12/01/2030 |  | 2235 |  | 2248356 |
|  Pend Oreille County Public Utility District No. 1 Box Canyon <br>Series 2018 <br>5.00%, 01/01/2048 |  | 9000 |  | 9406084 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 81** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Port of Seattle WA <br>Series 2015-C <br>5.00%, 04/01/2033 | $5035 | $5251120 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019 <br>5.00%, 04/01/2044 | 3380 | 3634385 |
|  State of Washington <br>Series 2020-A <br>5.00%, 08/01/2038 | 15000 | 17005522 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-A <br>5.00%, 08/01/2040 | 12000 | 13723247 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-F <br>5.00%, 06/01/2039 | 5000 | 5716723 |
|  Washington Health Care Facilities Authority <br>(CommonSpirit Health)<br>Series 2019-A <br>5.00%, 08/01/2037-08/01/2044 | 19885 | 21475585 |
|  Washington Health Care Facilities Authority<br>(Overlake Hospital Medical Center Obligated Group) <br>Series 2017-A <br>5.00%, 07/01/2035 | 2350 | 2558558 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-B <br>5.00%, 07/01/2034 | 1855 | 2023523 |
|  Washington Health Care Facilities Authority<br>(Seattle Cancer Care Alliance Obligated Group) <br>Series 2020 <br>4.00%, 09/01/2045-09/01/2050 | 5490 | 5352766 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 09/01/2039-09/01/2050 | 5725 | 6222131 |
|  Washington Health Care Facilities Authority<br>(Virginia Mason Medical Center Obligated Group) <br>Series 2017 <br>5.00%, 08/15/2033-08/15/2037 | 18005 | 19139724 |
|  Washington State Convention Center Public Facilities District<br>(Washington State Convention Center Public Facilities District Hotel Occupancy Tax) <br>Series 2021 <br>4.00%, 07/01/2031 | 19340 | 18675151 |
|  Washington State Housing Finance Commission <br>Series 2012-A <br>6.75%, 10/01/2047 (Pre-refunded/ETM)<sup>(a)</sup> | 3550 | 3622965 |

---

---

| | |
|:---|:---|
| **82 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-1, Class A <br>3.50%, 12/20/2035 | $| 19375 | $| 17678044 |
|  Washington State Housing Finance Commission<br>(Presbyterian Retirement Communities Northwest Obligated Group) <br>Series 2016 <br>5.00%, 01/01/2031-01/01/2046<sup>(a)</sup> |  | 2790 |  | 2745081 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-A <br>5.00%, 01/01/2044-01/01/2055<sup>(a)</sup> |  | 11855 |  | 11034824 |
|  Washington State Housing Finance Commission<br>(Rockwood Retirement Communities) <br>Series 2014-A <br>7.375%, 01/01/2044<sup>(a)</sup> |  | 3215 |  | 3353209 |
|  Washington State Housing Finance Commission<br>(Spokane United Methodist Homes Obligated Group) <br>Series 2020 <br>5.00%, 01/01/2056<sup>(a)</sup> |  | 2000 |  | 1662306 |
|  |  |  |  | 196019507 |
|  **West Virginia – 0.1%** | **West Virginia – 0.1%** | **West Virginia – 0.1%** | **West Virginia – 0.1%** | **West Virginia – 0.1%** |
|  City of South Charleston WV<br>(City of South Charleston WV South Charleston Park Place Excise Tax District) <br>Series 2022 <br>4.50%, 06/01/2050<sup>(a)</sup> |  | 1000 |  | 796355 |
|  Tobacco Settlement Finance Authority/WV <br>Series 2020 <br>4.875%, 06/01/2049 |  | 3000 |  | 2812554 |
|  West Virginia Economic Development Authority<br>(Arch Resources, Inc.) <br>Series 2021 <br>4.125%, 07/01/2045 |  | 4035 |  | 4053507 |
|  West Virginia Hospital Finance Authority <br>Series 2013-A <br>5.50%, 06/01/2044 (Pre-refunded/ETM) |  | 2100 |  | 2168083 |
|  |  |  |  | 9830499 |
|  **Wisconsin – 4.0%** | **Wisconsin – 4.0%** | **Wisconsin – 4.0%** | **Wisconsin – 4.0%** | **Wisconsin – 4.0%** |
|  St. Croix Chippewa Indians of Wisconsin <br>Series 2021 <br>5.00%, 09/30/2041<sup>(a)</sup> |  | 8850 |  | 7122222 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 83** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  UMA Education, Inc. <br>Series 2019 <br>5.00%, 10/01/2034-10/01/2039<sup>(a)</sup> | $21005 | $21913294 |
|  Wisconsin Health & Educational Facilities Authority<br>(Aspirus, Inc. Obligated Group) <br>Series 2017 <br>5.00%, 08/15/2052<sup>(b)</sup> | 20345 | 22235885 |
|  Wisconsin Health & Educational Facilities Authority<br>(Marshfield Clinic Health System Obligated Group)<br>AGM Series 2020 <br>3.00%, 02/15/2038 | 1035 | 906611 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.00%, 02/15/2036-02/15/2037 | 2650 | 2676487 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 02/15/2028-02/15/2031 | 3500 | 3927019 |
|  Wisconsin Health & Educational Facilities Authority<br>(Oakwood Lutheran Senior Ministries Obligated Group) <br>Series 2021 <br>4.00%, 01/01/2057 | 5000 | 3927353 |
|  Wisconsin Health & Educational Facilities Authority<br>(Rogers Memorial Hospital, Inc. Obligated Group) <br>Series 2019 <br>5.00%, 07/01/2044 | 1000 | 1072786 |
|  Wisconsin Health & Educational Facilities Authority<br>(St. Camillus Health System Obligated Group) <br>Series 2019 <br>5.00%, 11/01/2039-11/01/2054 | 3690 | 3652228 |
|  Wisconsin Health & Educational Facilities Authority<br>(Thedacare, Inc. Obligated Group) <br>Series 2019 <br>4.00%, 12/15/2035-12/15/2038 | 7405 | 7397780 |
|  Wisconsin Housing & Economic Development Authority<br>(Roers Sun Prairie Apartments Owner LLC) <br>Series 2022 <br>4.625%, 03/15/2040<sup>(a)</sup> | 2510 | 2310285 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022-A <br>3.875%, 12/01/2039<sup>(a)</sup> | 11525 | 10557495 |

---

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| | |
|:---|:---|
| **84 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Wisconsin Public Finance Authority<br>Series 2022 <br>6.00%, 02/01/2062<sup>(a)</sup> | $12000 | $11326112 |
|  Wisconsin Public Finance Authority<br>(21st Century Public Academy) <br>Series 2020 <br>5.00%, 06/01/2049<sup>(a)</sup> | 1340 | 1206198 |
|  Wisconsin Public Finance Authority<br>(ACTS Retirement-Life Communities, Inc. Obligated Group) <br>Series 2020 <br>4.00%, 11/15/2037 | 600 | 607795 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 11/15/2041 | 1500 | 1638245 |
|  Wisconsin Public Finance Authority<br>(Appalachian Regional Healthcare System Obligated Group) <br>Series 2021 <br>4.00%, 07/01/2046-07/01/2051 | 2775 | 2518861 |
|  Wisconsin Public Finance Authority<br>(Bancroft Neurohealth Obligated Group) <br>Series 2016 <br>5.125%, 06/01/2048<sup>(a)</sup> | 3335 | 3379506 |
|  Wisconsin Public Finance Authority<br>(Blue Ridge Healthcare Obligated Group) <br>Series 2020 <br>4.00%, 01/01/2045 | 1500 | 1468637 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.00%, 01/01/2038-01/01/2040 | 1750 | 1924654 |
|  Wisconsin Public Finance Authority<br>(Carmelite System, Inc. Obligated Group (The)) <br>Series 2020 <br>5.00%, 01/01/2045 | 2030 | 2141752 |
|  Wisconsin Public Finance Authority<br>(Catholic Bishop of Chicago (The)) <br>Series 2021 <br>5.75%, 07/25/2041<sup>(a)</sup> | 57000 | 55317582 |
|  Wisconsin Public Finance Authority<br>(Celanese US Holdings LLC) <br>Series 2016-C <br>4.30%, 11/01/2030 | 2060 | 2113973 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-D <br>4.05%, 11/01/2030 | 720 | 733565 |
|  Wisconsin Public Finance Authority<br>(CFC-SA LLC) <br>Series 2022 <br>5.00%, 02/01/2052-02/01/2062 | 12500 | 12689850 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.75%, 02/01/2052<sup>(a)</sup> | 15500 | 14476600 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 85** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Wisconsin Public Finance Authority<br>(Gannon University) <br>Series 2017 <br>5.00%, 05/01/2042-05/01/2047 | $2650 | $2742417 |
|  Wisconsin Public Finance Authority<br>(Mary's Woods at Marylhurst, Inc.) <br>Series 2017-A <br>5.25%, 05/15/2037-05/15/2047<sup>(a)</sup> | 3225 | 3257616 |
|  Wisconsin Public Finance Authority<br>(McLemore Resort Manager LLC) <br>Series 2021 <br>4.50%, 06/01/2056<sup>(a)</sup> | 6000 | 4809109 |
|  Wisconsin Public Finance Authority<br>(National Senior Communities, Inc. Obligated Group) <br>Series 2022 <br>4.00%, 01/01/2047-01/01/2052 | 3750 | 3555829 |
|  Wisconsin Public Finance Authority<br>(Pine Lake Preparatory, Inc.) <br>Series 2015 <br>5.25%, 03/01/2035<sup>(a)</sup> | 1550 | 1598996 |
|  Wisconsin Public Finance Authority<br>(Queens University of Charlotte) <br>Series 2022 <br>5.25%, 03/01/2042-03/01/2047<sup>(c)</sup> | 17100 | 17649619 |
|  Wisconsin Public Finance Authority<br>(Rose Villa, Inc.Obligated Group) <br>Series 2014-A <br>5.75%, 11/15/2044<sup>(a)</sup> | 1000 | 1020238 |
|  Wisconsin Public Finance Authority<br>(Roseman University of Health Sciences) Series 2020 <br>5.00%, 04/01/2040-04/01/2050<sup>(a)</sup> | 4650 | 4767172 |
|  Wisconsin Public Finance Authority<br>(Samaritan Housing Foundation Obligated Group) <br>Series 2021 <br>4.00%, 06/01/2056 | 29090 | 21045542 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2022 <br>4.00%, 06/01/2049 | 3900 | 2959900 |
|  Wisconsin Public Finance Authority<br>(Seabury Retirement Community) <br>Series 2015-A <br>5.00%, 09/01/2030<sup>(a)</sup> | 545 | 555875 |

---

---

| | |
|:---|:---|
| **86 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
|  Wisconsin Public Finance Authority<br>(Sky Harbour Capital LLC Obligated Group) <br>Series 2021 <br>4.25%, 07/01/2054 | $| 3500 | $| 2911828 |
|  Wisconsin Public Finance Authority<br>(Southeastern Regional Medical Center Obligated Group) <br>Series 2021 <br>4.00%, 02/01/2046-02/01/2051 |  | 13500 |  | 12856816 |
|  Wisconsin Public Finance Authority<br>(Uwharrie Charter Academy) <br>Series 2022 <br>5.00%, 06/15/2052-06/15/2062<sup>(a)</sup> |  | 8715 |  | 8400492 |
|  Wisconsin Public Finance Authority<br>(Washoe Barton Medical Clinic) <br>Series 2021 <br>4.00%, 12/01/2051 |  | 3300 |  | 2953923 |
|  |  |  |  | 290328147 |
|  Total Long-Term Municipal Bonds <br>(cost $8,279,424,400) |  |  |  | 7773829426 |
|  **Short-Term Municipal Notes – 0.0%** | **Short-Term Municipal Notes – 0.0%** | **Short-Term Municipal Notes – 0.0%** | **Short-Term Municipal Notes – 0.0%** | **Short-Term Municipal Notes – 0.0%** |
|  **Indiana – 0.0%** | **Indiana – 0.0%** | **Indiana – 0.0%** | **Indiana – 0.0%** | **Indiana – 0.0%** |
|  Indiana Finance Authority <br>(Greencroft Goshen Obligated Group)<br>Series 2023-2 <br>4.00%, 11/15/2023<sup>(c)</sup> <br>(cost $798,156) |  | 795 |  | 794746 |
|  Total Municipal Obligations <br>(cost $8,280,222,556) |  |  |  | 7774624172 |
|  **COMMERCIAL MORTGAGE-BACKED SECURITIES – 0.6%** |  |  |  |  |
|  **Agency CMBS – 0.6%** | **Agency CMBS – 0.6%** | **Agency CMBS – 0.6%** | **Agency CMBS – 0.6%** | **Agency CMBS – 0.6%** |
|  California Housing Finance Agency <br>Series 2021-2, Class A <br>3.75%, 03/25/2035 |  | 35201 |  | 35712262 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-3, Class A <br>3.25%, 08/20/2036 |  | 7106 |  | 6801980 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-3, Class X <br>0.764%, 08/20/2036<sup>(i)</sup> |  | 20671 |  | 1331980 |
|  Washington State Housing Finance Commission <br>Series 2021-1, Class X <br>0.725%, 12/20/2035<sup>(i)</sup> |  | 14805 |  | 802099 |
|  Total Commercial Mortgage-Backed Securities <br>(cost $51,775,594) |  |  |  | 44648321 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 87** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **CORPORATES - NON-INVESTMENT GRADE – 0.0%** |  |  |
|  **Industrial – 0.0%** | **Industrial – 0.0%** | **Industrial – 0.0%** |
|  **Banks – 0.0%** | **Banks – 0.0%** | **Banks – 0.0%** |
|  UMB Financial Corp. <br>1.00%, 01/01/2049<sup>(j)(k)</sup> <br>(cost $225,284) | $225 | $225109 |
|  | **Shares** |  |
|  **SHORT-TERM INVESTMENTS – 1.7%** | **SHORT-TERM INVESTMENTS – 1.7%** | **SHORT-TERM INVESTMENTS – 1.7%** |
|  **Investment Companies – 1.7%** | **Investment Companies – 1.7%** | **Investment Companies – 1.7%** |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.22%<sup>(l)(m)(n)</sup> <br>(cost $122,399,981) | 122399981 | 122399981 |
|  **Total Investments – 108.7%**<br>(cost $8,454,623,415) |  | 7941897583 |
|  Other assets less liabilities – (8.7)% |  | (636209518) |
|  **Net Assets – 100.0%** |  | $**7305688065** |

---

**CENTRALLY CLEARED INFLATION (CPI) SWAPS (see Note C)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Rate Type** | **Rate Type** | | | | |
| **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** |<br>**Termination<br>Date** | **Payments<br>made<br>by the<br>Fund** | **Payments<br>received<br>by the<br>Fund** | <br>**Payment<br>Frequency<br>Paid/<br>Received** |<br>**Market<br>Value** |<br>**Upfront<br>Premiums<br>Paid/<br>(Received)** |<br>**Unrealized<br>Appreciation/<br>(Depreciation)** |
| USD | 90795 | 01/15/2025 | 2.565% | CPI# | Maturity | $9588735 | $– 0 | $9588735 |
| USD | 45398 | 01/15/2025 | 2.613% | CPI# | Maturity | 4708046 | – 0 | 4708046 |
| USD | 45397 | 01/15/2025 | 2.585% | CPI# | Maturity | 4757962 | – 0 | 4757962 |
| USD | 34210 | 01/15/2025 | 4.028% | CPI# | Maturity | 1567005 | – 0 | 1567005 |
| USD | 83920 | 01/15/2026 | CPI# | 3.765% | Maturity | (4070316) | – 0 | (4070316) |
| USD | 158000 | 01/15/2027 | CPI# | 3.320% | Maturity | &nbsp;&nbsp;&nbsp;&nbsp;(10547949) | – 0 | &nbsp;&nbsp;&nbsp;&nbsp;(10547949) |
| USD | 156000 | 01/15/2027 | CPI# | 3.466% | Maturity | (8995400) | &nbsp;&nbsp;&nbsp;&nbsp;(200095 | (8795305) |
| USD | 127850 | 01/15/2027 | CPI# | 3.323% | Maturity | (8511345) | – 0 | (8511345) |
| USD | &nbsp;&nbsp;&nbsp;&nbsp;371020 | 01/15/2028 | 0.735% | CPI# | Maturity | 90008198 | – 0 | 90008198 |
| USD | 219860 | 01/15/2028 | 1.230% | CPI# | Maturity | 45357008 | – 0 | 45357008 |
| USD | 273300 | 01/15/2029 | CPI# | 3.390% | Maturity | (13418902) | – 0 | (13418902) |
| USD | 190780 | 01/15/2029 | CPI# | 3.735% | Maturity | (3757519) | – 0 | (3757519) |
| USD | 79070 | 01/15/2029 | CPI# | 3.331% | Maturity | (4274500) | – 0 | (4274500) |
| USD | 67450 | 01/15/2030 | 1.572% | CPI# | Maturity | 13669873 | – 0 | 13669873 |
| USD | 67450 | 01/15/2030 | 1.587% | CPI# | Maturity | 13575276 | – 0 | 13575276 |
| USD | 93000 | 01/15/2031 | 2.782% | CPI# | Maturity | 9154415 | – 0 | 9154415 |
| USD | 85000 | 01/15/2031 | 2.680% | CPI# | Maturity | 9240463 | – 0 | 9240463 |
| USD | 76750 | 01/15/2031 | 2.989% | CPI# | Maturity | 5936315 | – 0 | 5936315 |
| USD | 75410 | 01/15/2032 | CPI# | 3.064% | Maturity | (5022075) | – 0 | (5022075) |

---

---

| | |
|:---|:---|
| **88 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Rate Type** | **Rate Type** | | | | |
| **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** |<br>**Termination<br>Date** | **Payments<br>made<br>by the<br>Fund** | **Payments<br>received<br>by the<br>Fund** | <br>**Payment<br>Frequency<br>Paid/<br>Received** |<br>**Market<br>Value** |<br>**Upfront<br>Premiums<br>Paid/<br>(Received)** |<br>**Unrealized<br>Appreciation/<br>(Depreciation)** |
| USD | &nbsp;&nbsp;&nbsp;&nbsp;52000 | 04/15/2032 | CPI# | 2.909% | Maturity | $(4194037) | $– 0 | $(4194037) |
|  |  |  |  |  |  | $&nbsp;&nbsp;&nbsp;&nbsp;144771253 | $&nbsp;&nbsp;&nbsp;&nbsp;(200095 | $&nbsp;&nbsp;&nbsp;&nbsp;144971348 |

---

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

**CENTRALLY CLEARED INTEREST RATE SWAPS (see Note C)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Rate Type** | **Rate Type** | | | | |
| **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** |<br>**Termination<br>Date** | **Payments<br>made<br>by the<br>Fund** | **Payments<br>received<br>by the<br>Fund** | <br>**Payment<br>Frequency<br>Paid/<br>Received** |<br>**Market<br>Value** |<br>**Upfront<br>Premiums<br>Paid/<br>(Received)** |<br>**Unrealized<br>Appreciation/<br>(Depreciation)** |
| USD | 500000 | 01/15/2027 | 1 Day<br>SOFR | 2.206% | Annual | $&nbsp;&nbsp;&nbsp;&nbsp;(10808458) | $– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;(10808458) |
| USD | 80000 | 01/15/2027 | 1 Day<br>SOFR | 2.748% | Annual | 84126 | – 0 | 84126 |
| USD | 250000 | 01/15/2028 | 1.068% | 3 Month<br>LIBOR | Semi-Annual/<br>Quarterly | 24660479 | – 0 | 24660479 |
| USD | 200000 | 01/15/2028 | 1.092% | 3 Month<br>LIBOR | Semi-Annual/<br>Quarterly | 19571062 | – 0 | 19571062 |
| USD | 240000 | 01/15/2029 | 1.363% | 3 Month<br>LIBOR | Semi-Annual/<br>Quarterly | 23007570 | &nbsp;&nbsp;&nbsp;&nbsp;(173382 | 23180952 |
| USD | 150000 | 01/15/2031 | 1.439% | 3 Month<br>LIBOR | Semi-Annual/<br>Quarterly | 17211157 | – 0 | 17211157 |
| USD | 280900 | 04/15/2032 | 1.280% | 1 Day<br>SOFR | Annual | 34568857 | – 0 | 34568857 |
| USD | 200000 | 04/15/2032 | 1.305% | 1 Day<br>SOFR | Annual | 24173631 | – 0 | 24173631 |
| USD | 174000 | 04/15/2032 | 2.177% | 1 Day<br>SOFR | Annual | 7707983 | – 0 | 7707983 |
| USD | 155000 | 04/15/2032 | 2.574% | 1 Day<br>SOFR | Annual | 1568742 | – 0 | 1568742 |
| USD | 68000 | 04/14/2034 | 1.080% | 3 Month<br>LIBOR | Semi-Annual/<br>Quarterly | 13212152 | – 0 | 13212152 |
| USD | 63810 | 04/14/2034 | 1.022% | 3 Month<br>LIBOR | Semi-Annual/<br>Quarterly | 12775450 | – 0 | 12775450 |
| USD | 160000 | 02/15/2036 | 1.469% | 3 Month<br>LIBOR | Semi-Annual/<br>Quarterly | 27573249 | – 0 | 27573249 |
| USD | 180000 | 02/15/2041 | 1 Day<br>SOFR | 1.697% | Annual | (24980131) | – 0 | (24980131) |
| USD | 100000 | 02/15/2041 | 1 Day<br>SOFR | 1.786% | Annual | (12544776) | – 0 | (12544776) |
| USD | 86500 | 02/15/2041 | 1 Day<br>SOFR | 1.770% | Annual | (11065010) | – 0 | (11065010) |
| USD | 24000 | 02/15/2041 | 1 Day<br>SOFR | 1.697% | Annual | (3332482) | – 0 | (3332482) |
| USD | 40000 | 04/15/2044 | 1.281% | 3 Month<br>LIBOR | Semi-Annual/<br>Quarterly | 10738737 | – 0 | 10738737 |
| USD | 50000 | 02/15/2051 | 1.469% | 1 Day<br>SOFR | Annual | 10098680 | – 0 | 10098680 |
|  |  |  |  |  |  | $164221018 | $(173382) | $164394400 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 89** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

**INTEREST RATE SWAPS (see Note C)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Rate Type** | **Rate Type** | | | | |
| <br>**Swap<br>Counterparty** |<br>**Notional<br>Amount<br>(000)** |<br>**Termination<br>Date** | **Payments<br>made<br>by the<br>Fund** | **Payments<br>received<br>by the<br>Fund** |<br>**Payment<br>Frequency<br>Paid/<br>Received** |<br>**Market<br>Value** |<br>**Upfront<br>Premiums<br>Paid/<br>(Received)** |<br>**Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Citibank, NA | USD 52,610 | 10/09/2029 | 1.125% | SIFMA \* | Quarterly | $&nbsp;&nbsp;&nbsp;&nbsp;4756241 | $&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;4756241 |

---

\* Variable interest rate based on the Securities Industry & Financial Markets Association (SIFMA) Municipal Swap Index.

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are
considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2022, the aggregate market value of these securities amounted to $935,577,028 or 12.8% of net assets.

(b) Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund (see Note
H).

(c) When-Issued or delayed delivery security.

(d) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at April 30, 2022.

(e) Non-income producing security.

(f) Defaulted.

(g) Restricted and illiquid security.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Restricted & Illiquid <br>Securities** | **Acquisition<br>Date** | **Cost** | **Market<br>Value** | **Percentage of<br>Net Assets** |
|  Louisiana Public Facilities Authority<br>(Louisiana Pellets, Inc.) Series 2013-B <br>10.50%, 07/01/2039 | 11/22/2013 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1973785 | $27 | 0.00% |
|  Louisiana Public Facilities Authority<br>(Louisiana Pellets, Inc.)<br>Series 2014-A <br>7.50%, 07/01/2023 | 07/31/2014 | 868862 | 12 | 0.00% |
|  Sanger Industrial Development Corp. <br>(Texas Pellets, Inc.)<br>Series 2012-B <br>8.00%, 07/01/2038 | 08/31/2012 | 2182730 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;545000 | 0.01% |

---

(h) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities,
which represent 0.05% of net assets as of April 30, 2022, are considered illiquid and restricted. Additional information regarding such securities follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **144A/Restricted & Illiquid <br>Securities** | **Acquisition<br>Date** | **Cost** | **Market<br>Value** | **Percentage of<br>Net Assets** |
|  Scranton-Lackawanna Health and Welfare Authority <br>(Scranton Parking System Concession Project)<br>Series 2016-D <br>Zero Coupon, 01/01/2057 | 11/29/2017 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6322745 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3483300 | 0.05% |

---

(i) IO – Interest Only.

(j) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(k) Fair valued by the Adviser.

---

| | |
|:---|:---|
| **90 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

(l) Affiliated investments.

(m) The rate shown represents the 7-day yield as of period end.

(n) To obtain a copy of the fund's shareholder report, please go to the Securities and Exchange Commission's website
at www.sec.gov, or call AB at (800) 227-4618.

As of April 30, 2022, the Fund's percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity are 1.9% and 0.0%, respectively.

Glossary:

AGC – Assured Guaranty Corporation

AGM – Assured Guaranty Municipal

BAM – Build American Mutual

CCRC – Congregate Care Retirement Center

CMBS – Commercial Mortgage-Backed Securities

COP – Certificate of Participation

CPI – Consumer Price Index

ETM – Escrowed to Maturity

LIBOR – London Interbank Offered Rate

NATL – National Interstate Corporation

SD – School District

SOFR – Secured Overnight Financing Rate

SRF – State Revolving Fund

UPMC – University of Pittsburgh Medical Center

XLCA – XL Capital Assurance Inc.

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 91** |

---

------

**STATEMENT OF ASSETS & LIABILITIES** 

**April 30, 2022** 

---

| | |
|:---|:---|
| **Assets** | **Assets** |
|  Investments in securities, at value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (cost $8,332,223,434) | $7819497602 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers (cost $122,399,981) | 122399981 |
|  Cash collateral due from broker | 49191577 |
|  Unaffiliated interest and dividends receivable | 99414295 |
|  Receivable for shares of beneficial interest sold | 43581988 |
|  Receivable for investment securities sold | 11107862 |
|  Unrealized appreciation on interest rate swaps | 4756241 |
|  Receivable for variation margin on centrally cleared swaps | 2774947 |
|  Affiliated dividends receivable | 27032 |
|  Receivable due from Adviser | 16096 |
|  Total assets | 8152767621 |
| **Liabilities** | **Liabilities** |
|  Due to custodian | 547941 |
|  Payable for floating rate notes issued\* | 567370000 |
|  Payable for investment securities purchased | 248689168 |
|  Dividends payable | 21100836 |
|  Cash collateral due to broker | 4500000 |
|  Payable for shares of beneficial interest redeemed | 4459446 |
|  Other liabilities | 412165 |
|  Total liabilities | 847079556 |
|  Net Assets | $**7305688065** |
| **Composition of Net Assets** | **Composition of Net Assets** |
|  Shares of beneficial interest, at par | $6433 |
|  Additional paid-in capital | 7574303214 |
|  Accumulated loss | (268621582) |
|  **Net Assets** | $**7305688065** |
|  **Net Asset Value Per Share**—unlimited shares of beneficial interest authorized, $.00001 par value (based on 643,257,653 common shares outstanding) | $**11.36** |

---

\* Represents short-term floating rate certificates issued by tender option bond trusts (see Note H).

See notes to financial statements.

---

| | |
|:---|:---|
| **92 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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------

**STATEMENT OF OPERATIONS** 

**Year Ended April 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Investment Income** |  |  |
|  Interest | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;243664199 |  |
|  Dividends |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | 56 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers | 70443 |  |
|  Other income<sup>(a)</sup> | 235740 | $243970438 |
| **Expenses** |  |  |
|  Interest expense | 5087892 |  |
|  Total expenses |  | 5087892 |
|  Net investment income |  | 238882546 |
| **Realized and Unrealized Gain (Loss) on Investment Transactions** |  |  |
|  Net realized gain (loss) on: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment transactions |  | 5658579 |
| &nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | (39313657) |
|  Net change in unrealized appreciation/depreciation of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments |  | (968661419) |
| &nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 158729073 |
|  Net loss on investment transactions |  | (843587424) |
|  **Net Decrease in Net Assets from Operations** |  | $**(604704878)** |

---

(a) Other income includes a reimbursement for investment in affiliated issuer (see Note B).

See notes to financial statements.

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 93** |

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------

**STATEMENT OF CHANGES IN NET ASSETS** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>April 30,<br>2022** | **Year Ended<br>April 30,<br>2021** |
| **Increase (Decrease) in Net Assets from Operations** |  |  |
|  Net investment income | $238882546 | $200425996 |
|  Net realized gain (loss) on investment transactions | (33655078) | 24695064 |
|  Net change in unrealized appreciation/depreciation of investments | (809932346) | 837739530 |
|  Net increase (decrease) in net assets from operations | (604704878) | 1062860590 |
|  Distribution to Shareholders | (234498949) | (205021107) |
| **Transactions in Shares of Beneficial Interest** |  |  |
|  Net increase | 1795176001 | 805965637 |
|  Total increase | 955972174 | 1663805120 |
| **Net Assets** |  |  |
|  Beginning of period | 6349715891 | 4685910771 |
|  End of period | $**7305688065** | $**6349715891** |

---

See notes to financial statements.

---

| | |
|:---|:---|
| **94 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** 

**April 30, 2022** 

**NOTE A** 

**Significant Accounting Policies** 

AB Corporate Shares (the "Trust") is registered under the Investment Company Act of 1940, as an open-end, diversified management investment company. The Trust, which is a Massachusetts Business Trust, operates as a "series" company currently offering five separate portfolios: AB Corporate Income Shares, AB Municipal Income Shares, AB Taxable Multi-Sector Income Shares, AB Impact Municipal Income Shares and AB Tax-Aware Real Return Income Shares. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to AB Municipal Income Shares (the "Fund").

Shares of the Fund are offered exclusively to holders of accounts established under wrap fee programs sponsored and maintained by certain registered investment advisers approved by AllianceBernstein L.P. (the "Adviser"). The Fund's shares may be purchased at the relevant net asset value without a sales charge or other fee. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("U.S. GAAP"), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

**1. Security Valuation** 

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at "fair value" as determined in accordance with procedures established by and under the general supervision of the Trust's Board of Trustees (the "Board").

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. ("NASDAQ")) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over

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| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 95** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

the counter ("OTC") market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the "Committee") must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer's financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund 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 and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

---

| | |
|:---|:---|
| **96 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**2. Fair Value Measurements** 

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund's own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1—quoted prices in active markets for identical investments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates,
prepayment speeds, credit risk, etc.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value
of investments)

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 97** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund's investments by the above fair value hierarchy levels as of April 30, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets:** |  |  |  |  |
|  Long-Term Municipal Bonds | $– 0 | $7773829426 | $– 0 | $7773829426 |
|  Short-Term Municipal Notes | – 0 | 794746 | – 0 | 794746 |
|  Commercial Mortgage-Backed Securities | – 0 | 44648321 | – 0 | 44648321 |
|  Corporates – Non-Investment Grade | – 0 | – 0 | 225109 | 225109 |
|  Short-Term Investments | 122399981 | – 0 | – 0 | 122399981 |
|  **Liabilities:** |  |  |  |  |
|  Floating Rate Notes<sup>(a)</sup> | (567370000) | – 0 | – 0 | (567370000) |
|  Total Investments in Securities | (444970019) | 7819272493 | 225109 | 7374527583 |
|  **Other Financial Instruments<sup>(b)</sup>:** |  |  |  |  |
|  **Assets:** |  |  |  |  |
|  Centrally Cleared Inflation (CPI) Swaps | – 0 | 207563296 | – 0 | 207563296 <sup>(c)</sup> |
|  Centrally Cleared Interest Rate Swaps | – 0 | 226951875 | – 0 | 226951875 <sup>(c)</sup> |
|  Interest Rate Swaps | – 0 | 4756241 | – 0 | 4756241 |
|  **Liabilities:** |  |  |  |  |
|  Centrally Cleared Inflation (CPI) Swaps | – 0 | (62792043) | – 0 | (62792043)<sup>(c)</sup> |
|  Centrally Cleared Interest Rate Swaps | – 0 | (62730857) | – 0 | (62730857)<sup>(c)</sup> |
|  **Total** | $**(444970019** | $**8133021005** | $**225109** | $**7688276095** |

---

(a) The Fund may hold liabilities in which the fair value approximates the carrying amount for financial statement purposes.

---

| | |
|:---|:---|
| **98 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

(b) Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the
unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

(c) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This
amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

**3. Taxes** 

It is the Fund's policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund's tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund's financial statements.

**4. Investment Income and Investment Transactions** 

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

**5. Dividends and Distributions** 

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

**NOTE B** 

**Advisory Fee and Other Transactions with Affiliates** 

Under the terms of the advisory agreement, the Fund pays no advisory fee to the Adviser and the Adviser reimburses or pays for the Fund's operating

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 99** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

expenses. The Fund is an integral part of separately managed accounts in wrap fee programs and other investment programs. Typically, participants in these programs pay a fee to their investment adviser for all costs and expenses of the separately managed account, including costs and expenses associated with the Fund, and a fee is paid by their investment adviser to the Adviser. In certain cases, participants may have a direct relationship with the Adviser without the involvement of a third party investment adviser, in which case the participant would pay a fee directly to the Adviser. The Adviser serves as investment manager and adviser of the Fund and continuously furnishes an investment program for the Fund and manages, supervises and conducts the affairs of the Fund, subject to the supervisions of the Fund's Board. The advisory agreement provides that the Adviser or an affiliate will furnish, or pay the expenses of the Fund for, office space, facilities and equipment, services of executive and other personnel of the Fund and certain administrative services.

The Fund has entered into a distribution agreement with AllianceBernstein Investments, Inc., the Fund's principal underwriter (the "Underwriter"), to permit the Underwriter to distribute the Fund's shares, which are sold at their net asset value without any sales charge. The Fund does not pay a fee for this service. The Underwriter is a wholly owned subsidiary of the Adviser.

AllianceBernstein Investor Services, Inc. ("ABIS"), a wholly-owned subsidiary of the Adviser, acts as the Fund's registrar, transfer agent and dividend-disbursing agent. ABIS registers the transfer, issuance and redemption of Fund shares and disburses dividends and other distributions to Fund shareholders. The Fund does not pay a fee for this service.

The Fund may invest in AB Government Money Market Portfolio (the "Government Money Market Portfolio") which has a contractual annual advisory fee rate of .20% of the portfolio's average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2022. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to reimburse the Fund in an amount equal to the Fund's pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended April 30, 2022, such reimbursement amounted to $166,440.

---

| | |
|:---|:---|
| **100 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

A summary of the Fund's transactions in AB mutual funds for the year ended April 30, 2022 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Market Value<br>4/30/21<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Sales<br>Proceeds<br>(000)** | **Market Value<br>4/30/22<br>(000)** | **Dividend<br>Income<br>(000)** |
|  Government Money Market Portfolio | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;203340 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1641509 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1722449 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;122400 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70 |

---

**NOTE C** 

**Investment Transactions** 

Purchases and sales of investment securities (excluding short-term investments) for the year ended April 30, 2022 were as follows:

---

| | | |
|:---|:---|:---|
|  | **Purchases** | **Sales** |
|  Investment securities (excluding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. government securities) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2688695587 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;439552707 |
|  U.S. government securities | – 0 | – 0 |

---

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

---

| | |
|:---|:---|
|  Cost | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7909054672 |
|  Gross unrealized appreciation | $520091180 |
|  Gross unrealized depreciation | (739652427) |
|  Net unrealized depreciation | $(219561247) |

---

**1. Derivative Financial Instruments** 

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, "investment purposes"), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **Swaps** 

The Fund may enter into swaps to hedge its exposure to interest rates or credit risk. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 101** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund's exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants ("FCMs") that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts.

Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal

---

| | |
|:---|:---|
| **102 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

**Interest Rate Swaps:** 

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (*e.g.*, an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or "notional") amount. Interest rate swaps are entered into on a net basis (*i.e.*, the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended April 30, 2022, the Fund held interest rate swaps for hedging purposes.

**Inflation (CPI) Swaps:** 

Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 103** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

During the year ended April 30, 2022, the Fund held inflation (CPI) swaps for hedging purposes.

**Credit Default Swaps:** 

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection ("Buy Contract") or provide credit protection ("Sale Contract") on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the "Maximum Payout Amount") and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a

---

| | |
|:---|:---|
| **104 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

deterioration of the referenced obligation's credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the referenced obligation.

During the year ended April 30, 2022, the Fund held credit default swaps for hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreement") with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund's net liability, held by the defaulting party, may be delayed or denied.

The Fund's ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels ("net asset contingent features"). If these levels are triggered, the Fund's OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended April 30, 2022, the Fund had entered into the following derivatives:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives** | **Liability Derivatives** |
| **Derivative<br>Type** | **Statement of<br>Assets and<br>Liabilities<br>Location** | **Fair Value** | **Statement of<br>Assets and<br>Liabilities<br>Location** | **Fair Value** |
|  Interest rate contracts | Receivable/Payable for variation margin on centrally cleared swaps | $434688553<br> \*  | Receivable/Payable for variation margin on centrally cleared swaps | $125322805<br> \*  |
|  Interest rate contracts | Unrealized appreciation on interest rate swaps | 4756241 |  |  |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;439444794 |  | $&nbsp;&nbsp;&nbsp;&nbsp;125322805 |

---

\* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. 

---

| | |
|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 105** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **Derivative Type** | **Location of<br>Gain or (Loss)<br>on Derivatives<br>Within Statement<br>of Operations** | **Realized Gain<br>or (Loss) on<br>Derivatives** | **Change in<br>Unrealized<br>Appreciation or<br>(Depreciation)** |
|  Interest rate contracts | Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps | $(39561608) | $158729073 |
|  Credit contracts | Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps | 247951 | – 0 |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(39313657) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;158729073 |

---

The following table represents the average monthly volume of the Fund's derivative transactions during the year ended April 30, 2022:

---

| | |
|:---|:---|
|  Interest Rate Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount | $93079231 |
|  Centrally Cleared Interest Rate Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount | $2139993846 |
|  Centrally Cleared Inflation Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1710127692 |
|  Centrally Cleared Credit Default Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount of buy contracts | $84000000 <sup>(a)</sup> |

---

(a) Positions were open for five months during the year.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund's derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements ("MA") and net of the related collateral received/pledged by the Fund as of April 30, 2022. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Derivative<br>Assets<br>Subject to a<br>MA** | **Derivatives<br>Available<br>for Offset** | **Cash<br>Collateral<br>Received\*** | **Security<br>Collateral<br>Received\*** | **Net Amount<br>of Derivative<br>Assets** |
|  Citibank, NA | $4756241 | $– 0 – $| (4500000) | $– 0 – $| 256241 |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4756241 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4500000) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;256241 |

---

\* The actual collateral received/pledged may be more than the amount reported due to over-collateralization. 

---

| | |
|:---|:---|
| **106 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

---

| | |
|:---|:---|
| ^ | Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.  |

---

**NOTE D** 

**Shares of Beneficial Interest** 

Transactions in shares of beneficial interest were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>April 30,<br>2022 | Year Ended<br>April 30,<br>2021 | Year Ended<br>April 30,<br>2022 | Year Ended<br>April 30,<br>2021 |
|  Shares sold | 226863887 | 146960472 | $2840231872 | $1782285111 |
|  Shares redeemed | (83479736) | (80876327) | (1045055871) | (976319474) |
|  **Net increase** | **143384151** | **66084145** | $**1795176001** | $**805965637** |

---

**NOTE E** 

**Risks Involved in Investing in the Fund** 

**Market Risk**—The value of the Fund's assets will fluctuate as the stock or bond market fluctuates. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

**Credit Risk**—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

**Municipal Market Risk**—This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund's investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state's municipal securities, the Fund may be vulnerable to events adversely affecting that state, including

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|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 107** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer's ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may continue or worsen, adversely affecting the performance of the Fund. The Fund's investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project's ability to make payments of principal and interest on these securities.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the U.S. federal income tax treatment of certain types of municipal securities.

**Tax Risk**—There is no guarantee that all of the Fund's income will remain exempt from federal or state income taxes. From time to time, the U.S. Government and the U.S. Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the Fund by increasing taxes on that income. In such event, the Fund's net asset value, or NAV, could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax exempt status of municipal bonds could also result in significant shareholder redemptions of Fund shares as investors anticipate adverse effects on the Fund or seek higher yields to offset the potential loss of the tax deduction. As a result, the Fund would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Fund's yield. The federal income tax treatment of payments in respect of certain derivative contracts is unclear.

**Below Investment-Grade Securities Risk**—Investments in fixed-income securities with lower ratings ("junk bonds") tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as

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| **108 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

specific corporate developments, interest rate sensitivity and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

**Interest-Rate Risk**—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The current historically low interest rate environment heightens the risks associated with rising interest rates.

**Inflation Risk**—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund's assets can decline as can the value of the Fund's distributions. This risk is significantly greater for fixed-income securities with longer maturities.

**Leverage Risk**—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund's investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

**Illiquid Investments Risk**—Illiquid investments risk exists when particular investments, such as lower-rated securities, are or become difficult to purchase or sell, possibly preventing the Fund from selling such investments at an advantageous price. The Fund is subject to illiquid investments risk because the market for municipal securities is generally smaller than many other markets. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk than most other types of investments.

**Derivatives Risk**—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

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|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 109** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**LIBOR Transition and Associated Risk**—A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or "LIBOR," as a "benchmark" or "reference rate" for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority ("FCA"), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR's administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a "synthetic" basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve's Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

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 a 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, potentially adversely affecting a 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. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

**Indemnification Risk**—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the

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| **110 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

**Management Risk**—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

**NOTE F** 

**Joint Credit Facility** 

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the "Facility") intended to provide short-term financing related to redemptions and other short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended April 30, 2022.

**NOTE G** 

**Distributions to Shareholders** 

The tax character of distributions paid during the fiscal years ended April 30, 2022 and April 30, 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Distributions paid from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ordinary income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11930509 | $9503344 |
|  Total taxable distributions | 11930509 | 9503344 |
|  Tax-exempt distributions | 222568440 | 195517763 |
|  Total distributions paid | $234498949 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;205021107 |

---

As of April 30, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:

---

| | |
|:---|:---|
|  Undistributed tax-exempt income | $21527237 |
|  Accumulated capital and other losses | (48700265)<sup>(a)</sup> |
|  Unrealized appreciation/(depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(219850009)<sup>(b)</sup> |
|  Total accumulated earnings/(deficit) | $(247023037)<sup>(c)</sup> |

---

(a) As of April 30, 2022, the Fund had a net capital loss carryforward of $48,700,265.

(b) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the
tax treatment of tender option bonds, the tax treatment of swaps, and the tax deferral of losses on wash sales.

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|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 111** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

(c) The differences between book-basis and tax-basis components of accumulated earnings/(deficit) are attributable primarily
to the tax treatment of defaulted securities and dividends payable

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of April 30, 2022, the Fund had a net short-term capital loss carryforward of $48,700,265, which may be carried forward for an indefinite period.

During the current fiscal year, there were no permanent differences that resulted in adjustments to accumulated loss or additional paid-in capital.

**NOTE H** 

**Floating Rate Notes Issued in Connection with Securities Held** 

The Fund may engage in tender option bond ("TOB") transactions in which the Fund transfers a fixed rate bond ("Fixed Rate Bond") into a Special Purpose Vehicle (the "SPV", which is generally organized as a trust). The Fund buys a residual interest in the assets and cash flows of the SPV, often referred to as an inverse floating rate obligation ("Inverse Floater"). The SPV also issues floating rate notes ("Floating Rate Notes") which are sold to third parties. The Floating Rate Notes pay interest at rates that generally reset weekly and their holders have the option to tender their notes to a liquidity provider for redemption at par. The Inverse Floater held by the Fund gives the Fund the right (1) to cause the holders of the Floating Rate Notes to tender their notes at par, and (2) to have the trustee transfer the Fixed Rate Bond held by the SPV to the Fund, thereby collapsing the SPV. The SPV may also be collapsed in certain other circumstances. In accordance with U.S. GAAP requirements regarding accounting for transfers and servicing of financial assets and extinguishments of liabilities, the Fund accounts for the transaction described above as a secured borrowing by including the Fixed Rate Bond in its portfolio of investments and the Floating Rate Notes as a liability under the caption "Payable for floating rate notes issued" in its statement of assets and liabilities. Interest expense related to the Fund's liability with respect to Floating Rate Notes is recorded as incurred. The interest expense is also included in the Fund's expense ratio. At April 30, 2022, the amount of the Fund's Floating Rate Notes outstanding was $567,370,000 and the related interest rate was 0.47% to 0.66%. For the year ended April 30, 2022, the average amount of Floating Rate Notes outstanding and the daily weighted average interest rate were $559,295,740 and 0.90%, respectively.

The Fund may also purchase Inverse Floaters in the secondary market without first owning the underlying bond. Such an Inverse Floater is included in the Fund's portfolio of investments but is not required to be

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| **112 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

treated as a secured borrowing and reflected in the Fund's financial statements as a secured borrowing.

**NOTE I** 

**Recent Accounting Pronouncements** 

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, "Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

**NOTE J** 

**Subsequent Events** 

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund's financial statements through this date.

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|:---|:---|
| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 113** |

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------

**FINANCIAL HIGHLIGHTS** 

**Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended April 30,** | **Year Ended April 30,** | **Year Ended April 30,** | **Year Ended April 30,** | **Year Ended April 30,** |
| | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $12.70 | $10.80 | $11.70 | $11.32 | $11.25 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income<sup>(a)</sup> | .43 | .44 | .44 | .45 | .44 |
|  Net realized and unrealized gain (loss) on investment transactions | (1.35) | 1.91 | (.90) | .38 | .07 |
|  Net increase (decrease) in net asset value from operations | (.92) | 2.35 | (.46) | .83 | .51 |
|  **Less: Dividends** |  |  |  |  |  |
|  Dividends from net investment income | (.42) | (.45) | (.44) | (.45) | (.44) |
|  Net asset value, end of period | **$11.36** | **$12.70** | **$10.80** | **$11.70** | **$11.32** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(b)</sup> | (7.52)% | 22.01% | (4.23)% | 7.53% | 4.55% |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $7305688 | $6349716 | $4685911 | $3509575 | $2760892 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses<sup>(c)</sup> | .07% | .07% | .01% | .01% | .01% |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 3.38% | 3.62% | 3.67% | 3.91% | 3.82% |
|  Portfolio turnover rate | 6% | 10% | 12% | 14% | 19% |

---

(a) Based on average shares outstanding.

(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the
period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or
the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

(c) The expense ratios, excluding interest expense are .00%, .00%, .00%, .00% and .00%, respectively.

See notes to financial statements.

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------

**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** 

**To the Shareholders and the Board of Trustees of AB Municipal Income Shares:** 

***Opinion on the Financial Statements***

We have audited the accompanying statement of assets and liabilities of AB Municipal Income Shares (the "Fund") (one of the series constituting AB Corporate Shares (the "Trust")), including the portfolio of investments, as of April 30, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the series constituting AB Corporate Shares) at April 30, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

***Basis for Opinion***

These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 115** |

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**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** (continued)

disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2022, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![LOGO](g466642g91r55.jpg)

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

June 24, 2022

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**BOARD OF TRUSTEES** 

---

| | |
|:---|:---|
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President and Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President and Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President and Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President and Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President and Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |

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**OFFICERS**

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| | |
|:---|:---|
| **Terrance T. Hults**<sup>(2)</sup>**,** Vice President<br> **Matthew J. Norton**<sup>(2)</sup>**,** Vice President<br> **Andrew Potter**<sup>(2)</sup>**,** Vice President<br> **Emilie D. Wrapp,** Secretary | **Michael B. Reyes,** Senior Vice President<br> **Joseph J. Mantineo,** Treasurer and Chief Financial Officer<br> **Phyllis J. Clarke,** Controller<br> **Vincent S. Noto,** Chief Compliance Officer |

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| | |
|:---|:---|
| **Custodian and Accounting Agent**<br> State Street Bank and Trust Company<br>State Street Corporation CCB/5<br>1 Iron Street<br>Boston, MA 02210<br>**Principal Underwriter**<br> AllianceBernstein Investments, Inc.<br> 501 Commerce Street<br> Nashville, TN 37203<br>**Transfer Agent**<br> AllianceBernstein<br>Investor Services, Inc.<br>P.O. Box 786003<br>San Antonio, TX 78278<br>Toll-Free (800) 221-5672 | **Legal Counsel**<br> Seward & Kissel LLP<br>One Battery Park Plaza<br>New York, NY 10004<br>**Independent Registered Public Accounting Firm**<br> Ernst & Young LLP<br> One Manhattan West<br> New York, NY 10001 |

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1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund's portfolio are made by the Adviser's Municipal Bond Investment Team. Messrs. Hults, Norton and Potter are the investment professionals primarily responsible for the day-to-day management of the Fund's Portfolio.

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 117** |

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**MANAGEMENT OF THE FUND** 

**Board of Trustees Information** 

The business and affairs of the Trust are managed under the direction of the Board of Trustees. Certain information concerning the Trust's Trustee is set forth below.

---

| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY TRUSTEE** |
| **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** |  |  |
| Onur Erzan,<sup>#</sup><br> 46<br> (2021) | Senior Vice President of AllianceBernstein L.P. (the "Adviser") and Head of the Global Client Group overseeing AB's institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey, most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey's Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally. | 73 |  |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY TRUSTEE** |
| **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** |  |  |
| Marshall C. Turner, Jr.,<sup>##</sup> <br>*Chairman of the Board* <br> 80<br>(2005) | Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of the AB Funds since February 2014. | 73 |  |

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 119** |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Jorge A. Bermudez,<sup>##</sup><br>71<br> (2020) | Private Investor since prior to 2017. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup's Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020. | 73 | Moody's Corporation since April 2011 |
| Michael J. Downey,<sup>##</sup> <br>78<br> (2005) <br>| Private Investor since prior to 2017. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005. | 73 |  |

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| **120 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Nancy P. Jacklin,<sup>##</sup> <br>74 <br>(2006) | Private Investor since prior to 2017. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014. | 73 |  |
| Jeanette W. Loeb,<sup>##</sup><br>70<br> (2020) | Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as a Director of the AB Funds since April 2020. | 73 | Apollo Investment Corp. (business development company) since August 2011 |

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 121** |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Carol C. McMullen,<sup>##</sup><br> 66 <br>(2016) <br>| Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016. | 73 |  |

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| **122 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Garry L. Moody,<sup>##</sup> <br>70<br> (2008) | Private Investor since prior to 2017. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute's Board of Governors and the Independent Directors Council's Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008. | 73 |  |

---

\* The address for each of the Trust's disinterested Trustees is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

\*\* There is no stated term of office for the Trust's Trustees.

\*\*\* The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the Trust. 

# Mr. Erzan is an "interested person" of the Trust, as defined in the 1940 Act, due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 123** |

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**MANAGEMENT OF THE FUND** (continued)

**Officers** 

Certain information concerning the Fund's Officers is listed below.

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| | | |
|:---|:---|:---|
| **NAME, ADDRESS\*<br>AND AGE** | **POSITION(S)<br>HELD WITH FUND** | **PRINCIPAL OCCUPATION**<br>**DURING PAST FIVE YEARS** |
| Onur Erzan<br>46 | President and Chief Executive Officer | See biography above. |
| Terrance T. Hults<br>56 | Vice President | Senior Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. |
| Matthew J. Norton<br> 39 | Vice President | Senior Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. He is also Chief Investment Officer – Municipal Bonds. |
| Andrew D. Potter<br> 37 | Vice President | Vice President of the Adviser,\*\* with which he has been associated since prior to 2017. |
| Emilie D. Wrapp<br>66 | Secretary | Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI\*\*, with which she has been associated since prior to 2017. |
| Michael B. Reyes<br> 45 | Senior Vice President | Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. |
| Joseph J. Mantineo<br>63 | Treasurer and Chief Financial Officer | Senior Vice President of AllianceBernstein Investor Services, Inc. ("ABIS")\*\*, with which he has been associated since prior to 2017. |
| Phyllis J. Clarke<br>61 | Controller | Vice President of ABIS\*\*, with which she has been associated since prior to 2017. |
| Vincent S. Noto<br> 57 | Chief Compliance Officer | Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser\*\* since prior to 2017. |

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\* The address for each of the Portfolio's Officers is 1345 Avenue of the Americas, New York, NY 10105.

\*\* The Adviser, ABI and ABIS are affiliates of the Trust.

The Trust's Statement of Additional Information ("SAI") has additional information about the Trust's Trustees and Officers and is available without charge upon request. Contact your financial representative or ABI at (800)-227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

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| **124 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**Operation and Effectiveness of the Fund's Liquidity Risk Management Program:** 

In October 2016, the Securities and Exchange Commission ("SEC") adopted the open-end fund liquidity rule (the "Liquidity Rule"). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program ("LRMP") in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund's Liquidity Risk Management Program. The Administrator of the Fund's LRMP is AllianceBernstein L.P., the Fund's investment adviser (the "Adviser"). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the "Committee").

Another requirement of the Liquidity Rule is for the Fund's Board of Trustees (the "Fund Board") to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the fund's LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2022, which covered the period January 1, 2021 through December 31, 2021 (the "Program Reporting Period").

The LRMP's principal objectives include supporting the Fund's compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund's strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum ("HLIM"). The Committee also incorporated the following information when determining the Fund's reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund's concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Funds' LRMP is adequately designed, has been implemented as intended,

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 125** |

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and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID 19 impacts. As such, the Program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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|:---|:---|
| **126 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**Information Regarding the Review and Approval of the Fund's Advisory Agreement** 

The disinterested trustees (the "directors") of AB Corporate Shares (the "Company") unanimously approved the continuance of the Company's Advisory Agreement with the Adviser in respect of AB Municipal Income Shares (the "Fund") at a meeting held by video conference on November 2-4, 2021 (the "Meeting").

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors noted that the Fund is designed as a vehicle for the wrap fee account market (where investors pay fees to a wrap fee sponsor which pays investment fees and expenses from such fee). The directors also noted that no advisory fee is payable by the Fund, that the Advisory Agreement does not include the reimbursement provision for certain administrative expenses included in the advisory agreements of most of the open-end AB Funds, and that the Adviser is responsible for payment of the Fund's ordinary expenses. The directors noted that the Company acknowledges in the Advisory Agreement that the Adviser and its affiliates expect to receive compensation from third parties in connection with services provided under the Advisory Agreement. The directors further noted that the Adviser receives payments from the wrap fee program sponsors (the "Sponsors") that use the Fund as an investment vehicle for their clients.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser's integrity and competence they have gained from that experience, the Adviser's initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser's willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the money market fund advised by the Adviser in which the Fund invests a portion of its assets.

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 127** |

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The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors' determinations included the following:

**Nature, Extent and Quality of Services Provided** 

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund's investment strategies and from time to time proposes changes intended to improve the Fund's relative or absolute performance for the directors' consideration. They also noted the professional experience and qualifications of the Fund's portfolio management team and other senior personnel of the Adviser. The quality of administrative and other services, including the Adviser's role in coordinating the activities of the Fund's other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

**Costs of Services Provided and Profitability** 

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2019 and 2020 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser's relationship with the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser's relationship with the Fund before taxes and

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|:---|:---|
| **128 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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distribution expenses. The directors concluded that the Adviser's level of profitability from its relationship with the Fund was not unreasonable.

**Fall-Out Benefits** 

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the underlying fund advised by the Adviser in which the Fund invests. The directors noted that the Adviser is compensated by the Sponsors. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

**Investment Results** 

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the "15(c) service provider"), showing the performance of the Fund against a group of similar funds ("peer group") and a larger group of similar funds ("peer universe"), each selected by the 15(c) service provider, and information prepared by the Adviser showing the Fund's performance against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended July 31, 2021 and (in the case of comparisons with the broad-based securities market index) for the period from inception. The directors were cognizant that the Fund was neither designed nor offered as a standalone investment and was intended to serve solely as a component of certain separately managed accounts ("SMAs"). The Adviser had explained that this attribute made it difficult to select an appropriate benchmark for the Fund. At the directors' request, the Adviser provided information showing the weighting of the Fund in a current SMA and the overall performance of the SMA versus its stated benchmark. Based on their review, the directors concluded that the Fund's investment performance was acceptable.

**Advisory Fees** 

The directors considered the advisory fee rate payable by the Fund to the Adviser (zero) and information provided by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds.

The directors noted the unusual arrangements in the Advisory Agreement providing for no advisory fee but were cognizant that the Adviser is indirectly compensated by the Sponsors for its services to the Fund. The directors reviewed the fee arrangements between the Adviser and each of the current Sponsors and noted that such fees were negotiated on an

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| **abfunds.com** | **AB MUNICIPAL INCOME SHARES <sup>\|</sup> 129** |

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arm's length basis and were within the range of fees paid by wrap fee sponsors to other advisers of similar funds. While the Adviser's fee arrangements with the Sponsors vary, the directors acknowledged the Adviser's view that a portion of such fees (less the expenses of the Fund paid by the Adviser) may reasonably be viewed as compensating the Adviser for advisory services it provides to the Fund (the "implied fee") and that the Adviser believes that while the Sponsors pay the Adviser different fee rates, the rate of fee attributable to Fund management at the Fund level is the same for all Sponsors. The directors also considered the fee rate schedules used by other registered investment companies that invest in fixed income securities that are advised by the Adviser.

The Adviser informed the directors that there were no institutional products managed by the Adviser that utilize investment strategies similar to those of the Fund.

The directors did not consider comparative expense information for the Fund because the Fund does not bear ordinary expenses.

**Economies of Scale** 

The directors did not consider the extent to which fee levels in the Advisory Agreement for the Fund reflect economies of scale because the Advisory Agreement does not provide for any compensation to be paid to the Adviser by the Fund and the Fund's expense ratio is zero. They did note, however, that the fee payable to the Adviser by the current Sponsors declines at a breakpoint based on either individual account sizes or on total assets managed by the Adviser for the Sponsor.

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| **130 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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**This page is not part of the Shareholder Report or the Financial Statements.** 

------

**AB FAMILY OF FUNDS** 

**US EQUITY** 

**CORE** 

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio<sup>1</sup>

**GROWTH** 

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

**VALUE** 

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

**INTERNATIONAL/ GLOBAL EQUITY** 

**CORE** 

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

**GROWTH** 

Concentrated International Growth Portfolio

**VALUE** 

All China Equity Portfolio

International Value Fund

**FIXED INCOME** 

**MUNICIPAL** 

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

**TAXABLE** 

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

**ALTERNATIVES** 

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

**MULTI-ASSET** 

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio<sup>1</sup>

Tax-Managed All Market Income Portfolio

**CLOSED-END FUNDS** 

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

**We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.** 

**Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.** 

1 Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee<sup>™</sup> US Thematic Portfolio. Prior to December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy.

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**NOTES** 

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| **132 <sup>\|</sup> AB MUNICIPAL INCOME SHARES** | **abfunds.com** |

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![LOGO](g466642g43p34.jpg)

AB MUNICIPAL INCOME SHARES

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

MIS-0151-0422 ![LOGO](g466642g22c48.jpg)

------

**APR** <sup>04.30.22</sup>

![LOGO](g473194g43p34.jpg)

ANNUAL REPORT

## AB TAXABLE MULTI-SECTOR INCOME SHARES
![LOGO](g473194covart_7682.jpg)

As of January 1, 2021, as permitted by new regulations adopted by the Securities and Exchange Commission, the Fund's annual and semi-annual shareholder reports are no longer sent by mail, unless you specifically requested paper copies of the reports. Instead, the reports are made available on a website, and you will be notified by mail each time a report is posted and provided with a website address to access the report.

You may elect to receive all future reports in paper form free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports; if you invest directly with the Fund, you can call the Fund at (800) 221 5672. Your election to receive reports in paper form will apply to all funds held in your account with your financial intermediary or, if you invest directly, to all AB Mutual Funds you hold.

------

 <br> Investment Products Offered   <u> • Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed</u>

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund's prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund's proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB's website at www.abfunds.com, or go to the Securities and Exchange Commission's (the "Commission") website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund's Form N-PORT reports are available on the Commission's website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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|:---|:---|
| **FROM THE PRESIDENT** | ![LOGO](g473194g92f19.jpg) |

---

Dear Shareholder,

We're pleased to provide this report for AB Taxable Multi-Sector Income Shares (the "Fund"). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund's investment strategy.

At AB, we're striving to help our clients achieve better outcomes by:

<sup>+</sup> Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

<sup>+</sup> Applying differentiated investment insights through a connected global research network

<sup>+</sup> Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you're an individual investor or a multibillion-dollar institution, we're putting our knowledge and experience to work for you every day.

For more information about AB's comprehensive range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

![LOGO](g473194g55d83.jpg)

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 1** |

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**ANNUAL REPORT** 

**June 6, 2022** 

This report provides management's discussion of fund performance for AB Taxable Multi-Sector Income Shares for the annual reporting period ended April 30, 2022. Please note, shares of this Fund are available only to separately managed accounts or participants in "wrap fee" programs or other investment programs approved by the Adviser.

**The Fund's investment objective is to generate income and price appreciation.** 

**NAV RETURNS AS OF APRIL 30, 2022** (unaudited)

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|:---|:---|:---|
|  | 6 Months | 12 Months |
| **AB TAXABLE MULTI-SECTOR INCOME SHARES** | -2.96% | -2.98% |
| Bloomberg US Aggregate ex Government Bond Index | -10.33% | -9.33% |

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**INVESTMENT RESULTS** 

The table above shows the Fund's performance compared to its benchmark, the Bloomberg US Aggregate ex Government Bond Index, for the six- and 12-month periods ended April 30, 2022.

During both periods, the Fund outperformed the benchmark. Over the 12-month period, yield-curve positioning was the largest contributor, relative to the benchmark, as positioning on the five- to 30-year parts of the curve added more to returns than a loss from positioning on the two-year part of the curve. Security selection also contributed, mostly from selection within US municipal bonds, consumer noncyclical, banking, services and capital goods. Industry allocation added positively to results, since off-benchmark exposure to US Treasuries, no exposure to 30-year conventional mortgage-backed securities and an overweight to car loan asset-backed securities contributed more than losses from off-benchmark exposure to collateralized mortgage obligations and supranationals.

During the six-month period, positioning on the five- to 30-year parts of the yield curve contributed the most to returns, exceeding a loss from positioning on the two-year part of the curve. Security selection also added to performance, primarily from selection within US municipal bonds, consumer noncyclical, banking, consumer cyclical and capital goods. Industry allocation detracted from performance, as no exposure to mortgage-backed securities, overweights to US municipal bonds and consumer noncyclical and off-benchmark exposure to supranationals detracted more than gains from off-benchmark exposure to US Treasuries and an overweight to car loan asset-backed securities.

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|:---|:---|
| **2 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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During both periods, the Fund utilized derivatives in the form of interest rate swaps for hedging purposes, which had an immaterial impact on absolute returns, as well as credit default swaps for hedging and investment purposes, which added.

**MARKET REVIEW AND INVESTMENT STRATEGY** 

During the 12-month period ended April 30, 2022, fixed-income government bond market yields increased rapidly, and bond prices fell in all developed markets. Government bond returns fell the most in the UK and Australia, and fell by the least in Japan. Most major central banks started the path of tightening monetary policy by raising short-term interest rates and ending bond purchases to combat high and persistent inflation. Inflation expectations worsened toward the end of the period when Russia invaded Ukraine, causing energy and agricultural prices to spike. Global inflation-linked bonds had positive returns and significantly outperformed nominal government bonds. In credit sectors, high-yield corporate bonds in the US and eurozone outperformed treasuries, while investment-grade corporate bonds underperformed respective treasury markets, except in the eurozone. Securitized assets generally outperformed corporate bonds. Emerging-market bonds lagged as the US dollar advanced against most developed- and emerging-market currencies. Brent crude oil prices surged from increased demand and as major oil producers limited production increases.

The Fund's Senior Investment Management Team (the "Team") continues to seek attractively priced securities through top-down and bottom-up research, while mitigating overall risk. The Team invests primarily in single-sector, investment-grade issues of global corporates but has leeway to invest in below investment-grade bonds as well.

**INVESTMENT POLICIES** 

The Fund invests, under normal circumstances, at least 80% of its net assets in fixed-income securities. The Fund may invest in a broad range of securities in both developed and emerging markets. The Fund may invest across all fixed-income sectors, including corporate and US and non-US government securities. The Fund may invest up to 50% of its assets in below investment-grade bonds ("junk bonds"). The Fund expects to invest in readily marketable fixed-income securities with a range of maturities from short- to long-term.

The Fund may invest without limit in US dollar-denominated foreign fixed-income securities and may invest up to 50% of its assets in non-US dollar-denominated foreign fixed-income securities. These investments may include, in each case, developed- and emerging-market debt securities.

(continued on next page)

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 3** |

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The Adviser selects securities for purchase or sale based on its assessment of the securities' risk and return characteristics as well as the securities' impact on the overall risk and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Fund's other holdings.

The Fund may also invest in mortgage-related and other asset-backed securities; loan participations; inflation-indexed securities; structured securities; variable-, floating- and inverse-floating-rate instruments; and preferred stock, and may use other investment techniques. The Fund may use leverage for investment purposes. The Fund intends, among other things, to enter into transactions such as reverse repurchase agreements, forward contracts and dollar rolls. The Fund may invest, without limit, in derivatives, such as options, futures contracts, forwards or swap agreements.

Currencies can have a dramatic effect on returns of non-US dollar-denominated fixed-income securities, significantly adding to returns in some years and greatly diminishing them in others. The Adviser evaluates currency and fixed-income positions separately and may seek to hedge the currency exposure resulting from the Fund's fixed-income securities positions when it finds the currency exposure unattractive. To hedge a portion of its currency risk, the Fund may from time to time invest in currency-related derivatives, including forward currency exchange contracts, futures contracts, options on futures contracts, swaps and options. The Adviser may also seek investment opportunities by taking long or short positions in currencies through the use of currency-related derivatives.

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|:---|:---|
| **4 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**DISCLOSURES AND RISKS** 

**Benchmark Disclosure** 

**The Bloomberg US Aggregate ex Government Bond Index is unmanaged and does not reflect fees and expenses associated with the active management of a fund.** The Bloomberg US Aggregate ex Government Bond Index represents the performance of securities within the US investment-grade fixed-rate bond market, with index components for corporate securities, mortgage pass-through securities, asset-backed securities and commercial mortgage-backed securities. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

**A Word About Risk** 

**Market Risk:** The value of the Fund's assets will fluctuate as the stock or bond market fluctuates. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

**Credit Risk:** An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and any accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

**Interest-Rate Risk:** Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations. The current historically low interest rate environment heightens the risks associated with rising interest rates.

**Below Investment-Grade Securities Risk:** Investments in fixed-income securities with lower ratings (commonly known as "junk bonds") tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest-rate sensitivity, negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

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| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 5** |

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**DISCLOSURES AND RISKS** (continued)

**Inflation Risk:** This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund's assets can decline as can the value of the Fund's distributions. This risk is significantly greater for fixed-income securities with longer maturities.

**Foreign (Non-US) Risk:** Investments in securities of non-US issuers may involve more risk than those of US issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

**Emerging-Market Risk:** Investments in emerging-market countries may have more risk because the markets are less developed and less liquid as well as being subject to increased economic, political, regulatory or other uncertainties.

**Currency Risk:** Fluctuations in currency exchange rates may negatively affect the value of the Fund's investments or reduce its returns.

**Mortgage-Related and/or Other Asset-Backed Securities Risk:** Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include "extension risk", which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and "prepayment risk", which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by nongovernmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

**Municipal Market Risk:** This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund's investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state's municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of

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|:---|:---|
| **6 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**DISCLOSURES AND RISKS** (continued)

municipal securities, which could impair any such issuer's ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may continue or worsen, adversely affecting the performance of the Fund. The Fund's investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project's ability to make payments of principal and interest on these securities.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the US federal income tax treatment of certain types of municipal securities.

**Sector Risk:** The Fund may have more risk because it may invest to a significant extent in one or more particular market sectors. To the extent it does so, market or economic factors affecting the relevant sector(s) could have a major effect on the value of the Fund's investments.

**Derivatives Risk:** Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

**Leverage Risk:** To the extent the Fund uses leveraging techniques, its net asset value ("NAV") may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund's investments.

**Management Risk:** The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

These risks are fully discussed in the Fund's prospectus. As with all investments, you may lose money by investing in the Fund.

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 7** |

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**DISCLOSURES AND RISKS** (continued)

**An Important Note About Historical Performance** 

**The performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by calling (800) 227 4618. The investment return and principal value of an investment in the Fund will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. Performance assumes reinvestment of distributions and does not account for taxes.** 

**Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus and/or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AllianceBernstein Investments representative. Please read the prospectus and/or summary prospectus carefully before investing.** 

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|:---|:---|
| **8 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** 

**GROWTH OF A $10,000 INVESTMENT IN THE FUND** (unaudited)

4/30/2012 TO 4/30/2022

![LOGO](g473194g99g01.jpg)

This chart illustrates the total value of an assumed $10,000 investment in AB Taxable Multi-Sector Income Shares (from 4/30/2012 to 4/30/2022) as compared to the performance of the Fund's benchmark.

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 9** |

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**HISTORICAL PERFORMANCE** (continued)

**AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2022** (unaudited)

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| | |
|:---|:---|
|  | NAV Returns |
| 1 Year | -2.98% |
| 5 Years | 1.59% |
| 10 Years | 1.56% |

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**AVERAGE ANNUAL RETURNS** 

**AS OF THE MOST RECENT CALENDAR QUARTER-END** 

**MARCH 31, 2022** (unaudited)

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|:---|:---|
|  | NAV Returns |
| 1 Year | -2.08% |
| 5 Years | 1.77% |
| 10 Years | 1.74% |

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**The prospectus fee table shows the fees and the total operating expenses of the Fund as 0.00% because the Adviser does not charge any fees or expenses and reimburses Fund operating expenses, except certain extraordinary expenses, taxes, brokerage costs and the interest on borrowings or certain leveraged transactions. Participants in a wrap fee program or other investment program eligible to invest in the Fund pay fees to the program sponsor and should review the program brochure or other literature provided by the sponsor for a discussion of fees and expenses charged.** 

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|:---|:---|
| **10 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**EXPENSE EXAMPLE** 

(unaudited)

As a shareholder of the Fund, you may incur various ongoing non-operating and extraordinary costs. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

**Actual Expenses** 

The table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

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|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account Value<br>November 1, 2021** | **Ending<br>Account Value<br>April 30, 2022** | **Expenses Paid<br>During Period\*** | **Annualized<br>Expense Ratio\*** |
|  Actual | $&nbsp;&nbsp;&nbsp;&nbsp;1000 | $970.40 | $&nbsp;&nbsp;&nbsp;&nbsp;– 0 – | 0.00% |
|  Hypothetical\*\* | $1000 | $&nbsp;&nbsp;&nbsp;&nbsp;1024.79 | $&nbsp;&nbsp;&nbsp;&nbsp;– 0 – | 0.00% |

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\* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The Fund's operating expenses are borne by the Adviser or its affiliates.

\*\* Assumes 5% annual return before expenses. 

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 11** |

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**PORTFOLIO SUMMARY** 

**April 30, 2022** (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $297.2

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![LOGO](g473194g01a01.jpg)

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| 1 | All data are as of April 30, 2022. The Fund's security type breakdown is expressed as a percentage of total investments and may vary over time. The Fund also enters into derivative transactions, which may be used for hedging or investment purposes (see "Portfolio of Investments" section of the report for additional details).  |

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| **12 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** 

**April 30, 2022** 

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **CORPORATES - INVESTMENT GRADE – 66.8%** |  |  |
|  **Industrial – 47.1%** | **Industrial – 47.1%** | **Industrial – 47.1%** |
|  **Basic – 4.1%** | **Basic – 4.1%** | **Basic – 4.1%** |
|  Air Products and Chemicals, Inc. <br>1.50%, 10/15/2025 | $1600 | $1500336 |
|  DuPont de Nemours, Inc. <br>4.205%, 11/15/2023 | 2200 | 2230250 |
|  Eastman Chemical Co. <br>3.80%, 03/15/2025 | 2000 | 1991580 |
|  EI du Pont de Nemours and Co. <br>1.70%, 07/15/2025 | 1265 | 1193970 |
|  Georgia-Pacific LLC <br>0.625%, 05/15/2024<sup>(a)</sup> | 1750 | 1659420 |
|  Glencore Funding LLC <br>3.00%, 10/27/2022<sup>(a)</sup> | 225 | 225558 |
|  Linde, Inc./CT <br>2.65%, 02/05/2025 | 2250 | 2210625 |
|  LyondellBasell Industries NV <br>5.75%, 04/15/2024 | 1140 | 1177552 |
|  |  | 12189291 |
|  **Capital Goods – 4.7%** | **Capital Goods – 4.7%** | **Capital Goods – 4.7%** |
|  Caterpillar Financial Services Corp. <br>0.536% (SOFR + 0.27%), 09/13/2024<sup>(b)</sup> | 1000 | 992590 |
|  CNH Industrial Capital LLC <br>1.95%, 07/02/2023 | 2000 | 1971420 |
|  Eaton Corp. <br>2.75%, 11/02/2022 | 1265 | 1268188 |
|  General Dynamics Corp. <br>3.25%, 04/01/2025 | 1665 | 1660471 |
|  Illinois Tool Works, Inc. <br>3.50%, 03/01/2024 | 1550 | 1564942 |
|  John Deere Capital Corp. <br>0.402% (SOFR + 0.12%), 07/10/2023<sup>(b)</sup> | 1000 | 996400 |
|  Parker-Hannifin Corp. <br>2.70%, 06/14/2024 | 1000 | 983350 |
|  Republic Services, Inc. <br>2.50%, 08/15/2024 | 1000 | 978520 |
|  Trane Technologies Luxembourg Finance SA <br>3.55%, 11/01/2024 | 2000 | 1999080 |
|  Waste Management, Inc. <br>2.40%, 05/15/2023 | 1630 | 1630701 |
|  |  | 14045662 |
|  **Communications - Media – 1.4%** | **Communications - Media – 1.4%** | **Communications - Media – 1.4%** |
|  Omnicom Group, Inc./Omnicom Capital, Inc. <br>3.65%, 11/01/2024 | 2000 | 2000520 |

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| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 13** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  TWDC Enterprises 18 Corp. <br>2.35%, 12/01/2022 | $250 | $250137 |
|  Walt Disney Co. (The)<br>1.65%, 09/01/2022 | 500 | 499465 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.00%, 09/15/2022 | 1500 | 1506570 |
|  |  | 4256692 |
|  **Communications - Telecommunications – 1.7%** |  |  |
|  Rogers Communications, Inc. <br>3.00%, 03/15/2023 | 2000 | 2004260 |
|  T-Mobile USA, Inc. <br>2.625%, 04/15/2026 | 1402 | 1307645 |
|  Verizon Communications, Inc. <br>2.355%, 03/15/2032 | 2169 | 1827708 |
|  |  | 5139613 |
|  **Consumer Cyclical - Automotive – 1.3%** |  |  |
|  BMW Finance NV <br>2.25%, 08/12/2022<sup>(a)</sup> | 675 | 675054 |
|  General Motors Financial Co., Inc.<br>1.588%, 04/07/2025 | 1500 | 1495605 |
| &nbsp;&nbsp;&nbsp;&nbsp; 5.10%, 01/17/2024 | 1500 | 1532565 |
|  |  | 3703224 |
|  **Consumer Cyclical - Entertainment – 0.6%** |  |  |
|  YMCA of Greater New York <br>2.303%, 08/01/2026 | 1765 | 1648722 |
|  **Consumer Cyclical - Other – 3.6%** |  |  |
|  DR Horton, Inc. <br>2.50%, 10/15/2024 | 2875 | 2801342 |
|  Las Vegas Sands Corp. <br>3.20%, 08/08/2024 | 2885 | 2770610 |
|  Lennar Corp. <br>4.50%, 04/30/2024 | 3025 | 3070556 |
|  Marriott International, Inc./MD <br>3.75%, 03/15/2025 | 1075 | 1077258 |
|  PulteGroup, Inc. <br>5.50%, 03/01/2026 | 1000 | 1042320 |
|  |  | 10762086 |
|  **Consumer Cyclical - Restaurants – 0.7%** |  |  |
|  Starbucks Corp. <br>1.30%, 05/07/2022 | 2000 | 1999860 |
|  **Consumer Cyclical - Retailers – 3.1%** |  |  |
|  AutoZone, Inc. <br>3.25%, 04/15/2025 | 2000 | 1976040 |

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| **14 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Costco Wholesale Corp. <br>2.75%, 05/18/2024 | $1000 | $998000 |
|  Dollar Tree, Inc. <br>4.00%, 05/15/2025 | 2000 | 2011320 |
|  NIKE, Inc. <br>2.40%, 03/27/2025 | 2250 | 2198408 |
|  VF Corp. <br>2.40%, 04/23/2025 | 1670 | 1615324 |
|  Walmart, Inc. <br>3.30%, 04/22/2024 | 500 | 504355 |
|  |  | 9303447 |
|  **Consumer Non-Cyclical – 10.4%** |  |  |
|  AbbVie, Inc.<br>2.30%, 11/21/2022 | 1325 | 1325119 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.90%, 11/06/2022 | 1000 | 1003250 |
|  AmerisourceBergen Corp.<br>0.737%, 03/15/2023 | 1065 | 1049132 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.25%, 03/01/2025 | 1350 | 1333679 |
|  Baxter International, Inc. <br>0.868%, 12/01/2023<sup>(a)</sup> | 2300 | 2212646 |
|  Baylor Scott & White Holdings <br>Series 2021 <br>0.827%, 11/15/2025 | 2275 | 2069431 |
|  Biogen, Inc. <br>3.625%, 09/15/2022 | 1479 | 1487001 |
|  Bristol-Myers Squibb Co. <br>2.60%, 05/16/2022 | 1025 | 1025502 |
|  Cardinal Health, Inc.<br>3.079%, 06/15/2024 | 1000 | 991170 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.20%, 03/15/2023 | 1000 | 1003500 |
|  CommonSpirit Health <br>2.76%, 10/01/2024 | 1000 | 976390 |
|  CVS Health Corp. <br>2.75%, 12/01/2022 | 2175 | 2181199 |
|  DH Europe Finance II Sarl <br>2.05%, 11/15/2022 | 1850 | 1849112 |
|  Gilead Sciences, Inc. <br>3.70%, 04/01/2024 | 1300 | 1308671 |
|  Hershey Co. (The) <br>0.90%, 06/01/2025 | 1300 | 1212991 |
|  Newell Brands, Inc.<br>4.45%, 04/01/2026 | 613 | 606226 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 06/01/2025 | 183 | 185110 |
|  Philip Morris International, Inc. <br>3.375%, 08/11/2025 | 2000 | 1985860 |

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| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 15** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Shire Acquisitions Investments Ireland DAC <br>2.875%, 09/23/2023 | $640 | $638355 |
|  Tyson Foods, Inc. <br>3.95%, 08/15/2024 | 3000 | 3025080 |
|  UPMC <br>Series D-1 <br>3.60%, 04/03/2025 | 2250 | 2243318 |
|  Zoetis, Inc. <br>3.25%, 02/01/2023 | 1000 | 1003980 |
|  |  | 30716722 |
|  **Energy – 3.6%** |  |  |
|  BP Capital Markets America, Inc. <br>3.194%, 04/06/2025 | 2000 | 1981260 |
|  Chevron Corp. <br>1.141%, 05/11/2023 | 1665 | 1643039 |
|  EQT Corp. <br>6.625%, 02/01/2025 | 1500 | 1562220 |
|  Exxon Mobil Corp.<br>1.571%, 04/15/2023 | 1655 | 1642289 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.992%, 03/19/2025 | 2000 | 1982420 |
|  Phillips 66 <br>0.90%, 02/15/2024 | 1900 | 1825824 |
|  |  | 10637052 |
|  **Services – 5.2%** |  |  |
|  Alibaba Group Holding Ltd. <br>3.60%, 11/28/2024 | 1000 | 995680 |
|  Amazon.com, Inc.<br>2.40%, 02/22/2023 | 875 | 876138 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.50%, 11/29/2022 | 1305 | 1308197 |
|  Booking Holdings, Inc. <br>3.65%, 03/15/2025 | 1000 | 1002990 |
|  eBay, Inc. <br>2.75%, 01/30/2023 | 1500 | 1502715 |
|  Enterprise Community Loan Fund, Inc. <br>Series 2018 <br>3.685%, 11/01/2023 | 1180 | 1187446 |
|  Mastercard, Inc. <br>2.00%, 03/03/2025 | 2250 | 2187382 |
|  Moody's Corp.<br>2.625%, 01/15/2023 | 750 | 750803 |
| &nbsp;&nbsp;&nbsp;&nbsp; 4.875%, 02/15/2024 | 500 | 512920 |
|  PayPal Holdings, Inc. <br>2.20%, 09/26/2022 | 2700 | 2705076 |
|  Verisk Analytics, Inc. <br>4.00%, 06/15/2025 | 2500 | 2512775 |
|  |  | 15542122 |

---

---

| | |
|:---|:---|
| **16 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Technology – 6.7%** |  |  |
|  Alphabet, Inc. <br>3.375%, 02/25/2024 | $1500 | $1518390 |
|  Apple, Inc.<br>2.40%, 05/03/2023 | 1250 | 1251912 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.85%, 05/11/2024 | 250 | 249875 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.00%, 02/09/2024 | 1400 | 1405376 |
|  Autodesk, Inc. <br>4.375%, 06/15/2025 | 800 | 812000 |
|  Baidu, Inc. <br>2.875%, 07/06/2022 | 375 | 374899 |
|  Fidelity National Information Services, Inc. <br>0.375%, 03/01/2023 | 2250 | 2205405 |
|  Fiserv, Inc. <br>2.75%, 07/01/2024 | 1000 | 983220 |
|  Hewlett Packard Enterprise Co.<br>1.45%, 04/01/2024 | 1715 | 1651682 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.25%, 04/01/2023 | 500 | 497495 |
|  International Business Machines Corp. <br>2.85%, 05/13/2022 | 1000 | 1000580 |
|  Kyndryl Holdings, Inc. <br>2.05%, 10/15/2026<sup>(a)</sup> | 1751 | 1530321 |
|  Microchip Technology, Inc. <br>4.25%, 09/01/2025 | 1000 | 993690 |
|  Oracle Corp. <br>2.50%, 04/01/2025 | 3100 | 2960841 |
|  QUALCOMM, Inc. <br>3.45%, 05/20/2025 | 1800 | 1802970 |
|  salesforce.com, Inc. <br>3.25%, 04/11/2023 | 625 | 629663 |
|  |  | 19868319 |
|  |  | 139812812 |
|  **Financial Institutions – 18.0%** |  |  |
|  **Banking – 14.1%** |  |  |
|  American Express Co. <br>3.40%, 02/27/2023 | 1300 | 1310569 |
|  Bank of America Corp.<br>0.909% (BSBY 3 Month + 0.43%), 05/28/2024<sup>(b)</sup> | 1000 | 995140 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.004%, 12/20/2023 | 615 | 613512 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.093%, 10/01/2025 | 1250 | 1225250 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.458%, 03/15/2025 | 500 | 496110 |
|  Bank of New York Mellon Corp. (The) <br>2.661%, 05/16/2023 | 1000 | 1000290 |
|  Barclays PLC <br>1.007%, 12/10/2024 | 1500 | 1430535 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 17** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Capital One Financial Corp. <br>3.90%, 01/29/2024 | $500 | $502625 |
|  Citigroup, Inc.<br>1.678%, 05/15/2024 | 1000 | 985570 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.876%, 07/24/2023 | 1800 | 1798902 |
|  Danske Bank A/S <br>1.863% (LIBOR 3 Month + 1.06%), 09/12/2023<sup>(a)(b)</sup> | 2250 | 2256975 |
|  Goldman Sachs Group, Inc. (The)<br>2.905%, 07/24/2023 | 1500 | 1499430 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.908%, 06/05/2023 | 1300 | 1299779 |
|  HSBC Holdings PLC <br>1.645%, 04/18/2026 | 2210 | 2048294 |
|  ING Groep NV <br>1.292% (SOFR + 1.01%), 04/01/2027<sup>(b)</sup> | 1350 | 1322987 |
|  JPMorgan Chase & Co.<br>0.768% (SOFR + 0.54%), 06/01/2025<sup>(b)</sup> | 1300 | 1279759 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.514%, 06/01/2024 | 1800 | 1770804 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.797%, 07/23/2024 | 725 | 727900 |
|  KeyBank NA/Cleveland OH <br>0.423%, 01/03/2024 | 2000 | 1966660 |
|  Lloyds Banking Group PLC <br>1.326%, 06/15/2023 | 1350 | 1347327 |
|  Mitsubishi UFJ Financial Group, Inc. <br>1.412%, 07/17/2025 | 2300 | 2124786 |
|  Mizuho Financial Group, Inc. <br>1.241%, 07/10/2024 | 2000 | 1949440 |
|  Morgan Stanley<br>2.72%, 07/22/2025 | 1000 | 973800 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.737%, 04/24/2024 | 2000 | 1999720 |
|  Nationwide Building Society <br>4.363%, 08/01/2024<sup>(a)</sup> | 200 | 201570 |
|  Natwest Group PLC <br>4.269%, 03/22/2025 | 2000 | 2001180 |
|  Sumitomo Mitsui Financial Group, Inc. <br>2.784%, 07/12/2022 | 2000 | 2004780 |
|  Toronto-Dominion Bank (The) <br>0.611% (SOFR + 0.35%), 09/10/2024<sup>(b)</sup> | 2000 | 1980220 |
|  Wells Fargo & Co.<br>2.188%, 04/30/2026 | 1850 | 1747787 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.406%, 10/30/2025 | 1150 | 1105633 |
|  |  | 41967334 |
|  **Brokerage – 1.0%** |  |  |
|  Charles Schwab Corp. (The)<br>0.781% (SOFR + 0.50%), 03/18/2024<sup>(b)</sup> | 3000 | 2990880 |

---

---

| | |
|:---|:---|
| **18 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Finance – 1.5%** |  |  |
|  AerCap Ireland Capital DAC/AerCap Global Aviation Trust<br>1.65%, 10/29/2024 | $1000 | $930920 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.45%, 10/29/2026 | 1000 | 891430 |
|  Air Lease Corp.<br>2.30%, 02/01/2025 | 1000 | 947830 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.875%, 07/03/2023 | 300 | 300972 |
|  Aircastle Ltd. <br>4.125%, 05/01/2024 | 1500 | 1491345 |
|  |  | 4562497 |
|  **REITs – 1.4%** |  |  |
|  American Tower Corp. <br>3.375%, 05/15/2024 | 2100 | 2089563 |
|  Host Hotels & Resorts LP <br>Series E <br>4.00%, 06/15/2025 | 1002 | 993533 |
|  Simon Property Group LP <br>3.50%, 09/01/2025 | 1000 | 992650 |
|  |  | 4075746 |
|  |  | 53596457 |
|  **Utility – 1.7%** |  |  |
|  **Natural Gas – 0.7%** |  |  |
|  Southern Co. Gas Capital Corp. <br>2.45%, 10/01/2023 | 2200 | 2178770 |
|  **Other Utility – 1.0%** |  |  |
|  American Water Capital Corp.<br>3.40%, 03/01/2025 | 1135 | 1132129 |
| &nbsp;&nbsp;&nbsp;&nbsp; 3.85%, 03/01/2024 | 1650 | 1665642 |
|  |  | 2797771 |
|  |  | 4976541 |
|  Total Corporates – Investment Grade <br>(cost $206,314,388) |  | 198385810 |
|  **LOCAL GOVERNMENTS - US MUNICIPAL BONDS – 15.5%** |  |  |
|  **United States – 15.5%** |  |  |
|  Antonio B Won Pat International Airport Authority<br>Series 2021-A<br>2.499%, 10/01/2025 | 740 | 696227 |
|  California State University<br>Series 2021-B<br>0.862%, 11/01/2025 | 2000 | 1832348 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 19** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Central Texas Turnpike System<br>Series 2020-B<br>1.98%, 08/15/2042 | $1000 | $998822 |
|  Chicago O'Hare International Airport<br>Series 2020-D<br>1.168%, 01/01/2024 | 2000 | 1936332 |
|  City & County of Denver CO Airport System Revenue<br>Series 2020-C<br>1.115%, 11/15/2024 | 750 | 708633 |
|  City of Glendale AZ <br>(City of Glendale AZ COP)<br>Series 2021<br>0.897%, 07/01/2024 | 3000 | 2861636 |
|  City of Houston TX Airport System Revenue<br>Series 2020-C<br>1.272%, 07/01/2024 | 1000 | 961452 |
|  City of Jacksonville FL <br>(City of Jacksonville FL Lease)<br>Series 2020-C<br>0.594%, 10/01/2023 | 1500 | 1459933 |
|  City of New York NY<br>Series 2021-D<br>0.59%, 08/01/2023 | 1625 | 1580959 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.982%, 08/01/2025 | 380 | 351811 |
|  Colorado Health Facilities Authority <br>(Sanford Obligated Group)<br>Series 2019-B<br>2.237%, 11/01/2022 | 100 | 100343 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2.396%, 11/01/2023 | 1050 | 1046317 |
|  County of Broward FL Airport System Revenue<br>Series 2019-C<br>2.384%, 10/01/2026 | 1000 | 951834 |
|  County of Riverside CA<br>Series 2020<br>2.363%, 02/15/2023 | 200 | 198523 |
|  Florida Development Finance Corp.<br>Series 2021<br>0.30%, 12/01/2056 | 860 | 857758 |
|  Florida Municipal Power Agency <br>(Florida Municipal Power Agency All-Requirements Power Supply Project Revenue)<br>Series 2021<br>1.425%, 10/01/2026 | 1000 | 916103 |

---

---

| | |
|:---|:---|
| **20 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Golden State Tobacco Securitization Corp.<br>Series 2021<br>1.85%, 06/01/2031 | $1500 | $1484751 |
|  Inland Empire Tobacco Securitization Corp.<br>Series 2019<br>3.678%, 06/01/2038 | 900 | 873997 |
|  Kansas Development Finance Authority <br>(State of Kansas Department of Administration Lease)<br>Series 2021-K<br>0.407%, 05/01/2023 | 1415 | 1388715 |
|  Massachusetts Development Finance Agency <br>(Berklee College of Music, Inc.)<br>Series 2020<br>1.494%, 10/01/2023 | 385 | 375524 |
|  Metropolitan Pier & Exposition Authority<br>Series 2022<br>3.00%, 06/15/2024 | 1000 | 999573 |
|  Metropolitan Transportation Authority<br>Series 2019-A<br>5.00%, 11/15/2048 | 2000 | 2096558 |
|  Michigan Finance Authority <br>(Michigan Finance Authority School Loan Revolving Fund)<br>Series 2019<br>2.366%, 09/01/2049 | 1000 | 998624 |
|  Municipal Electric Authority of Georgia<br>Series 2021<br>1.897%, 01/01/2027 | 385 | 355087 |
|  New Jersey Economic Development Authority <br>(New Jersey Economic Development Authority State Lease)<br>Series 2019-H<br>5.25%, 09/01/2022<sup>(a)</sup> | 1000 | 1012199 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-G<br>5.25%, 09/01/2023<sup>(a)</sup> | 1440 | 1491928 |
|  New Jersey Turnpike Authority<br>Series 2021-B<br>0.638%, 01/01/2024 | 1000 | 959345 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.897%, 01/01/2025 | 2000 | 1867377 |
|  New York State Urban Development Corp. <br>(State of New York Pers Income Tax)<br>Series 2020-F<br>0.87%, 03/15/2025 | 1400 | 1300568 |
|  Ohio Turnpike & Infrastructure Commission<br>Series 2020<br>1.746%, 02/15/2023 | 700 | 697575 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 21** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Pennsylvania Turnpike Commission<br>Series 2019<br>2.556%, 12/01/2025 | $760 | $739776 |
|  Port of Portland OR Airport Revenue<br>Series 2020-T<br>0.80%, 07/01/2022 | 600 | 599518 |
| &nbsp;&nbsp;&nbsp;&nbsp; 1.00%, 07/01/2023 | 1200 | 1175866 |
|  Reedy Creek Improvement District<br>Series 2020-A<br>1.549%, 06/01/2023 | 700 | 686841 |
|  State Board of Administration Finance Corp.<br>Series 2020-A<br>1.258%, 07/01/2025 | 1010 | 944154 |
|  State of Connecticut<br>Series 2021-A<br>0.309%, 06/01/2023 | 150 | 146638 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.508%, 06/01/2024 | 1000 | 948635 |
|  State of Hawaii Airports System Revenue<br>Series 2020-E<br>1.392%, 07/01/2025 | 1000 | 936213 |
|  Tobacco Settlement Finance Authority/WV<br>Series 2020<br>3.00%, 06/01/2035 | 1990 | 1982015 |
|  University of California<br>Series 2022-S<br>5.00%, 05/15/2024 | 2500 | 2631842 |
|  Virginia Small Business Financing Authority <br>(Capital Beltway Express LLC)<br>Series 2022<br>2.00%, 12/31/2023 | 2000 | 2000451 |
|  Total Local Governments – US Municipal Bonds<br>(cost $48,016,606) |  | 46152801 |
|  **GOVERNMENTS - TREASURIES – 8.7%** |  |  |
|  **United States – 8.7%** |  |  |
|  U.S. Treasury Notes <br>1.00%, 12/15/2024 <br>(cost $27,024,102) | 27000 | 25747031 |
|  **ASSET-BACKED SECURITIES – 3.9%** |  |  |
|  **Autos - Fixed Rate – 3.2%** |  |  |
|  CarMax Auto Owner Trust <br>Series 2021-1, Class C <br>0.94%, 12/15/2026 | 500 | 463779 |

---

---

| | |
|:---|:---|
| **22 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  Carvana Auto Receivables Trust <br>Series 2021-N1, Class C <br>1.30%, 01/10/2028 | $1170 | $1146606 |
|  CPS Auto Receivables Trust<br>Series 2021-A, Class C<br>0.83%, 09/15/2026<sup>(a)</sup> | 500 | 489344 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-B, Class C<br>1.23%, 03/15/2027<sup>(a)</sup> | 1000 | 966869 |
|  DT Auto Owner Trust <br>Series 2021-1A, Class C <br>0.84%, 10/15/2026<sup>(a)</sup> | 500 | 482847 |
|  Exeter Automobile Receivables Trust <br>Series 2021-1A, Class C <br>0.74%, 01/15/2026 | 2000 | 1960830 |
|  Foursight Capital Automobile Receivables Trust <br>Series 2021-1, Class C <br>1.02%, 09/15/2026<sup>(a)</sup> | 850 | 807938 |
|  JPMorgan Chase Bank NA – CACLN <br>Series 2021-1, Class B <br>0.875%, 09/25/2028<sup>(a)</sup> | 1186 | 1160966 |
|  Westlake Automobile Receivables Trust <br>Series 2021-1A, Class C <br>0.95%, 03/16/2026<sup>(a)</sup> | 2000 | 1938769 |
|  |  | 9417948 |
|  **Other ABS - Fixed Rate – 0.7%** |  |  |
|  Affirm Asset Securitization Trust<br>Series 2021-A, Class A<br>0.88%, 08/15/2025<sup>(a)</sup> | 800 | 795226 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2021-Z1, Class A<br>1.07%, 08/15/2025<sup>(a)</sup> | 543 | 533187 |
|  Domino's Pizza Master Issuer LLC <br>Series 2021-1A, Class A2I <br>2.662%, 04/25/2051<sup>(a)</sup> | 792 | 712185 |
|  Upstart Securitization Trust <br>Series 2021-1, Class A <br>0.87%, 03/20/2031<sup>(a)</sup> | 211 | 209316 |
|  |  | 2249914 |
|  Total Asset-Backed Securities <br>(cost $12,051,637) |  | 11667862 |
|  **COMMERCIAL MORTGAGE-BACKED SECURITIES – 1.1%** |  |  |
|  **Non-Agency Floating Rate CMBS – 0.8%** |  |  |
|  BAMLL Commercial Mortgage Securities Trust <br>Series 2017-SCH, Class AF <br>1.555% (LIBOR 1 Month + 1.00%), 11/15/2033<sup>(a)(b)</sup> | 1000 | 950229 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 23** |

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------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  DBWF Mortgage Trust <br>Series 2018-GLKS, Class A <br>1.584% (LIBOR 1 Month + 1.03%), 12/19/2030<sup>(a)(b)</sup> | $1000 | $984962 |
|  Invitation Homes Trust <br>Series 2018-SFR4, Class A <br>1.654% (LIBOR 1 Month + 1.10%), 01/17/2038<sup>(a)(b)</sup> | 319 | 317843 |
|  |  | 2253034 |
|  **Non-Agency Fixed Rate CMBS – 0.3%** |  |  |
|  GS Mortgage Securities Trust <br>Series 2013-G1, Class A1 <br>2.059%, 04/10/2031<sup>(a)</sup> | 79 | 79090 |
|  JPMorgan Chase Commercial Mortgage Securities Trust <br>Series 2012-LC9, Class AS <br>3.353%, 12/15/2047<sup>(a)</sup> | 750 | 749040 |
|  LSTAR Commercial Mortgage Trust <br>Series 2016-4, Class A2 <br>2.579%, 03/10/2049<sup>(a)</sup> | 84 | 83815 |
|  |  | 911945 |
|  Total Commercial Mortgage-Backed Securities <br>(cost $3,213,482) |  | 3164979 |
|  **COLLATERALIZED MORTGAGE OBLIGATIONS – 0.6%** |  |  |
|  **Risk Share Floating Rate – 0.6%** |  |  |
|  Bellemeade Re Ltd. <br>Series 2019-3A, Class M1B <br>2.268% (LIBOR 1 Month + 1.60%), 07/25/2029<sup>(a)(b)</sup> | 203 | 203206 |
|  Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes<br>Series 2014-DN3, Class M3<br>4.668% (LIBOR 1 Month + 4.00%), 08/25/2024<sup>(b)</sup> | 41 | 41812 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2015-DNA1, Class M3<br>3.968% (LIBOR 1 Month + 3.30%), 10/25/2027<sup>(b)</sup> | 64 | 64679 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2019-DNA3, Class M2<br>2.718% (LIBOR 1 Month + 2.05%), 07/25/2049<sup>(a)(b)</sup> | 42 | 42226 |
|  Federal National Mortgage Association Connecticut Avenue Securities<br>Series 2014-C01, Class M2<br>5.068% (LIBOR 1 Month + 4.40%), 01/25/2024<sup>(b)</sup> | 139 | 143585 |

---

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| | |
|:---|:---|
| **24 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **Principal<br>Amount<br>(000)** | **U.S. $ Value** | **U.S. $ Value** |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2014-C03, Class 2M2<br>3.568% (LIBOR 1 Month + 2.90%), 07/25/2024<sup>(b)</sup> | $| 66 | $| 66204 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-C01, Class 1M2<br>7.418% (LIBOR 1 Month + 6.75%), 08/25/2028<sup>(b)</sup> |  | 265 |  | 283244 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-C02, Class 1M2<br>6.668% (LIBOR 1 Month + 6.00%), 09/25/2028<sup>(b)</sup> |  | 253 |  | 266288 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-C03, Class 1M2<br>5.968% (LIBOR 1 Month + 5.30%), 10/25/2028<sup>(b)</sup> |  | 138 |  | 143443 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-C06, Class 1M2<br>4.918% (LIBOR 1 Month + 4.25%), 04/25/2029<sup>(b)</sup> |  | 116 |  | 121626 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2016-C07, Class 2M2<br>5.018% (LIBOR 1 Month + 4.35%), 05/25/2029<sup>(b)</sup> |  | 126 |  | 131452 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 2017-C06, Class 2M2<br>3.468% (LIBOR 1 Month + 2.80%), 02/25/2030<sup>(b)</sup> |  | 149 |  | 151441 |
|  |  |  |  | 1659206 |
|  **Agency Fixed Rate – 0.0%** |  |  |  |  |
|  Federal Home Loan Mortgage Corp. REMICs<br>Series 4029, Class LD<br>1.75%, 01/15/2027 |  | 83 |  | 82431 |
| &nbsp;&nbsp;&nbsp;&nbsp; Series 4459, Class CA<br>5.00%, 12/15/2034 |  | 23 |  | 24213 |
|  |  |  |  | 106644 |
|  Total Collateralized Mortgage Obligations <br>(cost $1,747,216) |  |  |  | 1765850 |
|  **CORPORATES - NON-INVESTMENT GRADE – 0.3%** |  |  |  |  |
|  **Industrial – 0.3%** |  |  |  |  |
|  **Consumer Cyclical - Automotive – 0.3%** |  |  |  |  |
|  Ford Motor Credit Co. LLC <br>4.95%, 05/28/2027 <br>(cost $779,101) |  | 779 |  | 757344 |
|  | **Shares** | **Shares** |  |  |
|  **SHORT-TERM INVESTMENTS – 2.0%** | **SHORT-TERM INVESTMENTS – 2.0%** | **SHORT-TERM INVESTMENTS – 2.0%** | **SHORT-TERM INVESTMENTS – 2.0%** | **SHORT-TERM INVESTMENTS – 2.0%** |
|  **Investment Companies – 1.7%** | **Investment Companies – 1.7%** | **Investment Companies – 1.7%** | **Investment Companies – 1.7%** | **Investment Companies – 1.7%** |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 0.22%<sup>(c)(d)(e)</sup> <br>(cost $5,197,743) |  | 5197743 |  | 5197743 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 25** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Short-Term Municipal Notes – 0.3%** | **Short-Term Municipal Notes – 0.3%** | **Short-Term Municipal Notes – 0.3%** |
|  **California – 0.3%** | **California – 0.3%** | **California – 0.3%** |
|  Golden State Tobacco Securitization Corp. <br>Series 2021 <br>0.502%, 06/01/2022 <br>(cost $1,000,000) | $1000 | $999388 |
|  Total Short-Term Investments <br>(cost $6,197,743) |  | 6197131 |
|  **Total Investments – 98.9%** <br>(cost $305,344,275) |  | 293838808 |
|  Other assets less liabilities – 1.1% |  | 3327372 |
|  **Net Assets – 100.0%** |  | $**297166180** |

---

**CENTRALLY CLEARED INTEREST RATE SWAPS (see Note C)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | **Rate Type** | **Rate Type** | | | | |
| **Notional**<br> **Amount**<br> **(000)** | **Notional**<br> **Amount**<br> **(000)** | **Termination<br>Date** | **Payments<br>made<br>by the<br>Fund** | **Payments<br>received<br>by the<br>Fund** | **Payment**<br> **Frequency**<br> **Paid/**<br> **Received** | **Market<br>Value** | **Upfront<br>Premiums<br>Paid/<br>(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
| USD | 44000 | 01/31/2024 | 1 Day<br> SOFR | 1.031% | Annual | $&nbsp;&nbsp;&nbsp;&nbsp;(1138482) | $&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;(1138482) |
| USD | 20000 | 03/31/2027 | 1.478% | 1 Day<br> SOFR | Annual | 1134281 | – 0 | 1134281 |
|  |  |  |  |  |  | $(4201) | $– 0 | $(4201) |

---

**CREDIT DEFAULT SWAPS (see Note C)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Swap Counterparty &<br>Referenced Obligation** | **Fixed<br>Rate<br>(Pay)<br>Receive** | **Payment<br>Frequency** | **Implied<br>Credit<br>Spread at<br>April 30,<br>2022** | **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** | **Market<br>Value** | **Upfront<br>Premiums<br>Paid/<br>(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  **Sale Contracts** | **Sale Contracts** | **Sale Contracts** | **Sale Contracts** | **Sale Contracts** | **Sale Contracts** | **Sale Contracts** | **Sale Contracts** | **Sale Contracts** |
|  Citigroup Global Markets, Inc. | Citigroup Global Markets, Inc. | Citigroup Global Markets, Inc. | Citigroup Global Markets, Inc. | Citigroup Global Markets, Inc. | Citigroup Global Markets, Inc. | Citigroup Global Markets, Inc. | Citigroup Global Markets, Inc. | Citigroup Global Markets, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CDX-CMBX.NA.A Series 6, 05/11/2063\* | 2.00% | Monthly | 7.50% | USD | &nbsp;&nbsp;&nbsp;&nbsp;2200 | $&nbsp;&nbsp;&nbsp;&nbsp;(198806) | $19797 | $&nbsp;&nbsp;&nbsp;&nbsp;(218603) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CDX-CMBX.NA.BBB- Series 6, 05/11/2063\* | 3.00 | Monthly | 7.50 | USD | 30 | (7255) | (2835) | (4420) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CDX-CMBX.NA.BBB- Series 6, 05/11/2063\* | 3.00 | Monthly | 7.50 | USD | 55 | (13376) | (7177) | (6199) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CDX-CMBX.NA.BBB- Series 6, 05/11/2063\* | 3.00 | Monthly | 7.50 | USD | 169 | (40810) | &nbsp;&nbsp;&nbsp;&nbsp;(15703) | (25107) |

---

---

| | |
|:---|:---|
| **26 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Swap Counterparty &<br>Referenced Obligation** | **Fixed<br>Rate<br>(Pay)<br>Receive** | **Payment<br>Frequency** | **Implied<br>Credit<br>Spread at<br>April 30,<br>2022** | **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** | **Market<br>Value** | **Upfront<br>Premiums<br>Paid/<br>(Received)** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Credit Suisse International | Credit Suisse International | Credit Suisse International | Credit Suisse International | Credit Suisse International | Credit Suisse International | Credit Suisse International | Credit Suisse International | Credit Suisse International |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CDX-CMBX.NA.BBB- Series 6, 05/11/2063\* | 3.00% | Monthly | 7.50% | USD | 17 | $(4081) | $(1609) | $(2472) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CDX-CMBX.NA.BBB- Series 6, 05/11/2063\* | 3.00 | Monthly | 7.50 | USD | 210 | (50786) | (20053) | (30733) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CDX-CMBX.NA.BBB- Series 6, 05/11/2063\* | 3.00 | Monthly | 7.50 | USD | 314 | (75951) | (29219) | (46732) |
|  Goldman Sachs International | Goldman Sachs International | Goldman Sachs International | Goldman Sachs International | Goldman Sachs International | Goldman Sachs International | Goldman Sachs International | Goldman Sachs International | Goldman Sachs International |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CDX-CMBX.NA.BBB- Series 6, 05/11/2063\* | 3.00 | Monthly | 7.50 | USD | 273 | (65974) | (24636) | (41338) |
|  JPMorgan Securities, LLC | JPMorgan Securities, LLC | JPMorgan Securities, LLC | JPMorgan Securities, LLC | JPMorgan Securities, LLC | JPMorgan Securities, LLC | JPMorgan Securities, LLC | JPMorgan Securities, LLC | JPMorgan Securities, LLC |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CDX-CMBX.NA.BBB- Series 6, 05/11/2063\* | 3.00 | Monthly | 7.50 | USD | &nbsp;&nbsp;&nbsp;&nbsp;1000 | (241683) | (143990) | (97693) |
|  |  |  |  |  |  | $&nbsp;&nbsp;&nbsp;&nbsp;(698722) | $&nbsp;&nbsp;&nbsp;&nbsp;(225425) | $&nbsp;&nbsp;&nbsp;&nbsp;(473297) |

---

\* Termination date

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are
considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2022, the aggregate market value of these securities amounted to $22,772,729 or 7.7% of net assets.

(b) Floating Rate Security. Stated interest/floor/ceiling rate was in effect at April 30, 2022.

(c) Affiliated investments.

(d) To obtain a copy of the fund's shareholder report, please go to the Securities and Exchange Commission's website
at www.sec.gov, or call AB at (800) 227-4618.

(e) The rate shown represents the 7-day yield as of period end.

Glossary:

ABS – Asset-Backed Securities

BSBY – Bloomberg Short-Term Bank Yield Index

CDX-CMBX.NA – North American Commercial Mortgage-Backed Index

CMBS – Commercial Mortgage-Backed Securities

COP – Certificate of Participation

LIBOR – London Interbank Offered Rate

REIT – Real Estate Investment Trust

REMICs – Real Estate Mortgage Investment Conduits

SOFR – Secured Overnight Financing Rate

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 27** |

---

------

**STATEMENT OF ASSETS & LIABILITIES** 

**April 30, 2022** 

---

| | |
|:---|:---|
| **Assets** |  |
|  Investments in securities, at value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (cost $300,146,532) | $288641065 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers (cost $5,197,743) | 5197743 |
|  Cash collateral due from broker | 898551 |
|  Interest receivable | 1699307 |
|  Receivable for investment securities sold | 1207845 |
|  Receivable for shares of beneficial interest sold | 804485 |
|  Affiliated dividends receivable | 693 |
|  Receivable due from Adviser | 344 |
|  Other assets | 1865 |
|  Total assets | 298451898 |
| **Liabilities** |  |
|  Market value on credit default swaps (net premiums received $225,425) | 698722 |
|  Dividends payable | 334571 |
|  Payable for shares of beneficial interest redeemed | 247634 |
|  Payable for variation margin on centrally cleared swaps | 4791 |
|  Total liabilities | 1285718 |
|  Net Assets | $**297166180** |
| **Composition of Net Assets** |  |
|  Shares of beneficial interest, at par | $310 |
|  Additional paid-in capital | 308821288 |
|  Accumulated loss | (11655418) |
|  **Net Assets** | $**297166180** |
|  **Net Asset Value Per Share**—unlimited shares of beneficial interest authorized, $.00001 par value (based on 30,987,938 common shares outstanding) | $**9.59** |

---

See notes to financial statements.

---

| | |
|:---|:---|
| **28 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

---

------

**STATEMENT OF OPERATIONS** 

**Year Ended April 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Investment Income** |  |  |
|  Interest | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3153548 |  |
|  Dividends—Affiliated issuers | 2748 |  |
|  Other income<sup>(a)</sup> | 7228 |  |
|  Total investment income |  | $3163524 |
| **Realized and Unrealized Gain (Loss) on Investment Transactions** |  |  |
|  Net realized gain on: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment transactions |  | 40645 |
| &nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 959952 |
|  Net change in unrealized appreciation/depreciation of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments |  | (13243136) |
| &nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | (423267) |
|  Net loss on investment transactions |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12665806) |
|  **Net Decrease in Net Assets from Operations** |  | $**(9502282)** |

---

(a) Other income includes a reimbursement for investment in affiliated issuer (see Note B).

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 29** |

---

------

**STATEMENT OF CHANGES IN NET ASSETS** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>April 30,<br>2022** | **Year Ended<br>April 30,<br>2021** |
| **Increase (Decrease) in Net Assets from Operations** |  |  |
|  Net investment income | $3163524 | $3616796 |
|  Net realized gain on investment transactions | 1000597 | 1469672 |
|  Net change in unrealized appreciation/depreciation of investments | (13666403) | 2003959 |
|  Net increase (decrease) in net assets from operations | (9502282) | 7090427 |
|  Distribution to Shareholders | (4804206) | (3803987) |
| **Transactions in Shares of Beneficial Interest** |  |  |
|  Net increase | 5600368 | 124077921 |
|  Total increase (decrease) | (8706120) | 127364361 |
| **Net Assets** |  |  |
|  Beginning of period | 305872300 | 178507939 |
|  End of period | $**297166180** | $**305872300** |

---

See notes to financial statements.

---

| | |
|:---|:---|
| **30 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** 

**April 30, 2022** 

**NOTE A** 

**Significant Accounting Policies** 

AB Corporate Shares (the "Trust") is registered under the Investment Company Act of 1940, as an open-end, diversified management investment company. The Trust, which is a Massachusetts Business Trust, operates as a "series" company currently offering five separate portfolios: AB Corporate Income Shares, AB Municipal Income Shares, AB Taxable Multi-Sector Income Shares, AB Impact Municipal Income Shares and AB Tax-Aware Real Return Income Shares. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to AB Taxable Multi-Sector Income Shares (the "Fund").

Shares of the Fund are offered exclusively to holders of accounts established under wrap fee programs sponsored and maintained by certain registered investment advisers approved by AllianceBernstein L.P. (the "Adviser"). The Fund's shares may be purchased at the relevant net asset value without a sales charge or other fee. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("U.S. GAAP"), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

**1. Security Valuation** 

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at "fair value" as determined in accordance with procedures established by and under the general supervision of the Trust's Board of Trustees (the "Board").

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. ("NASDAQ")) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over the counter ("OTC") market put or call options are valued at the mid level

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 31** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the "Committee") must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer's financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund 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 and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

---

| | |
|:---|:---|
| **32 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**2. Fair Value Measurements** 

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund's own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1—quoted prices in active markets for identical investments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates,
prepayment speeds, credit risk, etc.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value
of investments)

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Valuations of mortgage-backed or other asset-backed securities, by pricing vendors, are based on both proprietary and industry recognized models and discounted cash flow techniques. Significant inputs to the valuation of these instruments are value of the collateral, the rates and timing of delinquencies, the rates and timing of prepayments, and default and loss expectations, which are driven in part by housing prices for residential mortgages. Significant inputs are determined based on relative value

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 33** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

analyses, which incorporate comparisons to instruments with similar collateral and risk profiles, including relevant indices. Mortgage and asset-backed securities for which management has collected current observable data through pricing services are generally categorized within Level 2. Those investments for which current observable data has not been provided are classified as Level 3.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund's investments by the above fair value hierarchy levels as of April 30, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in**<br> **Securities:** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
|  Corporates—Investment Grade | $– 0 | $198385810 | $– 0 | $198385810 |
|  Local Governments—US Municipal Bonds | – 0 | 46152801 | – 0 | 46152801 |
|  Governments—Treasuries | – 0 | 25747031 | – 0 | 25747031 |
|  Asset-Backed Securities | – 0 | 11667862 | – 0 | 11667862 |
|  Commercial Mortgage-Backed Securities | – 0 | 3164979 | – 0 | 3164979 |
|  Collateralized Mortgage Obligations | – 0 | 1765850 | – 0 | 1765850 |
|  Corporates—Non-Investment Grade | – 0 | 757344 | – 0 | 757344 |
|  Short-Term Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment Companies | 5197743 | – 0 | – 0 | 5197743 |
| &nbsp;&nbsp;&nbsp;&nbsp; Short-Term Municipal Notes | – 0 | 999388 | – 0 | 999388 |
|  Total Investments in Securities | 5197743 | 288641065 | – 0 | 293838808 |
|  **Other Financial Instruments<sup>(a)</sup>:** |  |  |  |  |
|  **Assets:** |  |  |  |  |
|  Centrally Cleared Interest Rate Swaps | – 0 | 1134281 | – 0 | 1134281 <sup>(b)</sup> |
|  **Liabilities:** |  |  |  |  |
|  Centrally Cleared Interest Rate Swaps | – 0 | (1138482) | – 0 | (1138482)<sup>(b)</sup> |
|  Credit Default Swaps | – 0 | (698722) | – 0 | (698722) |
|  **Total** | $**5197743** | $**287938142** | $**– 0** | $**293135885** |

---

(a) Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the
unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

---

| | |
|:---|:---|
| **34 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This
amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

**3. Taxes** 

It is the Fund's policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund's tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Fund's financial statements.

**4. Investment Income and Investment Transactions** 

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily. Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

**5. Dividends and Distributions** 

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

**NOTE B** 

**Advisory Fee and Other Transactions with Affiliates** 

Under the terms of the Advisory Agreement, the Fund pays no advisory fee to the Adviser and the Adviser reimburses or pays for the Fund's operating expenses. The Fund is an integral part of separately managed accounts in wrap fee programs and other investment programs. Typically, participants in these programs pay a fee to their investment adviser for all costs and

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 35** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

expenses of the separately managed account, including costs and expenses associated with the Fund, and a fee is paid by their investment adviser to the Adviser. In certain cases, participants may have a direct relationship with the Adviser without the involvement of a third party investment adviser, in which case the participant would pay a fee directly to the Adviser. The Adviser serves as investment manager and adviser of the Fund and continuously furnishes an investment program for the Fund and manages, supervises and conducts the affairs of the Fund, subject to the supervisions of the Fund's Board. The Advisory Agreement provides that the Adviser or an affiliate will furnish, or pay the expenses of the Fund for, office space, facilities and equipment, services of executive and other personnel of the Fund and certain administrative services.

The Fund has entered into a distribution agreement with AllianceBernstein Investments, Inc., the Fund's principal underwriter (the "Underwriter"), to permit the Underwriter to distribute the Fund's shares, which are sold at their net asset value without any sales charge. The Fund does not pay a fee for this service. The Underwriter is a wholly owned subsidiary of the Adviser.

AllianceBernstein Investor Services, Inc. ("ABIS"), a wholly-owned subsidiary of the Adviser, acts as the Fund's registrar, transfer agent and dividend-disbursing agent. ABIS registers the transfer, issuance and redemption of Fund shares and disburses dividends and other distributions to Fund shareholders. The Fund does not pay a fee for this service.

The Fund may invest in AB Government Money Market Portfolio (the "Government Money Market Portfolio") which has a contractual annual advisory fee rate of .20% of the portfolio's average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2022. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to reimburse its advisory fee from the Fund in an amount equal to the Fund's pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended April 30, 2022, such reimbursement amounted to $7,228.

A summary of the Fund's transactions in AB mutual funds for the year ended April 30, 2022 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Market Value<br>4/30/21<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Sales<br>Proceeds<br>(000)** | **Market Value<br>4/30/22<br>(000)** | **Dividend<br>Income<br>(000)** |
|  Government Money Market Portfolio | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2862 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;137881 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;135545 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5198 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 |

---

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| | |
|:---|:---|
| **36 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE C** 

**Investment Transactions** 

Purchases and sales of investment securities (excluding short-term investments) for the year ended April 30, 2022 were as follows:

---

| | | |
|:---|:---|:---|
|  | **Purchases** | **Sales** |
|  Investment securities (excluding U.S. government securities) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100171961 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;116430657 |
|  U.S. government securities | 37022969 | 16364637 |

---

The cost of investments for federal income tax purposes,, gross unrealized appreciation and unrealized depreciation are as follows:

---

| | |
|:---|:---|
|  Cost | $305629910 |
|  Gross unrealized appreciation | $1659974 |
|  Gross unrealized depreciation | (13463871) |
|  Net unrealized depreciation | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11803897) |

---

**1. Derivative Financial Instruments** 

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, "investment purposes"), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **Swaps** 

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk or currencies. The Fund may also enter into swaps for non-hedging purposes as a means of gaining market exposures, making direct investments in foreign currencies, as described below under "Currency Transactions." A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of

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| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 37** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund's exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants ("FCMs") that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial

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| | |
|:---|:---|
| **38 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

**Interest Rate Swaps:** 

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (*e.g.*, an exchange of floating rate payments for fixed rate payments) computed based on a contractually-based principal (or "notional") amount. Interest rate swaps are entered into on a net basis (*i.e.*, the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended April 30, 2022, the Fund held interest rate swaps for hedging purposes.

**Credit Default Swaps:** 

The Fund may enter into credit default swaps, including to manage its exposure to the market or certain sectors of the market, to reduce its risk exposure to defaults by corporate and sovereign issuers held by the Fund, or to create exposure to corporate or sovereign issuers to which it is not otherwise exposed. The Fund may purchase credit protection ("Buy Contract") or provide credit protection ("Sale Contract") on the referenced obligation of the credit default swap. During the term of the swap, the Fund receives/(pays) fixed payments from/(to) the respective counterparty, calculated at the agreed upon rate applied to the notional amount. If the Fund is a buyer/(seller) of protection and a credit event occurs, as defined under the terms of the swap, the Fund will either (i) receive from the seller/(pay to the buyer) of protection an amount equal to the notional amount of the swap (the "Maximum Payout Amount") and deliver/(take delivery of) the referenced obligation or (ii) receive/(pay) a net settlement amount in the form of cash or securities equal to the notional amount of the

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 39** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

swap less the recovery value of the referenced obligation. In certain circumstances Maximum Payout Amounts may be partially offset by recovery values of the respective referenced obligations, upfront premium received upon entering into the agreement, or net amounts received from settlement of buy protection credit default swaps entered into by the Fund for the same referenced obligations with the same counterparty.

Credit default swaps may involve greater risks than if a Fund had invested in the referenced obligation directly. Credit default swaps are subject to general market risk, liquidity risk, counterparty risk and credit risk. If the Fund is a buyer of protection and no credit event occurs, it will lose the payments it made to its counterparty. If the Fund is a seller of protection and a credit event occurs, the value of the referenced obligation received by the Fund coupled with the periodic payments previously received, may be less than the Maximum Payout Amount it pays to the buyer, resulting in a net loss to the Fund.

Implied credit spreads over U.S. Treasuries of comparable maturity utilized in determining the market value of credit default swaps on issuers as of period end are disclosed in the portfolio of investments. The implied spreads serve as an indicator of the current status of the payment/performance risk and typically reflect of the likelihood of default by the issuer of the referenced obligation. The implied credit spread of a particular reference obligation also reflects the cost of buying/selling protection and may reflect upfront payments required to be made to enter into the agreement. Widening credit spreads typically represent a deterioration of the referenced obligation's credit soundness and greater likelihood of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as "Defaulted" indicates a credit event has occurred for the referenced obligation.

During the year ended April 30, 2022, the Fund held credit default swaps for hedging and non-hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreement") with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of

---

| | |
|:---|:---|
| **40 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

default or termination. In the event of a default by an OTC counterparty, the return of collateral with market value in excess of the Fund's net liability, held by the defaulting party, may be delayed or denied.

The Fund's ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels ("net asset contingent features"). If these levels are triggered, the Fund's OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended April 30, 2022, the Fund had entered into the following derivatives:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives** | **Liability Derivatives** |
| **Derivative Type** | **Statement of<br>Assets and<br>Liabilities<br>Location** | **Fair Value** | **Statement of<br>Assets and<br>Liabilities<br>Location** | **Fair Value** |
|  Interest rate contracts | Receivable/Payable for variation margin on centrally cleared swaps | $1134281<br> \*  | Receivable/Payable for variation margin on centrally cleared swaps | $1138482<br> \*  |
|  Credit contracts |  |  | Market value on credit default swaps | 698722 |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;1134281 |  | $&nbsp;&nbsp;&nbsp;&nbsp;1837204 |

---

\* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities.

This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments.

---

| | | | |
|:---|:---|:---|:---|
| **Derivative Type** | **Location of Gain<br>or (Loss) on<br>Derivatives Within<br>Statement of<br>Operations** | **Realized Gain<br>or (Loss) on<br>Derivatives** | **Change in<br>Unrealized<br>Appreciation or<br>(Depreciation)** |
|  Interest rate contracts | Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps | $832541 | $(511235) |
|  Credit contracts | Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps | 127411 | 87968 |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;959952 | $&nbsp;&nbsp;&nbsp;&nbsp;(423267) |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 41** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

The following table represents the average monthly volume of the Fund's derivative transactions during the year ended April 30, 2022:

---

| | |
|:---|:---|
|  Centrally Cleared Interest Rate Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount | $&nbsp;&nbsp;&nbsp;&nbsp;54037692 |
|  Credit Default Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount of buy contracts | $1665000 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount of sale contracts | $4641418 |

---

(a) Positions were open for ten months during the year.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund's derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements ("MA") and net of the related collateral received/pledged by the Fund as of April 30, 2022. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Derivative<br>Liabilities<br>Subject to a<br>MA** | **Derivatives<br>Available<br>for Offset** | **Cash<br>Collateral<br>Pledged\*** | **Security<br>Collateral<br>Pledged\*** | **Net Amount<br>of Derivative<br>Liabilities** |
|  Citigroup Global Markets, Inc. | $260247 | $– 0 – $| (260247) | $– 0 – $| – 0 |
|  Credit Suisse International | 130818 | – 0 – | – 0 | – 0 – | 130818 |
|  Goldman Sachs International | 65974 | – 0 – | – 0 | – 0 – | 65974 |
|  JPMorgan Securities, LLC | 241683 | – 0 – | (241683) | – 0 – | – 0 |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;698722 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(501930 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;196792 |

---

\* The actual collateral received/pledged may be more than the amount reported due to over-collateralization. 

---

| | |
|:---|:---|
| ^ | Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.  |

---

**2. Currency Transactions** 

The Fund may invest in non-U.S. Dollar-denominated securities on a currency hedged or unhedged basis. The Fund 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 and options on futures, swaps, and other options. The Fund 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

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| | |
|:---|:---|
| **42 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

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. The 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).

**NOTE D** 

**Shares of Beneficial Interest** 

Transactions in shares of beneficial interest were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>April 30,<br> 2022 | Year Ended<br>April 30,<br> 2021 | Year Ended<br>April 30,<br> 2022 | Year Ended<br>April 30,<br> 2021 |
|  Shares sold | 11055833 | 18280760 | $109716305 | $182765155 |
|  Shares issued in reinvestment of dividends and distributions | 1 | – 0 | 10 | – 0 |
|  Shares redeemed | (10538231) | (5854027) | (104115947) | (58687234) |
|  **Net increase** | **517603** | **12426733** | $**5600368** | $**124077921** |

---

**NOTE E** 

**Risks Involved in Investing in the Fund** 

**Market Risk**—The value of the Fund's assets will fluctuate as the stock or bond market fluctuates. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

**Credit Risk**—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.

**Interest-Rate Risk**—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 43** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

longer maturities or durations. The current historically low interest rate environment heightens the risks associated with rising interest rates.

**Below Investment-Grade Securities Risk**—Investments in fixed-income securities with lower ratings (commonly known as "junk bonds") tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity, negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

**Inflation Risk**—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund's assets can decline as can the value of the Fund's distributions. This risk is significantly greater for fixed-income securities with longer maturities.

**Foreign (Non-U.S.) Risk**—Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be more difficult to trade due to adverse market, economic, political, regulatory or other factors.

**Emerging Market Risk**—Investments in emerging market countries may have more risk because the markets are less developed and less liquid as well as being subject to increased economic, political, regulatory or other uncertainties.

**Currency Risk**—Fluctuations in currency exchange rates may negatively affect the value of the Fund's investments or reduce its returns.

**Mortgage-Related and/or Other Asset-Backed Securities Risk**—Investments in mortgage-related and other asset-backed securities are subject to certain additional risks. The value of these securities may be particularly sensitive to changes in interest rates. These risks include "extension risk", which is the risk that, in periods of rising interest rates, issuers may delay the payment of principal, and "prepayment risk", which is the risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Fund to a lower rate of return upon reinvestment of principal. Mortgage-backed securities offered by non-governmental issuers and other asset-backed securities may be subject to other risks, such as higher rates of default in the mortgages or assets backing the securities or risks associated with the nature and servicing of mortgages or assets backing the securities.

**Municipal Market Risk**—This is the risk that special factors may adversely affect the value of municipal securities and have a significant

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| | |
|:---|:---|
| **44 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

effect on the yield or value of the Fund's investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state's municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer's ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may continue or worsen, adversely affecting the performance of the Fund. The Fund's investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project's ability to make payments of principal and interest on these securities.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the U.S. federal income tax treatment of certain types of municipal securities.

**Sector Risk**—The Fund may have more risk because it may invest to a significant extent in one or more particular market sectors. To the extent it does so, market or economic factors affecting the relevant sector(s) could have a major effect on the value of the Fund's investments.

**Derivatives Risk**—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

**Leverage Risk**—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund's investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 45** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

**LIBOR Transition and Associated Risk**—A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or "LIBOR," as a "benchmark" or "reference rate" for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority ("FCA"), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR's administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a "synthetic" basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve's Alternative Reference Rate Committee (comprised of major derivative market participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

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 a 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, potentially adversely affecting a 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. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

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| | |
|:---|:---|
| **46 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**Indemnification Risk**—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

**Management Risk**—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

**NOTE F** 

**Joint Credit Facility** 

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the "Facility") intended to provide short-term financing related to redemptions and other short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended April 30, 2022.

**NOTE G** 

**Distributions to Shareholders** 

The tax character of distributions paid during the fiscal years ended April 30, 2022 and April 30, 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Distributions paid from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ordinary income | $3392140 | $3756471 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net long-term capital gains | 1412066 | 47516 |
|  Total taxable distributions paid | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4804206 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3803987 |

---

As of April 30, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:

---

| | |
|:---|:---|
|  Undistributed capital gains | $485962 |
|  Unrealized appreciation/(depreciation) | (11806809)<sup>(a)</sup> |
|  Total accumulated earnings/(deficit) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11320847)<sup>(b)</sup> |

---

(a) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the
tax treatment of callable bonds, the tax treatment of swaps, and the tax deferral of losses on wash sales.

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 47** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

(b) The difference between book-basis and tax-basis components of accumulated
earnings/(deficit) are attributable primarily to dividends payable.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of April 30, 2022, the Fund did not have any capital loss carryforwards.

During the current fiscal year, there were no permanent differences that resulted in adjustments to accumulated loss or additional paid-in capital.

**NOTE H** 

**Recent Accounting Pronouncements** 

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, "Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

**NOTE I** 

**Subsequent Events** 

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund's financial statements through this date.

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|:---|:---|
| **48 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**FINANCIAL HIGHLIGHTS** 

**Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended April 30,** | **Year Ended April 30,** | **Year Ended April 30,** | **Year Ended April 30,** | **Year Ended April 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $10.04 | $9.89 | $9.82 | $9.70 | $9.84 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income<sup>(a)</sup> | .10 | .14 | .24 | .25 | .20 |
|  Net realized and unrealized gain (loss) on investment transactions | (.39) | .16 | .09 | .13 | (.14 |
|  Net increase (decrease) in net asset value from operations | (.29) | .30 | .33 | .38 | .06 |
|  **Less: Dividends** |  |  |  |  |  |
|  Dividends from net investment income | (.12) | (.15 | (.26 | (.26 | (.20 |
|  Distributions from net realized gain on investment transactions | (.04) | – 0 | – 0 | – 0 | – 0 |
|  Net asset value, end of period | **$9.59** | **$10.04** | **$9.89** | **$9.82** | **$9.70** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(b)</sup> | (2.98)% | 3.02 | 3.43 | 4.00 | .65 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $297166 | $305872 | $178508 | $154300 | $129628 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses | .00% | .00 | .01 | .00 | .00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 1.03% | 1.36 | 2.47 | 2.62 | 2.05 |
|  Portfolio turnover rate | 45% | 74 | 124 | 45 | 81 |

---

(a) Based on average shares outstanding.

(b) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the
period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or
the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

(c) The expense ratio, excluding bank overdraft expense, is .00%.

See notes to financial statements

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| | |
|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 49** |

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------

**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** 

**To the Shareholders and the Board of Trustees of AB Taxable Multi-Sector Income Shares:** 

***Opinion on the Financial Statements***

We have audited the accompanying statement of assets and liabilities of AB Taxable Multi-Sector Income Shares (the "Fund") (one of the series constituting AB Corporate Shares (the "Trust")), including the portfolio of investments, as of April 30, 2022, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the series constituting AB Corporate Shares) at April 30, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

***Basis for Opinion***

These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and

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|:---|:---|
| **50 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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------

**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** (continued)

disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2022, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![LOGO](g473194g91r55.jpg)

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

June 24, 2022

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 51** |

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**2022 FEDERAL TAX INFORMATION** 

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended April 30, 2022.

For foreign shareholders, 91.96% of ordinary dividends paid may be considered to be qualifying to be taxed as interest-related dividends. The Fund designates $1,412,066 of dividends paid as long-term capital gain dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2023.

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|:---|:---|
| **52 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**BOARD OF TRUSTEES** 

---

| | |
|:---|:---|
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President and<br> Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |

---

**OFFICERS**

---

| | |
|:---|:---|
| **Scott A. DiMaggio**<sup>(2)</sup>**,** Vice President<br> **Janaki Rao**<sup>(2)</sup>**,** Vice President<br> **Emilie D. Wrapp,** Secretary<br> **Michael B. Reyes,** Senior Vice President | **Joseph J. Mantineo,** Treasurer and Chief Financial Officer<br> **Phyllis J. Clarke,** Controller<br> **Vincent S. Noto,** Chief Compliance Officer |

---

---

| | |
|:---|:---|
| **Custodian and Accounting Agent**<br> State Street Bank and Trust Company<br>State Street Corporation CCB/5<br>1 Iron Street<br>Boston, MA 02210<br>**Principal Underwriter**<br> AllianceBernstein Investments, Inc.<br>501 Commerce Street<br>Nashville, TN 37203<br>**Transfer Agent**<br> AllianceBernstein Investor Services, Inc.<br>P.O. Box 786003<br>San Antonio, TX 78278<br>Toll-Free (800) 221-5672 | **Legal Counsel**<br> Seward & Kissel LLP<br>One Battery Park Plaza<br>New York, NY 10004<br>**Independent Registered Public Accounting Firm**<br> Ernst & Young LLP<br> One Manhattan West<br> New York, NY 10001 |

---

1 Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund's portfolio are made by the Adviser's Core Fixed-Income Team. Messrs. DiMaggio and Rao are the investment professionals primarily responsible for the day-to-day management of the Fund's portfolio.

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 53** |

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**TRUSTEES AND OFFICERS INFORMATION** 

**Board of Trustees Information** 

The business and affairs of the Fund are managed under the direction of the Board of Trustees. Certain information concerning the Fund's Trustees is set forth below.

---

| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE,<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S)<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIP<br>CURRENTLY HELD<br>BY TRUSTEE** |
| **INTERESTED TRUSTEE** |  |  |  |
| Onur Erzan,<sup>#</sup><br> 46<br> (2021) | Senior Vice President of AllianceBernstein L.P. (the "Adviser") and Head of the Global Client Group overseeing AB's institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey, most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey's Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally. | 73 |  |

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| **54 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**TRUSTEES AND OFFICERS INFORMATION** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE,<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S)<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIP<br>CURRENTLY HELD<br>BY TRUSTEE** |
| **INDEPENDENT TRUSTEES**  |  |  |  |
| Marshall C. Turner, Jr.,<sup>##</sup><br> *Chairman of the Board* <br> 80<br> (2005) | Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of the AB Funds since February 2014. | 73 |  |

---

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 55** |

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**TRUSTEES AND OFFICERS INFORMATION** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE,<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S)<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIP<br>CURRENTLY HELD<br>BY TRUSTEE** |
| **INDEPENDENT TRUSTEES<br>(continued)** |  |  |  |
| Jorge A. Bermudez,<sup>##</sup><br> 71<br> (2020) | Private Investor since prior to 2017. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup's Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020. | 73 | Moody's Corporation since April 2011 |
| Michael J. Downey,<sup>##</sup> <br> 78<br> (2005) | Private Investor since prior to 2017. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005. | 73 |  |

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| **56 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**TRUSTEES AND OFFICERS INFORMATION** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE,<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S)<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIP<br>CURRENTLY HELD<br>BY TRUSTEE** |
| **INDEPENDENT TRUSTEES<br>(continued)** |  |  |  |
| Nancy P. Jacklin,<sup>##</sup><br> 74<br> (2006) | Private Investor since prior to 2017. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014. | 73 |  |
| Jeanette W. Loeb,<sup>##</sup><br> 70<br> (2020) | Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as a Director of the AB Funds since April 2020. | 73 | Apollo Investment Corp. (business development company) since August 2011 |

---

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 57** |

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**TRUSTEES AND OFFICERS INFORMATION** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE,<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S)<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIP<br>CURRENTLY HELD<br>BY TRUSTEE** |
| **INDEPENDENT TRUSTEES<br>(continued)** |  |  |  |
| Carol C. McMullen,<sup>##</sup><br> 66<br> (2016) | Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016. | 73 |  |

---

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| **58 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**TRUSTEES AND OFFICERS INFORMATION** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE,<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S)<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIP<br>CURRENTLY HELD<br>BY TRUSTEE** |
| **INDEPENDENT TRUSTEES<br>(continued)** |  |  |  |
| Garry L. Moody,<sup>##</sup><br> 70<br> (2008) | Private Investor since prior to 2017. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute's Board of Governors and the Independent Directors Council's Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008. | 73 |  |

---

\* The address for each of the Trust's disinterested Trustees is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

\*\* There is no stated term of office for the Trust's Trustees.

\*\*\* The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the Trust. 

# Mr. Erzan is an "interested person" of the Trust as defined in the 1940 Act, due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 59** |

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**TRUSTEES AND OFFICERS INFORMATION** (continued)

**Officer Information** 

Certain information concerning the Trust's officers is set forth below.

---

| | | |
|:---|:---|:---|
| **NAME, ADDRESS,\***<br> **AND AGE** | **POSITION(S)**<br> **HELD WITH FUND** | **PRINCIPAL OCCUPATION<br>DURING PAST FIVE YEARS** |
| **OFFICERS** |  |  |
| Onur Erzan<br>46 | President and Chief Executive Officer | See biography above. |
| Scott A. DiMaggio<br>50 | Vice President | Senior Vice President of the Adviser\*\*, with which he had been associated since prior to 2017. He is also Co-Head of Fixed Income. |
| Janaki Rao<br> 51 | Vice President | Senior Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. He is also Director of US Multi-Sector Fixed-Income Portfolios. |
| Emilie D. Wrapp<br>66 | Secretary | Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI\*\*, with which she has been associated since prior to 2017. |
| Michael B. Reyes<br> 45 | Senior Vice President | Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. |
| Joseph J. Mantineo<br>63 | Treasurer and Chief Financial Officer | Senior Vice President of AllianceBernstein Investor Services, Inc. ("ABIS")\*\*, with which he has been associated since prior to 2017. |
| Phyllis J. Clarke<br>61 | Controller | Vice President of ABIS\*\*, with which she has been associated since prior to 2017. |
| Vincent S. Noto<br> 57 | Chief Compliance Officer | Senior Vice President and Mutual Fund Chief Compliance Officer of the Adviser\*\* since prior to 2017. |

---

\* The address for each of the Portfolio's Officers is 1345 Avenue of the Americas, New York, NY 10105.

\*\* The Adviser, ABI and ABIS are affiliates of the Trust.

The Fund's Statement of Additional Information ("SAI") has additional information about the Trust's Trustees and Officers and is available without charge upon request. Contact your financial representative or ABI at (800) 227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

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|:---|:---|
| **60 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**Operation and Effectiveness of the Fund's Liquidity Risk Management Program:** 

In October 2016, the Securities and Exchange Commission ("SEC") adopted the open-end fund liquidity rule (the "Liquidity Rule"). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program ("LRMP") in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund's Liquidity Risk Management Program. The Administrator of the Fund's LRMP is AllianceBernstein L.P., the Fund's investment adviser (the "Adviser"). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the "Committee").

Another requirement of the Liquidity Rule is for the Fund's Board of Trustees (the "Fund Board") to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the fund's LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2022, which covered the period January 1, 2021 through December 31, 2021 (the "Program Reporting Period").

The LRMP's principal objectives include supporting the Fund's compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund's strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum ("HLIM"). The Committee also incorporated the following information when determining the Fund's reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund's concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Funds' LRMP is adequately designed, has been implemented as intended, and has operated effectively since its inception. No material exceptions

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 61** |

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have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID 19 impacts. As such, the Program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

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|:---|:---|
| **62 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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**Information Regarding the Review and Approval of the Fund's Advisory Agreement** 

The disinterested trustees (the "directors") of AB Corporate Shares (the "Company") unanimously approved the continuance of the Company's Advisory Agreement with the Adviser in respect of AB Taxable Multi-Sector Income Shares (the "Fund") at a meeting held by video conference on November 2-4, 2021 (the "Meeting").

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors noted that the Fund is designed as a vehicle for the wrap fee account market (where investors pay fees to a wrap fee sponsor which pays investment fees and expenses from such fee). The directors also noted that no advisory fee is payable by the Fund, that the Advisory Agreement does not include the reimbursement provision for certain administrative expenses included in the advisory agreements of most of the open-end AB Funds, and that the Adviser is responsible for payment of the Fund's ordinary expenses. The directors noted that the Company acknowledges in the Advisory Agreement that the Adviser and its affiliates expect to receive compensation from third parties in connection with services provided under the Advisory Agreement. The directors further noted that the Adviser receives payments from the wrap fee program sponsors (the "Sponsors") that use the Fund as an investment vehicle for their clients.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser's integrity and competence they have gained from that experience, the Adviser's initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser's willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the money market fund advised by the Adviser in which the Fund invests a portion of its assets.

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 63** |

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The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors' determinations included the following:

**Nature, Extent and Quality of Services Provided** 

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the Fund. The directors noted that the Adviser from time to time reviews the Fund's investment strategies and from time to time proposes changes intended to improve the Fund's relative or absolute performance for the directors' consideration. They also noted the professional experience and qualifications of the Fund's portfolio management team and other senior personnel of the Adviser. The quality of administrative and other services, including the Adviser's role in coordinating the activities of the Fund's other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

**Costs of Services Provided and Profitability** 

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar years 2019 and 2020 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser's relationship with the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser's relationship with the Fund before taxes and distribution expenses. The directors noted that the Fund was not profitable

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|:---|:---|
| **64 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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to the Adviser in 2019. The directors concluded that the Adviser's level of profitability from its relationship with the Fund in 2020 was not unreasonable.

**Fall-Out Benefits** 

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised by the Adviser in which the Fund invests. The directors noted that the Adviser is compensated by the Sponsors. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

**Investment Results** 

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the "15(c) service provider"), showing the performance of the Fund against a group of similar funds ("peer group") and a larger group of similar funds ("peer universe"), each selected by the 15(c) service provider, and information prepared by the Adviser showing the Fund's performance against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended July 31, 2021 and (in the case of comparisons with the broad-based securities market index) for the period from inception. The directors were cognizant that the Fund was neither designed nor offered as a standalone investment and was intended to serve solely as a component of certain separately managed accounts ("SMAs"). The Adviser had explained that this attribute made it difficult to select an appropriate benchmark for the Fund. At the directors' request, the Adviser provided information showing the weighting of the Fund in a current SMA and the overall performance of the SMA versus its stated benchmark. Based on their review, the directors concluded that the Fund's investment performance was acceptable.

**Advisory Fees** 

The directors considered the advisory fee rate payable by the Fund to the Adviser (zero) and information provided by the 15(c) service provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds.

The directors noted the unusual arrangements in the Advisory Agreement providing for no advisory fee but were cognizant that the Adviser is indirectly compensated by the Sponsors for its services to the Fund. The directors reviewed the fee arrangements between the Adviser and each of the current Sponsors and noted that such fees were negotiated on an

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 65** |

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arm's length basis and were within the range of fees paid by wrap fee sponsors to other advisers of similar funds. While the Adviser's fee arrangements with the Sponsors vary, the directors acknowledged the Adviser's view that a portion of such fees (less the expenses of the Fund paid by the Adviser) may reasonably be viewed as compensating the Adviser for advisory services it provides to the Fund (the "implied fee") and that the Adviser believes that while the Sponsors pay the Adviser different fee rates, the rate of fee attributable to Fund management at the Fund level is the same for all Sponsors. The directors also considered the fee rate schedules used by other registered investment companies that invest in fixed income securities that are advised by the Adviser.

The directors also considered the Adviser's fee schedule for other clients utilizing investment strategies similar to those of the Fund. For this purpose, they reviewed the relevant advisory fee information from the Adviser's Form ADV and in a report from the Fund's Senior Analyst and noted the differences between the Fund's fee schedule, on the one hand, and the Adviser's institutional fee schedule and the schedule of fees charged by the Adviser to any offshore funds and for services to any sub-advised funds utilizing investment strategies similar to those of the Fund, on the other. The directors recognized that such information was of limited utility in light of the Fund's unusual fee arrangement. The directors noted that the Adviser may, in some cases, agree to fee rates with large institutional clients that are lower than those reviewed by the directors and that they had previously discussed with the Adviser its policies in respect of such arrangements. The directors also compared the advisory fee rate for the Fund with that for another fund advised by the Adviser utilizing similar investment strategies.

The Adviser reviewed with the directors the significantly greater scope of the services it provides to the Fund relative to institutional, offshore fund and sub-advised fund clients. In this regard, the Adviser noted, among other things, that, compared to institutional and offshore or sub-advisory accounts, the Fund (i) demands considerably more portfolio management, research and trading resources due to significantly higher daily cash flows; (ii) has more tax and regulatory restrictions and compliance obligations; (iii) must prepare and file or distribute regulatory and other communications about fund operations; and (iv) must provide shareholder servicing to retail investors. The Adviser also reviewed the greater legal risks presented by the large and changing population of Fund shareholders who may assert claims against the Adviser in individual or class actions, and the greater entrepreneurial risk in offering new fund products, which require substantial investment to launch, may not succeed, and generally must be priced to compete with larger, more established funds resulting in lack of profitability to the Adviser until a new fund achieves scale. In light of the substantial differences in services rendered by the Adviser to institutional, offshore fund and sub-advised fund clients as compared to the Fund, and

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|:---|:---|
| **66 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

The directors did not consider comparative expense information for the Fund because the Fund does not bear ordinary expenses.

**Economies of Scale** 

The directors did not consider the extent to which fee levels in the Advisory Agreement for the Fund reflect economies of scale because the Advisory Agreement does not provide for any compensation to be paid to the Adviser by the Fund and the Fund's expense ratio is zero. They did note, however, that the fee payable to the Adviser by the current Sponsors declines at a breakpoint based on either individual account sizes or on total assets managed by the Adviser for the Sponsor.

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|:---|:---|
| **abfunds.com** | **AB TAXABLE MULTI-SECTOR INCOME SHARES <sup>\|</sup> 67** |

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**This page is not part of the Shareholder Report or the Financial Statements.** 

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**AB FAMILY OF FUNDS** 

**US EQUITY** 

**CORE** 

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio<sup>1</sup>

**GROWTH** 

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

**VALUE** 

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

**INTERNATIONAL/ GLOBAL EQUITY** 

**CORE** 

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

**GROWTH** 

Concentrated International Growth Portfolio

**VALUE** 

All China Equity Portfolio

International Value Fund

**FIXED INCOME** 

**MUNICIPAL** 

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

**TAXABLE** 

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

**ALTERNATIVES** 

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

**MULTI-ASSET** 

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio<sup>1</sup>

Tax-Managed All Market Income Portfolio

**CLOSED-END FUNDS** 

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

**We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.** 

**Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.** 

1 Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee<sup>™</sup> US Thematic Portfolio. Prior to December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy.

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|:---|:---|
| **68 <sup>\|</sup> AB TAXABLE MULTI-SECTOR INCOME SHARES** | **abfunds.com** |

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![LOGO](g473194g43p34.jpg)

AB TAXABLE MULTI-SECTOR INCOME SHARES

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

TMSIS-0151-0422 ![LOGO](g473194g22c48.jpg)

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**APR** <sup>04.30.22</sup>

![LOGO](g473248g43p34.jpg)

ANNUAL REPORT

## AB TAX-AWARE REAL RETURN INCOME SHARES
![LOGO](g473248covart_7682.jpg)

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 <br> Investment Products Offered   <u> • Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed</u>

Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.

This shareholder report must be preceded or accompanied by the Fund's prospectus for individuals who are not current shareholders of the Fund.

You may obtain a description of the Fund's proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Simply visit AB's website at www.abfunds.com, or go to the Securities and Exchange Commission's (the "Commission") website at www.sec.gov, or call AB at (800) 227 4618.

The Fund files its complete schedule of portfolio holdings with the Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund's Form N-PORT reports are available on the Commission's website at www.sec.gov. AB publishes full portfolio holdings for the Fund monthly at www.abfunds.com.

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

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

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|:---|:---|
| **FROM THE PRESIDENT** | ![LOGO](g473248g92f19.jpg) |

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Dear Shareholder,

We're pleased to provide this report for AB Tax-Aware Real Return Income Shares (the "Fund"). Please review the discussion of Fund performance, the market conditions during the reporting period and the Fund's investment strategy.

At AB, we're striving to help our clients achieve better outcomes by:

<sup>+</sup> Fostering diverse perspectives that give us a distinctive approach to navigating global capital markets

<sup>+</sup> Applying differentiated investment insights through a connected global research network

<sup>+</sup> Embracing innovation to design better ways to invest and leading-edge mutual-fund solutions

Whether you're an individual investor or a multibillion-dollar institution, we're putting our knowledge and experience to work for you every day.

For more information about AB's comprehensive range of products and shareholder resources, please log on to www.abfunds.com.

Thank you for your investment in AB mutual funds—and for placing your trust in our firm.

Sincerely,

![LOGO](g473248g55d83.jpg)

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 1** |

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**ANNUAL REPORT** 

**June 7, 2022** 

This report provides management's discussion of fund performance for AB Tax-Aware Real Return Income Shares for the annual reporting period ended April 30, 2022. Please note, shares of this Fund are available only to separately managed accounts or participants in "wrap fee" programs or other investment programs approved by the Adviser.

**The investment objective of the Fund is to maximize real after-tax return for investors subject to federal income taxation.** 

**NAV RETURNS AS OF APRIL 30, 2022** (unaudited)

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| | | |
|:---|:---|:---|
|  | 6 Months | 12 Months |
| **AB TAX-AWARE REAL RETURN INCOME SHARES** | 4.61% | 13.65% |
| Bloomberg 1-10 Year TIPS Index | -1.96% | 1.52% |

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**INVESTMENT RESULTS** 

The table above shows the Fund's performance compared to its benchmark, the Bloomberg 1-10 Year Treasury Inflation Protected Securities ("TIPS") Index, for the six- and 12-month periods ended April 30, 2022.

The Fund outperformed the benchmark for both periods. The Fund is generally used to provide inflation protection within separately managed account strategies and as such maintains a higher level of protection than would relate to the bonds in the Fund itself. The Fund's inflation hedges in tax-efficient Consumer Price Index ("CPI") swaps and total return swaps based on the Bloomberg 1-10 Year TIPS Index were the main contributors to relative performance, as inflation expectations increased.

During the 12-month period, the Fund's overweight to municipals, including municipal credit, detracted, relative to the benchmark. Yield-curve positioning as an overweight to the long end of the curve contributed, while an underweight to the intermediate part of the curve detracted.

For the six-month period, the Fund's overweight to municipals, including municipal credit, detracted. Yield-curve positioning as an overweight to the long end of the curve contributed, while an overweight to the intermediate part of the curve detracted.

The Fund utilized derivatives for hedging purposes in the form of CPI swaps, interest rate swaps and total return swaps, which added to absolute returns for both periods. The usage of total return swaps in conjunction with interest rate swaps outperformed CPI swaps for the six-month period, and was comparable over the 12-month period.

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|:---|:---|
| **2 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**MARKET REVIEW AND INVESTMENT STRATEGY** 

Yields rose toward the end of both the six- and 12-month periods ended April 30, 2022. During the 12-month period, the yield on a 10-Year AAA municipal bond rose to 2.72% from 0.99% and the yield on the 10-Year US Treasury rose to 2.89% from 1.65%. While demand for income remained strong during the first half of the 12-month reporting period, demand weakened during the first quarter of 2022 and into the second quarter, as investors pulled approximately $48 billion from the municipal market as of April 30, 2022.

In addition to broader fixed-income market volatility, these municipal market outflows contributed to municipal underperformance versus US Treasuries, with 10-Year AAA Muni/Treasury after-tax spreads widening 95 basis points ("b.p.") during the 12-month period and 67 b.p. during the six-month period. Credit spreads were relatively unchanged during the 12-month period, but widened modestly during the six-month period.

The Fund's Senior Investment Management Team (the "Team") continues to focus on real after-tax return by investing in municipal bonds that generate income exempt from federal income taxes. In seeking to manage volatility and interest-rate risk, the Team focuses on intermediate-term bonds and seeks to provide inflation protection by entering inflation swap agreements or investing in other inflation-protected instruments.

**INVESTMENT POLICIES** 

The Fund seeks real after-tax return for investors who are subject to federal income taxes. Real return is the rate of return after adjusting for inflation. The Fund pursues its objective by investing primarily in municipal securities that pay interest exempt from federal taxation and by using inflation protection derivatives instruments. Municipal securities may pay interest that is subject to the federal alternative minimum tax for certain taxpayers.

The Fund may invest in fixed-income securities with any maturity or duration. The Fund may also invest without limit in fixed-income securities that are rated below investment grade (commonly known as "junk bonds").

The Adviser selects securities for purchase or sale based on its assessment of the securities' risk and return characteristics as well as the securities' impact on the overall risk and return characteristics of the Fund. In making this assessment, the Adviser takes into account various factors, including the credit quality and sensitivity to interest rates of the securities under consideration and of the Fund's other holdings.

(continued on next page)

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| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 3** |

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The Fund may make significant use of derivatives, including swaps, futures, options and forwards. To provide inflation protection, the Fund will enter into various kinds of inflation swap agreements. The Fund may use other inflation-protected instruments. Payments to the Fund pursuant to swaps will result in taxable income, either ordinary income or capital gains, rather than income exempt from federal taxation. The Fund may at times seek a substantial amount of inflation protection and, consequently, may generate substantial taxable income. It is expected that the Fund's primary use of derivatives will be for the purposes of inflation protection.

The Fund may also invest in forward commitments; zero-coupon municipal securities and variable-, floating- and inverse-floating-rate municipal securities; and certain types of mortgage-related securities.

The Fund may utilize leverage for investment purposes through the use of tender option bond transactions ("TOBs"). The Adviser will consider the impact of TOBs, swaps and other derivatives in making its assessments of the Fund's risks. The resulting exposures to markets, sectors, issuers or specific securities will be continuously monitored by the Adviser.

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| **4 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**DISCLOSURES AND RISKS** 

**Benchmark Disclosure** 

**The Bloomberg 1-10 Year TIPS Index is unmanaged and does not reflect fees and expenses associated with the active management of a fund.** The Bloomberg 1-10 Year TIPS Index represents the performance of US Treasury inflation-indexed securities with maturities between one and ten years. An investor cannot invest directly in an index, and its results are not indicative of the performance for any specific investment, including the Fund.

**A Word About Risk** 

**Market Risk:** The value of the Fund's assets will fluctuate as the stock or bond market fluctuates. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

**Credit Risk:** An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and any accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

**Interest-Rate Risk:** Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest-rate risk is generally greater for fixed-income securities with longer maturities or durations. The current historically low interest rate environment heightens the risks associated with rising interest rates.

**Below Investment-Grade Securities Risk:** Investments in fixed-income securities with lower ratings (commonly known as "junk bonds") tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

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| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 5** |

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**DISCLOSURES AND RISKS** (continued)

**Duration Risk:** Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

**Municipal Market Risk:** This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund's investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state's municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer's ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may continue or worsen, adversely affecting the performance of the Fund. The Fund's investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project's ability to make payments of principal and interest on these securities.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the US federal income tax treatment of certain types of municipal securities.

**Inflation Risk:** This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund's assets can decline as can the value of the Fund's distributions. This risk is significantly greater for fixed-income securities with longer maturities.

**Derivatives Risk:** Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the

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| **6 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**DISCLOSURES AND RISKS** (continued)

party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

**Leverage Risk:** To the extent the Fund uses leveraging techniques, such as TOBs, its net asset value ("NAV") may be more volatile because leverage tends to exaggerate the effect of changes in interest rates and any increase or decrease in the value of the Fund's investments.

**Illiquid Investments Risk:** Illiquid investments risk exists when particular investments, such as lower-rated securities, are or become difficult to purchase or sell, possibly preventing the Fund from selling such investments at an advantageous price. The Fund is subject to illiquid investments risk because the market for municipal securities is generally smaller than many other markets. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk than most other types of investments.

**Management Risk:** The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

These risks are fully discussed in the Fund's prospectus. As with all investments, you may lose money by investing in the Fund.

**An Important Note About Historical Performance** 

**The performance shown in this report represents past performance and does not guarantee future results. Current performance may be lower or higher than the performance information shown. You may obtain performance information current to the most recent month-end by calling (800) 227 4618. The investment return and principal value of an investment in the Fund will fluctuate, so that your shares, when redeemed, may be worth more or less than their original cost. Performance assumes reinvestment of distributions and does not account for taxes. The Fund commenced investment operations on May 2, 2011, and continued operations through March 20, 2014, the date on which all shares of the Fund were redeemed. Between March 20, 2014, and November 12, 2019, the Fund did not conduct investment operations. The Fund resumed investment operations on November 13, 2019. The performance information shown is only for the current activation period. Because the Fund has had periods in which it was not conducting investment** 

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|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 7** |

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**DISCLOSURES AND RISKS** (continued)

**operations, its performance is not comparable to the performance of other mutual funds.** 

**Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus and/or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AllianceBernstein Investments representative. Please read the prospectus and/or summary prospectus carefully before investing.** 

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| **8 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** 

**GROWTH OF A $10,000 INVESTMENT IN THE FUND** (unaudited)

11/12/2019<sup>1</sup> TO 4/30/2022

![LOGO](g473248g95s99.jpg)

This chart illustrates the total value of an assumed $10,000 investment in AB Tax-Aware Real Return Income Shares (from 11/12/2019<sup>1</sup> to 4/30/2022) as compared to the performance of its benchmark. The chart assumes the reinvestment of dividends and capital gains distributions.

1 Current activation date: 11/12/2019.

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| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 9** |

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**HISTORICAL PERFORMANCE** (continued)

**AVERAGE ANNUAL RETURNS AS OF APRIL 30, 2022** (unaudited)

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|:---|:---|
|  | NAV Returns |
| 1 Year | 13.65% |
| Since Inception<sup>1</sup> | 12.15% |

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**AVERAGE ANNUAL RETURNS** 

**AS OF THE MOST RECENT CALENDAR QUARTER-END** 

**MARCH 31, 2022** (unaudited)

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|:---|:---|
|  | NAV Returns |
| 1 Year | 16.28% |
| Since Inception<sup>1</sup> | 12.51% |

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**The prospectus fee table shows the fees and the total operating expenses of the Fund as 0.00% because the Adviser does not charge any fees or expenses and reimburses Fund operating expenses except certain extraordinary expenses, taxes, brokerage costs and the interest on borrowings or certain leveraged transactions. Participants in a wrap fee program or other investment program eligible to invest in the Fund pay fees to the program sponsor and should review the program brochure or other literature provided by the sponsor for a discussion of fees and expenses charged.** 

1 Current activation date: 11/12/2019.

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|:---|:---|
| **10 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**EXPENSE EXAMPLE** 

(unaudited)

As a shareholder of the Fund, you may incur various ongoing non-operating and extraordinary costs. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

**Actual Expenses** 

The table below provides information about actual account values and actual expenses. You may use the information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes** 

The table below also provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed annual rate of return of 5% before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds by comparing this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or contingent deferred sales charges on redemptions. Therefore, the hypothetical example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account Value<br>November 1, 2021** | **Ending<br>Account Value<br>April 30, 2022** | **Expenses Paid<br>During Period\*** | **Annualized<br>Expense Ratio\*** |
|  Actual | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1046.10 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 – | 0.00% |
|  Hypothetical\*\* | $1000 | $1024.79 | $– 0 – | 0.00% |

---

\* Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). The Fund's operating expenses are borne by the Adviser or its affiliates.

\*\* Assumes 5% annual return before expenses. 

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| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 11** |

---

------

**PORTFOLIO SUMMARY** 

**April 30, 2022** (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $9.9

------

![LOGO](g473248g41e55.jpg)

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| | |
|:---|:---|
| 1 | All data are as of April 30, 2022. The Fund's quality rating breakdown is expressed as a percentage of the Fund's total investments in municipal securities and may vary over time. The quality ratings are determined by using the S&P Global Ratings ("S&P"), Moody's Investors Services, Inc. ("Moody's") and Fitch Ratings, Ltd. ("Fitch"). The Fund considers the credit ratings issued by S&P, Moody's and Fitch and uses the highest rating issued by the agencies. These ratings are a measure of the quality and safety of a bond or portfolio, based on the issuer's financial condition. AAA is the highest (best) and D is the lowest (worst). If applicable, the pre-refunded category includes bonds which are secured by U.S. Government securities and therefore are deemed high-quality investment-grade by the Adviser. If applicable, Not Applicable (N/A) includes non-creditworthy investments, such as equities, currency contracts, futures and options. If applicable, the Not Rated category includes bonds that are not rated by a nationally recognized statistical rating organization. The Adviser evaluates the creditworthiness of non-rated securities based on a number of factors including, but not limited to, cash flows, enterprise value and economic environment.  |

---

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| | |
|:---|:---|
| **12 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** 

**April 30, 2022** 

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **MUNICIPAL OBLIGATIONS – 71.2%** |  |  |
|  **Long-Term Municipal Bonds – 71.2%** |  |  |
|  **Alaska – 4.6%** |  |  |
|  Alaska Industrial Development & Export Authority<br>(Greater Fairbanks Community Hospital<br>Foundation Obligated Group)<br>Series 2019<br>4.00%, 04/01/2033 | $445 | $452978 |
|  **Arizona – 3.0%** |  |  |
|  City of Phoenix Civic Improvement Corp.<br>(Phoenix Sky Harbor International Airport)<br>Series 2019-B<br>5.00%, 07/01/2033 | 275 | 297669 |
|  **Colorado – 3.7%** |  |  |
|  Weld County School District No. RE-2 Eaton<br>Series 2019<br>5.00%, 12/01/2027 | 325 | 365730 |
|  **Connecticut – 9.0%** |  |  |
|  City of New Haven CT<br>Series 2017-A<br>5.25%, 08/01/2026 | 70 | 76655 |
|  Connecticut State Health & Educational Facilities Authority<br>(Hartford HealthCare Obligated Group)<br>Series 2020-A<br>5.00%, 07/01/2034 | 515 | 567212 |
|  State of Connecticut<br>Series 2020-A<br>5.00%, 01/15/2031 | 215 | 244498 |
|  |  | 888365 |
|  **District of Columbia – 3.3%** |  |  |
|  District of Columbia<br>(District of Columbia Fed Hwy Grant)<br>Series 2020<br>5.00%, 12/01/2031 | 290 | 326276 |
|  **Florida – 3.7%** |  |  |
|  Capital Projects Finance Authority/FL<br>(CAPFA Capital Corp. 2000F)<br>Series 2020-A<br>5.00%, 10/01/2033 | 250 | 265314 |
|  Greater Orlando Aviation Authority<br>Series 2019-A<br>5.00%, 10/01/2027 | 95 | 103285 |
|  |  | 368599 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 13** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **Illinois – 7.1%** |  |  |
|  Illinois Finance Authority<br>(Illinois Institute of Technology)<br>Series 2019<br>5.00%, 09/01/2032 | $100 | $106719 |
|  Sales Tax Securitization Corp.<br>Series 2020-A<br>5.00%, 01/01/2026 | 270 | 288707 |
|  State of Illinois<br>Series 2018-A<br>5.00%, 10/01/2025 | 295 | 312610 |
|  |  | 708036 |
|  **Kentucky – 10.2%** |  |  |
|  City of Ashland KY<br>(Ashland Hospital Corp. Obligated Group)<br>Series 2019<br>5.00%, 02/01/2027 | 100 | 109325 |
|  Kentucky Public Energy Authority<br>(Morgan Stanley)<br>Series 2019-C<br>4.00%, 02/01/2050 | 570 | 581244 |
|  Louisville/Jefferson County Metropolitan Government<br>(Norton Healthcare Obligated Group)<br>Series 2020-A<br>4.00%, 10/01/2040 | 320 | 319860 |
|  |  | 1010429 |
|  **Louisiana – 1.1%** |  |  |
|  Parish of St. James LA<br>(NuStar Logistics LP)<br>Series 2020<br>5.85%, 08/01/2041<sup>(a)</sup> | 100 | 105868 |
|  **Michigan – 1.8%** |  |  |
|  Michigan State University<br>Series 2019-C<br>5.00%, 08/15/2032 | 160 | 179750 |
|  **New Jersey – 3.6%** |  |  |
|  New Jersey Transportation Trust Fund Authority<br>(New Jersey Transportation Trust Fund Authority State Lease)<br>Series 2019<br>5.00%, 12/15/2031 | 330 | 359969 |

---

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| | |
|:---|:---|
| **14 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **New York – 6.4%** |  |  |
|  Metropolitan Transportation Authority<br>Series 2012-C<br>5.00%, 11/15/2030 | $260 | $264616 |
|  New York City Transitional Finance Authority<br>Future Tax Secured Revenue<br>Series 2019-B<br>5.00%, 11/01/2035 | 200 | 221650 |
|  New York Transportation Development Corp.<br>(Delta Air Lines, Inc.)<br>Series 2020<br>4.375%, 10/01/2045 | 150 | 143465 |
|  |  | 629731 |
|  **Ohio – 1.6%** |  |  |
|  Buckeye Tobacco Settlement Financing Authority<br>Series 2020-A<br>5.00%, 06/01/2035 | 150 | 160476 |
|  **Other – 0.9%** |  |  |
|  Federal Home Loan Mortgage Corp. Multifamily VRD Certificates<br>2.65%, 06/15/2036<sup>(a)</sup> | 100 | 90646 |
|  **Pennsylvania – 3.1%** |  |  |
|  City of Philadelphia PA<br>Series 2019-B<br>5.00%, 02/01/2030 | 155 | 175567 |
|  Commonwealth Financing Authority<br>(Commonwealth Financing Authority State Lease)<br>Series 2018<br>5.00%, 06/01/2025 | 120 | 127248 |
|  |  | 302815 |
|  **Texas – 2.0%** |  |  |
|  City of Houston TX Airport System Revenue<br>(United Airlines, Inc.)<br>Series 2014<br>5.00%, 07/01/2029 | 100 | 102735 |
|  Port Beaumont Navigation District<br>(Jefferson Railport Terminal II LLC)<br>Series 2020<br>3.625%, 01/01/2035<sup>(a)</sup> | 100 | 90538 |
|  |  | 193273 |
|  **Virginia – 2.1%** |  |  |
|  Virginia College Building Authority<br>(Virginia College Building Authority State Lease)<br>Series 2019<br>5.00%, 02/01/2026 | 190 | 206602 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 15** |

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------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
|  | **Principal<br>Amount<br>(000)** | **U.S. $ Value** |
|  **West Virginia – 3.5%** |  |  |
|  State of West Virginia<br>Series 2019<br>5.00%, 06/01/2027 | $315 | $350697 |
|  **Wisconsin – 0.5%** |  |  |
|  UMA Education, Inc.<br>Series 2019<br>5.00%, 10/01/2034<sup>(a)</sup> | 50 | 52232 |
|  Total Municipal Obligations<br>(cost $7,550,265) |  | 7050141 |
|  | **Shares** |  |
|  **SHORT-TERM INVESTMENTS – 22.3%** |  |  |
|  **Investment Companies – 22.3%** |  |  |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB,<br>0.22%<sup>(b)(c)(d)</sup><br>(cost $2,208,880) | 2208880 | 2208880 |
|  **Total Investments – 93.5%**<br>(cost $9,759,145) |  | 9259021 |
|  Other assets less liabilities – 6.5% |  | 640881 |
|  **Net Assets – 100.0%** |  | $**9899902** |

---

**CENTRALLY CLEARED INFLATION (CPI) SWAPS (see Note C)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Rate Type** | **Rate Type** | | | | |
| **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** |<br>**Termination<br>Date** | **Payments<br>made<br>by the<br>Fund** | **Payments<br>received<br>by the<br>Fund** |<br>**Payment<br>Frequency<br>Paid/<br>Received** |<br>**Market<br>Value** |<br>**Upfront<br>Premiums<br>Paid/<br>(Received)** |<br>**Unrealized<br>Appreciation/<br>(Depreciation)** |
|  USD | 3000 | 02/10/2023 | 1.558% | CPI<sup>#</sup> | Maturity | $341126 | $– 0 | $341126 |
|  USD | 900 | 12/24/2024 | 1.846% | CPI<sup>#</sup> | Maturity | 116487 | – 0 | 116487 |
|  USD | 2000 | 02/10/2027 | 1.755% | CPI<sup>#</sup> | Maturity | 312709 | – 0 | 312709 |
|  USD | 2350 | 12/24/2029 | 1.978% | CPI<sup>#</sup> | Maturity | 387309 | – 0 | 387309 |
|  |  |  |  |  |  | $&nbsp;&nbsp;&nbsp;&nbsp;1157631 | $&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;1157631 |

---

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

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| | |
|:---|:---|
| **16 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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------

**PORTFOLIO OF INVESTMENTS** (continued)

**CENTRALLY CLEARED INTEREST RATE SWAPS (see Note C)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Rate Type** | **Rate Type** | | | | |
| **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** |<br>**Termination<br>Date** | **Payments<br>made<br>by the<br>Fund** | **Payments<br>received<br>by the<br>Fund** |<br>**Payment<br>Frequency<br>Paid/<br>Received** |<br>**Market<br>Value** |<br>**Upfront<br>Premiums<br>Paid/<br>(Received)** |<br>**Unrealized<br>Appreciation/<br>(Depreciation)** |
|  USD | 5910 | 02/01/2024 | 1.143% | 1 Day SOFR | Annual | $140356 | $– 0 | $140356 |
|  USD | 6590 | 02/01/2027 | 1.465% | 1 Day SOFR | Annual | 352865 | – 0 | 352865 |
|  USD | 2270 | 02/01/2032 | 1.600% | 1 Day SOFR | Annual | 205157 | – 0 | 205157 |
|  |  |  |  |  |  | $&nbsp;&nbsp;&nbsp;&nbsp;698378 | $&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;698378 |

---

**INFLATION (CPI) SWAPS (see Note C)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Rate Type** | **Rate Type** |  | | | | |
| <br>**Swap<br>Counterparty** | **Notional<br>Amount<br>(000)** | **Notional<br>Amount<br>(000)** |<br>**Termination<br>Date** | **Payments<br>made<br>by the<br>Fund** | **Payments<br>received<br>by the<br>Fund** | |<br>**Payment<br>Frequency<br>Paid/<br>Received** |<br>**Market<br>Value** |<br>**Upfront<br>Premiums<br>Paid/<br>(Received)** |<br>**Unrealized<br>Appreciation/<br>(Depreciation)** |
|  JPMorgan Chase Bank, NA | USD | 1000 | 04/29/2036 | 2.498% | CPI | <sup>#</sup> | Maturity | $&nbsp;&nbsp;&nbsp;&nbsp;129464 | $&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;129464 |

---

# Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI).

**TOTAL RETURN SWAPS (see Note C)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty &<br>Referenced Obligation** | **Rate<br>Paid/<br>Received** | **Payment<br>Frequency** | **Current<br>Notional<br>(000)** | **Current<br>Notional<br>(000)** | **Maturity<br>Date** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  **Receive Total Return on Reference Obligation** | **Receive Total Return on Reference Obligation** | **Receive Total Return on Reference Obligation** | **Receive Total Return on Reference Obligation** | **Receive Total Return on Reference Obligation** |  |  |
|  Barclays Bank PLC |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Barclays Capital US Inflation Linked Bonds 1 to 10 Year | 1 Day SOFR | Maturity | USD | 5755 | 03/01/2023 | $(50501) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Barclays Capital US Inflation Linked Bonds 1 to 10 Year | 1 Day SOFR | Maturity | USD | 8470 | 03/23/2023 | $(37072) |
|  |  |  |  |  |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(87573) |

---

(a) Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are
considered restricted, but liquid and may be resold in transactions exempt from registration. At April 30, 2022, the aggregate market value of these securities amounted to $339,284 or 3.4% of net assets.

(b) Affiliated investments.

(c) The rate shown represents the 7-day yield as of period end.

(d) To obtain a copy of the fund's shareholder report, please go to the Securities and Exchange Commission's website
at www.sec.gov, or call AB at (800) 227-4618.

Glossary:

CPI – Consumer Price Index

SOFR – Secured Overnight Financing Rate

See notes to financial statements.

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| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 17** |

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**STATEMENT OF ASSETS & LIABILITIES** 

**April 30, 2022** 

---

| | |
|:---|:---|
| **Assets** |  |
|  Investments in securities, at value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (cost $7,550,265) | $7050141 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers (cost $2,208,880) | 2208880 |
|  Cash | 3509 |
|  Cash collateral due from broker | 450779 |
|  Unrealized appreciation on inflation swaps | 129464 |
|  Interest receivable | 88922 |
|  Receivable for variation margin on centrally cleared swaps | 55243 |
|  Affiliated dividends receivable | 364 |
| Receivable due from Adviser | 173 |
|  Total assets | 9987475 |
| **Liabilities** |  |
|  Unrealized depreciation on total return swaps | 87573 |
|  Total liabilities | 87573 |
|  Net Assets | $**9899902** |
| **Composition of Net Assets** |  |
|  Shares of beneficial interest, at par | $8 |
|  Additional paid-in capital | 7777303 |
|  Distributable earnings | 2122591 |
|  **Net Assets** | $**9899902** |
|  **Net Asset Value Per Share**—unlimited shares of beneficial interest authorized, $.00001 par value (based on 829,181 common shares outstanding) | $**11.94** |

---

See notes to financial statements.

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|:---|:---|
| **18 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**STATEMENT OF OPERATIONS** 

**Year Ended April 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Investment Income** |  |  |
|  Interest | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;268562 |  |
|  Dividends—Affiliated issuers | 777 |  |
|  Other income<sup>(a)</sup> | 1426 |  |
|  Total investment income |  | $270765 |
| **Realized and Unrealized Gain (Loss) on Investment Transactions** |  |  |
|  Net realized gain (loss) on: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment transactions |  | (56348) |
| &nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 941970 |
|  Net change in unrealized appreciation<br>/depreciation of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments |  | (972551) |
| &nbsp;&nbsp;&nbsp;&nbsp; Swaps |  | 2048568 |
|  Net gain on investment transactions |  | 1961639 |
|  **Net Increase in Net Assets from Operations** |  | $**2232404** |

---

(a) Other income includes a reimbursement for investment in affiliated issuer (see Note B).

See notes to financial statements.

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| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 19** |

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**STATEMENT OF CHANGES IN NET ASSETS** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>April 30,<br>2022** | **Year Ended<br>April 30,<br>2021** |
| **Increase in Net Assets from Operations** |  |  |
|  Net investment income | $270765 | $308797 |
|  Net realized gain on investment transactions | 885622 | 1922040 |
|  Net change in unrealized appreciation/depreciation of investments | 1076017 | 3050697 |
|  Net increase in net assets from operations | 2232404 | 5281534 |
|  Distribution to Shareholders | (2009794) | (168798) |
| **Transactions in Shares of Beneficial Interest** |  |  |
|  Net decrease | (10955389) | (3240241) |
|  Total increase (decrease) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10732779) | 1872495 |
| **Net Assets** |  |  |
|  Beginning of period | 20632681 | 18760186 |
|  End of period | $**9899902** | $**20632681** |

---

See notes to financial statements.

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|:---|:---|
| **20 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** 

**April 30, 2022** 

**NOTE A** 

**Significant Accounting Policies** 

AB Corporate Shares (the "Trust") is registered under the Investment Company Act of 1940, as an open-end, diversified management investment company. The Trust, which is a Massachusetts Business Trust, operates as a "series" company currently offering five separate portfolios: AB Corporate Income Shares, AB Municipal Income Shares, AB Taxable Multi-Sector Income Shares, AB Impact Municipal Income Shares and AB Tax-Aware Real Return Income Shares. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to AB Tax-Aware Real Return Income Shares (the "Fund").

Shares of the Fund are offered exclusively to holders of accounts established under wrap-fee programs sponsored and maintained by certain registered investment advisers approved by AllianceBernstein L.P. (the "Adviser"). The Fund's shares may be purchased at the relevant net asset value without a sales charge or other fee. The financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("U.S. GAAP"), which require management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and amounts of income and expenses during the reporting period. Actual results could differ from those estimates. The Fund is an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. The following is a summary of significant accounting policies followed by the Fund.

**1. Security Valuation** 

Portfolio securities are valued at their current market value determined on the basis of market quotations or, if market quotations are not readily available or are deemed unreliable, at "fair value" as determined in accordance with procedures established by and under the general supervision of the Trust's Board of Trustees (the "Board").

In general, the market values of securities which are readily available and deemed reliable are determined as follows: securities listed on a national securities exchange (other than securities listed on the NASDAQ Stock Market, Inc. ("NASDAQ")) or on a foreign securities exchange are valued at the last sale price at the close of the exchange or foreign securities exchange. If there has been no sale on such day, the securities are valued at the last traded price from the previous day. Securities listed on more than one exchange are valued by reference to the principal exchange on which the securities are traded; securities listed only on NASDAQ are valued in accordance with the NASDAQ Official Closing Price; listed or over

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| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 21** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

the counter ("OTC") market put or call options are valued at the mid level between the current bid and ask prices. If either a current bid or current ask price is unavailable, the Adviser will have discretion to determine the best valuation (e.g., last trade price in the case of listed options); open futures are valued using the closing settlement price or, in the absence of such a price, the most recent quoted bid price. If there are no quotations available for the day of valuation, the last available closing settlement price is used; U.S. Government securities and any other debt instruments having 60 days or less remaining until maturity are generally valued at market by an independent pricing vendor, if a market price is available. If a market price is not available, the securities are valued at amortized cost. This methodology is commonly used for short term securities that have an original maturity of 60 days or less, as well as short term securities that had an original term to maturity that exceeded 60 days. In instances when amortized cost is utilized, the Valuation Committee (the "Committee") must reasonably conclude that the utilization of amortized cost is approximately the same as the fair value of the security. Factors the Committee will consider include, but are not limited to, an impairment of the creditworthiness of the issuer or material changes in interest rates. Fixed-income securities, including mortgage-backed and asset-backed securities, may be valued on the basis of prices provided by a pricing service or at a price obtained from one or more of the major broker-dealers. In cases where broker-dealer quotes are obtained, the Adviser may establish procedures whereby changes in market yields or spreads are used to adjust, on a daily basis, a recently obtained quoted price on a security. Swaps and other derivatives are valued daily, primarily using independent pricing services, independent pricing models using market inputs, as well as third party broker-dealers or counterparties. Open-end mutual funds are valued at the closing net asset value per share, while exchange traded funds are valued at the closing market price per share.

Securities for which market quotations are not readily available (including restricted securities) or are deemed unreliable are valued at fair value as deemed appropriate by the Adviser. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the issuer, analysts, analysis of the issuer's financial statements or other available documents. In addition, the Fund may use fair value pricing for securities primarily traded in non-U.S. markets because most foreign markets close well before the Fund 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 and may materially affect the value of those securities. To account for this, the Fund generally values many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available.

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| | |
|:---|:---|
| **22 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**2. Fair Value Measurements** 

In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values as described in Note A.1 above). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund's own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1—quoted prices in active markets for identical investments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates,
prepayment speeds, credit risk, etc.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value
of investments)

The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which are then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3.

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate

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| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 23** |

---

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**NOTES TO FINANCIAL STATEMENTS** (continued)

issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund's investments by the above fair value hierarchy levels as of April 30, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in<br>Securities:** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
|  Long-Term Municipal Bonds | $– 0 | $7050141 | $– 0 | $7050141 |
|  Short-Term Investments | 2208880 | – 0 | – 0 | 2208880 |
|  Total Investments in Securities | 2208880 | 7050141 | – 0 | 9259021 |
|  **Other Financial Instruments<sup>(a)</sup>:** |  |  |  |  |
|  **Assets:** |  |  |  |  |
|  Centrally Cleared Inflation (CPI) Swaps | – 0 | 1157631 | – 0 | 1157631 <sup>(b)</sup> |
|  Centrally Cleared Interest Rate Swaps | – 0 | 698378 | – 0 | 698378 <sup>(b)</sup> |
|  Inflation (CPI) Swaps | – 0 | 129464 | – 0 | 129464 |
|  **Liabilities:** |  |  |  |  |
|  Total Return Swaps | – 0 | (87573) | – 0 | (87573) |
|  **Total** | $**2208880** | $**8948041** | $**– 0** | $**11156921** |

---

(a) Other financial instruments are derivative instruments, such as futures, forwards and swaps, which are valued at the
unrealized appreciation/(depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, options written and swaptions written which are valued at market value.

(b) Only variation margin receivable/(payable) at period end is reported within the statement of assets and liabilities. This
amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. Where applicable, centrally cleared swaps with upfront premiums are presented here at market value.

**3. Taxes** 

It is the Fund's policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its investment company taxable income and net realized gains, if any, to shareholders. Therefore, no provisions for federal income or excise taxes are required.

In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, management has analyzed the Fund's tax positions taken or expected to be taken on federal and state income tax returns for all open tax years (the current tax year) and has concluded that no provision for income tax is required in the Fund's financial statements.

**4. Investment Income and Investment Transactions** 

Dividend income is recorded on the ex-dividend date or as soon as the Fund is informed of the dividend. Interest income is accrued daily.

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| | |
|:---|:---|
| **24 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

Investment transactions are accounted for on the date the securities are purchased or sold. Investment gains or losses are determined on the identified cost basis. The Fund amortizes premiums and accretes discounts as adjustments to interest income. The Fund accounts for distributions received from REIT investments or from regulated investment companies as dividend income, realized gain, or return of capital based on information provided by the REIT or the investment company.

**5. Dividends and Distributions** 

Dividends and distributions to shareholders, if any, are recorded on the ex-dividend date. Income dividends and capital gains distributions are determined in accordance with federal tax regulations and may differ from those determined in accordance with U.S. GAAP. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require such reclassification.

**NOTE B** 

**Advisory Fee and Other Transactions with Affiliates** 

Under the terms of the Advisory Agreement, the Fund pays no advisory fee to the Adviser and the Adviser reimburses or pays for the Fund's operating expenses. The Fund is an integral part of separately managed accounts in wrap-fee programs and other investment programs. Typically, participants in these programs pay a fee to their investment adviser for all costs and expenses of the separately managed account, including costs and expenses associated with the Fund, and a fee is paid by their investment adviser to the Adviser. In certain cases, participants may have a direct relationship with the Adviser without the involvement of a third party investment adviser, in which case the participant would pay a fee directly to the Adviser. The Adviser serves as investment manager and adviser of the Fund and continuously furnishes an investment program for the Fund and manages, supervises and conducts the affairs of the Fund, subject to the supervisions of the Fund's Board. The Advisory Agreement provides that the Adviser or an affiliate will furnish, or pay the expenses of the Fund for, office space, facilities and equipment, services of executive and other personnel of the Fund and certain administrative services.

The Fund has entered into a distribution agreement with AllianceBernstein Investments, Inc., the Fund's principal underwriter (the "Underwriter"), to permit the Underwriter to distribute the Fund's shares, which are sold at their net asset value without any sales charge. The Fund does not pay a fee for this service. The Underwriter is a wholly owned subsidiary of the Adviser.

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| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 25** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

AllianceBernstein Investor Services, Inc. ("ABIS"), a wholly-owned subsidiary of the Adviser, acts as the Fund's registrar, transfer agent and dividend-disbursing agent. ABIS registers the transfer, issuance and redemption of Fund shares and disburses dividends and other distributions to Fund shareholders. The Fund does not pay a fee for this service.

The Fund may invest in AB Government Money Market Portfolio (the "Government Money Market Portfolio") which has a contractual annual advisory fee rate of ..20% of the portfolio's average daily net assets and bears its own expenses. The Adviser has contractually agreed to waive .10% of the advisory fee of Government Money Market Portfolio (resulting in a net advisory fee of .10%) until August 31, 2022. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to reimburse its advisory fee from the Fund in an amount equal to the Fund's pro rata share of the effective advisory fee of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended April 30, 2022, such reimbursement amounted to $1,426.

A summary of the Fund's transactions in AB mutual funds for the year ended April 30, 2022 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Market Value<br>4/30/21<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Sales<br>Proceeds<br>(000)** | **Market Value<br>4/30/22<br>(000)** | **Dividend<br>Income<br>(000)** |
|  Government Money Market Portfolio | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1570 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21901 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21262 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2209 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 |

---

**NOTE C** 

**Investment Transactions** 

Purchases and sales of investment securities (excluding short-term investments) for the year ended April 30, 2022 were as follows:

---

| | | |
|:---|:---|:---|
|  | **Purchases** | **Sales** |
|  Investment securities (excluding U.S. government securities) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2019218 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10489432 |
|  U.S. government securities | – 0 | – 0 |

---

The cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

---

| | |
|:---|:---|
|  Cost | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9759145 |
|  Gross unrealized appreciation | $2042084 |
|  Gross unrealized depreciation | (600541) |
|  Net unrealized appreciation | $1441543 |

---

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| | |
|:---|:---|
| **26 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**1. Derivative Financial Instruments** 

The Fund may use derivatives in an effort to earn income and enhance returns, to replace more traditional direct investments, to obtain exposure to otherwise inaccessible markets (collectively, "investment purposes"), or to hedge or adjust the risk profile of its portfolio.

The principal types of derivatives utilized by the Fund, as well as the methods in which they may be used are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **Swaps** 

The Fund may enter into swaps to hedge its exposure to interest rates, credit risk, equity markets or currencies. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, collateral may be pledged or received by the Fund in accordance with the terms of the respective swaps to provide value and recourse to the Fund or its counterparties in the event of default, bankruptcy or insolvency by one of the parties to the swap.

Risks may arise as a result of the failure of the counterparty to the swap to comply with the terms of the swap. The loss incurred by the failure of a counterparty is generally limited to the net interim payment to be received by the Fund, and/or the termination value at the end of the contract. Therefore, the Fund considers the creditworthiness of each counterparty to a swap in evaluating potential counterparty risk. This risk is mitigated by having a netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to the Fund to cover the Fund's exposure to the counterparty. Additionally, risks may arise from unanticipated movements in interest rates or in the value of the underlying securities. The Fund accrues for the interim payments on swaps on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swaps on the statement of assets and liabilities, where applicable. Once the interim payments are settled in cash, the net amount is recorded as realized gain/(loss) on swaps on the statement of operations, in addition to any realized gain/(loss) recorded upon the termination of swaps. Upfront premiums paid or received for swaps are recognized as cost or proceeds on the statement of assets and liabilities and are amortized on a straight line basis over the life of the contract. Amortized upfront premiums are included in net realized gain/(loss) from swaps on the statement of operations. Fluctuations in the value of swaps are recorded as a component of net change in unrealized appreciation/depreciation of swaps on the statement of operations.

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| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 27** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

Certain standardized swaps, including certain interest rate swaps and credit default swaps, are (or soon will be) subject to mandatory central clearing. Cleared swaps are transacted through futures commission merchants ("FCMs") that are members of central clearinghouses, with the clearinghouse serving as central counterparty, similar to transactions in futures contracts. Centralized clearing will be required for additional categories of swaps on a phased-in basis based on requirements published by the Securities and Exchange Commission and Commodity Futures Trading Commission.

At the time the Fund enters into a centrally cleared swap, the Fund deposits and maintains as collateral an initial margin with the broker, as required by the clearinghouse on which the transaction is effected. Such amount is shown as cash collateral due from broker on the statement of assets and liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. Risks may arise from the potential inability of a counterparty to meet the terms of the contract. The credit/counterparty risk for centrally cleared swaps is generally less than non-centrally cleared swaps, since the clearinghouse, which is the issuer or counterparty to each centrally cleared swap, has robust risk mitigation standards, including the requirement to provide initial and variation margin. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the time it was closed.

**Interest Rate Swaps:** 

The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. Because the Fund holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk and to maintain its ability to generate income at prevailing market rates, the Fund may enter into interest rate swaps. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional amount. The Fund may elect to pay a fixed rate and receive a floating rate, or, receive a fixed rate and pay a floating rate on a notional amount.

In addition, the Fund may also enter into interest rate swap transactions to preserve a return or spread on a particular investment or portion of its portfolio, or protecting against an increase in the price of securities the Fund anticipates purchasing at a later date. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (*e.g.*, an exchange of floating rate payments for fixed rate payments) computed based on

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| | |
|:---|:---|
| **28 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

a contractually-based principal (or "notional") amount. Interest rate swaps are entered into on a net basis (*i.e.*, the two payment streams are netted out, with the Fund receiving or paying, as the case may be, only the net amount of the two payments).

During the year ended April 30, 2022, the Fund held interest rate swaps for hedging purposes.

**Inflation (CPI) Swaps:** 

Inflation swap agreements are contracts in which one party agrees to pay the cumulative percentage increase in a price index (the Consumer Price Index with respect to CPI swaps) over the term of the swap (with some lag on the inflation index), and the other pays a compounded fixed rate. Inflation swaps may be used to protect the net asset value, or NAV, of a Fund against an unexpected change in the rate of inflation measured by an inflation index since the value of these agreements is expected to increase if there are unexpected inflation increases.

During the year ended April 30, 2022, the Fund held inflation (CPI) swaps for hedging purposes.

**Total Return Swaps:** 

The Fund may enter into total return swaps in order to take a "long" or "short" position with respect to an underlying referenced asset. The Fund is subject to market price volatility of the underlying referenced asset. A total return swap involves commitments to pay interest in exchange for a market linked return based on a notional amount. To the extent that the total return of the security, group of securities or index underlying the transaction exceeds or falls short of the offsetting interest obligation, the Fund will receive a payment from or make a payment to the counterparty.

During the year ended April 30, 2022, the Fund held total return swaps for hedging purposes.

The Fund typically enters into International Swaps and Derivatives Association, Inc. Master Agreements ("ISDA Master Agreement") with its OTC derivative contract counterparties in order to, among other things, reduce its credit risk to OTC counterparties. ISDA Master Agreements include provisions for general obligations, representations, collateral and events of default or termination. Under an ISDA Master Agreement, the Fund typically may offset with the OTC counterparty certain derivative financial instruments' payables and/or receivables with collateral held and/or posted and create one single net payment (close-out netting) in the event of default or termination. In the event of a default by an OTC counterparty,

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| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 29** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

the return of collateral with market value in excess of the Fund's net liability, held by the defaulting party, may be delayed or denied.

The Fund's ISDA Master Agreements may contain provisions for early termination of OTC derivative transactions in the event the net assets of the Fund decline below specific levels ("net asset contingent features"). If these levels are triggered, the Fund's OTC counterparty has the right to terminate such transaction and require the Fund to pay or receive a settlement amount in connection with the terminated transaction. If OTC derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended April 30, 2022, the Fund had entered into the following derivatives:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Asset Derivatives** | **Asset Derivatives** | **Liability Derivatives** | **Liability Derivatives** |
| **Derivative Type** | **Statement of<br>Assets and<br>Liabilities<br>Location** | **Fair Value** | **Statement of<br>Assets and<br>Liabilities<br>Location** | **Fair Value** |
|  Interest rate contracts | Receivable/Payable for variation margin on centrally cleared swaps | $1856009<br> \*  |  |  |
|  Interest rate contracts | Unrealized appreciation on inflation swaps | 129464 |  |  |
|  Interest rate contracts |  |  | Unrealized depreciation on total return swaps | $87573 |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1985473 |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;87573 |

---

\* Only variation margin receivable/payable at period end is reported within the statement of assets and liabilities. This amount reflects cumulative unrealized appreciation/(depreciation) on futures and centrally cleared swaps as reported in the portfolio of investments. 

---

| | | | |
|:---|:---|:---|:---|
| **Derivative Type** | **Location of Gain<br>or (Loss) on<br>Derivatives Within<br>Statement of<br>Operations** | **Realized Gain<br>or (Loss) on<br>Derivatives** | **Change in<br>Unrealized<br>Appreciation or<br>(Depreciation)** |
|  Interest rate contracts | Net realized gain (loss) on swaps; Net change in unrealized appreciation/depreciation of swaps | $941970 | $2048568 |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;941970 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2048568 |

---

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| | |
|:---|:---|
| **30 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

The following table represents the average monthly volume of the Fund's derivative transactions during the year ended April 30, 2022:

---

| | |
|:---|:---|
|  Inflation Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount | $1000000 |
|  Centrally Cleared Interest Rate Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount | $27429231 |
|  Centrally Cleared Inflation Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount | $12903846 |
|  Total Return Swaps: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25369231 |

---

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements in the statement of assets and liabilities.

All OTC derivatives held at period end were subject to netting arrangements. The following table presents the Fund's derivative assets and liabilities by OTC counterparty net of amounts available for offset under ISDA Master Agreements ("MA") and net of the related collateral received/pledged by the Fund as of April 30, 2022. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Derivative<br>Assets<br>Subject to a<br>MA** | **Derivatives<br>Available<br>for Offset** | **Cash<br>Collateral<br>Received\*** | **Security<br>Collateral<br>Received\*** | **Net Amount<br>of Derivative<br>Assets** |
|  JPMorgan Chase Bank, NA | $129464 | $– 0 – $| – 0 – $| – 0 – $| 129464 |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;129464 | $&nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;129464 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Derivative<br>Liabilities<br>Subject to a<br>MA** | **Derivatives<br>Available<br>for Offset** | **Cash<br>Collateral<br>Pledged\*** | **Security<br>Collateral<br>Pledged\*** | **Net Amount<br>of Derivative<br>Liabilities** |
|  Barclays Bank PLC | $87573 | $– 0 – $| – 0 – $| – 0 – $| 87573 |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;87573 | $&nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;87573 |

---

\* The actual collateral received/pledged may be more than the amount reported due to over-collateralization. 

---

| | |
|:---|:---|
| ^ | Net amount represents the net receivable/payable that would be due from/to the counterparty in the event of default or termination. The net amount from OTC financial derivative instruments can only be netted across transactions governed under the same master agreement with the same counterparty.  |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 31** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE D** 

**Shares of Beneficial Interest** 

Transactions in shares of beneficial interest were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>April 30,<br>2022 | Year Ended<br>April 30,<br>2021 | Year Ended<br>April 30,<br>2022 | Year Ended<br>April 30,<br>2021 |
|  Shares sold | 217371 | 176855 | $2537515 | $1801006 |
|  Shares redeemed | (1170884) | (489390) | (13492904) | (5041247) |
|  **Net decrease** | **(953513)** | **(312535)** | $**(10955389)** | $**(3240241)** |

---

**NOTE E** 

**Risks Involved in Investing in the Fund** 

**Market Risk**—The value of the Fund's assets will fluctuate as the stock or bond market fluctuates. The value of the Fund's investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events, including public health crises (including the occurrence of a contagious disease or illness) and regional and global conflicts, that affect large portions of the market.

**Credit Risk**—An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security and accrued interest. The degree of risk for a particular security may be reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security. Investments in fixed-income securities with lower ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.

**Interest-Rate Risk**—Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the value of existing investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or durations. The current historically low interest rate environment heightens the risks associated with rising interest rates.

**Below Investment-Grade Securities Risk**—Investments in fixed-income securities with lower ratings (commonly known as "junk bonds") are subject to a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to

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| | |
|:---|:---|
| **32 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

such factors as specific corporate developments and negative perceptions of the junk bond market generally and may be more difficult to trade than other types of securities.

**Duration Risk**—Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise.

**Municipal Market Risk**—This is the risk that special factors may adversely affect the value of municipal securities and have a significant effect on the yield or value of the Fund's investments in municipal securities. These factors include economic conditions, political or legislative changes, public health crises, uncertainties related to the tax status of municipal securities, or the rights of investors in these securities. To the extent that the Fund invests more of its assets in a particular state's municipal securities, the Fund may be vulnerable to events adversely affecting that state, including economic, political and regulatory occurrences, court decisions, terrorism, public health crises (including the occurrence of a contagious disease or illness) and catastrophic natural disasters, such as hurricanes, fires or earthquakes. For example, the novel coronavirus (COVID-19) pandemic has significantly stressed the financial resources of many issuers of municipal securities, which could impair any such issuer's ability to meet its financial obligations when due and adversely impact the value of its securities held by the Fund. As the full effects of the COVID-19 pandemic on state and local economies and on issuers of municipal securities are still uncertain, the financial difficulties of issuers of municipal securities may continue or worsen, adversely affecting the performance of the Fund. The Fund's investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks. Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the project's ability to make payments of principal and interest on these securities.

Congress has previously considered making changes to the municipal securities provisions of the Internal Revenue Code that could change the U.S. federal income tax treatment of certain types of municipal securities.

**Inflation Risk**—This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the value of the Fund's assets can decline as can the value of the Fund's distributions. This risk is significantly greater for fixed-income securities with longer maturities.

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| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 33** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**Derivatives Risk**—Derivatives may be difficult to price or unwind and leveraged so that small changes may produce disproportionate losses for the Fund. Derivatives, especially over-the-counter derivatives, are also subject to counterparty risk, which is the risk that the counterparty (the party on the other side of the transaction) on a derivative transaction will be unable or unwilling to honor its contractual obligations to the Fund.

**Leverage Risk**—When the Fund borrows money or otherwise leverages its investments, its performance may be volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund's investments. The Fund may create leverage through the use of reverse repurchase arrangements, forward currency exchange contracts, forward commitments, dollar rolls or futures or by borrowing money. The use of other types of derivative instruments by the Fund, such as options and swaps, may also result in a form of leverage. Leverage may result in higher returns to the Fund than if the Fund were not leveraged, but may also adversely affect returns, particularly if the market is declining.

**Illiquid Investments Risk**—Illiquid investments risk exists when particular investments, such as lower-rated securities, are or become difficult to purchase or sell, possibly preventing the Fund from selling such investments at an advantageous price. The Fund is subject to illiquid investments risk because the market for municipal securities is generally smaller than many other markets. Derivatives and securities involving substantial market and credit risk tend to involve greater illiquid investments risk than most other types of investments.

**LIBOR Transition and Associated Risk**—A Fund may be exposed to debt securities, derivatives or other financial instruments that are tied to the London Interbank Offered Rate, or "LIBOR," as a "benchmark" or "reference rate" for various interest rate calculations. In 2017, the United Kingdom Financial Conduct Authority ("FCA"), which regulates LIBOR, announced a desire to phase out the use of LIBOR by the end of 2021. The FCA and LIBOR's administrator, ICE Benchmark Administration, have since announced that most LIBOR settings (which reflect LIBOR rates quoted in different currencies over various time periods) will no longer be published after the end of 2021 but that the most widely used U.S. dollar LIBOR settings will continue to be published until June 30, 2023. However, banks were strongly encouraged to cease entering into agreements with counterparties referencing LIBOR by the end of 2021. It is possible that a subset of LIBOR settings will be published after these dates on a "synthetic" basis, but any such publications would be considered non-representative of the underlying market. The U.S. Federal Reserve, based on the recommendations of the New York Federal Reserve's Alternative Reference Rate Committee (comprised of major derivative market

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| **34 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

participants and their regulators), has begun publishing a Secured Overnight Funding Rate (referred to as SOFR), which is intended to replace U.S. dollar LIBOR. Proposals for alternative reference rates for other currencies have also been announced or have already begun publication. Markets are slowly developing in response to these new rates.

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 a 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, potentially adversely affecting a 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. The potential effects of a phase out of LIBOR on LIBOR-based investments are currently unknown.

**Indemnification Risk**—In the ordinary course of business, the Fund enters into contracts that contain a variety of indemnifications. The Fund's maximum exposure under these arrangements is unknown. However, the Fund has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote. Therefore, the Fund has not accrued any liability in connection with these indemnification provisions.

**Management Risk**—The Fund is subject to management risk because it is an actively-managed investment fund. The Adviser will apply its investment techniques and risk analyses in making investment decisions, but there is no guarantee that its techniques will produce the intended results. Some of these techniques may incorporate, or rely upon, quantitative models, but there is no guarantee that these models will generate accurate forecasts, reduce risk or otherwise perform as expected.

**NOTE F** 

**Joint Credit Facility** 

A number of open-end mutual funds managed by the Adviser, including the Fund, participate in a $325 million revolving credit facility (the "Facility") intended to provide short-term financing related to redemptions and other

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| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 35** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

short term liquidity requirements, subject to certain restrictions. Commitment fees related to the Facility are paid by the participating funds and are included in miscellaneous expenses in the statement of operations. The Fund did not utilize the Facility during the year ended April 30, 2022.

**NOTE G** 

**Distributions to Shareholders** 

The tax character of distributions paid during the fiscal years ended April 30, 2022 and April 30, 2021 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Distributions paid from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ordinary income | $533 | $74184 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net long-term capital gains | 2009261 | 2884 |
|  Total taxable distributions paid | 2009794 | 77068 |
|  Tax-exempt income | – 0 | 91730 |
|  Total distributions paid | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2009794 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;168798 |

---

As of April 30, 2022, the components of accumulated earnings/(deficit) on a tax basis were as follows:

---

| | |
|:---|:---|
|  Undistributed capital gains | $681048 |
|  Unrealized appreciation/(depreciation) | 1441543 <sup>(a)</sup> |
|  Total accumulated earnings/(deficit) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2122591 |

---

(a) The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax treatment of swaps.

For tax purposes, net realized capital losses may be carried over to offset future capital gains, if any. Funds are permitted to carry forward capital losses for an indefinite period, and such losses will retain their character as either short-term or long-term capital losses. As of April 30, 2022, the Fund did not have any capital loss carryforwards.

During the current fiscal year, permanent differences primarily due to the utilization of earnings and profits distributed to shareholders on redemption of shares and the disallowance of a net operating loss resulted in a net decrease in distributable earnings and a net increase in additional paid-in capital. These reclassifications had no effect on net assets.

**NOTE H** 

**Recent Accounting Pronouncements** 

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, "Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting." ASU 2020-04 provides optional guidance to ease the potential accounting burden due to the discontinuation of the LIBOR and

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| **36 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

other interbank-offered based reference rates. ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU 2020-04.

**NOTE I** 

**Subsequent Events** 

Management has evaluated subsequent events for possible recognition or disclosure in the financial statements through the date the financial statements are issued. Management has determined that there are no material events that would require disclosure in the Fund's financial statements through this date.

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|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 37** |

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**FINANCIAL HIGHLIGHTS** 

**Selected Data For A Share Of Beneficial Interest Outstanding Throughout Each Period** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended April 30,** | **Year Ended April 30,** | **November 12,<br>2019<sup>(a)</sup> to<br>April 30,<br>2020** |
|  | **2022** | **2021** | **November 12,<br>2019<sup>(a)</sup> to<br>April 30,<br>2020** |
|  Net asset value, beginning of period | $11.57 | $8.95 | $10.00 |
|  **Income From Investment Operations** |  |  |  |
|  Net investment income<sup>(b)</sup> | .17 | .16 | .07 |
|  Net realized and unrealized gain (loss) on investment transactions | 1.36 | 2.55 | (1.11) |
|  Net increase (decrease) in net asset value from operations | 1.53 | 2.71 | (1.04) |
|  **Less: Dividends and Distributions** |  |  |  |
|  Dividends from net investment income | (.02) | (.09 | (.01 |
|  Distributions from net realized gain on investment transactions | (1.14) | – 0 | – 0 |
|  Net asset value, end of period | **$11.94** | **$11.57** | **$8.95** |
|  **Total Return** |  |  |  |
|  Total investment return based on net asset value<sup>(c)</sup> | 13.65% | 30.32 | (10.43) |
|  **Ratios/Supplemental Data** |  |  |  |
|  Net assets, end of period (000's omitted) | $9900 | $20633 | $18760 |
|  Ratio to average net assets of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses | .00% | .00 | .01 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income | 1.40% | 1.53 | 1.55 |
|  Portfolio turnover rate | 13% | 5 | 10 |

---

(a) Commencement of operations.

(b) Based on average shares outstanding.

(c) Total investment return is calculated assuming an initial investment made at the net asset value at the beginning of the
period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Total return does not reflect the deduction of taxes that a shareholder would pay on fund distributions or
the redemption of fund shares. Total investment return calculated for a period of less than one year is not annualized.

(d) The expense ratio, excluding bank overdraft expense, is .00%.

^ Annualized.

See notes to financial statements.

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| **38 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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------

**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** 

**To the Shareholders and the Board of Trustees of AB Tax-Aware Real Return Income Shares:** 

***Opinion on the Financial Statements***

We have audited the accompanying statement of assets and liabilities of AB Tax-Aware Real Return Income Shares (the "Fund") (one of the series constituting AB Corporate Shares (the "Trust")), including the portfolio of investments, as of April 30, 2022, and the related statements of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the two years in the period then ended and the period from November 12, 2019 (commencement of operations) to April 30, 2020 and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund (one of the series constituting AB Corporate Shares) at April 30, 2022, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the two years in the period then ended and the period from November 12, 2019 (commencement of operations) to April 30, 2020, in conformity with U.S. generally accepted accounting principles.

***Basis for Opinion***

These financial statements are the responsibility of the Trust's management. Our responsibility is to express an opinion on the Fund's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust's internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Trust's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,

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------

**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** (continued)

and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of April 30, 2022, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

![LOGO](g473248g91r55.jpg)

We have served as the auditor of one or more of the AB investment companies since 1968.

New York, New York

June 24, 2022

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| **40 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**2022 FEDERAL TAX INFORMATION** 

(unaudited)

For Federal income tax purposes, the following information is furnished with respect to the distributions paid by the Fund during the taxable year ended April 30, 2022.

For foreign shareholders, 100.00% of ordinary dividends paid may be considered to be qualifying to be taxed as interest-related dividends. The Fund designates $2,009,261 of dividends paid as long-term capital gain dividends.

Shareholders should not use the above information to prepare their income tax returns. The information necessary to complete your income tax returns will be included with your Form 1099-DIV which will be sent to you separately in January 2023.

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|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 41** |

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**BOARD OF TRUSTEES** 

---

| | |
|:---|:---|
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President****<br> and Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President****<br> and Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President****<br> and Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President****<br> and Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President****<br> and Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |
| **Marshall C. Turner, Jr.**<sup>(1)</sup>**,**<br> Chairman<br> **Jorge A. Bermudez**<sup>(1)</sup><br> **Michael J. Downey**<sup>(1)</sup><br> **Onur Erzan,** President****<br> and Chief Executive Officer | **Nancy P. Jacklin**<sup>(1)</sup><br> **Jeanette W. Loeb**<sup>(1)</sup><br> **Carol C. McMullen**<sup>(1)</sup><br> **Garry L. Moody**<sup>(1)</sup> |

---

**OFFICERS**

---

| | |
|:---|:---|
| **Terrance T. Hults**<sup>(2)</sup>**,** Vice President<br> **Matthew J. Norton**<sup>(2)</sup>**,** Vice President<br> **Andrew D. Potter**<sup>(2)</sup>**,** Vice President<br> **Emilie D. Wrapp,** Secretary | **Michael B. Reyes,** Senior Vice President<br> **Joseph J. Mantineo,** Treasurer and Chief Financial Officer<br> **Phyllis J. Clarke,** Controller<br> **Vincent S. Noto,** Chief Compliance Officer |

---

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| | |
|:---|:---|
| **Custodian and Accounting Agent**<br> State Street Bank and Trust Company<br>State Street Corporation CCB/5<br>1 Iron Street<br>Boston, MA 02210<br>**Principal Underwriter**<br> AllianceBernstein Investments, Inc.<br>501 Commerce Street<br> Nashville, TN 37203<br>**Transfer Agent**<br> AllianceBernstein Investor Services, Inc.<br>P.O. Box 786003<br>San Antonio, TX 78278<br>Toll-Free (800) 221-5672 | **Legal Counsel**<br> Seward & Kissel LLP<br>One Battery Park Plaza<br>New York, NY 10004<br>**Independent Registered Public Accounting Firm**<br> Ernst & Young LLP<br>One Manhattan West<br>New York, NY 10001 |

---

1 Member of the Audit Committee, the Governance and Nominating Committee, and the Independent Directors Committee.

2 The day-to-day management of, and investment decisions for, the Fund's portfolio are made by the Adviser's Municipal Bond Investment Team. Messrs. Hults, Norton and Potter are the investment professionals primarily responsible for the day-to-day management of the Fund's portfolio.

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| **42 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**MANAGEMENT OF THE FUND** 

**Board of Trustees Information** 

The business and affairs of the Trust are managed under the direction of the Board of Trustees. Certain information concerning the Trust's Trustee is set forth below.

---

| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY TRUSTEE** |
| **INTERESTED TRUSTEE** | **INTERESTED TRUSTEE** |  |  |
| Onur Erzan,<sup>#</sup><br> 46<br> (2021)  | Senior Vice President of AllianceBernstein L.P. (the "Adviser") and Head of the Global Client Group overseeing AB's institutional and retail businesses, where he is responsible for all client services, sales and marketing, as well as product strategy, management and development worldwide. Director, President and Chief Executive Officer of the AB Mutual Funds as of April 1, 2021. Prior to joining the firm in January 2021, he spent 20 years with McKinsey, most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, he co-led McKinsey's Banking & Securities Solutions (a portfolio of data, analytics, and digital assets and capabilities) globally. | 73 |  |

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|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 43** |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY TRUSTEE** |
| **INDEPENDENT TRUSTEES** | **INDEPENDENT TRUSTEES** |  |  |
| Marshall C. Turner, Jr.,<sup>##</sup> <br>*Chairman of the Board* <br>80<br>(2005) | Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (components of semi-conductor manufacturing). He was a Director of Xilinx, Inc. (programmable logic semi-conductors and adaptable, intelligent computing) from 2007 through August 2020, and is a former director of 33 other companies and organizations. He has extensive operating leadership and venture capital investing experience, including five interim or full-time CEO roles, and prior service as general partner of institutional venture capital partnerships. He also has extensive non-profit board leadership experience, and currently serves on the boards of two education and science-related non-profit organizations. He has served as a director of one AB Fund since 1992, and director or trustee of all AB Funds since 2005. He has been Chairman of the AB Funds since January 2014, and the Chairman of the Independent Directors Committees of the AB Funds since February 2014. | 73 |  |

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| **44 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Jorge A. Bermudez,<sup>##</sup><br>71<br>(2020) | Private Investor since prior to 2017. Formerly, Chief Risk Officer of Citigroup, Inc., a global financial services company, from November 2007 to March 2008, Chief Executive Officer of Citigroup's Commercial Business Group in North America and Citibank Texas from 2005 to 2007, and a variety of other executive and leadership roles at various businesses within Citigroup prior to then; Chairman (2018) of the Texas A&M Foundation Board of Trustees (Trustee since 2013) and Chairman of the Smart Grid Center Board at Texas A&M University since 2012; director of, among others, Citibank N.A. from 2005 to 2008, the Federal Reserve Bank of Dallas, Houston Branch from 2009 to 2011, the Federal Reserve Bank of Dallas from 2011 to 2017, and the Electric Reliability Council of Texas from 2010 to 2016. He has served as director or trustee of the AB Funds since January 2020. | 73 | Moody's Corporation since April 2011 |
| Michael J. Downey,<sup>##</sup> <br>78<br> (2005) <br>| Private Investor since prior to 2017. Formerly, Chairman of The Asia Pacific Fund, Inc. (registered investment company) since prior to 2017 until January 2019. From 1987 until 1993, Chairman and CEO of Prudential Mutual Fund Management, director of the Prudential mutual funds, and member of the Executive Committee of Prudential Securities, Inc. He has served as a director or trustee of the AB Funds since 2005. | 73 |  |

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|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 45** |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Nancy P. Jacklin,<sup>##</sup> <br>74 <br>(2006) | Private Investor since prior to 2017. Professorial Lecturer at the Johns Hopkins School of Advanced International Studies (2008-2015). U.S. Executive Director of the International Monetary Fund (which is responsible for ensuring the stability of the international monetary system), (December 2002-May 2006); Partner, Clifford Chance (1992-2002); Sector Counsel, International Banking and Finance, and Associate General Counsel, Citicorp (1985-1992); Assistant General Counsel (International), Federal Reserve Board of Governors (1982-1985); and Attorney Advisor, U.S. Department of the Treasury (1973-1982). Member of the Bar of the District of Columbia and of New York; and member of the Council on Foreign Relations. She has served as a director or trustee of the AB Funds since 2006 and has been Chair of the Governance and Nominating Committees of the AB Funds since August 2014. | 73 |  |
| Jeanette W. Loeb,<sup>##</sup> <br>70 <br>(2020) | Chief Executive Officer of PetCareRx (e-commerce pet pharmacy) from 2002 to 2011 and 2015 to present. Director of New York City Center since 2005. She was a director of AB Multi-Manager Alternative Fund, Inc. (fund of hedge funds) from 2012 to 2018. Formerly, affiliated with Goldman Sachs Group, Inc. (financial services) from 1977 to 1994, including as a partner thereof from 1986 to 1994. She has served as a Director of the AB Funds since April 2020. | 73 | Apollo Investment Corp. (business development company) since August 2011 |

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| **46 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Carol C. McMullen,<sup>##</sup><br> 66 <br>(2016) <br>| Managing Director of Slalom Consulting (consulting) since 2014, private investor and a member of the Advisory Board of Butcher Box (since 2018). Formerly, member, the Partners Healthcare Investment Committee (2010-2019); Director of Norfolk & Dedham Group (mutual property and casualty insurance) from 2011 until November 2016; Director of Partners Community Physicians Organization (healthcare) from 2014 until December 2016; and Managing Director of The Crossland Group (consulting) from 2012 until 2013. She has held a number of senior positions in the asset and wealth management industries, including at Eastern Bank (where her roles included President of Eastern Wealth Management), Thomson Financial (Global Head of Sales for Investment Management), and Putnam Investments (where her roles included Chief Investment Officer, Core and Growth and Head of Global Investment Research). She has served on a number of private company and non-profit boards, and as a director or trustee of the AB Funds since June 2016. | 73 |  |

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|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 47** |

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**MANAGEMENT OF THE FUND** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **NAME,<br>ADDRESS\*, AGE AND<br>(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL<br>OCCUPATION(S),<br>DURING PAST FIVE YEARS<br>AND OTHER INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX<br>OVERSEEN BY<br>TRUSTEE** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY<br>HELD BY TRUSTEE** |
| **INDEPENDENT TRUSTEES**<br> **(continued)** | **INDEPENDENT TRUSTEES**<br> **(continued)** |  |  |
| Garry L. Moody,<sup>##</sup> <br>70<br> (2008) | Private Investor since prior to 2017. Formerly, Partner, Deloitte & Touche LLP (1995-2008) where he held a number of senior positions, including Vice Chairman, and U.S. and Global Investment Management Practice Managing Partner; President, Fidelity Accounting and Custody Services Company (1993-1995), where he was responsible for accounting, pricing, custody and reporting for the Fidelity mutual funds; and Partner, Ernst & Young LLP (1975-1993), where he served as the National Director of Mutual Fund Tax Services and Managing Partner of its Chicago Office Tax department. He is a member of the Trustee Advisory Board of BoardIQ, a biweekly publication focused on issues and news affecting directors of mutual funds. He is also a member of the Investment Company Institute's Board of Governors and the Independent Directors Council's Governing Council. He has served as a director or trustee, and as Chairman of the Audit Committees, of the AB Funds since 2008. | 73 |  |

---

\* The address for each of the Trust's disinterested Trustees is c/o AllianceBernstein L.P., Attention: Legal and Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

\*\* There is no stated term of office for the Trust's Trustees.

\*\*\* The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee should serve as a Trustee for the Trust. 

# Mr. Erzan is an "interested person" of the Trust, as defined in the 1940 Act, due to his position as a Senior Vice President of the Adviser.

## Member of the Audit Committee, the Governance and Nominating Committee and the Independent Directors Committee.

---

| | |
|:---|:---|
| **48 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

---

------

**MANAGEMENT OF THE FUND** (continued)

**Officers** 

---

| | | |
|:---|:---|:---|
| **NAME, ADDRESS\*<br>AND AGE** | **POSITION(S)<br>HELD WITH FUND** | **PRINCIPAL OCCUPATION**<br>**DURING PAST FIVE YEARS** |
| Onur Erzan<br> 46 | President and Chief Executive Officer | See biography above. |
| Terrance T. Hults<br>56 | Vice President | Senior Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. |
| Matthew J. Norton<br> 39 | Vice President | Senior Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. He is also Chief Investment Officer – Municipal Bonds. |
| Andrew D. Potter<br> 37 | Vice President | Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. |
| Emilie D. Wrapp<br>66 | Secretary | Senior Vice President, Assistant General Counsel and Assistant Secretary of ABI\*\*, with which she has been associated since prior to 2017. |
| Michael B. Reyes<br> 45 | Senior Vice President | Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. |
| Joseph J. Mantineo<br>63 | Treasurer and Chief Financial Officer | Senior Vice President of AllianceBernstein Investor Services, Inc. ("ABIS")\*\*, with which he has been associated since prior to 2017. |
| Phyllis J. Clarke<br>61 | Controller | Vice President of ABIS\*\*, with which she has been associated since prior to 2017. |
| Vincent S. Noto<br> 57 | Chief Compliance Officer | Senior Vice President and Mutual Fund Chief Compliance Officer of the since prior to 2017. |

---

\* The address for each of the Portfolio's Officers is 1345 Avenue of the Americas, New York, NY 10105.

\*\* The Adviser, ABI and ABIS are affiliates of the Trust.

The Trust's Statement of Additional Information ("SAI") has additional information about the Trust's Trustees and Officers and is available without charge upon request. Contact your financial representative or ABI at (800)-227-4618, or visit www.abfunds.com, for a free prospectus or SAI.

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 49** |

---

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**Operation and Effectiveness of the Fund's Liquidity Risk Management Program:** 

In October 2016, the Securities and Exchange Commission ("SEC") adopted the open-end fund liquidity rule (the "Liquidity Rule"). In June 2018 the SEC adopted a requirement that funds disclose information about the operation and effectiveness of their Liquidity Risk Management Program ("LRMP") in their reports to shareholders.

One of the requirements of the Liquidity Rule is for the Fund to designate an Administrator of the Fund's Liquidity Risk Management Program. The Administrator of the Fund's LRMP is AllianceBernstein L.P., the Fund's investment adviser (the "Adviser"). The Adviser has delegated the responsibility to its Liquidity Risk Management Committee (the "Committee").

Another requirement of the Liquidity Rule is for the Fund's Board of Trustees (the "Fund Board") to receive an annual written report from the Administrator of the LRMP, which addresses the operation of the fund's LRMP and assesses its adequacy and effectiveness. The Adviser provided the Fund Board with such annual report during the first quarter of 2022, which covered the period January 1, 2021 through December 31, 2021 (the "Program Reporting Period").

The LRMP's principal objectives include supporting the Fund's compliance with limits on investments in illiquid assets and mitigating the risk that the Fund will be unable to meet its redemption obligations in a timely manner.

Pursuant to the LRMP, the Fund classifies the liquidity of its portfolio investments into one of the four categories defined by the SEC: Highly Liquid, Moderately Liquid, Less Liquid, and Illiquid. These classifications are reported to the SEC on Form N-PORT.

During the Program Reporting Period, the Committee reviewed whether the Fund's strategy is appropriate for an open-end structure, incorporating any holdings of less liquid and illiquid assets. If the Fund participated in derivative transactions, the exposure from such transactions were considered in the LRMP.

The Committee also performed an analysis to determine whether the Fund is required to maintain a Highly Liquid Investment Minimum ("HLIM"). The Committee also incorporated the following information when determining the Fund's reasonably anticipated trading size for purposes of liquidity monitoring: historical net redemption activity, a Fund's concentration in an issuer, shareholder concentration, investment performance, total net assets, and distribution channels.

The Adviser informed the Fund Board that the Committee believes the Funds' LRMP is adequately designed, has been implemented as intended,

---

| | |
|:---|:---|
| **50 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

---

------

and has operated effectively since its inception. No material exceptions have been noted since the implementation of the LRMP. During the Program Reporting Period, liquidity in all markets was significantly recovered and improved compared to the prior reporting period which included extreme levels of price volatility and relative illiquidity beginning in March 2020 with COVID 19 impacts. As such, the Program operated in a relatively robust and benign liquidity environment experienced in markets during the Program Reporting Period. There were no liquidity events that impacted the Fund or its ability to timely meet redemptions during the Program Reporting Period.

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 51** |

---

------

**Information Regarding the Review and Approval of the Fund's Advisory Agreement** 

The disinterested trustees (the "directors") of AB Corporate Shares (the "Company") unanimously approved the continuance of the Company's Advisory Agreement with the Adviser in respect of AB Tax-Aware Real Return Income Shares (the "Fund") at a meeting held by video conference on November 2-4, 2021 (the "Meeting").

Prior to approval of the continuance of the Advisory Agreement, the directors had requested from the Adviser, and received and evaluated, extensive materials. They reviewed the proposed continuance of the Advisory Agreement with the Adviser and with experienced counsel who are independent of the Adviser, who advised on the relevant legal standards. The directors also reviewed additional materials, including comparative analytical data prepared by the Senior Analyst for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

The directors noted that the Fund is designed as a vehicle for the wrap fee account market (where investors pay fees to a wrap fee sponsor which pays investment fees and expenses from such fee). The directors also noted that no advisory fee is payable by the Fund to the Adviser, that the Advisory Agreement does not include the reimbursement provision for certain administrative expenses included in the advisory agreements of most of the open-end AB Funds, and that the Adviser is responsible for payment of the Fund's ordinary expenses. The directors noted that the Company acknowledges in the Advisory Agreement that the Adviser and its affiliates expect to receive compensation from third parties in connection with services provided to the Fund under the Advisory Agreement. The directors further noted that the Adviser receives payments from the wrap fee program sponsors (the "Sponsors") that use the Fund as an investment vehicle for their clients.

The directors considered their knowledge of the nature and quality of the services provided by the Adviser to the Fund gained from their experience as directors or trustees of most of the registered investment companies advised by the Adviser, their overall confidence in the Adviser's integrity and competence they have gained from that experience, the Adviser's initiative in identifying and raising potential issues with the directors and its responsiveness, frankness and attention to concerns raised by the directors in the past, including the Adviser's willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the AB Funds. The directors noted that they have four regular meetings each year, at each of which they review extensive materials and information from the Adviser, including information on the investment performance of the Fund and the money market fund advised by the Adviser in which the Fund invests a portion of its assets.

---

| | |
|:---|:---|
| **52 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

---

------

The directors also considered all factors they believed relevant, including the specific matters discussed below. During the course of their deliberations, the directors evaluated, among other things, the reasonableness of the advisory fee. The directors did not identify any particular information that was all-important or controlling, and different directors may have attributed different weights to the various factors. The directors determined that the selection of the Adviser to manage the Fund and the overall arrangements between the Fund and the Adviser, as provided in the Advisory Agreement, including the advisory fee, were fair and reasonable in light of the services performed, expenses incurred and such other matters as the directors considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the directors' determinations included the following:

**Nature, Extent and Quality of Services Provided** 

The directors considered the scope and quality of services provided by the Adviser under the Advisory Agreement, including the quality of the investment research capabilities of the Adviser and the other resources it has dedicated to performing services for the AB Funds. They also noted the professional experience and qualifications of the Fund's portfolio management team and other senior personnel of the Adviser. The quality of administrative and other services, including the Adviser's role in coordinating the activities of the Fund's other service providers, also was considered. The directors concluded that, overall, they were satisfied with the nature, extent and quality of services provided to the Fund under the Advisory Agreement.

**Costs of Services Provided and Profitability** 

The directors reviewed a schedule of the revenues and expenses and related notes indicating the profitability of the Fund to the Adviser for calendar year 2020 that had been prepared with an expense allocation methodology arrived at in consultation with an independent consultant at the request of the directors. The directors noted the assumptions and methods of allocation used by the Adviser in preparing fund-specific profitability data and understood that there are a number of potentially acceptable allocation methodologies for information of this type. The directors noted that the profitability information reflected all revenues and expenses of the Adviser's relationship with the Fund. The directors recognized that it is difficult to make comparisons of the profitability of the Advisory Agreement with the profitability of fund advisory contracts for unaffiliated funds because comparative information is not generally publicly available and is affected by numerous factors. The directors focused on the profitability of the Adviser's relationship with the Fund before taxes and distribution expenses. The directors noted that the Fund was not profitable to the Adviser in the period reviewed.

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 53** |

---

------

**Fall-Out Benefits** 

The directors considered the other benefits to the Adviser and its affiliates from their relationships with the Fund and the money market fund advised by the Adviser in which the Fund invests. The directors noted that the Adviser is compensated by the Sponsors. The directors understood that the Adviser also might derive reputational and other benefits from its association with the Fund.

**Investment Results** 

In addition to the information reviewed by the directors in connection with the Meeting, the directors receive detailed performance information for the Fund at each regular Board meeting during the year.

At the Meeting, the directors reviewed performance information prepared by an independent service provider (the "15(c) service provider"), showing the performance of the Fund against a group of similar funds ("peer group") and a larger group of similar funds ("peer universe"), each selected by the 15(c) service provider, and information prepared by the Adviser showing the Fund's performance against a broad-based securities market index, in each case for the 1-year period ended July 31, 2021 and (in the case of comparisons with the broad-based securities market index) for the period from inception. The directors were cognizant that the Fund was neither designed nor offered as a standalone investment and was intended to serve solely as a component of certain separately managed accounts ("SMAs"). The Adviser had explained that this attribute made it difficult to select an appropriate benchmark for the Fund. At the directors' request, the Adviser provided information showing the weighting of the Fund in a current SMA and the overall performance of the SMA versus its stated benchmark. Based on their review, the directors concluded that the Fund's investment performance was acceptable.

**Advisory Fees** 

The directors considered the advisory fee rate payable by the Fund to the Adviser (zero) and information provided by the 15(c) provider concerning advisory fee rates payable by other funds in the same category as the Fund. The directors recognized that it is difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees payable by other funds.

The directors noted the unusual arrangements in the Advisory Agreement providing for no advisory fee but were cognizant that the Adviser would be indirectly compensated by the Sponsors for its services to the Fund. The directors reviewed the fee arrangements between the Adviser and each of the current Sponsors and noted that such fees were negotiated on an arm's length basis and were within the range of fees paid by wrap fee sponsors to other advisers of similar funds. While the Adviser's fee arrangements with the Sponsors vary, the directors acknowledged the

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|:---|:---|
| **54 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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Adviser's view that a portion of such fees (less the expenses of the Fund paid by the Adviser) may reasonably be viewed as compensating the Adviser for advisory services it provides to the Fund (the "implied fee") and that the Adviser believes that while the Sponsors pay the Adviser different fee rates, the rate of fee attributable to Fund management at the Fund level is the same for all Sponsors. The directors also considered the fee rate schedules used by other registered investment companies that invest in fixed income securities that are advised by the Adviser.

The Adviser informed the directors that there were no institutional products managed by it that utilize investment strategies similar to those of the Fund.

The directors did not consider comparative expense information for the Fund because the Fund does not bear ordinary expenses.

**Economies of Scale** 

The directors did not consider the extent to which fee levels in the Advisory Agreement for the Fund reflect economies of scale because the Advisory Agreement does not provide for any compensation to be paid to the Adviser by the Fund and the Fund's expense ratio is zero. They did note, however, that the fee payable to the Adviser by the current Sponsors declines at a breakpoint based on either individual account sizes or on total assets managed by the Adviser for the Sponsor.

---

| | |
|:---|:---|
| **abfunds.com** | **AB TAX-AWARE REAL RETURN INCOME SHARES <sup>\|</sup> 55** |

---

------

**This page is not part of the Shareholder Report or the Financial Statements.** 

------

**AB FAMILY OF FUNDS** 

**US EQUITY** 

**CORE** 

Core Opportunities Fund

Select US Equity Portfolio

Sustainable US Thematic Portfolio<sup>1</sup>

**GROWTH** 

Concentrated Growth Fund

Discovery Growth Fund

Growth Fund

Large Cap Growth Fund

Small Cap Growth Portfolio

**VALUE** 

Discovery Value Fund

Equity Income Fund

Relative Value Fund

Small Cap Value Portfolio

Value Fund

**INTERNATIONAL/ GLOBAL EQUITY** 

**CORE** 

Global Core Equity Portfolio

International Strategic Core Portfolio

Sustainable Global Thematic Fund

Sustainable International Thematic Fund

Tax-Managed Wealth Appreciation Strategy

Wealth Appreciation Strategy

**GROWTH** 

Concentrated International Growth Portfolio

**VALUE** 

All China Equity Portfolio

International Value Fund

**FIXED INCOME** 

**MUNICIPAL** 

High Income Municipal Portfolio

Intermediate California Municipal Portfolio

Intermediate Diversified Municipal Portfolio

Intermediate New York Municipal Portfolio

Municipal Bond Inflation Strategy

Tax-Aware Fixed Income Opportunities Portfolio

National Portfolio

Arizona Portfolio

California Portfolio

Massachusetts Portfolio

Minnesota Portfolio

New Jersey Portfolio

New York Portfolio

Ohio Portfolio

Pennsylvania Portfolio

Virginia Portfolio

**TAXABLE** 

Bond Inflation Strategy

Global Bond Fund

High Income Fund

High Yield Portfolio

Income Fund

Intermediate Duration Portfolio

Limited Duration High Income Portfolio

Short Duration Income Portfolio

Short Duration Portfolio

Sustainable Thematic Credit Portfolio

Total Return Bond Portfolio

**ALTERNATIVES** 

All Market Real Return Portfolio

Global Real Estate Investment Fund

Select US Long/Short Portfolio

**MULTI-ASSET** 

All Market Income Portfolio

All Market Total Return Portfolio

Emerging Markets Multi-Asset Portfolio

Global Risk Allocation Fund

Sustainable Thematic Balanced Portfolio<sup>1</sup>

Tax-Managed All Market Income Portfolio

**CLOSED-END FUNDS** 

AllianceBernstein Global High Income Fund

AllianceBernstein National Municipal Income Fund

**We also offer Government Money Market Portfolio, which serves as the money market fund exchange vehicle for the AB mutual funds. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.** 

**Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. For copies of our prospectus or summary prospectus, which contain this and other information, visit us online at www.abfunds.com or contact your AB representative. Please read the prospectus and/or summary prospectus carefully before investing.** 

1 Prior to August 23, 2021, Sustainable US Thematic Portfolio was named FlexFee<sup>™</sup> US Thematic Portfolio. Prior to December 1, 2021, Sustainable Thematic Balanced Portfolio was named Conservative Wealth Strategy.

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| | |
|:---|:---|
| **56 <sup>\|</sup> AB TAX-AWARE REAL RETURN INCOME SHARES** | **abfunds.com** |

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![LOGO](g473248g43p34.jpg)

AB TAX-AWARE REAL RETURN INCOME SHARES

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

TARRIS-0151-0422 ![LOGO](g473248g22c48.jpg)

------

---

| | |
|:---|:---|
| **ITEM 2.** | **CODE OF ETHICS.**  |

---

(a) The registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer and principal accounting officer. A copy of the registrant's code of ethics is filed herewith as Exhibit 12(a)(1).

(b) During the period covered by this report, no material amendments were made to the provisions of the code of ethics adopted in 2(a) above.

(c) During the period covered by this report, no implicit or explicit waivers to the provisions of the code of ethics adopted in 2(a) above were granted.

---

| | |
|:---|:---|
| **ITEM 3.** | **AUDIT COMMITTEE FINANCIAL EXPERT.**  |

---

The registrant's Board of Directors has determined that independent directors Garry L. Moody, Marshall C. Turner, Jr. and Jorge A. Bermudez qualify as audit committee financial experts.

---

| | |
|:---|:---|
| **ITEM 4.** | **PRINCIPAL ACCOUNTANT FEES AND SERVICES.**  |

---

(a) - (c) The following table sets forth the aggregate fees billed<sup>\*</sup> by the independent registered public accounting firm Ernst & Young LLP, for the Fund's last two fiscal years, for professional services rendered for: (i) the audit of the Fund's annual financial statements included in the Fund's annual report to stockholders; (ii) assurance and related services that are reasonably related to the performance of the audit of the Fund's financial statements and are not reported under (i), which include advice and education related to accounting and auditing issues, quarterly press release review (for those Funds that issue quarterly press releases), and preferred stock maintenance testing (for those Funds that issue preferred stock); and (iii) tax compliance, tax advice and tax return preparation.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | <u>Audit Fees</u> |  | <u>Tax Fees</u> |
|  AB Corp Income Shares | 2021 | $32537 | $– $| 18897 |
|  | 2022 | $32537 | $– $| 14914 |
|  AB Taxable Multi-Sector Income Shares | 2021 | $36041 | $– $| 20164 |
|  | 2022 | $36041 | $– $| 16127 |
|  AB Municipal Income Shares | 2021 | $45353 | $– $| 19048 |
|  | 2022 | $45353 | $– $| 16171 |
|  AB Impact Municipal Income Shares | 2021 | $29731 | $– $| 19950 |
|  | 2022 | $29731 | $– $| 16171 |
|  AB Tax-Aware Real Return Income Shares | 2021 | $30000 | $– $| 21936 |
|  | 2022 | $30000 | $– $| 16171 |

---

\* The Fund's Adviser absorbs all ordinary Fund expenses, including the Fund's audit fees, audit-related fees and tax fees.

(d) Not applicable.

(e) (1) Beginning with audit and non-audit service contracts entered into on or after May 6, 2003, the Fund's Audit Committee policies and procedures require the pre-approval of all audit and non-audit services provided to the Fund by the Fund's independent registered public accounting firm. The Fund's Audit Committee policies and procedures also require pre-approval of all audit and non-audit services provided to the Adviser and Service Affiliates to the extent that these services are directly related to the operations or financial reporting of the Fund.

------

(e) (2) All of the amounts for Audit Fees, Audit-Related Fees and Tax Fees in the table under Item 4 (a) – (c) are for services pre-approved by the Fund's Audit Committee.

(f) Not applicable.

(g) The following table sets forth the aggregate non-audit services provided to the Fund, the Fund's Adviser and entities that control, are controlled by or under common control with the Adviser that provide ongoing services to the Fund ("Service Affiliates"):

---

| | | | |
|:---|:---|:---|:---|
|  | | All Fees for<br>Non-Audit Services<br>Provided to the<br>Portfolio, the Adviser<br>and Service<br>Affiliates | Total Amount of<br>Foregoing Column Pre-<br>approved by the Audit<br>Committee<br>(Portion Comprised of<br>Audit Related Fees)<br>(Portion Comprised of<br>Tax Fees) |
|  AB Corp Income Shares | 2021 | $995373 | $18897 |
|  |  |  | $— |
|  |  |  | $(18897) |
|  | 2022 | $1957639 | $14914 |
|  |  |  | $— |
|  |  |  | $(14914) |
|  AB Taxable Multi-Sector Income Shares | 2021 | $996640 | $20164 |
|  |  |  | $— |
|  |  |  | $(20164) |
|  | 2022 | $1958852 | $16127 |
|  |  |  | $— |
|  |  |  | $(16127) |
|  AB Municipal Income Shares | 2021 | $995524 | $19048 |
|  |  |  | $— |
|  |  |  | $(19048) |
|  | 2022 | $1958896 | $16171 |
|  |  |  | $— |
|  |  |  | $(16171) |
|  AB Impact Municipal Income Shares | 2021 | $996426 | $19950 |
|  |  |  | $— |
|  |  |  | $(19950) |
|  | 2022 | $1958896 | $16171 |
|  |  |  | $— |
|  |  |  | $(16171) |
|  AB Tax-Aware Real Return Income Shares | 2021 | $998412 | $21936 |
|  |  |  | $— |
|  |  |  | $(21936) |
|  | 2022 | $1958896 | $16171 |
|  |  |  | $— |
|  |  |  | $(16171) |

---

(h) The Audit Committee of the Fund has considered whether the provision of any non-audit services not pre-approved by the Audit Committee provided by the Fund's independent registered public accounting firm to the Adviser and Service Affiliates is compatible with maintaining the auditor's independence.

---

| | |
|:---|:---|
| **ITEM 5.** | **AUDIT COMMITTEE OF LISTED REGISTRANTS.**  |

---

Not applicable to the registrant.

---

| | |
|:---|:---|
| **ITEM 6.** | **INVESTMENTS.**  |

---

Please see Schedule of Investments contained in the Report to Shareholders included under Item 1 of this Form N-CSR.

**ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.** 

Not applicable to the registrant.

------

**ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.** 

Not applicable to the registrant.

**ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.** 

Not applicable to the registrant.

**ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.** 

There have been no material changes to the procedures by which shareholders may recommend nominees to the Fund's Board of Directors since the Fund last provided disclosure in response to this item.

**ITEM 11. CONTROLS AND PROCEDURES.** 

(a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3 (c) under the Investment Company Act of 1940, as amended) are effective at the reasonable assurance level based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

(b) There were no changes in the registrant's internal controls over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

------

**ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.** 

Not applicable to the registrant.

---

| | |
|:---|:---|
| **ITEM 13.** | **EXHIBITS**  |

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The following exhibits are attached to this Form N-CSR:

---

| | |
|:---|:---|
| EXHIBIT NO. | DESCRIPTION OF EXHIBIT |
| 12 (a) (1) | [Code of Ethics that is subject to the disclosure of Item 2 hereof](d472794dex99codeeth.htm) |
| 12 (b) (1) | [Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](d472794dex99cert.htm) |
| 12 (b) (2) | [Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](d472794dex99cert.htm#sig) |
| 12 (c) | [Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](d472794dex99906cert.htm) |

---

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant): AB Corporate Shares

---

| | |
|:---|:---|
| By: | /s/ Onur Erzan |
|  | Onur Erzan |
|  | President |
| Date: | March 3, 2023 |

---

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| By: | /s/ Onur Erzan |
|  | Onur Erzan |
|  | President |
| Date: | March 3, 2023 |
| By: | /s/ Joseph J. Mantineo |
|  | Joseph J. Mantineo |
|  | Treasurer and Chief Financial Officer |
| Date: | March 3, 2023 |

---

## Ex-99.Code

Exhibit 12(a) (1)

**CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS** 

**I.** **Covered Officers/Purpose of the Code** 

The AllianceBernstein Mutual Fund Complex's code of ethics (this "Code") for the investment companies within the complex (collectively, the "Funds" and each, a "Company") applies to each Company's Principal Executive Officer, Principal Financial and Accounting Officer and Controller (the "Covered Officers," each of whom is set forth in Exhibit A) for the purpose of promoting:

• honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between
personal and professional relationships;

• full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with,
or submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Company;

• compliance with applicable laws and governmental rules and regulations;

• the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the
Code; and

• accountability for adherence to the Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

**II.** **Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest** 

**Overview**. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his service to, the Company. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Company. For the purposes of this Code, members of the Covered Officer's family include his or her spouse, children, stepchildren, financial dependents, parents and stepparents.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Company and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Company because of their status as "affiliated persons" of the Company. The Company's and the investment adviser's compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

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Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Company and the investment adviser of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Company or for the adviser, or for both), be involved in establishing policies and implementing decisions that will have different effects on the adviser and the Company. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Company and the adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Company. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Company's Board of Directors or Trustees (the "Directors") that the Covered Officers may also be officers or employees of one or more of the other Funds or of other investment companies covered by this or other codes.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Company.

Each Covered Officer must:

• not use his personal influence or personal relationships improperly to influence investment decisions or
financial reporting by the Company whereby the Covered Officer would benefit personally to the detriment of the Company;

• not cause the Company to take action, or fail to take action, for the individual personal benefit of the Covered
Officer rather than the benefit of the Company;

• not use material non-public knowledge of portfolio transactions made or
contemplated for the Company to trade personally or cause others to trade personally in contemplation of the market effect of such transactions;

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There are some conflict of interest situations, whether involving a Covered Officer directly or a member of his family, that should always be discussed with the General Counsel of Alliance Capital Management L.P. (the "General Counsel"), if material. Examples of these include:

• service as a director on the board of directors or trustees of any public or private company (other than a not-for-profit organization);

• the receipt of any non-nominal gifts;

• the receipt of any entertainment from any company with which the Company has current or prospective business
dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;

• any ownership interest in, or any consulting or employment relationship with, any of the Company's service
providers, other than its investment adviser, principal underwriter, administrator or any affiliated person thereof;

• a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Company for
effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership.

**III.** **Disclosure and Compliance** 

• Each Covered Officer should familiarize himself with the disclosure requirements and disclosure controls and
procedures generally applicable to the Company;

• each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Company
to others, whether within or outside the Company, including to the Company's directors and auditors, and to governmental regulators and self-regulatory organizations;

• each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other
officers and employees of the Funds and the adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made
by the Funds; and

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• it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions
imposed by applicable laws, rules and regulations.

**IV.** **Reporting and Accountability** 

Each Covered Officer must:

• upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to
the General Counsel that he has received, read, and understands the Code;

• annually thereafter affirm to the General Counsel that he has complied with the requirements of the Code;

• complete at least annually a questionnaire relating to affiliations or other relationships that may give rise to
conflicts of interest;

• not retaliate against any other Covered Officer or any employee of the Company or their affiliated persons for
reports of potential violations that are made in good faith; and

• notify the General Counsel promptly if he knows of any violation of this Code. Failure to do so is itself a
violation of this Code.

The General Counsel is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. However, waivers sought by a Covered Officer will be considered by the Company's Audit Committee (the "Committee").

The Company will follow these procedures in investigating and enforcing this Code:

• the General Counsel will take all appropriate action to investigate any potential violations reported to him;

• if, after such investigation, the General Counsel believes that no material violation has occurred, the General
Counsel is not required to take any further action;

• any matter that the General Counsel believes is a material violation will be reported to the Committee;

• if the Committee concurs that a material violation has occurred, it will inform and make a recommendation to the
Directors, who will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to
dismiss the Covered Officer;

• the Committee will be responsible for granting waivers, as appropriate; and

• any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

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**V.** **Other Policies and Procedures** 

This Code shall be the sole code of ethics adopted by the Company for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Company, the Company's adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, it is understood that this Code is in all respects separate and apart from, and operates independently of, any such policies and procedures. In particular, the Company's and its investment adviser's and principal underwriter's codes of ethics under Rule 17j-l under the Investment Company Act are separate requirements applying to the Covered Officers and others, and are not part of this Code.

**VI.** **Amendments** 

Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Directors, including a majority of independent directors.

**VII.** **Confidentiality** 

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Directors, the investment adviser, their counsel, counsel to the Company and, if deemed appropriate by the Directors of the Company, to the Directors of the other Funds.

**VIII.** **Internal Use** 

The Code is intended solely for internal use by the Funds and does not constitute an admission, by or on behalf of any Company, as to any fact, circumstance, or legal conclusion.

Date: July 22, 2003, as amended March 17, 2004

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Exhibit A

<u>Persons Covered by this Code of Ethics</u> 

Principal Executive Officer

Principal Financial and Accounting Officer

Controller

## Ex-99.Cert

**Exhibit 12(b)(1)** 

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER** 

I, Onur Erzan, President of AB Corporate Shares, certify that:

1. I have reviewed this report on Form N-CSR of AB Corporate Shares;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation ; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

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5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 3, 2023

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| |
|:---|
| /s/ Onur Erzan |
| Onur Erzan |
| President |

---

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**Exhibit 12(b)(2)** 

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER** 

I, Joseph J. Mantineo, Treasurer and Chief Financial Officer of AB Corporate Shares, certify that:

1. I have reviewed this report on Form N-CSR of AB Corporate Shares;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation ; and

d) disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

------

5. The registrant's other certifying officers and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information ; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 3, 2023

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| |
|:---|
| /s/ Joseph J. Mantineo |
| Joseph J. Mantineo |
| Treasurer and Chief Financial Officer |

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## Exhibit 99.906

**EXHIBIT 12(c)** 

**CERTIFICATION PURSUANT TO SECTION 906 OF THE** 

**SARBANES-OXLEY ACT** 

Pursuant to 18 U.S.C. 1350, each of the undersigned, being the Principal Executive Officer and Principal Financial Officer of AB Corporate Shares (the "Registrant"), hereby certifies that the Registrant's report on Form N-CSR for the period ended April 30, 2022 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: March 3, 2023

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| | |
|:---|:---|
| By: | /s/ Onur Erzan |
|  | Onur Erzan |
|  | President |
| By: | /s/ Joseph J. Mantineo |
|  | Joseph J. Mantineo |
|  | Treasurer and Chief Financial Officer |

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This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Report or as a separate disclosure document.

A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request.