# EDGAR Filing Document

**Accession Number:** 0000081443
**File Stem:** 0001193125-23-068861
**Filing Date:** 2023-3
**Character Count:** 1063722
**Document Hash:** 5d6a07f3ffa13124e295c9729a0bbf91
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-068861.hdr.sgml**: 20230313

**ACCESSION NUMBER**: 0001193125-23-068861

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

**PUBLIC DOCUMENT COUNT**: 62

**CONFORMED PERIOD OF REPORT**: 20220630

**FILED AS OF DATE**: 20230313

**DATE AS OF CHANGE**: 20230313

**EFFECTIVENESS DATE**: 20230313

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AB CAP FUND, INC.
- **CENTRAL INDEX KEY:** 0000081443
- **IRS NUMBER:** 132625045
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0731

**FILING VALUES:**
- **FORM TYPE:** N-CSR/A
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-01716
- **FILM NUMBER:** 23726748

**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 CAP FUND, INC.
- **DATE OF NAME CHANGE:** 20110524

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ALLIANCEBERNSTEIN CAP FUND,INC
- **DATE OF NAME CHANGE:** 20040908

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ALLIANCEBERNSTEIN SMALL CAP GROWTH FUND INC
- **DATE OF NAME CHANGE:** 19931001

## Series and Classes Contracts Data

### AB Select US Equity Portfolio (Series ID: S000034947)

| Class ID   | Class Name    | Ticker Symbol   |
|:---|:---|:---|
| C000107477 | Advisor Class | AUUYX           |
| C000107480 | Class A       | AUUAX           |
| C000107481 | Class C       | AUUCX           |
| C000107482 | Class I       | AUUIX           |
| C000107483 | Class K       | AUUKX           |
| C000107484 | Class R       | AUURX           |

### AB Select US Long/Short Portfolio (Series ID: S000039195)

| Class ID   | Class Name    | Ticker Symbol   |
|:---|:---|:---|
| C000120605 | Advisor Class | ASYLX           |
| C000120608 | Class A       | ASLAX           |
| C000120609 | Class C       | ASCLX           |
| C000120610 | Class I       | ASILX           |
| C000120611 | Class K       | ASLKX           |
| C000120612 | Class R       | ASRLX           |

### AB Concentrated Growth Fund (Series ID: S000043215)

| Class ID   | Class Name    | Ticker Symbol   |
|:---|:---|:---|
| C000133671 | Advisor Class | WPSGX           |
| C000133672 | Class A       | WPASX           |
| C000133673 | Class C       | WPCSX           |
| C000133674 | Class I       | WPSIX           |
| C000133675 | Class K       | WPSKX           |
| C000133676 | Class R       | WPRSX           |
| C000133677 | Class Z       | WPSZX           |

### AB Concentrated International Growth Portfolio (Series ID: S000045541)

| Class ID   | Class Name    | Ticker Symbol   |
|:---|:---|:---|
| C000141783 | Advisor Class | CIGYX           |
| C000141785 | Class A       | CIAGX           |
| C000141786 | Class C       | CICGX           |

### AB Global Core Equity Portfolio (Series ID: S000047073)

| Class ID   | Class Name    | Ticker Symbol   |
|:---|:---|:---|
| C000147177 | Class C       | GCECX           |
| C000147182 | Advisor Class | GCEYX           |
| C000147183 | Class A       | GCEAX           |

### AB International Strategic Core Portfolio (Series ID: S000050223)

| Class ID   | Class Name    | Ticker Symbol   |
|:---|:---|:---|
| C000158542 | Class A       | ISARX           |
| C000158543 | Class C       | ISCRX           |
| C000158544 | Advisor Class | ISRYX           |
| C000158548 | Class Z       | ISZRX           |

### AB Sustainable US Thematic Portfolio (Series ID: S000056729)

| Class ID   | Class Name    | Ticker Symbol   |
|:---|:---|:---|
| C000180082 | Advisor Class | FFTYX           |
| C000230111 | Class A       | SUTAX           |
| C000230112 | Class Z       | SUTZX           |
| C000236906 | Class C       | SUTCX           |

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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: 811-01716** 

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## AB CAP FUND, INC.
**(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: June 30, 2022** 

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

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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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**JUN** <sup>06.30.22</sup>

![LOGO](g487979g43p34.jpg)

ANNUAL REPORT

## AB CONCENTRATED GROWTH FUND
![LOGO](g487979covart_390.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](g487979g92f19.jpg) |

---

Dear Shareholder,

We're pleased to provide this report for the AB Concentrated Growth Fund (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](g487979g55d83.jpg)

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 1** |

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**ANNUAL REPORT** 

**August 5, 2022** 

This report provides management's discussion of fund performance for the AB Concentrated Growth Fund for the annual reporting period ended June 30, 2022.

**The Fund's investment objective is long-term growth of capital.** 

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

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| | | |
|:---|:---|:---|
|  | 6 Months | 12 Months |
| **AB CONCENTRATED GROWTH FUND** |  |  |
| Class A Shares | -26.74% | -17.75% |
| Class C Shares | -26.99% | -18.36% |
| Advisor Class Shares<sup>1</sup> | -26.63% | -17.54% |
| Class R Shares<sup>1</sup> | -26.86% | -18.07% |
| Class K Shares<sup>1</sup> | -26.70% | -17.71% |
| Class I Shares<sup>1</sup> | -26.66% | -17.59% |
| Class Z Shares<sup>1</sup> | -26.63% | -17.52% |
| S&P 500 Index | -19.96% | -10.62% |

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| | |
|:---|:---|
| 1 | Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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**INVESTMENT RESULTS** 

The table above shows the Fund's performance compared to its benchmark, the Standard & Poor's ("S&P") 500 Index, for the six- and 12-month periods ended June 30, 2022.

All share classes underperformed the benchmark for both periods, before sales charges. During both periods, security selection accounted for the majority of underperformance, relative to the benchmark. For the 12-month period, security selection within the consumer-discretionary and health-care sectors detracted, while selection in technology and real estate contributed. An overweight to consumer discretionary and lack of exposure to energy detracted, while an underweight to communication services and an overweight to health care contributed. The top absolute detractors included Meta Platforms, Amazon and Aptiv, while top contributors included Verisk Analytics, Constellation Brands and ADP.

For the six-month period, security selection within health care detracted from relative returns, while selection in technology contributed. Sector positioning was also a detractor, mainly due to an overweight to consumer

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| | |
|:---|:---|
| **2 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

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discretionary and lack of exposure to energy. An overweight to health care and an underweight to communication services contributed. The top absolute detractors from performance for the period were Meta Platforms, Amazon and Nike, while top contributors included Alphabet Inc., Constellation Brands and Verisk Analytics.

The Fund did not utilize derivatives during the six- or 12-month periods.

**MARKET REVIEW AND INVESTMENT STRATEGY** 

US, international and emerging-market stocks declined during the 12-month period ended June 30, 2022. Throughout the first half of the period, accommodative monetary policy underpinned an accelerating global economic recovery, which sent equity markets higher. Volatility increased as persistent inflation prompted the US Federal Reserve (the "Fed") to take a hawkish pivot that raised expectations for an accelerated rate liftoff and led other central banks to tighten monetary policy. Inflation worsened after Russia's invasion of Ukraine caused energy and agricultural prices to surge and China's zero-COVID policy prompted new supply-chain concerns. The Fed raised interest rates three times during the second half of the period, including a 0.75% hike in June—its largest since 1994. The growing fear of recession led to sharp declines and periods of widespread volatility across equity markets. Fed Chair Powell's acknowledgement that the path to a soft landing had narrowed weighed on global equity market sentiment. Against a backdrop of rising rates, growth stocks came under pressure, triggering a rotation into value-oriented stocks. Within large-cap markets, both growth and value stocks declined in absolute terms, but value stocks outperformed growth stocks by a wide margin. Large-cap stocks outperformed small-cap stocks on a relative basis, but both declined in absolute terms.

The Fund's Senior Investment Management Team remains focused on sustainably growing the underlying earnings power of the Fund and believes the Fund is well positioned for the current environment.

**INVESTMENT POLICIES** 

The Adviser seeks to achieve the Fund's investment objective of long-term growth of capital by investing primarily in common stocks of listed US companies. The Adviser employs an appraisal method that attempts to measure each prospective company's quality and growth rate by numerous factors. Such factors include: a company's record and projections of profit and earnings growth, accuracy and availability of information with respect to the company, success and experience of management, accessibility of management to the Fund's Adviser, product lines and competitive position both in the United States and abroad, lack of cyclicality, large market capitalization and liquidity of

(continued on next page)

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| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 3** |

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the company's securities. The Adviser compares these results to the general stock markets to determine the relative attractiveness of each company at a given time. The Adviser weighs economic, political and market factors in making investment decisions; this appraisal technique attempts to measure each investment candidate not only against other stocks of the same industry group, but also against a broad spectrum of investments. While the Fund primarily invests in companies that have market capitalizations of $5 billion or more, it may invest in companies that have market capitalizations of $3 billion to $5 billion.

The Fund invests in a relatively small number of individual stocks. The Fund is considered to be "non-diversified", which means that the securities laws do not limit the percentage of its assets that it may invest in any one company (subject to certain limitations under the US Internal Revenue Code of 1986, as amended).

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| | |
|:---|:---|
| **4 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

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**DISCLOSURES AND RISKS** 

**Benchmark Disclosure** 

**The S&P 500<sup>®</sup> Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio.** The S&P 500 Index includes 500 US stocks and is a common representation of the performance of the overall US stock market. An investor cannot invest directly in an index or average, 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 equity markets fluctuate. 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. It includes the risk that a particular style of investing, such as growth, may underperform the market generally.

**Focused Portfolio Risk:** Investments in a limited number of companies may have more risk because changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund's net asset value ("NAV").

**Sector Risk:** The Fund may have more risk because it may invest to a significant extent in one or more particular market sectors, such as the information-technology or consumer-discretionary sector. 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.

**Capitalization Risk:** Investments in mid-capitalization companies may be more volatile and less liquid than investments in large-capitalization companies.

**Non-Diversification Risk:** The Fund may have more risk because it is "non-diversified", meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund's NAV.

**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 for the Fund, 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.

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| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 5** |

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**DISCLOSURES AND RISKS** (continued)

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 investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. 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 visiting www.abfunds.com.** 

**Effective as of the close of business on February 28, 2014, the W.P. Stewart Growth Fund, Inc. (the "Predecessor Fund") was converted into the Fund and the Predecessor Fund's shares were converted into Advisor Class shares of the Fund. The inception date for Class A, C, R, K, I and Z shares is February 28, 2014. The inception date of the Predecessor Fund is February 28, 1994.** 

**All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund's quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.** 

**Please note:** References to specific securities are presented to illustrate the Fund's investment philosophy and are not to be considered advice or recommendations. This information reflects prevailing market conditions and the Adviser's judgments as of the date indicated, which are subject to change. In preparing this report, the Adviser has relied upon and assumed without independent verification, the accuracy and completeness of all information available from third-party sources. It should not be assumed that any investments made in the future will be profitable or will equal the performance of the selected investments referenced herein.

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| | |
|:---|:---|
| **6 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** 

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

6/30/2012 TO 6/30/2022

![LOGO](g487979g00g10.jpg)

This chart illustrates the total value of an assumed $10,000 investment in AB Concentrated Growth Fund Advisor Class shares (from 6/30/2012 to 6/30/2022) as compared to the performance of the Fund's benchmark. The chart assumes the reinvestment of dividends and capital gains distributions.

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| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 7** |

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**HISTORICAL PERFORMANCE** (continued)

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

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| | | |
|:---|:---|:---|
|  | NAV Returns | SEC Returns<br> (reflects applicable<br>sales charges) |
| **CLASS A SHARES** |  |  |
| 1 Year | -17.75% | -21.24% |
| 5 Years | 11.90% | 10.93% |
| Since Inception<sup>1</sup> | 11.35% | 10.78% |
| **CLASS C SHARES** |  |  |
| 1 Year | -18.36% | -19.09% |
| 5 Years | 11.06% | 11.06% |
| Since Inception<sup>1,2</sup> | 10.53% | 10.53% |
| **ADVISOR CLASS SHARES**<sup>3</sup> |  |  |
| 1 Year | -17.54% | -17.54% |
| 5 Years | 12.18% | 12.18% |
| 10 Years | 13.62% | 13.62% |
| **CLASS R SHARES**<sup>3</sup> |  |  |
| 1 Year | -18.07% | -18.07% |
| 5 Years | 11.55% | 11.55% |
| Since Inception<sup>1</sup> | 11.03% | 11.03% |
| **CLASS K SHARES**<sup>3</sup> |  |  |
| 1 Year | -17.71% | -17.71% |
| 5 Years | 11.88% | 11.88% |
| Since Inception<sup>1</sup> | 11.34% | 11.34% |
| **CLASS I SHARES**<sup>3</sup> |  |  |
| 1 Year | -17.59% | -17.59% |
| 5 Years | 12.16% | 12.16% |
| Since Inception<sup>1</sup> | 11.63% | 11.63% |
| **CLASS Z SHARES**<sup>3</sup> |  |  |
| 1 Year | -17.52% | -17.52% |
| 5 Years | 12.21% | 12.21% |
| Since Inception<sup>1</sup> | 11.65% | 11.65% |

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**The Fund's prospectus fee table shows the Fund's total annual operating expense ratios as 1.01%, 1.76%, 0.76%, 1.38%, 1.07%, 0.83% and 0.78% for Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.** 

1 Inception date: 2/28/2014.

2 Assumes conversion of Class C shares into Class A shares after eight years.

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| | |
|:---|:---|
| 3 | These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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| | |
|:---|:---|
| **8 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** (continued)

**SEC AVERAGE ANNUAL RETURNS** 

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

**JUNE 30, 2022** (unaudited)

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| | |
|:---|:---|
|  | SEC Returns<br> (reflects applicable<br>sales charges) |
| **CLASS A SHARES** |  |
| 1 Year | -21.24% |
| 5 Years | 10.93% |
| Since Inception<sup>1</sup> | 10.78% |
| **CLASS C SHARES** |  |
| 1 Year | -19.09% |
| 5 Years | 11.06% |
| Since Inception<sup>1,2</sup> | 10.53% |
| **ADVISOR CLASS SHARES**<sup>3</sup> |  |
| 1 Year | -17.54% |
| 5 Years | 12.18% |
| 10 Years | 13.62% |
| **CLASS R SHARES**<sup>3</sup> |  |
| 1 Year | -18.07% |
| 5 Years | 11.55% |
| Since Inception<sup>1</sup> | 11.03% |
| **CLASS K SHARES**<sup>3</sup> |  |
| 1 Year | -17.71% |
| 5 Years | 11.88% |
| Since Inception<sup>1</sup> | 11.34% |
| **CLASS I SHARES**<sup>3</sup> |  |
| 1 Year | -17.59% |
| 5 Years | 12.16% |
| Since Inception<sup>1</sup> | 11.63% |
| **CLASS Z SHARES**<sup>3</sup> |  |
| 1 Year | -17.52% |
| 5 Years | 12.21% |
| Since Inception<sup>1</sup> | 11.65% |

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1 Inception date: 2/28/2014.

2 Assumes conversion of Class C shares into Class A shares after eight years.

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| | |
|:---|:---|
| 3 | Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 9** |

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**EXPENSE EXAMPLE** 

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. 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.

This 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>January 1, 2022** | **Ending<br>Account Value<br>June 30, 2022** | **Expenses Paid<br>During Period\*** | **Annualized<br>Expense Ratio\*** |
| **Class A** |  |  |  |  |
|  Actual | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000 | $732.60 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.30 | 1.00% |
|  Hypothetical\*\* | $1000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1019.84 | $5.01 | 1.00% |

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| | |
|:---|:---|
| **10 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

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**EXPENSE EXAMPLE** (continued)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account Value<br>January 1, 2022** | **Ending<br>Account Value<br>June 30, 2022** | **Expenses Paid<br>During Period\*** | **Annualized<br>Expense Ratio\*** |
| **Class C** |  |  |  |  |
|  Actual | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000 | $730.10 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.51 | 1.75% |
|  Hypothetical\*\* | $1000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1016.12 | $8.75 | 1.75% |
| **Advisor Class** |  |  |  |  |
|  Actual | $1000 | $733.70 | $3.22 | 0.75% |
|  Hypothetical\*\* | $1000 | $1021.08 | $3.76 | 0.75% |
| **Class R** |  |  |  |  |
|  Actual | $1000 | $731.40 | $5.97 | 1.39% |
|  Hypothetical\*\* | $1000 | $1017.90 | $6.95 | 1.39% |
| **Class K** |  |  |  |  |
|  Actual | $1000 | $733.00 | $4.08 | 0.95% |
|  Hypothetical\*\* | $1000 | $1020.08 | $4.76 | 0.95% |
| **Class I** |  |  |  |  |
|  Actual | $1000 | $733.40 | $3.44 | 0.80% |
|  Hypothetical\*\* | $1000 | $1020.83 | $4.01 | 0.80% |
| **Class Z** |  |  |  |  |
|  Actual | $1000 | $733.70 | $3.14 | 0.73% |
|  Hypothetical\*\* | $1000 | $1021.17 | $3.66 | 0.73% |

---

\* Expenses are equal to the classes' annualized expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

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

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 11** |

---

------

**PORTFOLIO SUMMARY** 

**June 30, 2022** (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $1,116.3

------

![LOGO](g487979g00g18.jpg)

TEN LARGEST HOLDINGS<sup>2</sup>

---

| | | |
|:---|:---|:---|
| Company | U.S. $ Value | Percent of<br>Net Assets |
| Microsoft Corp. | $&nbsp;&nbsp;&nbsp;&nbsp;106736750 | 9.6% |
| Mastercard, Inc. – Class A | 94868306 | 8.5 |
| Alphabet, Inc. – Class C | 80867839 | 7.2 |
| Abbott Laboratories | 71087305 | 6.4 |
| CDW Corp./DE | 69578023 | 6.2 |
| Automatic Data Processing, Inc. | 62813722 | 5.6 |
| Zoetis, Inc. | 56594611 | 5.1 |
| IQVIA Holdings, Inc. | 54939047 | 4.9 |
| NIKE, Inc. – Class B | 54864333 | 4.9 |
| Charles Schwab Corp. (The) | 54781988 | 4.9 |
|  | $707131924 | 63.3% |

---

---

| | |
|:---|:---|
| 1 | All data are as of June 30, 2022. The Fund's sector breakdown is expressed as a percentage of total investments and may vary over time.  |

---

2 Long-term investments.

Please note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard & Poor's. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the broad market. These sector classifications are broadly defined. The "Portfolio of Investments" section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Fund's prospectus.

---

| | |
|:---|:---|
| **12 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** 

**June 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **COMMON STOCKS – 97.9%** |  |  |
|  **Information Technology – 34.8%** |  |  |
|  **Electronic Equipment, Instruments & Components – 11.1%** |  |  |
|  Amphenol Corp. – Class A | 846594 | $54503722 |
|  CDW Corp./DE | 441597 | 69578023 |
|  |  | 124081745 |
|  **IT Services – 14.1%** |  |  |
|  Automatic Data Processing, Inc. | 299056 | 62813722 |
|  Mastercard, Inc. – Class A | 300711 | 94868306 |
|  |  | 157682028 |
|  **Software – 9.6%** |  |  |
|  Microsoft Corp. | 415593 | 106736750 |
|  |  | 388500523 |
|  **Health Care – 21.3%** |  |  |
|  **Health Care Equipment & Supplies – 11.3%** |  |  |
|  Abbott Laboratories | 654278 | 71087305 |
|  Cooper Cos., Inc. (The) | 174903 | 54765627 |
|  |  | 125852932 |
|  **Life Sciences Tools & Services – 4.9%** |  |  |
|  IQVIA Holdings, Inc.<sup>(a)</sup> | 253187 | 54939047 |
|  **Pharmaceuticals – 5.1%** |  |  |
|  Zoetis, Inc. | 329249 | 56594611 |
|  |  | 237386590 |
|  **Consumer Discretionary – 11.7%** |  |  |
|  **Auto Components – 2.2%** |  |  |
|  Aptiv PLC<sup>(a)</sup> | 276989 | 24671410 |
|  **Specialty Retail – 4.6%** |  |  |
|  TJX Cos., Inc. (The) | 913133 | 50998478 |
|  **Textiles, Apparel & Luxury Goods – 4.9%** |  |  |
|  NIKE, Inc. – Class B | 536833 | 54864333 |
|  |  | 130534221 |
|  **Communication Services – 8.9%** |  |  |
|  **Interactive Media & Services – 8.9%** |  |  |
|  Alphabet, Inc. – Class C<sup>(a)</sup> | 36969 | 80867839 |
|  Meta Platforms, Inc. – Class A<sup>(a)</sup> | 114108 | 18399915 |
|  |  | 99267754 |
|  **Industrials – 7.7%** |  |  |
|  **Commercial Services & Supplies – 2.9%** |  |  |
|  Stericycle, Inc.<sup>(a)</sup> | 728908 | 31962616 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 13** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Electrical Equipment – 4.8%** |  |  |
|  Eaton Corp. PLC | 426057 | $53678921 |
|  |  | 85641537 |
|  **Financials – 4.9%** |  |  |
|  **Capital Markets – 4.9%** |  |  |
|  Charles Schwab Corp. (The) | 867078 | 54781988 |
|  **Real Estate – 4.9%** |  |  |
|  **Equity Real Estate Investment Trusts (REITs) – 4.9%** |  |  |
|  American Tower Corp. | 213132 | 54474408 |
|  **Consumer Staples – 3.7%** |  |  |
|  **Beverages – 3.7%** |  |  |
|  Constellation Brands, Inc. – Class A | 180363 | 42035401 |
|  Total Common Stocks <br>(cost $1,002,025,373) |  | 1092622422 |
|  **SHORT-TERM INVESTMENTS – 1.6%** | **SHORT-TERM INVESTMENTS – 1.6%** | **SHORT-TERM INVESTMENTS – 1.6%** |
|  **Investment Companies – 1.6%** |  |  |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB,<br>1.30%<sup>(b)(c)(d)</sup> <br>(cost $18,205,631) | 18205631 | 18205631 |
|  **Total Investments – 99.5%** <br>(cost $1,020,231,004) |  | 1110828053 |
|  Other assets less liabilities – 0.5% |  | 5422467 |
|  **Net Assets – 100.0%** |  | $**1116250520** |

---

(a) Non-income producing security.

(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:

REIT – Real Estate Investment Trust

See notes to financial statements.

---

| | |
|:---|:---|
| **14 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**STATEMENT OF ASSETS & LIABILITIES** 

**June 30, 2022** 

---

| | |
|:---|:---|
| **Assets** | **Assets** |
|  Investments in securities, at value<br>Unaffiliated issuers (cost $1,002,025,373) | $1092622422 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers (cost $18,205,631) | 18205631 |
|  Receivable for investment securities sold | 17020560 |
|  Receivable for capital stock sold | 2055785 |
|  Unaffiliated dividends receivable | 990046 |
|  Affiliated dividends receivable | 7242 |
|  Total assets | 1130901686 |
| **Liabilities** |  |
|  Payable for investment securities purchased | 12246908 |
|  Payable for capital stock redeemed | 1425300 |
|  Advisory fee payable | 616713 |
|  Distribution fee payable | 29732 |
|  Administrative fee payable | 23446 |
|  Transfer Agent fee payable | 18352 |
|  Directors' fees payable | 8 |
|  Accrued expenses and other liabilities | 290707 |
|  Total liabilities | 14651166 |
|  Net Assets | $**1116250520** |
| **Composition of Net Assets** | **Composition of Net Assets** |
|  Capital stock, at par | $2532 |
|  Additional paid-in capital | 992740696 |
|  Distributable earnings | 123507292 |
|  **Net Assets** | $**1116250520** |

---

**Net Asset Value Per Share—33 billion shares of capital stock authorized, $.0001 par value** 

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Net Assets** | **Shares<br>Outstanding** | **Net Asset<br>Value** |
| **A** | $55057162 | 1275520 | $43.16 \* |
| **C** | $20405743 | 511194 | $39.92 |
| **Advisor** | $&nbsp;&nbsp;&nbsp;&nbsp;957096050 | 21643252 | $&nbsp;&nbsp;&nbsp;&nbsp;44.22 |
| **R** | $108108 | 2580 | $41.90 |
| **K** | $1146085 | 26575 | $43.13 |
| **I** | $8408 | 189.83 | $44.29 |
| **Z** | $82428964 | 1860298 | $44.31 |

---

\* The maximum offering price per share for Class A shares was $45.08 which reflects a sales charge of 4.25%. 

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 15** |

---

------

**STATEMENT OF OPERATIONS** 

**Year Ended June 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Investment Income** |  |  |
|  Dividends |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10940037 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers | 12547 | $10952584 |
| **Expenses** |  |  |
|  Advisory fee (see Note B) | 8960129 |  |
|  Distribution fee—Class A | 167435 |  |
|  Distribution fee—Class C | 290555 |  |
|  Distribution fee—Class R | 386 |  |
|  Distribution fee—Class K | 4088 |  |
|  Transfer agency—Class A | 35374 |  |
|  Transfer agency—Class C | 15434 |  |
|  Transfer agency—Advisor Class | 621648 |  |
|  Transfer agency—Class R | 180 |  |
|  Transfer agency—Class K | 1094 |  |
|  Transfer agency—Class I | 58 |  |
|  Transfer agency—Class Z | 27283 |  |
|  Registration fees | 147522 |  |
|  Administrative | 95117 |  |
|  Custody and accounting | 83614 |  |
|  Printing | 58919 |  |
|  Legal | 43380 |  |
|  Audit and tax | 40396 |  |
|  Directors' fees | 34859 |  |
|  Miscellaneous | 100869 |  |
|  Total expenses | 10728340 |  |
|  Less: expenses waived and reimbursed by the Adviser (see Note B) | (8046) |  |
|  Less: expenses waived and reimbursed by the Distributor (see Note C) | (542) |  |
|  Net expenses |  | 10719752 |
|  Net investment income |  | 232832 |
| **Realized and Unrealized Gain (Loss) on Investment Transactions** |  |  |
|  Net realized gain on investment transactions |  | 96390390 |
|  Net change in unrealized appreciation/depreciation of investments |  | (339254604) |
|  Net loss on investment transactions |  | (242864214) |
|  **Net Decrease in Net Assets from Operations** |  | $**(242631382)** |

---

See notes to financial statements.

---

| | |
|:---|:---|
| **16 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**STATEMENT OF CHANGES IN NET ASSETS** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>June 30,<br>2022** | **Year Ended<br>June 30,<br>2021** |
| **Increase (Decrease) in Net Assets from Operations** |  |  |
|  Net investment income | $232832 | $561330 |
|  Net realized gain on investment transactions | 96390390 | 109552725 |
|  Net change in unrealized appreciation/depreciation of investments | (339254604) | 258183101 |
|  Net increase (decrease) in net assets from operations | (242631382) | 368297156 |
|  Distributions to Shareholders |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | (7354268) | (1666714) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | (3366773) | (1148075) |
| &nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | (127714704) | (30486932) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R | (6676) | (1771) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class K | (185132) | (43851) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | (5224) | (761) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class Z | (10903438) | (113756) |
| **Capital Stock Transactions** | **Capital Stock Transactions** | **Capital Stock Transactions** |
|  Net increase | 151135541 | 253578895 |
|  Total increase (decrease) | (241032056) | 588414191 |
| **Net Assets** | **Net Assets** | **Net Assets** |
|  Beginning of period | 1357282576 | 768868385 |
|  End of period | $**1116250520** | $**1357282576** |

---

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 17** |

---

------

**NOTES TO FINANCIAL STATEMENTS** 

**June 30, 2022** 

**NOTE A** 

**Significant Accounting Policies** 

AB Cap Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 12 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Concentrated Growth Fund (the "Fund"), a non-diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares. Class B, Class T, Class 1 and Class 2 shares have not been issued. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. Class R and Class K shares are sold without an initial or contingent deferred sales charge. Advisor Class, Class I and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All 11 classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. 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 Company's Board of Directors (the "Board").

---

| | |
|:---|:---|
| **18 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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 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

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 19** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

**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)

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified

---

| | |
|:---|:---|
| **20 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in<br>Securities:** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
|  Common Stocks<sup>(a)</sup> | $1092622422 | $– 0 | $– 0 | $1092622422 |
|  Short-Term Investments | 18205631 | – 0 | – 0 | 18205631 |
|  Total Investments in Securities | 1110828053 | – 0 | – 0 | 1110828053 |
|  **Other Financial Instruments<sup>(b)</sup>** | – 0 | – 0 | – 0 | – 0 |
|  **Total** | $**1110828053** | $**– 0** | $**– 0** | $**1110828053** |

---

(a) See Portfolio of Investments for sector classifications.

(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.

**3. Currency Translation** 

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

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| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 21** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**4. 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. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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.

**5. 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 and includes amortization of premiums and accretions of discounts as adjustments to interest income. 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.

**6. Class Allocations** 

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each portfolio or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

**7. 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

---

| | |
|:---|:---|
| **22 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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 investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .65% of the Fund's average daily net assets. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding expenses associated with acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) on an annual basis (the "Expense Caps") to 1.24%, 1.99%, .99%, 1.49%, 1.24%, .99% and .99% of daily average net assets for Class A, Class C, Advisor Class, Class R, Class K, Class I and Class Z shares, respectively. For the year ended June 30, 2022, there was no such waiver/reimbursement. The Expense Caps may not be terminated by the Adviser prior to October 31, 2022.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended June 30, 2022, the reimbursement for such services amounted to $95,117.

The Fund compensates AllianceBernstein Investor Services, Inc. ("ABIS"), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $216,692 for the year ended June 30, 2022.

AllianceBernstein Investments, Inc. (the "Distributor"), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund's shares. The Distributor has advised the Fund that it has retained front-end sales charges of $10,198 from the sale of Class A shares and received $114 and $2,773 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended June 30, 2022.

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

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 23** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive 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 June 30, 2022, such waiver amounted to $8,046.

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Market Value<br>6/30/21<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Sales<br>Proceeds<br>(000)** | **Market Value<br>6/30/22<br>(000)** | **Dividend<br>Income<br>(000)** |
|  Government Money Market Portfolio | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19954 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;280790 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;282538 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18206 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13 |

---

**NOTE C** 

**Distribution Services Agreement** 

The Fund has adopted a Distribution Services Agreement ("the Agreement") pursuant to Rule 12b-1 under the Investment Company Act of 1940 for Class A, Class C, Class R and Class K. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .25% of the Fund's average daily net assets attributable to Class A shares, 1% of the Fund's average daily net assets attributable to Class C shares, .50% of the Fund's average daily net assets attributable to Class R shares, and .25% of the Fund's average daily net assets attributable to Class K shares. There are no distribution and servicing fees on the Advisor Class, Class I and Class Z shares. As of November 1, 2021, with respect to Class R and Class K shares, payments to the Distributor are voluntarily being limited to .45% and .20% of the average daily net assets attributable to Class R and Class K shares. For the year ended June 30, 2022, such waivers amounted to $27 and $515, respectively The fees are accrued daily and paid monthly. Since the commencement of the Fund's operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $257,442, $0 and $0 for Class C, Class R and Class K shares, respectively. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In

---

| | |
|:---|:---|
| **24 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund's shares.

**NOTE D** 

**Investment Transactions** 

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

---

| | | |
|:---|:---|:---|
|  | **Purchases** | **Sales** |
|  Investment securities (excluding U.S. government securities) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;537196000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;538555535 |
|  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;1020655636 |
|  Gross unrealized appreciation | $133653014 |
|  Gross unrealized depreciation | (43480597) |
|  Net unrealized appreciation | $90172417 |

---

**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 Fund did not engage in derivatives transactions for the year ended June 30, 2022.

**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 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

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 25** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

spot rate prevailing in the currency exchange market for buying or selling currencies).

**NOTE E** 

**Capital Stock** 

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>June 30,<br>2022 | Year Ended<br>June 30,<br>2021 | Year Ended<br>June 30,<br>2022 | Year Ended<br>June 30,<br>2021 |
| **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  Shares sold | 283457 | 347029 | $15909027 | $17627097 |
|  Shares issued in reinvestment of distributions | 109688 | 29495 | 6320224 | 1431708 |
|  Shares converted from Class C | 95881 | 119203 | 5534941 | 5918108 |
|  Shares redeemed | (295447) | (315873) | (15868995) | (15528997) |
|  **Net increase** | **193579** | **179854** | $**11895197** | $**9447916** |
| **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
|  Shares sold | 76320 | 73473 | $4052778 | $3484121 |
|  Shares issued in reinvestment of distributions | 52516 | 20575 | 2810125 | 941520 |
|  Shares converted to Class A | (102696) | (126358) | (5534941) | (5918108) |
|  Shares redeemed | (96211) | (100111) | (4520791) | (4624254) |
|  **Net decrease** | **(70071)** | **(132421)** | $**(3192829)** | $**(6116721)** |
| **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** |
|  Shares sold | 6192265 | 8260043 | $343976796 | $431680249 |
|  Shares issued in reinvestment of dividends and distributions | 1626566 | 469941 | 95886075 | 23247997 |
|  Shares redeemed | (5578455) | (5816794) | (298779534) | (307620382) |
|  **Net increase** | **2240376** | **2913190** | $**141083337** | $**147307864** |
| **Class R** | **Class R** | **Class R** | **Class R** | **Class R** |
|  Shares sold | 1513 | 387 | $73436 | $19535 |
|  Shares issued in reinvestment of distributions | 100 | 22 | 5578 | 1043 |
|  Shares redeemed | (266) | (15) | (15244) | (788) |
|  **Net increase** | **1347** | **394** | $**63770** | $**19790** |

---

---

| | |
|:---|:---|
| **26 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>June 30,<br>2022 | Year Ended<br>June 30,<br>2021 | Year Ended<br>June 30,<br>2022 | Year Ended<br>June 30,<br>2021 |
| **Class K** | **Class K** | **Class K** | **Class K** | **Class K** |
|  Shares sold | 1863 | 16367 | $104682 | $808665 |
|  Shares issued in reinvestment of distributions | 3217 | 889 | 185131 | 43123 |
|  Shares redeemed | (8652) | (22614) | (433818) | (1095247) |
|  **Net decrease** | **(3572)** | **(5358)** | $**(144005)** | $**(243459)** |
| **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
|  Shares sold | 5 | 1074 | $271 | $57215 |
|  Shares issued in reinvestment of dividends and distributions | 39 | 1 | 2304 | 25 |
|  Shares redeemed | (1347) | (1) | (73587) | (50) |
|  **Net increase (decrease)** | **(1303)** | **1074** | $**(71012)** | $**57190** |
| **Class Z** | **Class Z** | **Class Z** | **Class Z** | **Class Z** |
|  Shares sold | 326693 | 1781814 | $17638744 | $103979270 |
|  Share issued in reinvestment of dividends and distributions | 49006 | 1954 | 2894321 | 96828 |
|  Shares redeemed | (329290) | (17124) | (19031982) | (969783) |
|  **Net increase** | **46409** | **1766644** | $**1501083** | $**103106315** |

---

**NOTE F** 

**Risks Involved in Investing in the Fund** 

**Market Risk**—The value of the Fund's assets will fluctuate as the equity markets fluctuate. 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. It includes the risk that a particular style of investing, such as growth, may underperform the market generally.

**Focused Portfolio Risk**—Investments in a limited number of companies may have more risk because changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund's net asset value, or NAV, than would be the case if the Portfolio were invested in a larger number of companies.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 27** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**Sector Risk**—The Fund may have more risk because it may invest to a significant extent in one or more particular market sectors, such as the information technology or consumer discretionary sector. 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.

**Capitalization Risk**—Investments in mid-capitalization companies may be more volatile and less liquid than investments in large-capitalization companies.

**Non-Diversification Risk**—The Fund may have more risk because it is "non-diversified", meaning that it can invest more of its assets in a smaller number of issuers. Accordingly, changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund's NAV.

**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

---

| | |
|:---|:---|
| **28 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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 for the Fund, 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 G** 

**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 June 30, 2022.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 29** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE H** 

**Distributions to Shareholders** 

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

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Distributions paid from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ordinary income | $5440718 | $– 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Long-term capital gains | 144095497 | 33461860 |
|  Total taxable distributions paid | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;149536215 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33461860 |

---

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

---

| | |
|:---|:---|
|  Undistributed ordinary income | $– 0 |
|  Undistributed capital gains | 33334875 |
|  Unrealized appreciation/(depreciation) | 90172417 <sup>(a)</sup> |
|  Total accumulated earnings/(deficit) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;123507292 |

---

(a) The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax deferral of losses on wash sales.

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 June 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 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 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.

---

| | |
|:---|:---|
| **30 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**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.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 31** |

---

------

**FINANCIAL HIGHLIGHTS** 

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $58.21 | $41.70 | $40.35 | $35.44 | $32.65 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment loss<sup>(a)(b)</sup> | (.11 | (.08 | (.10) | (.12 | (.15 |
|  Net realized and unrealized gain (loss) on investment transactions | (8.64) | 18.40 | 2.87 | 7.62 | 4.13 |
|  Contributions from Affiliates | – 0 | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (8.75) | 18.32 | 2.77 | 7.50 | 3.98 |
|  **Less: Distributions** |  |  |  |  |  |
|  Distributions from net realized gain on investment transactions | (6.30) | (1.81) | (1.42) | (2.59) | (1.19) |
|  Net asset value, end of period | **$43.16** | **$58.21** | **$41.70** | **$40.35** | **$35.44** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup> | (17.75) | 44.80 | 6.84% | 22.67 | 12.39 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $55057 | $62979 | $37615 | $28661 | $26920 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | 1.00 | 1.01 | 1.12% | 1.19 | 1.21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | 1.00 | 1.01 | 1.15% | 1.19 | 1.21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment loss<sup>(b)</sup> | (.20 | (.15 | (.24)% | (.32 | (.45 |
|  Portfolio turnover rate | 40 | 26 | 23% | 30 | 27 |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00% | .00 | .01 |

---

See footnote summary on page 39.

---

| | |
|:---|:---|
| **32 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $54.65 | $39.53 | $38.61 | $34.27 | $31.84 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment loss<sup>(a)(b)</sup> | (.49 | (.43 | (.38) | (.38 | (.40 |
|  Net realized and unrealized gain (loss) on investment transactions | (7.94) | 17.36 | 2.72 | 7.31 | 4.02 |
|  Contributions from Affiliates | – 0 | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (8.43) | 16.93 | 2.34 | 6.93 | 3.62 |
|  **Less: Distributions** |  |  |  |  |  |
|  Distributions from net realized gain on investment transactions | (6.30) | (1.81) | (1.42) | (2.59) | (1.19) |
|  Net asset value, end of period | **$39.92** | **$54.65** | **$39.53** | **$38.61** | **$34.27** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup> | (18.36) | 43.71 | 6.01% | 21.75 | 11.56 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $20406 | $31765 | $28210 | $22320 | $18168 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | 1.75 | 1.75 | 1.87% | 1.94 | 1.96 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | 1.75 | 1.76 | 1.90% | 1.94 | 1.96 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment loss<sup>(b)</sup> | (.96 | (.91 | (.99)% | (1.07) | (1.20) |
|  Portfolio turnover rate | 40 | 26 | 23% | 30 | 27 |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00% | .00 | .01 |

---

See footnote summary on page 39.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 33** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $59.41 | $42.42 | $40.93 | $35.83 | $32.91 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income (loss)<sup>(a)(b)</sup> | .03 | .05 | .01 | (.03 | (.07 |
|  Net realized and unrealized gain (loss) on investment transactions | (8.86) | 18.75 | 2.90 | 7.72 | 4.18 |
|  Contributions from Affiliates | – 0 | – 0 | .00 | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (8.83) | 18.80 | 2.91 | 7.69 | 4.11 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | (.06 | – 0 | – 0 | – 0 | – 0 |
|  Distributions from net realized gain on investment transactions | (6.30) | (1.81) | (1.42) | (2.59) | (1.19) |
|  Total dividends and distributions | (6.36) | (1.81) | (1.42) | (2.59) | (1.19) |
|  Net asset value, end of period | **$44.22** | **$59.41** | **$42.42** | **$40.93** | **$35.83** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup> | (17.54) | 45.17 | 7.09 | 22.97 | 12.69 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $957097 | $1152671 | $699504 | $537484 | $369006 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | .75 | .76 | .87 | .94 | .96 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | .75 | .76 | .90 | .94 | .96 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>(b)</sup> | .05 | .10 | .02 | (.07 | (.21 |
|  Portfolio turnover rate | 40 | 26 | 23 | 30 | 27 |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00 | .00 | .01 |

---

See footnote summary on page 39.

---

| | |
|:---|:---|
| **34 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class R** | **Class R** | **Class R** | **Class R** | **Class R** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $56.89 | $40.93 | $39.76 | $35.04 | $32.37 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment loss<sup>(a)(b)</sup> | (.29 | (.26 | (.21) | (.21 | (.24 |
|  Net realized and unrealized gain (loss) on investment transactions | (8.40) | 18.03 | 2.80 | 7.52 | 4.10 |
|  Contributions from Affiliates | – 0 | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (8.69) | 17.77 | 2.59 | 7.31 | 3.86 |
|  **Less: Distributions** |  |  |  |  |  |
|  Distributions from net realized gain on investment transactions | (6.30) | (1.81) | (1.42) | (2.59) | (1.19) |
|  Net asset value, end of period | **$41.90** | **$56.89** | **$40.93** | **$39.76** | **$35.04** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup> | (18.07) | 44.28 | 6.48% | 22.38 | 12.12 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $108 | $70 | $34 | $16 | $14 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | 1.40 | 1.38 | 1.42% | 1.44 | 1.45 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | 1.43 | 1.38 | 1.45% | 1.44 | 1.45 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment loss<sup>(b)</sup> | (.56 | (.52 | (.54)% | (.57 | (.70 |
|  Portfolio turnover rate | 40 | 26 | 23% | 30 | 27 |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00% | .00 | .01 |

---

See footnote summary on page 39.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 35** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class K** | **Class K** | **Class K** | **Class K** | **Class K** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $58.15 | $41.69 | $40.36 | $35.45 | $32.66 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment loss<sup>(a)(b)</sup> | (.11 | (.11 | (.11) | (.12 | (.16 |
|  Net realized and unrealized gain (loss) on investment transactions | (8.61) | 18.38 | 2.86 | 7.62 | 4.14 |
|  Contributions from Affiliates | – 0 | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (8.72) | 18.27 | 2.75 | 7.50 | 3.98 |
|  **Less: Distributions** |  |  |  |  |  |
|  Distributions from net realized gain on investment transactions | (6.30) | (1.81) | (1.42) | (2.59) | (1.19) |
|  Net asset value, end of period | **$43.13** | **$58.15** | **$41.69** | **$40.36** | **$35.45** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup> | (17.71) | 44.69 | 6.78% | 22.67 | 12.38 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $1146 | $1753 | $1480 | $741 | $558 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | .98 | 1.07 | 1.15% | 1.19 | 1.21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | 1.01 | 1.07 | 1.18% | 1.20 | 1.22 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment loss<sup>(b)</sup> | (.19 | (.22 | (.27)% | (.32 | (.46 |
|  Portfolio turnover rate | 40 | 26 | 23% | 30 | 27 |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00% | .00 | .01 |

---

See footnote summary on page 39.

---

| | |
|:---|:---|
| **36 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $59.48 | $42.50 | $41.00 | $35.88 | $32.95 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income (loss)<sup>(a)(b)</sup> | (.04 | .02 | .01 | (.03 | (.07 |
|  Net realized and unrealized gain (loss) on investment transactions | (8.85) | 18.77 | 2.91 | 7.74 | 4.19 |
|  Contributions from Affiliates | – 0 | – 0 | .00 | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (8.89) | 18.79 | 2.92 | 7.71 | 4.12 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | (.00 | – 0 | – 0 | – 0 | – 0 |
|  Distributions from net realized gain on investment transactions | (6.30) | (1.81) | (1.42) | (2.59) | (1.19) |
|  Total dividends and distributions | (6.30) | (1.81) | (1.42) | (2.59) | (1.19) |
|  Net asset value, end of period | **$44.29** | **$59.48** | **$42.50** | **$41.00** | **$35.88** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup> | (17.59) | 45.06 | 7.10 | 22.99 | 12.71 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $8 | $89 | $18 | $17 | $21 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | .81 | .83 | .86 | .91 | .95 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | .81 | .83 | .88 | .92 | .96 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>(b)</sup> | (.06 | .03 | .03 | (.09 | (.21 |
|  Portfolio turnover rate | 40 | 26 | 23 | 30 | 27 |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00 | .00 | .01 |

---

See footnote summary on page 39.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 37** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class Z** | **Class Z** | **Class Z** | **Class Z** | **Class Z** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $59.52 | $42.49 | $40.98 | $35.86 | $32.93 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income (loss)<sup>(a)(b)</sup> | .04 | .10 | .02 | (.01 | (.05 |
|  Net realized and unrealized gain (loss) on investment transactions | (8.87) | 18.74 | 2.91 | 7.72 | 4.17 |
|  Contributions from Affiliates | – 0 | – 0 | .00 | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (8.83) | 18.84 | 2.93 | 7.71 | 4.12 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | (.08 | – 0 | – 0 | – 0 | – 0 |
|  Distributions from net realized gain on investment transactions | (6.30) | (1.81) | (1.42) | (2.59) | (1.19) |
|  Total distributions | (6.38) | (1.81) | (1.42) | (2.59) | (1.19) |
|  Net asset value, end of period | **$44.31** | **$59.52** | **$42.49** | **$40.98** | **$35.86** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup> | (17.52) | 45.19 | 7.13 | 23.01 | 12.72 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $82429 | $107956 | $2007 | $990 | $812 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | .72 | .78 | .84 | .91 | .91 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(e)</sup><sup>‡</sup> | .72 | .78 | .87 | .92 | .92 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>(b)</sup> | .07 | .18 | .04 | (.03 | (.13 |
|  Portfolio turnover rate | 40 | 26 | 23 | 30 | 27 |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00 | .00 | .01 |

---

See footnote summary on page 39.

---

| | |
|:---|:---|
| **38 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(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. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total
investment return. 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.

(e) In connection with the Fund's investments in affiliated underlying portfolios, the Fund incurs no direct expenses,
but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal
to the Fund's pro rata share of certain acquired fund fees and expenses, and for the year ended June 30, 2018, such waiver amounted to .01%.

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 39** |

---

------

**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** 

**To the Board of Directors and Shareholders of** 

**AB Concentrated Growth Fund:** 

***Opinion on the Financial Statements***

We have audited the accompanying statement of assets and liabilities of AB Concentrated Growth Fund (the "Fund") (one of the funds constituting AB Cap Fund, Inc. (the "Company")), including the portfolio of investments, as of June 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 funds constituting AB Cap Fund, Inc.) at June 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 Company'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 Company 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 Company is not required to have, nor were we engaged to perform, an audit of the Company'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 Company'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

---

| | |
|:---|:---|
| **40 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** (continued)

disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 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](g487979g91r55.jpg)

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

New York, New York

August 26, 2022

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| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 41** |

---

------

**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 June 30, 2022. For corporate shareholders, 100% of dividends paid qualify for the dividends received deduction. For individual shareholders, the Fund designates 100% of dividends paid as qualified dividend income. The Fund designates $144,095,497 of dividends paid as long-term capital gains 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.

---

| | |
|:---|:---|
| **42 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**BOARD OF DIRECTORS** 

---

| | |
|:---|:---|
| **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> |

---

**OFFICERS** 

---

| | |
|:---|:---|
| **James T. Tierney**<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,<br> Inc.<br> P.O. Box 786003<br> San Antonio, TX 78278-6003<br> Toll-Free (800) 221-5672 | **Independent Registered Public Accounting Firm**<br> Ernst & Young LLP<br> One Manhattan West<br> New York, NY 10001<br>**Legal Counsel**<br> Seward & Kissel LLP<br> One Battery Park Plaza<br> New York, NY 10004 |

---

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 Mr. James T. Tierney. Mr. Tierney has the most significant responsibility for the day-to-day management of the Fund's portfolio.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 43** |

---

------

**MANAGEMENT OF THE FUND** 

**Board of Directors Information** 

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund's Directors 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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY<br>DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **INTERESTED DIRECTOR** | **INTERESTED DIRECTOR** |  |  |
| Onur Erzan,<sup>#</sup><br>1345 Avenue of the Americas<br>New York, NY 10105<br>46<br>(2021) | Senior Vice President of AllianceBernstein L.P. (the "Adviser"), Head of Global Client Group and Head of Private Wealth. He oversees AB's entire private wealth management business and third-party institutional and retail franchise, 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. Erzan is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, Erzan co-led McKinsey's Banking & Securities Solutions (a portfolio of data, analytics and digital assets and capabilities) globally. | 73 |  |

---

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| | |
|:---|:---|
| **44 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

---

------

**MANAGEMENT OF THE FUND** (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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY<br>DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS** | **DISINTERESTED DIRECTORS** |  |  |
| Marshall C. Turner, Jr.,<sup>##</sup><br> *Chairman of the Board*<br> 80<br> (2014) | Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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 CONCENTRATED GROWTH FUND <sup>\|</sup> 45** |

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**MANAGEMENT OF THE FUND** (continued)

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|:---|:---|:---|:---|
| **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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY<br>DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<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> (2014) | 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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| **46 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

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**MANAGEMENT OF THE FUND** (continued)

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|:---|:---|:---|:---|
| **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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY<br>DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<br> **(continued)** |  |  |
| Nancy P. Jacklin,<sup>##</sup><br> 74<br> (2014) | 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 director or trustee of the AB Funds since April 2020. | 73 | Apollo Investment Corp. (business development company) since August 2011 |

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| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 47** |

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**MANAGEMENT OF THE FUND** (continued)

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|:---|:---|:---|:---|
| **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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY<br>DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<br> **(continued)** |  |  |
| Carol C. McMullen,<sup>##</sup><br> 67<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 nonprofit boards, and as a director or trustee of the AB Funds since June 2016. | 73 |  |

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| **48 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY<br>DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<br> **(continued)** |  |  |
| Garry L. Moody,<sup>##</sup><br> 70<br> (2014) | 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 the 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 Investment Company Institute's Board of Governors and the Independent Directors Council's Governing Council, where he serves as Chairman of its Governance Committee. 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 Fund's disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal & Compliance Department – Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

\*\* There is no stated term of office for the Fund's Directors.

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

# Mr. Erzan is an "interested person" of the Fund, 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 CONCENTRATED GROWTH FUND <sup>\|</sup> 49** |

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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<br> Executive Officer | See biography above. |
| James T. Tierney<br> 55 | Vice President | Senior Vice President, Chief Investment Officer of Concentrated U.S. Growth 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> 46 | 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 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 Fund's Officers is 1345 Avenue of the Americas, New York, NY 10105.

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

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

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| **50 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **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 Directors (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 Fund's LRMP is adequately designed, has been implemented as intended,

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| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 51** |

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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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| **52 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

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

The disinterested directors (the "directors") of AB Cap Fund, Inc. (the "Company") unanimously approved the continuance of the Company's Advisory Agreement with the Adviser (the "Advisory Agreement") in respect of AB Concentrated Growth Fund (the "Fund") at a meeting held in-person on May 3-5, 2022 (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 Vice President for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

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.

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

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| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 53** |

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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 directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. 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 2020 and 2021 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, including those relating to its subsidiaries that provide transfer agency, distribution and brokerage services to 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

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| **54 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

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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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to soft dollar arrangements (whereby investment advisers receive brokerage and research services from brokers that execute agency transactions for their clients); 12b-1 fees and sales charges received by the Fund's principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund's shares; brokerage commissions paid by the Fund to brokers affiliated with the Adviser; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser's profitability would be somewhat lower without these benefits. 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 Class A Shares 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 performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3- and 5-year periods ended February 28, 2022 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund's investment performance was acceptable.

**Advisory Fees and Other Expenses** 

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared 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 paid by other funds. The directors compared the Fund's contractual advisory fee rate with a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

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| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 55** |

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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 Vice President and noted the differences between the Fund's proposed 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 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, 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 the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

In connection with their review of the Fund's advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund's latest fiscal year. The Adviser had agreed to cap the Fund's expenses, but the directors noted that the Fund's expense ratio was currently below the level of the Adviser's cap. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund's category were lowered by waivers or reimbursements by those funds' investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser's services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund's expense ratio was acceptable.

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| **56 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

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**Economies of Scale** 

The directors noted that the advisory fee schedule for the Fund does not contain breakpoints and that they had discussed their strong preference for breakpoints in advisory contracts with the Adviser. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund's adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund's operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. The directors informed the Adviser that they would monitor the Fund's asset level (which was well below the level at which they would anticipate adding an initial breakpoint) and its profitability to the Adviser and anticipated revisiting the question of breakpoints in the future if circumstances warranted doing so.

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| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 57** |

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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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| **58 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

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**NOTES** 

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| **abfunds.com** | **AB CONCENTRATED GROWTH FUND <sup>\|</sup> 59** |

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**NOTES** 

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| **60 <sup>\|</sup> AB CONCENTRATED GROWTH FUND** | **abfunds.com** |

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![LOGO](g487979g43p34.jpg)

AB CONCENTRATED GROWTH FUND

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

CG-0151-0622 ![LOGO](g487979g22c48.jpg)

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**JUN** <sup>06.30.22</sup>

![LOGO](g383570g43p34.jpg)

ANNUAL REPORT

## AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO
![LOGO](g383570covart_390.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](g383570g92f19.jpg) |

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Dear Shareholder,

We're pleased to provide this report for the AB Concentrated International Growth Portfolio (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](g383570g55d83.jpg)

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 1** |

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**ANNUAL REPORT** 

**August 5, 2022** 

This report provides management's discussion of fund performance for the AB Concentrated International Growth Portfolio for the annual reporting period ended June 30, 2022.

**The Fund's investment objective is to seek long-term growth of capital.** 

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

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| | | |
|:---|:---|:---|
|  | 6 Months | 12 Months |
| **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** |  |  |
| Class A Shares | -32.85% | -35.49% |
| Class C Shares | -33.12% | -36.03% |
| Advisor Class Shares<sup>1</sup> | -32.81% | -35.38% |
| MSCI EAFE Index (net) | -19.57% | -17.77% |

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|:---|:---|
| 1 | Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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**INVESTMENT RESULTS** 

The table above shows the Fund's performance compared to its benchmark, the Morgan Stanley Capital International Europe, Australasia and the Far East ("MSCI EAFE") Index (net), for the six- and 12-month periods ended June 30, 2022.

All share classes of the Fund underperformed the benchmark for both periods, before sales charges. During the 12-month period, security selection within the industrials and financials sectors detracted most, relative to the benchmark. There was no contribution from security selection during the period. Sector positioning was also a detractor, due to an overweight to technology and lack of exposure to energy, while underweights to materials and real estate contributed. Top detractors from absolute performance included KION Group, Worldline and Alibaba Group, while top contributors included Pan Pacific International, Compass Group and Capgemini.

For the six-month period, security selection within the industrials and communication-services sectors detracted most from relative returns, and selection in consumer discretionary and technology contributed. Sector positioning was also a detractor, mainly due to an overweight to technology and lack of exposure to energy, while an underweight to materials and an overweight to consumer discretionary contributed. Top

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| | |
|:---|:---|
| **2 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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absolute detractors were KION Group, Sika Group and Ashtead, while top contributors included London Stock Exchange, AIA Group and Pan Pacific International.

During both periods, the Fund utilized derivatives in the form of currency forwards for hedging purposes, which detracted from absolute returns.

**MARKET REVIEW AND INVESTMENT STRATEGY** 

US, international and emerging-market stocks declined during the 12-month period ended June 30, 2022. Throughout the first half of the period, accommodative monetary policy underpinned an accelerating global economic recovery, which sent equity markets higher. Volatility increased as persistent inflation prompted the US Federal Reserve (the "Fed") to take a hawkish pivot that raised expectations for an accelerated rate liftoff and led other central banks to tighten monetary policy. Inflation worsened after Russia's invasion of Ukraine caused energy and agricultural prices to surge and China's zero-COVID policy prompted new supply-chain concerns. The Fed raised interest rates three times during the second half of the period, including a 0.75% hike in June—its largest since 1994. The growing fear of recession led to sharp declines and periods of widespread volatility across equity markets. Fed Chair Powell's acknowledgement that the path to a soft landing had narrowed weighed on global equity market sentiment. Against a backdrop of rising rates, growth stocks came under pressure, triggering a rotation into value-oriented stocks. Within large-cap markets, both growth and value stocks declined in absolute terms, but value stocks outperformed growth stocks by a wide margin. Large-cap stocks outperformed small-cap stocks on a relative basis, but both declined in absolute terms.

The Fund's Senior Investment Management Team (the "Team") continues to focus the Fund primarily on companies with very stable earnings profiles. The Team wishes to not get caught up by moving the Fund too far in one direction or another, believing that it can generate a solid return from a positive and less volatile earnings mix.

**INVESTMENT POLICIES** 

The Adviser seeks to achieve the Fund's investment objective by investing, under normal circumstances, primarily in common stocks of non-US companies, and in companies in at least three countries other than the United States.

The Fund invests in companies that are determined by the Adviser to offer favorable long-term growth potential and that are trading at attractive valuations. The Adviser employs an appraisal method which attempts to measure each prospective company's quality and growth

(continued on next page)

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| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 3** |

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rate by numerous factors. Such factors include: a company's record and projections of profit and earnings growth, accuracy and availability of information with respect to the company, success and experience of management, accessibility of management to the Adviser, product lines and competitive position both in the United States and abroad, lack of cyclicality, large market capitalization and liquidity of the company's securities. The Adviser compares these results to the characteristics of the general stock markets to determine the relative attractiveness of each company at a given time. The Adviser weighs economic, political and market factors in making investment decisions; this appraisal technique attempts to measure each investment candidate not only against other stocks of the same industry and region, but also against a broad spectrum of investments.

The Fund invests in a relatively small number of individual stocks, generally 25 to 35 companies. The Fund primarily invests in mid- and large-capitalization companies, which are currently defined for the Fund as companies that have market capitalizations of $2.0 billion or more. The Fund's holdings of non-US companies may include some companies located in emerging markets, and at times emerging-market companies may make up a significant portion of the Fund.

Fluctuations in currency exchange rates can have a dramatic impact on the returns of equity securities. While the Adviser may hedge the foreign currency exposure resulting from the Fund's security positions through the use of currency-related derivatives, it is not required to do so.

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| | |
|:---|:---|
| **4 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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**DISCLOSURES AND RISKS** 

**Benchmark Disclosure** 

**The MSCI EAFE Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio.** The MSCI EAFE Index (net, free float-adjusted, market capitalization weighted) represents the equity market performance of developed markets, excluding the US and Canada. MSCI makes no express or implied warranties or representations, and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices, any securities or financial products. This report is not approved, reviewed or produced by MSCI. Net returns include the reinvestment of dividends after deduction of non-US withholding tax. 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 its 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. It includes the risk that a particular style of investing, such as the Fund's growth approach, may underperform the market generally.

**Focused Portfolio Risk:** Investments in a limited number of companies may have more risk because changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund's net asset value ("NAV").

**Sector Risk:** The Fund may have more risk because it may invest to a significant extent in one or more particular market sectors, such as the information-technology sector. 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.

**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, and because these investments may be subject to increased economic, political, regulatory or other uncertainties.

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| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 5** |

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**DISCLOSURES AND RISKS** (continued)

**Currency Risk:** Fluctuations in currency exchange rates may negatively affect the value of the Fund's investments or reduce its returns.

**Capitalization Risk:** Investments in mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in mid-capitalization companies may have additional risks because these companies have limited product lines, markets or financial resources.

**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 for the Fund, 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 investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. 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 visiting www.abfunds.com.** 

**All fees and expenses related to the operation of the Fund have been deducted. NAV returns do not reflect sales charges; if sales charges were reflected, the Fund's quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.** 

**Please note:** References to specific securities are presented to illustrate the Fund's investment philosophy and are not to be considered advice or recommendations. This information reflects prevailing market conditions and the Adviser's judgments as of the date indicated, which are subject to change. In preparing this report, the Adviser has relied upon and assumed without independent verification, the accuracy and completeness of all information available from third-party sources. It should not be assumed that any investments made in the future will be profitable or will equal the performance of the selected investments referenced herein.

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| | |
|:---|:---|
| **6 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** 

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

4/15/2015<sup>1</sup> TO 6/30/2022

![LOGO](g383570g10c10.jpg)

This chart illustrates the total value of an assumed $10,000 investment in AB Concentrated International Growth Portfolio Class A shares (from 4/15/2015<sup>1</sup> to 6/30/2022) as compared to the performance of the Fund's benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 4/15/2015.

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| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 7** |

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**HISTORICAL PERFORMANCE** (continued)

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

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| | | |
|:---|:---|:---|
|  | NAV Returns | SEC Returns<br> (reflects applicable<br>sales charges) |
| **CLASS A SHARES** |  |  |
| 1 Year | -35.49% | -38.23% |
| 5 Years | 1.39% | 0.51% |
| Since Inception<sup>1</sup> | 1.73% | 1.13% |
| **CLASS C SHARES** |  |  |
| 1 Year | -36.03% | -36.65% |
| 5 Years | 0.63% | 0.63% |
| Since Inception<sup>1</sup> | 0.98% | 0.98% |
| **ADVISOR CLASS SHARES**<sup>2</sup> |  |  |
| 1 Year | -35.38% | -35.38% |
| 5 Years | 1.63% | 1.63% |
| Since Inception<sup>1</sup> | 1.97% | 1.97% |

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**The Fund's prospectus fee table shows the Fund's total annual operating expense ratios as 1.17%, 1.93% and 0.93% for Class A, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements reduced the Fund's total annual operating expense ratios to 1.15%, 1.90% and 0.90% for Class A, Class C and Advisor Class shares, respectively. These waivers/reimbursements may not be terminated before October 31, 2022, and may be extended by the Adviser for one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.** 

1 Inception date: 4/15/2015.

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|:---|:---|
| 2 | This share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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|:---|:---|
| **8 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** (continued)

**SEC AVERAGE ANNUAL RETURNS** 

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

**JUNE 30, 2022** (unaudited)

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| | |
|:---|:---|
|  | SEC Returns<br> (reflects applicable<br>sales charges) |
| **CLASS A SHARES** |  |
| 1 Year | -38.23% |
| 5 Years | 0.51% |
| Since Inception<sup>1</sup> | 1.13% |
| **CLASS C SHARES** |  |
| 1 Year | -36.65% |
| 5 Years | 0.63% |
| Since Inception<sup>1</sup> | 0.98% |
| **ADVISOR CLASS SHARES**<sup>2</sup> |  |
| 1 Year | -35.38% |
| 5 Years | 1.63% |
| Since Inception<sup>1</sup> | 1.97% |

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1 Inception date: 4/15/2015.

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|:---|:---|
| 2 | Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 9** |

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**EXPENSE EXAMPLE** 

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. 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.

This 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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|:---|:---|
| **10 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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**EXPENSE EXAMPLE** (continued)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account Value<br>January 1, 2022** | **Ending<br>Account Value<br>June 30, 2022** | **Expenses Paid<br>During Period\*** | **Annualized<br>Expense Ratio\*** |
| **Class A** |  |  |  |  |
|  Actual | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000 | $671.50 | $4.68 | 1.13% |
|  Hypothetical\*\* | $1000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1019.19 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.66 | 1.13% |
| **Class C** |  |  |  |  |
|  Actual | $1000 | $668.80 | $7.78 | 1.88% |
|  Hypothetical\*\* | $1000 | $1015.47 | $9.39 | 1.88% |
| **Advisor Class** |  |  |  |  |
|  Actual | $1000 | $671.90 | $3.65 | 0.88% |
|  Hypothetical\*\* | $1000 | $1020.43 | $4.41 | 0.88% |

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\* Expenses are equal to the classes' annualized expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

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

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|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 11** |

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**PORTFOLIO SUMMARY** 

**June 30, 2022** (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $375.0

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![LOGO](g383570g01m17.jpg)

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![LOGO](g383570g02m17.jpg)

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|:---|:---|
| 1 | All data are as of June 30, 2022. The Fund's sector and country breakdowns are expressed as a percentage of total investments (excluding security lending collateral) 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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Please note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard & Poor's. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the broad market. These sector classifications are broadly defined. The "Portfolio of Investments" section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Fund's prospectus.

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| | |
|:---|:---|
| **12 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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**PORTFOLIO SUMMARY** (continued)

**June 30, 2022** (unaudited)

TEN LARGEST HOLDINGS<sup>1</sup>

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| | | |
|:---|:---|:---|
| Company | U.S. $ Value | Percent of<br>Net Assets |
| AIA Group Ltd. | $16448850 | 4.4% |
| Lonza Group AG (REG) | 14218735 | 3.8 |
| Nestle SA (REG) | 14202602 | 3.8 |
| London Stock Exchange Group PLC | 13650561 | 3.6 |
| Compass Group PLC | 13084117 | 3.5 |
| Sika AG (REG) | 12895258 | 3.4 |
| Cellnex Telecom SA | 12702733 | 3.4 |
| Capgemini SE | 12291401 | 3.3 |
| St. James's Place PLC | 12277615 | 3.3 |
| ASML Holding NV | 11858192 | 3.2 |
|  | $&nbsp;&nbsp;&nbsp;&nbsp;133630064 | 35.7% |

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1 Long-term investments.

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|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 13** |

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**PORTFOLIO OF INVESTMENTS** 

**June 30, 2022** 

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| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **COMMON STOCKS – 95.7%** | **COMMON STOCKS – 95.7%** | **COMMON STOCKS – 95.7%** |
|  **Financials – 17.1%** |  |  |
|  **Banks – 3.2%** |  |  |
|  HDFC Bank Ltd. (ADR) | 215668 | $11853113 |
|  **Capital Markets – 9.5%** |  |  |
|  London Stock Exchange Group PLC | 146290 | 13650561 |
|  Partners Group Holding AG | 10879 | 9824791 |
|  St. James's Place PLC | 912472 | 12277615 |
|  |  | 35752967 |
|  **Insurance – 4.4%** |  |  |
|  AIA Group Ltd. | 1505400 | 16448850 |
|  |  | 64054930 |
|  **Information Technology – 16.7%** |  |  |
|  **Electronic Equipment, Instruments & Components – 2.8%** |  |  |
|  Murata Manufacturing Co., Ltd. | 194500 | 10586114 |
|  **IT Services – 7.6%** |  |  |
|  Adyen NV<sup>(a)</sup> | 5430 | 7836207 |
|  Capgemini SE | 71271 | 12291401 |
|  Worldline SA/France<sup>(a)</sup> | 219990 | 8205489 |
|  |  | 28333097 |
|  **Semiconductors & Semiconductor Equipment – 3.2%** |  |  |
|  ASML Holding NV | 25100 | 11858192 |
|  **Software – 3.1%** |  |  |
|  SAP SE | 129393 | 11794224 |
|  |  | 62571627 |
|  **Industrials – 15.6%** |  |  |
|  **Machinery – 8.4%** |  |  |
|  Alstom SA | 407862 | 9313334 |
|  FANUC Corp. | 59800 | 9373007 |
|  KION Group AG | 177909 | 7447661 |
|  Techtronic Industries Co., Ltd. | 517500 | 5403809 |
|  |  | 31537811 |
|  **Professional Services – 4.2%** |  |  |
|  Recruit Holdings Co., Ltd. | 254300 | 7489245 |
|  Teleperformance | 26220 | 8096318 |
|  |  | 15585563 |
|  **Trading Companies & Distributors – 3.0%** |  |  |
|  Ashtead Group PLC | 269852 | 11352281 |
|  |  | 58475655 |

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|:---|:---|
| **14 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Consumer Staples – 14.1%** |  |  |
|  **Beverages – 5.5%** |  |  |
|  Asahi Group Holdings Ltd. | 297600 | $9786685 |
|  Pernod Ricard SA | 58450 | 10805929 |
|  |  | 20592614 |
|  **Food Products – 6.6%** |  |  |
|  Kerry Group PLC – Class A | 111574 | 10670042 |
|  Nestle SA (REG) | 121522 | 14202602 |
|  |  | 24872644 |
|  **Personal Products – 2.0%** |  |  |
|  Kose Corp.<sup>(b)</sup> | 82000 | 7473145 |
|  |  | 52938403 |
|  **Consumer Discretionary – 13.5%** |  |  |
|  **Hotels, Restaurants & Leisure – 6.2%** |  |  |
|  Compass Group PLC | 637274 | 13084117 |
|  Yum China Holdings, Inc. | 208011 | 10088533 |
|  |  | 23172650 |
|  **Multiline Retail – 2.5%** |  |  |
|  Pan Pacific International Holdings Corp. | 589200 | 9393759 |
|  **Textiles, Apparel & Luxury Goods – 4.8%** |  |  |
|  adidas AG | 44915 | 7978292 |
|  LVMH Moet Hennessy Louis Vuitton SE | 16252 | 9960487 |
|  |  | 17938779 |
|  |  | 50505188 |
|  **Health Care – 10.6%** |  |  |
|  **Biotechnology – 2.8%** |  |  |
|  Genmab A/S<sup>(a)</sup> | 32231 | 10457180 |
|  **Health Care Equipment & Supplies – 4.0%** |  |  |
|  Koninklijke Philips NV | 304710 | 6535580 |
|  Terumo Corp. | 287500 | 8697177 |
|  |  | 15232757 |
|  **Life Sciences Tools & Services – 3.8%** |  |  |
|  Lonza Group AG (REG) | 26620 | 14218735 |
|  |  | 39908672 |
|  **Communication Services – 4.7%** |  |  |
|  **Diversified Telecommunication Services – 3.4%** |  |  |
|  Cellnex Telecom SA<sup>(b)</sup> | 326396 | 12702733 |
|  **Entertainment – 1.3%** |  |  |
|  Sea Ltd. (ADR)<sup>(a)</sup> | 74550 | 4984413 |
|  |  | 17687146 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 15** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Materials – 3.4%** |  |  |
|  **Chemicals – 3.4%** |  |  |
|  Sika AG (REG)<sup>(b)</sup> | 55863 | $12895258 |
|  Total Common Stocks <br>(cost $451,771,473) |  | 359036879 |
|  **SHORT-TERM INVESTMENTS – 4.4%** |  |  |
|  **Investment Companies – 4.4%** |  |  |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.30%<sup>(c)(d)(e)</sup> <br>(cost $16,386,378) | 16386378 | 16386378 |
|  **Total Investments Before Security Lending Collateral for Securities<br>Loaned – 100.1%** <br>(cost $468,157,851) |  | 375423257 |
|  **INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED – 2.2%** |  |  |
|  **Investment Companies – 2.2%** |  |  |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.30%<sup>(c)(d)(e)</sup> <br>(cost $8,230,894) | 8230894 | 8230894 |
|  **Total Investments – 102.3%** <br>(cost $476,388,745) |  | 383654151 |
|  Other assets less liabilities – (2.3)% |  | (8680418) |
|  **Net Assets – 100.0%** |  | $**374973733** |

---

**FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Contracts to<br>Deliver<br>(000)** | **Contracts to<br>Deliver<br>(000)** | **In Exchange<br>For<br>(000)** | **In Exchange<br>For<br>(000)** | **Settlement<br>Date** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Bank of America, NA | INR | 82231 | USD | 1055 | 07/07/2022 | $14287 |
|  Bank of America, NA | USD | 6064 | CHF | 5849 | 07/13/2022 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;65911 |
|  Bank of America, NA | JPY | 1469447 | USD | 11327 | 07/15/2022 | 491157 |
|  Bank of America, NA | AUD | 1469 | USD | 1047 | 07/21/2022 | 33128 |
|  Bank of America, NA | CNH | 7149 | USD | 1068 | 07/21/2022 | 404 |
|  Bank of America, NA | HKD | 80248 | USD | 10244 | 07/22/2022 | 11454 |
|  Bank of America, NA | EUR | 3289 | USD | 3475 | 07/28/2022 | 23331 |
|  Bank of America, NA | USD | 1156 | EUR | 1107 | 07/28/2022 | 5598 |
|  Bank of America, NA | USD | 1488 | EUR | 1411 | 07/28/2022 | (6766) |
|  Bank of America, NA | GBP | 2317 | USD | 2841 | 08/25/2022 | 17964 |
|  Barclays Bank PLC | USD | 1380 | JPY | 187811 | 07/15/2022 | 4761 |
|  Barclays Bank PLC | USD | 3385 | JPY | 448467 | 07/15/2022 | (78102) |
|  Barclays Bank PLC | CNH | 29309 | USD | 4294 | 07/21/2022 | (84304) |
|  Barclays Bank PLC | USD | 972 | GBP | 791 | 08/25/2022 | (8136) |
|  BNP Paribas SA | USD | 1360 | INR | 104896 | 07/07/2022 | (31595) |

---

---

| | |
|:---|:---|
| **16 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Contracts to<br>Deliver<br>(000)** | **Contracts to<br>Deliver<br>(000)** | **In Exchange<br>For<br>(000)** | **In Exchange<br>For<br>(000)** | **Settlement<br>Date** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  BNP Paribas SA | USD | 1124 | CHF | 1088 | 07/13/2022 | $15993 |
|  BNP Paribas SA | AUD | 2254 | USD | 1585 | 07/21/2022 | 28823 |
|  BNP Paribas SA | USD | 36856 | AUD | 51438 | 07/21/2022 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1347588) |
|  BNP Paribas SA | EUR | 1642 | USD | 1731 | 07/28/2022 | 7752 |
|  Citibank, NA | INR | 324436 | USD | 4242 | 07/07/2022 | 134024 |
|  Citibank, NA | USD | 4949 | EUR | 4670 | 07/28/2022 | (48034) |
|  Goldman Sachs Bank USA | INR | 89125 | USD | 1169 | 07/07/2022 | 40347 |
|  Goldman Sachs Bank USA | USD | 1155 | CHF | 1149 | 07/13/2022 | 49312 |
|  Goldman Sachs Bank USA | JPY | 130354 | USD | 1005 | 07/15/2022 | 43338 |
|  Goldman Sachs Bank USA | USD | 29677 | JPY | 3772009 | 07/15/2022 | (1860809) |
|  Goldman Sachs Bank USA | USD | 948 | CNH | 6403 | 07/21/2022 | 8980 |
|  Goldman Sachs Bank USA | USD | 2373 | EUR | 2268 | 07/28/2022 | 7605 |
|  Goldman Sachs Bank USA | USD | 1925 | EUR | 1788 | 07/28/2022 | (48199) |
|  HSBC Bank USA | CHF | 19623 | USD | 21102 | 07/13/2022 | 537117 |
|  HSBC Bank USA | USD | 1136 | CHF | 1103 | 07/13/2022 | 19676 |
|  HSBC Bank USA | USD | 1664 | JPY | 214724 | 07/15/2022 | (80944) |
|  HSBC Bank USA | HKD | 8381 | USD | 1070 | 07/22/2022 | 972 |
|  HSBC Bank USA | USD | 1069 | EUR | 1018 | 07/28/2022 | (891) |
|  Natwest Markets PLC | JPY | 318873 | USD | 2344 | 07/15/2022 | (7412) |
|  Natwest Markets PLC | EUR | 21154 | USD | 22371 | 07/28/2022 | 169231 |
|  Natwest Markets PLC | USD | 5045 | GBP | 4009 | 08/25/2022 | (159988) |
|  Natwest Markets PLC | SEK | 11358 | USD | 1121 | 09/22/2022 | 7479 |
|  State Street Bank & Trust Co. | USD | 1194 | CHF | 1193 | 07/13/2022 | 56688 |
|  State Street Bank & Trust Co. | CNH | 9953 | USD | 1485 | 07/21/2022 | (2009) |
|  State Street Bank & Trust Co. | USD | 2291 | AUD | 3232 | 07/21/2022 | (59495) |
|  State Street Bank & Trust Co. | USD | 1216 | HKD | 9532 | 07/22/2022 | (189) |
|  State Street Bank & Trust Co. | EUR | 1062 | USD | 1145 | 07/28/2022 | 30557 |
|  State Street Bank & Trust Co. | EUR | 1211 | USD | 1265 | 07/28/2022 | (5721) |
|  State Street Bank & Trust Co. | USD | 1449 | EUR | 1349 | 07/28/2022 | (32923) |
|  UBS AG | CHF | 2438 | USD | 2521 | 07/13/2022 | (33945) |
|  UBS AG | USD | 1157 | CHF | 1147 | 07/13/2022 | 45091 |
|  UBS AG | JPY | 341583 | USD | 2610 | 07/15/2022 | 91135 |
|  UBS AG | USD | 3189 | JPY | 420152 | 07/15/2022 | (90639) |
|  UBS AG | AUD | 4981 | USD | 3484 | 07/21/2022 | 45607 |
|  UBS AG | EUR | 7513 | USD | 7957 | 07/28/2022 | 71690 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 17** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Contracts to<br>Deliver<br>(000)** | **Contracts to<br>Deliver<br>(000)** | **In Exchange<br>For<br>(000)** | **In Exchange<br>For<br>(000)** | **Settlement<br>Date** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  UBS AG | USD | 1274 | GBP | 1038 | 08/25/2022 | $(9427) |
|  UBS AG | USD | 11643 | SEK | 118633 | 09/22/2022 | (7365) |
|  |  |  |  |  |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1925069) |

---

(a) Non-income producing security.

(b) Represents entire or partial securities out on loan. See Note E for securities lending information.

(c) Affiliated investments.

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

(e) 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.

Currency Abbreviations:

AUD – Australian Dollar

CHF – Swiss Franc

CNH – Chinese Yuan Renminbi (Offshore)

EUR – Euro

GBP – Great British Pound

HKD – Hong Kong Dollar

INR – Indian Rupee

JPY – Japanese Yen

SEK – Swedish Krona

USD – United States Dollar

Glossary:

ADR – American Depositary Receipt

REG – Registered Shares

See notes to financial statements.

---

| | |
|:---|:---|
| **18 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**STATEMENT OF ASSETS & LIABILITIES** 

**June 30, 2022** 

---

| | |
|:---|:---|
| **Assets** | **Assets** |
|  Investments in securities, at value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (cost $451,771,473) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;359036879 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers (cost $24,617,272—including investment of cash collateral for securities loaned of $8,230,894) | 24617272 |
|  Foreign currencies, at value (cost $366,150) | 367485 |
|  Unrealized appreciation on forward currency exchange contracts | 2079412 |
|  Receivable for capital stock sold | 1517416 |
|  Unaffiliated dividends receivable | 982048 |
|  Affiliated dividends receivable | 13455 |
|  Total assets | 388613967 |
| **Liabilities** | **Liabilities** |
|  Payable for collateral received on securities loaned | 8230894 |
|  Unrealized depreciation on forward currency exchange contracts | 4004481 |
|  Payable for capital stock redeemed | 964997 |
|  Advisory fee payable | 236496 |
|  Administrative fee payable | 22286 |
|  Transfer Agent fee payable | 4655 |
|  Distribution fee payable | 2206 |
|  Payable for investment securities purchased and foreign currency transactions | 358 |
|  Directors' fees payable | 26 |
|  Accrued expenses | 173835 |
|  Total liabilities | 13640234 |
|  Net Assets | $**374973733** |
| **Composition of Net Assets** | **Composition of Net Assets** |
|  Capital stock, at par | $3822 |
|  Additional paid-in capital | 486412084 |
|  Accumulated loss | (111442173) |
|  **Net Assets** | $**374973733** |

---

**Net Asset Value Per Share—11 billion shares of capital stock authorized, $.0001 par value** 

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Net Assets** | **Shares<br>Outstanding** | **Net Asset<br>Value** |
| **A** | $6740610 | 694420 | $9.71 \* |
| **C** | $908803 | 98036 | $9.27 |
| **Advisor** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;367324320 | 37426696 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.81 |

---

(a) Includes securities on loan with a value of $14,220,065 (see Note E).

\* The maximum offering price per share for Class A shares was $10.14 which reflects a sales charge of 4.25%. 

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 19** |

---

------

**STATEMENT OF OPERATIONS** 

**Year Ended June 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Investment Income** |  |  |
|  Dividends |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (net of foreign taxes withheld of $550,919) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5252923 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers | 28025 |  |
|  Securities lending income | 37632 | $5318580 |
| **Expenses** |  |  |
|  Advisory fee (see Note B) | 3587882 |  |
|  Distribution fee—Class A | 23475 |  |
|  Distribution fee—Class C | 15443 |  |
|  Transfer agency—Class A | 2714 |  |
|  Transfer agency—Class C | 523 |  |
|  Transfer agency—Advisor Class | 136397 |  |
|  Custody and accounting | 106297 |  |
|  Administrative | 93217 |  |
|  Registration fees | 81251 |  |
|  Audit and tax | 48050 |  |
|  Legal | 37388 |  |
|  Directors' fees | 23837 |  |
|  Printing | 22624 |  |
|  Miscellaneous | 30150 |  |
|  Total expenses | 4209248 |  |
|  Less: expenses waived and reimbursed by the Adviser (see Notes B & E) | (13723) |  |
|  Net expenses |  | 4195525 |
|  Net investment income |  | 1123055 |
| **Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions** |  |  |
|  Net realized gain (loss) on: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment transactions |  | (11845784) |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward currency exchange contracts |  | (8836134) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions |  | 56338 |
|  Net change in unrealized appreciation/depreciation of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments |  | (179438784) |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward currency exchange contracts |  | (694906) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency denominated assets and liabilities |  | (22347) |
|  Net loss on investment and foreign currency transactions |  | (200781617) |
|  **Net Decrease in Net Assets from Operations** |  | $**(199658562)** |

---

See notes to financial statements.

---

| | |
|:---|:---|
| **20 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**STATEMENT OF CHANGES IN NET ASSETS** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>June 30,<br>2022** | **Year Ended<br>June 30,<br>2021** |
| **Increase (Decrease) in Net Assets from Operations** |  |  |
|  Net investment income | $1123055 | $1012061 |
|  Net realized gain (loss) on investment transactions and foreign currency | (20625580) | 13145766 |
|  Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities | (180156037) | 66274646 |
|  Net increase (decrease) in net assets from operations | (199658562) | 80432473 |
|  Distributions to Shareholders |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | (193993) | (89972) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | (33729) | (23763) |
| &nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | (9062326) | (4224338) |
| **Capital Stock Transactions** |  |  |
|  Net increase | 91311134 | 254097150 |
|  Total increase (decrease) | (117637476) | 330191550 |
| **Net Assets** |  |  |
|  Beginning of period | 492611209 | 162419659 |
|  End of period | $**374973733** | $**492611209** |

---

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 21** |

---

------

**NOTES TO FINANCIAL STATEMENTS** 

**June 30, 2022** 

**NOTE A** 

**Significant Accounting Policies** 

AB Cap Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 12 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Concentrated International Growth Portfolio (the "Fund"), a diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares. Class B, Class R, Class K, Class I, Class Z, Class T, Class 1 and Class 2 shares have not been issued. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. Advisor Class shares are sold without any initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All 11 classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. 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 Company's Board of Directors (the "Board").

---

| | |
|:---|:---|
| **22 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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 between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (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

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 23** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

**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

---

| | |
|:---|:---|
| **24 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in<br>Securities:** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets:** |  |  |  |  |
|  Common Stocks: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financials | $11853113 | $52201817 | $– 0 | $64054930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information Technology | – 0 | 62571627 | – 0 | 62571627 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrials | – 0 | 58475655 | – 0 | 58475655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumer Staples | – 0 | 52938403 | – 0 | 52938403 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumer Discretionary | 10088533 | 40416655 | – 0 | 50505188 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Health Care | – 0 | 39908672 | – 0 | 39908672 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Communication Services | 4984413 | 12702733 | – 0 | 17687146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Materials | – 0 | 12895258 | – 0 | 12895258 |
|  Short-Term Investments | 16386378 | – 0 | – 0 | 16386378 |
|  Investments of Cash Collateral for Securities Loaned in Affiliated Money Market Fund | 8230894 | – 0 | – 0 | 8230894 |
|  Total Investments in Securities | 51543331 | 332110820 | – 0 | 383654151 |
|  **Other Financial Instruments<sup>(b)</sup>:** |  |  |  |  |
|  **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
|  Forward Currency Exchange Contracts | – 0 | 2079412 | – 0 | 2079412 |
|  **Liabilities:** | **Liabilities:** | **Liabilities:** | **Liabilities:** | **Liabilities:** |
|  Forward Currency Exchange Contracts | – 0 | (4004481) | – 0 | (4004481) |
|  **Total** | $**51543331** | $**330185751** | $**– 0** | $**381729082** |

---

(a) A significant portion of the Fund's foreign equity investments are categorized as Level 2 investments since they
are valued using fair value prices based on third party vendor modeling tools to the extent available, see Note A.1.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 25** |

---

------

**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.

**3. Currency Translation** 

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

**4. 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. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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.

**5. 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

---

| | |
|:---|:---|
| **26 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

**6. Class Allocations** 

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each portfolio or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

**7. 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 investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .75% of the Fund's average daily net assets. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) on an annual basis (the "Expense Caps") to 1.15%, 1.90% and 0.90% of the daily average net assets for Class A, Class C and Advisor Class shares, respectively. The Expense Caps may not be terminated by the Adviser before October 31, 2022. For the year ended June 30, 2022, there were no expenses waived by the Adviser.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended June 30, 2022, the reimbursement for such services amounted to $93,217.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 27** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

The Fund compensates AllianceBernstein Investor Services, Inc. ("ABIS"), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $62,705 for the year ended June 30, 2022.

AllianceBernstein Investments, Inc. (the "Distributor"), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund's shares. The Distributor has advised the Fund that it has retained front-end sales charges of $937 from the sale of Class A shares and received $33 and $1,417 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended June 30, 2022.

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, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive 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 June 30, 2022, such waiver amounted to $12,955.

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Market Value<br>6/30/21<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Sales<br>Proceeds<br>(000)** | **Market Value<br>6/30/22<br>(000)** | **Dividend<br>Income<br>(000)** |
|  Government Money Market Portfolio | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12685 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;158974 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;155273 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16386 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28 |
|  Government Money Market Portfolio\* | – 0 | 56691 | 48460 | 8231 | 2 |
|  Total |  |  |  | $24617 | $30 |

---

\* Investments of cash collateral for securities lending transactions (see Note E).

---

| | |
|:---|:---|
| **28 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE C** 

**Distribution Services Agreement** 

The Fund has adopted a Distribution Services Agreement (the "Agreement") pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .25% of the Fund's average daily net assets attributable to Class A shares and 1% of the Fund's average daily net assets attributable to Class C shares. There are no distribution and servicing fees on the Advisor Class shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund's operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $2,780 for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund's shares.

**NOTE D** 

**Investment Transactions** 

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

---

| | | |
|:---|:---|:---|
|  | **Purchases** | **Sales** |
|  Investment securities (excluding U.S. government securities) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;181605936 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;111277451 |
|  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;476394659 |
|  Gross unrealized appreciation | $10470151 |
|  Gross unrealized depreciation | (103198422) |
|  Net unrealized depreciation | $(92728271) |

---

**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.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 29** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **Forward Currency Exchange Contracts** 

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under "Currency Transactions".

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

During the year ended June 30, 2022, the Fund held forward currency exchange contracts 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.

---

| | |
|:---|:---|
| **30 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

During the year ended June 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** |
|  Foreign currency contracts | Unrealized appreciation on forward currency exchange contracts | $2079412 | Unrealized depreciation on forward currency exchange contracts | $4004481 |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;2079412 |  | $&nbsp;&nbsp;&nbsp;&nbsp;4004481 |

---

---

| | | | |
|:---|:---|:---|:---|
| **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)** |
|  Foreign currency contracts | Net realized gain (loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation of forward currency exchange contracts | $(8836134) | $(694906) |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;(8836134) | $&nbsp;&nbsp;&nbsp;&nbsp;(694906) |

---

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

---

| | |
|:---|:---|
|  Forward Currency Exchange Contracts: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average principal amount of buy contracts | $131766446 |
| &nbsp;&nbsp;&nbsp;&nbsp; Average principal amount of sale contracts | $&nbsp;&nbsp;&nbsp;&nbsp;119527641 |

---

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 June 30, 2022. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the table.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 31** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Derivative<br>Assets<br>Subject<br>to a MA** | **Derivatives<br>Available<br>for Offset** | **Cash<br>Collateral<br>Received\*** | **Security<br>Collateral<br>Received\*** | **Net Amount<br>of Derivative<br>Assets** |
|  Bank of America, NA | $663234 | $(6766) | $– 0 – $| – 0 – $| 656468 |
|  Barclays Bank PLC | 4761 | (4761) | – 0 – | – 0 – | – 0 |
|  BNP Paribas SA | 52568 | (52568) | – 0 – | – 0 – | – 0 |
|  Citibank, NA | 134024 | (48034) | – 0 – | – 0 – | 85990 |
|  Goldman Sachs Bank USA | 149582 | (149582) | – 0 – | – 0 – | – 0 |
|  HSBC Bank USA | 557765 | (81835) | – 0 – | – 0 – | 475930 |
|  Natwest Markets PLC | 176710 | (167400) | – 0 – | – 0 – | 9310 |
|  State Street Bank & Trust Co. | 87245 | (87245) | – 0 – | – 0 – | – 0 |
|  UBS AG | 253523 | (141376) | – 0 – | – 0 – | 112147 |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;2079412 | $&nbsp;&nbsp;&nbsp;&nbsp;(739567) | $&nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;1339845 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Derivative<br>Liabilities<br>Subject<br>to a MA** | **Derivatives<br>Available<br>for Offset** | **Cash<br>Collateral<br>Pledged\*** | **Security<br>Collateral<br>Pledged\*** | **Net Amount<br>of Derivative<br>Liabilities** |
|  Bank of America, NA | $6766 | $(6766) | $– 0 – $| – 0 – $| – 0 |
|  Barclays Bank PLC | 170542 | (4761) | – 0 – | – 0 – | 165781 |
|  BNP Paribas SA | 1379183 | (52568) | – 0 – | – 0 – | 1326615 |
|  Citibank, NA | 48034 | (48034) | – 0 – | – 0 – | – 0 |
|  Goldman Sachs Bank USA | 1909008 | (149582) | – 0 – | – 0 – | 1759426 |
|  HSBC Bank USA | 81835 | (81835) | – 0 – | – 0 – | – 0 |
|  Natwest Markets PLC | 167400 | (167400) | – 0 – | – 0 – | – 0 |
|  State Street Bank & Trust Co. | 100337 | (87245) | – 0 – | – 0 – | 13092 |
|  UBS AG | 141376 | (141376) | – 0 – | – 0 – | – 0 |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;4004481 | $&nbsp;&nbsp;&nbsp;&nbsp;(739567) | $&nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;3264914 |

---

\* 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 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).

---

| | |
|:---|:---|
| **32 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE E** 

**Securities Lending** 

The Fund may enter into securities lending transactions. Under the Fund's securities lending program, all loans of securities will be collateralized continually by cash collateral and/or non-cash collateral. Non-cash collateral will include only securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. The Fund cannot sell or repledge any non-cash collateral, such collateral will not be reflected in the portfolio of investments. If a loan is collateralized by cash, the Fund will be compensated for the loan from a portion of the net return from the income earned on cash collateral after a rebate is paid to the borrower (in some cases, this rebate may be a "negative rebate" or fee paid by the borrower to the Fund in connection with the loan), and payments are made for fees of the securities lending agent and for certain other administrative expenses. If the Fund receives non-cash collateral, the Fund will receive a fee from the borrower generally equal to a negotiated percentage of the market value of the loaned securities. The Fund will have the right to call a loan and obtain the securities loaned at any time on notice to the borrower within the normal and customary settlement time for the securities. While the securities are on loan, the borrower is obligated to pay the Fund amounts equal to any dividend income or other distributions from the securities; however, these distributions will not be afforded the same preferential tax treatment as qualified dividends. The Fund will not be able to exercise voting rights with respect to any securities during the existence of a loan, but will have the right to regain ownership of loaned securities in order to exercise voting or other ownership rights. Collateral received and securities loaned are marked to market daily to ensure that the securities loaned are secured by collateral. The lending agent currently invests the cash collateral received in Government Money Market Portfolio, an eligible money market vehicle, in accordance with the investment restrictions of the Fund, and as approved by the Board. The collateral received on securities loaned is recorded as an asset as well as a corresponding liability in the statement of assets and liabilities. The collateral will be adjusted the next business day to maintain the required collateral amount. The amounts of securities lending income from the borrowers and Government Money Market Portfolio are reflected in the statement of operations. When the Fund earns net securities lending income from Government Money Market Portfolio, the income is inclusive of a rebate expense paid to the borrower. In connection with the cash collateral investment by the Fund in Government Money Market Portfolio, the Adviser has agreed to waive a portion of the Fund's share of the advisory fees of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. When the Fund lends securities, its investment performance will continue to reflect changes in the value of the securities loaned. A principal risk of lending portfolio securities is that the borrower may fail to return the loaned

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 33** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

securities upon termination of the loan and that the collateral will not be sufficient to replace the loaned securities. The lending agent has agreed to indemnify the Fund in the case of default of any securities borrower.

A summary of the Fund's transactions surrounding securities lending for the year ended June 30, 2022 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Market Value<br>of Securities**<br> **on Loan\*** | **Cash<br>Collateral\*** | **Market Value<br>of Non-Cash<br>Collateral\*** | **Income from<br>Borrowers** | **Government Money<br>Market Portfolio** | **Government Money<br>Market Portfolio** |
| **Market Value<br>of Securities**<br> **on Loan\*** | **Cash<br>Collateral\*** | **Market Value<br>of Non-Cash<br>Collateral\*** | **Income from<br>Borrowers** | **Income**<br>**Earned** | **Advisory Fee<br>Waived** |
| $&nbsp;&nbsp;&nbsp;&nbsp;14220065 | $&nbsp;&nbsp;&nbsp;&nbsp;8230894 | $&nbsp;&nbsp;&nbsp;&nbsp;7693819 | $&nbsp;&nbsp;&nbsp;&nbsp;35502 | $&nbsp;&nbsp;&nbsp;&nbsp;2130 | $&nbsp;&nbsp;&nbsp;&nbsp;768 |

---

\* As of June 30, 2022.

**NOTE F** 

**Capital Stock** 

Each class consists of 1,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>June 30,<br>2022 | Year Ended<br>June 30,<br>2021 | Year Ended<br>June 30,<br>2022 | Year Ended<br>June 30,<br>2021 |
| **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  Shares sold | 191783 | 559442 | $2627724 | $7757064 |
|  Shares issued in reinvestment of distributions | 11893 | 6363 | 170552 | 87175 |
|  Shares converted from Class C | 178 | 232 | 2610 | 3546 |
|  Shares redeemed | (180158) | (43592) | (2342777) | (620014) |
|  **Net increase** | **23696** | **522445** | $**458109** | $**7227771** |
| **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
|  Shares sold | 9217 | 113773 | $133906 | $1521812 |
|  Shares issued in reinvestment of distributions | 2195 | 1665 | 30175 | 22060 |
|  Shares converted to Class A | (185) | (241) | (2610) | (3546) |
|  Shares redeemed | (42491) | (23519) | (529985) | (331635) |
|  **Net increase (decrease)** | **(31264)** | **91678** | $**(368514)** | $**1208691** |
| **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** |
|  Shares sold | 14890868 | 20884203 | $198510006 | $295820942 |
|  Shares issued in reinvestment of distributions | 503630 | 229056 | 7292563 | 3160973 |
|  Shares redeemed | (9038840) | (3710652) | (114581030) | (53321227) |
|  **Net increase** | **6355658** | **17402607** | $**91221539** | $**245660688** |

---

---

| | |
|:---|:---|
| **34 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE G** 

**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 its 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. It includes the risk that a particular style of investing, such as the Fund's growth approach, may underperform the market generally.

**Focused Portfolio Risk**—Investments in a limited number of companies may have more risk because changes in the value of a single security may have a more significant effect, either negative or positive, on the Fund's net asset value, or NAV.

**Sector Risk**—The Fund may have more risk because it may invest to a significant extent in one or more particular market sectors, such as the information technology sector. 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.

**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, and because these investments may be 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.

**Capitalization Risk**—Investments in mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in mid-capitalization companies may have additional risks because these companies have limited product lines, markets or financial resources.

**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.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 35** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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 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

---

| | |
|:---|:---|
| **36 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

techniques and risk analyses in making investment decisions for the Fund, 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 H** 

**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 June 30, 2022.

**NOTE I** 

**Distributions to Shareholders** 

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

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Distributions paid from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ordinary income | $4004452 | $174089 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net long-term capital gains | 5285596 | 4163984 |
|  Total taxable distributions paid | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9290048 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4338073 |

---

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

---

| | |
|:---|:---|
|  Accumulated capital losses | $(11857721)<sup>(a)</sup> |
|  Other losses | (6830584)<sup>(b)</sup> |
|  Unrealized appreciation/(depreciation) | (92753868)<sup>(c)</sup> |
|  Total accumulated earnings/(deficit) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(111442173) |

---

(a) As of June 30, 2022, the Fund had a net capital loss carryforward of $11,857,721.

(b) As of June 30, 2022, the Fund had a qualified late-year ordinary loss deferral of $6,830,584.

(c) 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 and the tax deferral of losses on wash sales.

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 June 30, 2022, the Fund had a net short-term capital loss carryforward of $11,857,721, which may be carried forward for an indefinite period.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 37** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

During the current fiscal year, permanent differences primarily due to the utilization of earnings and profits distributed to shareholders on redemption of shares, the disallowance of a net operating loss, and taxable overdistributions resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

**NOTE J** 

**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 K** 

**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.

---

| | |
|:---|:---|
| **38 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** 

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $15.33 | $11.66 | $11.02 | $11.54 | $10.50 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income (loss)<sup>(a)(b)</sup> | (.01 | .02 | .01 | .02 | .08 |
|  Net realized and unrealized gain (loss) on investment transactions and foreign currency | (5.34) | 3.86 | .74 | .15 | 1.32 |
|  Contributions from Affiliates | – 0 | – 0 | .00 | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (5.35) | 3.88 | .75 | .17 | 1.40 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | – 0 | – 0 | – 0 | (.00 | (.08 |
|  Distributions from net realized gain on investment transactions | (.27 | (.21 | (.11 | (.69 | (.28 |
|  Total dividends and distributions | (.27 | (.21 | (.11 | (.69 | (.36 |
|  Net asset value, end of period | **$9.71** | **$15.33** | **$11.66** | **$11.02** | **$11.54** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)(e)</sup> | (35.49) | 33.53 | 6.75 | 2.72 | 13.43 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $6741 | $10284 | $1729 | $498 | $286 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(f)</sup><sup>‡</sup> | 1.12 | 1.15 | 1.22 | 1.29 | 1.29 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(f)</sup><sup>‡</sup> | 1.12 | 1.17 | 1.47 | 1.85 | 2.08 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>(b)</sup> | (.05 | .14 | .12 | .23 | .67 |
|  Portfolio turnover rate | 24 | 25 | 30 | 34 | 34 |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .01 | .01 | .01 |

---

See footnote summary on page 42.

---

| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 39** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $14.77 | $11.32 | $10.78 | $11.38 | $10.39 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income (loss)<sup>(a)(b)</sup> | (.12 | (.09 | (.08 | (.02 | .00 |
|  Net realized and unrealized gain (loss) on investment transactions and foreign currency | (5.11) | 3.75 | .73 | .11 | 1.30 |
|  Contributions from Affiliates | – 0 | – 0 | .00 | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (5.23) | 3.66 | .65 | .09 | 1.30 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | – 0 | – 0 | – 0 | – 0 | (.03 |
|  Distributions from net realized gain on investment transactions | (.27 | (.21 | (.11 | (.69 | (.28 |
|  Total dividends and distributions | (.27 | (.21 | (.11 | (.69 | (.31 |
|  Net asset value, end of period | **$9.27** | **$14.77** | **$11.32** | **$10.78** | **$11.38** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)(e)</sup> | (36.03) | 32.59 | 5.97 | 2.00 | 12.57 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $909 | $1909 | $426 | $291 | $172 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(f)</sup><sup>‡</sup> | 1.87 | 1.90 | 1.99 | 2.04 | 2.04 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(f)</sup><sup>‡</sup> | 1.87 | 1.93 | 2.27 | 2.59 | 2.89 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>(b)</sup> | (.89 | (.66 | (.79 | (.17 | .02 |
|  Portfolio turnover rate | 24 | 25 | 30 | 34 | 34 |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .01 | .01 | .01 |

---

See footnote summary on page 42.

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| | |
|:---|:---|
| **40 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $15.46 | $11.73 | $11.06 | $11.57 | $10.51 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income<sup>(a)(b)</sup> | .03 | .05 | .04 | .06 | .06 |
|  Net realized and unrealized gain (loss) on investment transactions and foreign currency | (5.41) | 3.89 | .75 | .13 | 1.37 |
|  Contributions from Affiliates | – 0 | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (5.38) | 3.94 | .79 | .19 | 1.43 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | – 0 | – 0 | (.01) | (.01 | (.09 |
|  Distributions from net realized gain on investment transactions | (.27 | (.21 | (.11) | (.69 | (.28 |
|  Total dividends and distributions | (.27 | (.21 | (.12) | (.70 | (.37 |
|  Net asset value, end of period | **$9.81** | **$15.46** | **$11.73** | **$11.06** | **$11.57** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)(e)</sup> | (35.38) | 33.84 | 7.11% | 3.01 | 13.61 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $367324 | $480418 | $160265 | $67054 | $45424 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(f)</sup><sup>‡</sup> | .87 | .90 | .98% | 1.04 | 1.04 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(f)</sup><sup>‡</sup> | .87 | .93 | 1.23% | 1.59 | 1.80 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>(b)</sup> | .24 | .32 | .37% | .54 | .53 |
|  Portfolio turnover rate | 24 | 25 | 30% | 34 | 34 |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .01% | .01 | .01 |

---

See footnote summary on page 42.

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| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 41** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(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. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total
investment return. 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.

(e) Includes the impact of reimbursements from the Adviser which enhanced the Fund's performance for the year ended
June 30, 2020 by .01%.

(f) In connection with the Fund's investments in affiliated underlying portfolios, the Fund incurs no direct expenses,
but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal
to the Fund's pro rata share of certain acquired fund fees and expenses, and for the years ended June 30, 2020, June 30, 2019 and June 30, 2018, such waiver amounted to .01%, .01% and .01%, respectively.

See notes to financial statements.

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| | |
|:---|:---|
| **42 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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------

**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** 

**To the Board of Directors and Shareholders of** 

**AB Concentrated International Growth Portfolio:** 

***Opinion on the Financial Statements***

We have audited the accompanying statement of assets and liabilities of AB Concentrated International Growth Portfolio (the "Fund") (one of the funds constituting AB Cap Fund, Inc. (the "Company")), including the portfolio of investments, as of June 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 funds constituting AB Cap Fund, Inc.) at June 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 Company'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 Company 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 Company is not required to have, nor were we engaged to perform, an audit of the Company'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 Company'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 CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 43** |

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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 June 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](g383570g91r55.jpg)

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

New York, New York

August 26, 2022

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| | |
|:---|:---|
| **44 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **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 earnings of the Fund for the taxable year ended June 30, 2022. For corporate shareholders, 3.68% of dividends paid qualify for the dividends received deduction. For individual shareholders, the Fund designates 83.39% as the maximum amount that may be considered qualified dividend income for individual shareholders. The Fund designates $5,285,596 of dividends paid as long-term capital gain dividends.

The Fund intends to make an election to pass through foreign taxes to its shareholders. For the taxable year ended June 30, 2022, $391,683 of foreign taxes may be passed through and the associated foreign source income for information reporting purposes is $5,701,760.

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 CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 45** |

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**BOARD OF DIRECTORS** 

---

| | |
|:---|:---|
| **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>  |

---

**OFFICERS** 

---

| | |
|:---|:---|
| **Debasashi (Dev) Chakrabarti**<sup>(2)</sup>**,** Vice President<br> **Mark Phelps**<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 | **Independent Registered Public Accounting Firm**<br> Ernst & Young LLP<br> One Manhattan West<br> New York, NY 10001<br>**Legal Counsel**<br> Seward & Kissel LLP<br> One Battery Park Plaza<br> New York, NY 10004 |

---

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 Concentrated International Growth Investment Team. Messrs. Chakrabarti and Phelps are the persons with the most significant responsibility for day-to-day management of the Fund's portfolio.

\* Mr. Phelps is expected to retire from the Adviser effective December 31, 2022.

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| | |
|:---|:---|
| **46 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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------

**MANAGEMENT OF THE FUND** 

**Board of Directors Information** 

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund's Directors 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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **INTERESTED DIRECTOR** | **INTERESTED DIRECTOR** |  |  |
| Onur Erzan,<sup>#</sup><br> 1345 Avenue of the Americas<br> New York, NY 10105<br> 46<br> (2021) | Senior Vice President of AllianceBernstein L.P. (the "Adviser"), Head of Global Client Group and Head of Private Wealth. He oversees AB's entire private wealth management business and third-party institutional and retail franchise, 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. Erzan is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, Erzan 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 CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 47** |

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**MANAGEMENT OF THE FUND** (continued)

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| **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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS** | **DISINTERESTED DIRECTORS** |  |  |
| Marshall C. Turner, Jr.,<sup>##</sup><br> *Chairman of the Board*<br> 80<br> (2014) | Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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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| **48 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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**MANAGEMENT OF THE FUND** (continued)

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|:---|:---|:---|:---|
| **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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<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> (2014) | 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 CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 49** |

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**MANAGEMENT OF THE FUND** (continued)

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|:---|:---|:---|:---|
| **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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<br> **(continued)** |  |  |
| Nancy P. Jacklin,<sup>##</sup><br> 74<br> (2014) | 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) <br>| 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 director or trustee of the AB Funds since April 2020. | 73 | Apollo Investment Corp. (business development company) since August 2011 |

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| **50 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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**MANAGEMENT OF THE FUND** (continued)

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|:---|:---|:---|:---|
| **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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<br> **(continued)** |  |  |
| Carol C. McMullen,<sup>##</sup><br> 67<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 nonprofit boards, and as a director or trustee of the AB Funds since June 2016. | 73 |  |

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| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 51** |

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**MANAGEMENT OF THE FUND** (continued)

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|:---|:---|:---|:---|
| **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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY<br>DIRECTORSHIPS<br>CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<br> **(continued)** |  |  |
| Garry L. Moody,<sup>##</sup><br> 70<br> (2014) | 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 the 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 Investment Company Institute's Board of Governors and the Independent Directors Council's Governing Council, where he serves as Chairman of its Governance Committee. 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 Fund's disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal & Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

\*\* There is no stated term of office for the Fund's Directors.

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

# Mr. Erzan is an "interested person" of the Fund, 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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| **52 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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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. |
| Mark Phelps\*<br> 62 | Vice President | Senior Vice President of the Adviser\*\*, and Chief Investment Officer of Concentrated Global Growth, with which he has been associated since prior to 2017. |
| Debasashi (Dev) Chakrabarti<br> 45 | Vice President | Senior Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. He is also Co-Chief Investment Officer – Concentrated Global Growth. |
| 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> 46 | 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 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 Fund's Officers is 1345 Avenue of the Americas, New York, NY 10105.

\*\* The Fund's Advisor, ABI and ABIS are affiliates of the fund.

The Fund's Statement of Additional Information ("SAI") has additional information about the Fund's Directors 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.

\* Mr. Phelps is expected to retire from the Adviser effective December 31, 2022.

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| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 53** |

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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 Directors (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 Fund's LRMP is adequately designed, has been implemented as intended, and has operated effectively since its inception. No material exceptions

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| **54 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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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 CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 55** |

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

The disinterested directors (the "directors") of AB Cap Fund, Inc. (the "Company") unanimously approved the continuance of the Company's Advisory Agreement with the Adviser (the "Advisory Agreement") in respect of AB Concentrated International Growth Portfolio (the "Fund") at a meeting held in-person on May 3-5, 2022 (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 Vice President for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

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.

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

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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 directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. 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 2020 and 2021 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, including those relating to its subsidiaries that provide transfer agency, distribution and brokerage services to 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

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| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 57** |

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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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to soft dollar arrangements (whereby investment advisers receive brokerage and research services from brokers that execute agency transactions for their clients); 12b-1 fees and sales charges received by the Fund's principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund's shares; brokerage commissions paid by the Fund to brokers affiliated with the Adviser; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Fund's profitability to the Adviser would be somewhat lower without these benefits. 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 provide (the "15(c) service provider"), showing the performance of the Class A Shares 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 performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3- and 5-year periods ended February 28, 2022 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review and their discussion with the Adviser of the reasons for the Fund's underperformance in the periods reviewed, the directors concluded that the Fund's investment performance was acceptable. The directors determined to continue to monitor the Fund's performance closely.

**Advisory Fees and Other Expenses** 

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared 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 paid by other funds. The directors compared the Fund's contractual advisory fee rate with a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

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| **58 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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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 Vice President and noted the differences between the Fund's proposed 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 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, 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 the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

In connection with their review of the Fund's advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund's latest fiscal year and the directors considered the Adviser's expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund's category were lowered by waivers or reimbursements by those funds' investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser's services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund's expense ratio was acceptable.

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| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 59** |

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**Economies of Scale** 

The directors noted that the advisory fee schedule for the Fund does not contain breakpoints and that they had discussed their strong preference for breakpoints in advisory contracts with the Adviser. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund's adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund's operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. The directors informed the Adviser that they would monitor the Fund's asset level (which was well below the level at which they would anticipate adding an initial breakpoint) and its profitability to the Adviser and anticipated revisiting the question of breakpoints in the future if circumstances warranted doing so.

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| **60 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

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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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|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 61** |

---

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**NOTES** 

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| | |
|:---|:---|
| **62 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

------

**NOTES** 

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| | |
|:---|:---|
| **abfunds.com** | **AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO <sup>\|</sup> 63** |

---

------

**NOTES** 

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| | |
|:---|:---|
| **64 <sup>\|</sup> AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO** | **abfunds.com** |

---

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![LOGO](g383570g43p34.jpg)

AB CONCENTRATED INTERNATIONAL GROWTH PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

CIG-0151-0622 ![LOGO](g383570g22c48.jpg)

------

**JUN** <sup>06.30.22</sup>

![LOGO](g383574g43p34.jpg)

ANNUAL REPORT

## AB GLOBAL CORE EQUITY PORTFOLIO
![LOGO](g383574covart_390.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](g383574g92f19.jpg) |

---

Dear Shareholder,

We're pleased to provide this report for the AB Global Core Equity Portfolio (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](g383574g55d83.jpg)

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

---

| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 1** |

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**ANNUAL REPORT** 

**August 5, 2022** 

This report provides management's discussion of fund performance for the AB Global Core Equity Portfolio for the annual reporting period ended June 30, 2022.

**The Fund's investment objective is to seek long-term growth of capital.** 

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

---

| | | |
|:---|:---|:---|
|  | 6 Months | 12 Months |
| **AB GLOBAL CORE EQUITY PORTFOLIO** |  |  |
| Class A Shares | -21.62% | -19.74% |
| Class C Shares | -21.86% | -20.29% |
| Advisor Class Shares<sup>1</sup> | -21.52% | -19.54% |
| MSCI ACWI (net) | -20.18% | -15.75% |

---

---

| | |
|:---|:---|
| 1 | Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

---

**INVESTMENT RESULTS** 

The table above shows the Fund's performance compared with its benchmark, the Morgan Stanley Capital International All Country World Index ("MSCI ACWI") (net), for the six- and 12-month periods ended June 30, 2022.

All share classes of the Fund underperformed the benchmark for both periods, before sales charges. During the 12-month period, overall sector selection detracted from performance, relative to the benchmark. An overweight to communication services and an underweight to energy detracted most, while overweights to health care and financials contributed. Security selection was also negative. Selection within the financials and technology sectors detracted, while selection in materials and consumer discretionary contributed. Country positioning (a result of bottom-up security analysis combined with fundamental research) detracted from performance; an overweight to South Korea detracted most, while an overweight to the United Kingdom contributed.

For the six-month period, overall sector selection detracted, as an underweight to energy and an overweight to communication services offset gains from an overweight to health care and an underweight to industrials. Stock selection contributed, particularly selection within consumer discretionary and consumer staples, while selection within financials and

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| | |
|:---|:---|
| **2 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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industrials detracted. Overall country positioning was negative: an underweight to Canada detracted most, while an overweight to the United Kingdom contributed.

The Fund did not utilize derivatives during the six- or 12-month periods.

**MARKET REVIEW AND INVESTMENT STRATEGY** 

US, international and emerging-market stocks declined during the 12-month period ended June 30, 2022. Throughout the first half of the period, accommodative monetary policy underpinned an accelerating global economic recovery, which sent equity markets higher. Volatility increased as persistent inflation prompted the US Federal Reserve (the "Fed") to take a hawkish pivot that raised expectations for an accelerated rate liftoff and led other central banks to tighten monetary policy. Inflation worsened after Russia's invasion of Ukraine caused energy and agricultural prices to surge and China's zero-COVID policy prompted new supply-chain concerns. The Fed raised interest rates three times during the second half of the period, including a 0.75% hike in June—its largest since 1994. The growing fear of recession led to sharp declines and periods of widespread volatility across equity markets. Fed Chair Powell's acknowledgement that the path to a soft landing had narrowed weighed on global equity market sentiment. Against a backdrop of rising rates, growth stocks came under pressure, triggering a rotation into value-oriented stocks. Within large-cap markets, both growth and value stocks declined in absolute terms, but value stocks outperformed growth stocks by a wide margin. Large-cap stocks outperformed small-cap stocks on a relative basis, but both declined in absolute terms.

The Fund's Senior Investment Management Team continues to invest in firms that are attractively valued in a core portfolio setup, and to minimize unintended factor risks.

**INVESTMENT POLICIES** 

The Fund invests primarily in a portfolio of equity securities of issuers from markets around the world. Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities, at least 40% of its net assets in securities of non-US companies, and invests in companies in at least three countries (including the United States).

The Fund is principally comprised of companies considered by the Adviser to offer good prospects for attractive returns relative to the general stock market. The Adviser seeks companies that are attractively valued and have the ability to generate high and sustainable returns on invested capital. In addition to returns on invested capital, other criteria that the Adviser considers include strong business

(continued on next page)

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| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 3** |

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fundamentals, capable management, prudent corporate governance, a strong balance sheet, strong earnings power, high earnings quality, low downside risk and substantial upside potential. In managing the Fund, the Adviser does not seek to have a bias towards any investment style, economic sector, country or company size. The Fund's holdings of non-US companies frequently include companies located in emerging markets, and at times emerging-market companies will make up a significant portion of the Fund.

Fluctuations in currency exchange rates can have a dramatic impact on the returns of equity securities. While the Adviser may hedge the foreign currency exposure resulting from the Fund's security positions through the use of currency-related derivatives, it is not required to do so.

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| | |
|:---|:---|
| **4 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**DISCLOSURES AND RISKS** 

**Benchmark Disclosure** 

**The MSCI ACWI is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio.** The MSCI ACWI (net, free float-adjusted, market capitalization weighted) represents the equity market performance of developed and emerging markets. MSCI makes no express or implied warranties or representations, and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices, any securities or financial products. This report is not approved, reviewed or produced by MSCI. Net returns include the reinvestment of dividends after deduction of non-US withholding tax. An investor cannot invest directly in an index or average, and their 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 its 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. It includes the risk that a particular style of investing may underperform the market generally.

**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.

**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 for the Fund, 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 GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 5** |

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**DISCLOSURES AND RISKS** (continued)

**An Important Note About Historical Performance** 

**The investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. 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 visiting www.abfunds.com.** 

**All fees and expenses related to the operation of the Fund have been deducted. Net asset value ("NAV") returns do not reflect sales charges; if sales charges were reflected, the Fund's quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.** 

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| | |
|:---|:---|
| **6 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** 

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

11/12/2014<sup>1</sup> TO 6/30/2022

![LOGO](g383574g00p03.jpg)

This chart illustrates the total value of an assumed $10,000 investment in AB Global Core Equity Portfolio Class A shares (from 11/12/2014<sup>1</sup> to 6/30/2022) as compared to the performance of the Fund's benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 11/12/2014.

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| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 7** |

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**HISTORICAL PERFORMANCE** (continued)

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

---

| | | |
|:---|:---|:---|
|  | NAV Returns | SEC Returns<br> (reflects applicable<br> sales charges) |
| **CLASS A SHARES** |  |  |
| 1 Year | -19.74% | -23.14% |
| 5 Years | 6.09% | 5.17% |
| Since Inception<sup>1</sup> | 6.43% | 5.83% |
| **CLASS C SHARES** |  |  |
| 1 Year | -20.29% | -21.06% |
| 5 Years | 5.31% | 5.31% |
| Since Inception<sup>1</sup> | 5.63% | 5.63% |
| **ADVISOR CLASS SHARES**<sup>2</sup> |  |  |
| 1 Year | -19.54% | -19.54% |
| 5 Years | 6.35% | 6.35% |
| Since Inception<sup>1</sup> | 6.68% | 6.68% |

---

**The Fund's current prospectus fee table shows the Fund's total annual operating expense ratios as 1.06%, 1.81% and 0.81% for Class A, Class C and Advisor Class shares, respectively, gross of any fee waivers or expense reimbursements. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.** 

1 Inception date: 11/12/2014.

---

| | |
|:---|:---|
| 2 | Please note that this share class is offered at NAV to eligible investors and the SEC returns are the same as the NAV returns. Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

---

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| | |
|:---|:---|
| **8 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** (continued)

**SEC AVERAGE ANNUAL RETURNS** 

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

**JUNE 30, 2022** (unaudited)

---

| | |
|:---|:---|
|  | SEC Returns<br> (reflects applicable<br>sales charges) |
| **CLASS A SHARES** |  |
| 1 Year | -23.14% |
| 5 Years | 5.17% |
| Since Inception<sup>1</sup> | 5.83% |
| **CLASS C SHARES** |  |
| 1 Year | -21.06% |
| 5 Years | 5.31% |
| Since Inception<sup>1</sup> | 5.63% |
| **ADVISOR CLASS SHARES**<sup>2</sup> |  |
| 1 Year | -19.54% |
| 5 Years | 6.35% |
| Since Inception<sup>1</sup> | 6.68% |

---

1 Inception date: 11/12/2014.

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| | |
|:---|:---|
| 2 | Please note that this share class is for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 9** |

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**EXPENSE EXAMPLE** 

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. 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>January 1, 2022** | **Ending<br>Account Value<br>June 30, 2022** | **Expenses Paid<br>During Period\*** | **Annualized<br>Expense Ratio\*** |
| **Class A** |  |  |  |  |
|  Actual | $1000 | $783.80 | $4.60 | 1.04% |
|  Hypothetical\*\* | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1019.64 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.21 | 1.04% |

---

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| | |
|:---|:---|
| **10 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**EXPENSE EXAMPLE** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account Value<br>January 1, 2022** | **Ending<br>Account Value<br>June 30, 2022** | **Expenses Paid<br>During Period\*** | **Annualized<br>Expense Ratio\*** |
| **Class C** |  |  |  |  |
|  Actual | $1000 | $781.40 | $7.91 | 1.79% |
|  Hypothetical\*\* | $1000 | $1015.92 | $8.95 | 1.79% |
| **Advisor Class** |  |  |  |  |
|  Actual | $1000 | $784.80 | $3.50 | 0.79% |
|  Hypothetical\*\* | $1000 | $1020.88 | $3.96 | 0.79% |

---

\* Expenses are equal to the classes' annualized expense ratios multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

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

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| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 11** |

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**PORTFOLIO SUMMARY** 

**June 30, 2022** (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $2,370.2

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![LOGO](g383574g00p01.jpg)

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![LOGO](g383574g00p02.jpg)

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| | |
|:---|:---|
| 1 | All data are as of June 30, 2022. The Fund's sector and country breakdowns are expressed as a percentage of total investments (excluding security lending collateral) and may vary over time.  |

---

Please note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard & Poor's. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the broad market. These sector classifications are broadly defined. The "Portfolio of Investments" section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Fund's prospectus.

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| | |
|:---|:---|
| **12 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**PORTFOLIO SUMMARY** (continued)

**June 30, 2022** (unaudited)

TEN LARGEST HOLDINGS<sup>1</sup>

---

| | | |
|:---|:---|:---|
| Company | U.S. $ Value | Percent of<br>Net Assets |
| Microsoft Corp. | $141003779 | 5.9% |
| Alphabet, Inc. – Class C | 96269674 | 4.1 |
| Otis Worldwide Corp. | 85816136 | 3.6 |
| Asahi Group Holdings Ltd. | 78396639 | 3.3 |
| Visa, Inc. – Class A | 77890668 | 3.3 |
| Samsung Electronics Co., Ltd. | 74639575 | 3.1 |
| Elevance Health, Inc. | 67920239 | 2.9 |
| Sanofi | 67283182 | 2.8 |
| Goldman Sachs Group, Inc. (The) | 66811085 | 2.8 |
| Meta Platforms, Inc. – Class A | 65255618 | 2.8 |
|  | $&nbsp;&nbsp;&nbsp;&nbsp;821286595 | 34.6% |

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1 Long-term investments.

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| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 13** |

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**PORTFOLIO OF INVESTMENTS** 

**June 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Company** | **<br>Shares** | **U.S. $ Value** |
|  **COMMON STOCKS – 99.6%** |  |  |
|  **Information Technology – 22.5%** |  |  |
|  **IT Services – 9.8%** |  |  |
|  Akamai Technologies, Inc.<sup>(a)</sup> | 500195 | $45682809 |
|  Cognizant Technology Solutions Corp. – Class A | 860643 | 58084796 |
|  PayPal Holdings, Inc.<sup>(a)</sup> | 741453 | 51783078 |
|  Visa, Inc. – Class A | 395605 | 77890668 |
|  |  | 233441351 |
|  **Semiconductors & Semiconductor Equipment – 2.3%** |  |  |
|  Applied Materials, Inc. | 436249 | 39689934 |
|  Infineon Technologies AG | 588170 | 14307544 |
|  |  | 53997478 |
|  **Software – 7.2%** |  |  |
|  Microsoft Corp. | 549016 | 141003779 |
|  SAP SE | 336159 | 30641049 |
|  |  | 171644828 |
|  **Technology Hardware, Storage & Peripherals – 3.2%** |  |  |
|  Samsung Electronics Co., Ltd. | 1692225 | 74639575 |
|  |  | 533723232 |
|  **Consumer Discretionary – 16.1%** |  |  |
|  **Diversified Consumer Services – 0.5%** |  |  |
|  Service Corp. International/US | 183940 | 12713933 |
|  **Hotels, Restaurants & Leisure – 6.3%** |  |  |
|  Compass Group PLC | 1360977 | 27942750 |
|  Galaxy Entertainment Group Ltd. | 8473000 | 50758135 |
|  Starbucks Corp. | 762609 | 58255701 |
|  Yum China Holdings, Inc. | 250532 | 12150802 |
|  |  | 149107388 |
|  **Internet & Direct Marketing Retail – 7.1%** |  |  |
|  Alibaba Group Holding Ltd.<sup>(a)</sup> | 2057100 | 29345341 |
|  Alibaba Group Holding Ltd. (ADR)<sup>(a)</sup> | 314089 | 35705637 |
|  Amazon.com, Inc.<sup>(a)</sup> | 429220 | 45587456 |
|  Prosus NV | 900290 | 58297058 |
|  |  | 168935492 |

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| | |
|:---|:---|
| **14 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **Company** | **<br>Shares** | **U.S. $ Value** | **U.S. $ Value** |
|  **Textiles, Apparel & Luxury Goods – 2.2%** |  |  |  |
|  adidas AG | 73550 | $| 13064759 |
|  Kering SA | 35251 |  | 18268018 |
|  NIKE, Inc. – Class B | 192027 |  | 19625159 |
|  |  |  | 50957936 |
|  |  |  | 381714749 |
|  **Financials – 14.0%** | **Financials – 14.0%** | **Financials – 14.0%** | **Financials – 14.0%** |
|  **Banks – 4.2%** | **Banks – 4.2%** | **Banks – 4.2%** | **Banks – 4.2%** |
|  ABN AMRO Bank NV (GDR) | 1800110 |  | 20227047 |
|  Citigroup, Inc. | 404778 |  | 18615740 |
|  Mitsubishi UFJ Financial Group, Inc. | 6917200 |  | 37007381 |
|  Wells Fargo & Co. | 605409 |  | 23713871 |
|  |  |  | 99564039 |
|  **Capital Markets – 9.8%** |  |  |  |
|  BlackRock, Inc. – Class A | 85386 |  | 52003489 |
|  Credit Suisse Group AG (REG) | 6400099 |  | 36530792 |
|  Goldman Sachs Group, Inc. (The) | 224938 |  | 66811085 |
|  Julius Baer Group Ltd. | 778274 |  | 36104197 |
|  London Stock Exchange Group PLC | 161231 |  | 15044740 |
|  Moody's Corp. | 95257 |  | 25907046 |
|  |  |  | 232401349 |
|  |  |  | 331965388 |
|  **Health Care – 13.7%** |  |  |  |
|  **Biotechnology – 0.6%** |  |  |  |
|  Alnylam Pharmaceuticals, Inc.<sup>(a)</sup> | 98680 |  | 14392478 |
|  **Health Care Equipment & Supplies – 3.1%** |  |  |  |
|  Koninklijke Philips NV | 1390846 |  | 29831606 |
|  Medtronic PLC | 481027 |  | 43172173 |
|  |  |  | 73003779 |
|  **Health Care Providers & Services – 2.9%** |  |  |  |
|  Elevance Health, Inc. | 140744 |  | 67920239 |
|  **Life Sciences Tools & Services – 1.9%** |  |  |  |
|  Thermo Fisher Scientific, Inc. | 84872 |  | 46109260 |
|  **Pharmaceuticals – 5.2%** |  |  |  |
|  Roche Holding AG | 169956 |  | 56816265 |
|  Sanofi | 667187 |  | 67283182 |
|  |  |  | 124099447 |
|  |  |  | 325525203 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 15** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **<br>Shares** | **U.S. $ Value** |
|  **Communication Services – 11.2%** |  |  |
|  **Diversified Telecommunication Services – 2.7%** |  |  |
|  Comcast Corp. – Class A | 1611726 | $63244128 |
|  **Entertainment – 1.7%** |  |  |
|  Electronic Arts, Inc. | 332119 | 40402277 |
|  **Interactive Media & Services – 6.8%** |  |  |
|  Alphabet, Inc. – Class C<sup>(a)</sup> | 44010 | 96269674 |
|  Meta Platforms, Inc. – Class A<sup>(a)</sup> | 404686 | 65255618 |
|  |  | 161525292 |
|  |  | 265171697 |
|  **Industrials – 8.2%** |  |  |
|  **Building Products – 3.6%** |  |  |
|  Otis Worldwide Corp. | 1214322 | 85816136 |
|  **Machinery – 4.6%** |  |  |
|  Dover Corp. | 299538 | 36339950 |
|  Parker-Hannifin Corp. | 165543 | 40731855 |
|  Volvo AB – Class B | 2019487 | 31421986 |
|  |  | 108493791 |
|  |  | 194309927 |
|  **Consumer Staples – 5.5%** |  |  |
|  **Beverages – 5.5%** |  |  |
|  Asahi Group Holdings Ltd. | 2383935 | 78396639 |
|  Coca-Cola Co., (The) | 818418 | 51486677 |
|  |  | 129883316 |
|  **Energy – 4.1%** |  |  |
|  **Oil, Gas & Consumable Fuels – 4.1%** |  |  |
|  Cheniere Energy, Inc. | 125499 | 16695132 |
|  Neste Oyj | 325884 | 14495641 |
|  Shell PLC | 2480195 | 64591177 |
|  |  | 95781950 |
|  **Real Estate – 1.7%** |  |  |
|  **Real Estate Management & Development – 1.7%** |  |  |
|  CBRE Group, Inc. – Class A<sup>(a)</sup> | 557591 | 41044273 |
|  **Materials – 1.5%** |  |  |
|  **Chemicals – 1.5%** |  |  |
|  Linde PLC | 126360 | 36332291 |

---

---

| | |
|:---|:---|
| **16 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **Company** | | **<br>Shares** | **U.S. $ Value** |
|  **Utilities – 1.1%** |  |  |  |
|  **Electric Utilities – 1.1%** |  |  |  |
|  Iberdrola SA<sup>(b)</sup> |  | 2410912 | $25100999 |
|  Total Common Stocks <br>(cost $2,482,030,696) |  |  | 2360553025 |
|  **SHORT-TERM INVESTMENTS – 0.3%** | **SHORT-TERM INVESTMENTS – 0.3%** |  |  |
|  **Investment Companies – 0.2%** |  |  |  |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio –Class AB, 1.30%<sup>(c)(d)(e)</sup> <br>(cost $4,313,839) |  | 4313839 | 4313839 |
|  |  | **Principal<br>Amount<br>(000)** |  |
|  **Time Deposits – 0.1%** |  |  |  |
|  BBH, Grand Cayman<br>(1.20)%, 07/01/2022 | CHF | 17 | 18034 |
| &nbsp;&nbsp;&nbsp;&nbsp; 0.52%, 07/01/2022 | GBP | 199 | 241666 |
|  Citibank, London <br>(0.78)%, 07/01/2022 | EUR | 129 | 135458 |
|  Hong Kong & Shanghai Bank, Hong Kong <br>0.37%, 07/04/2022 | HKD | 1882 | 239902 |
|  SEB, Stockholm <br>0.01%, 07/01/2022 | SEK | 10 | 933 |
|  Sumitomo, Tokyo <br>(0.36)%, 07/01/2022 | JPY | 109404 | 806338 |
|  Total Time Deposits <br>(cost $1,442,331) |  |  | 1442331 |
|  Total Short-Term Investments <br>(cost $5,756,170) |  |  | 5756170 |
|  **Total Investments Before Security Lending Collateral for Securities Loaned – 99.9%** <br>(cost $2,487,786,866) |  |  | 2366309195 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 17** |

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------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **<br>Shares** | **U.S. $ Value** |
|  **INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED – 0.0%** |  |  |
|  **Investment Companies – 0.0%** |  |  |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.30%<sup>(c)(d)(e)</sup> <br>(cost $541,768) | 541768 | $541768 |
|  **Total Investments – 99.9%** <br>(cost $2,488,328,634) |  | 2366850963 |
|  Other assets less liabilities – 0.1% |  | 3373384 |
|  **Net Assets – 100.0%** |  | $**2370224347** |

---

(a) Non-income producing security.

(b) Represents entire or partial securities out on loan. See Note E for securities lending information.

(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.

Currency Abbreviations:

CHF – Swiss Franc

EUR – Euro

GBP – Great British Pound

HKD – Hong Kong Dollar

JPY – Japanese Yen

SEK – Swedish Krona

Glossary:

ADR – American Depositary Receipt

GDR – Global Depositary Receipt

REG – Registered Shares

See notes to financial statements.

---

| | |
|:---|:---|
| **18 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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------

**STATEMENT OF ASSETS & LIABILITIES** 

**June 30, 2022** 

---

| | |
|:---|:---|
| **Assets** |  |
|  Investments in securities, at value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (cost $2,483,473,027) | $2361995356 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers (cost $4,855,607—including investment of cash collateral for securities loaned of $541,768) | 4855607 |
|  Unaffiliated dividends receivable | 6357678 |
|  Receivable for investment securities sold | 6343776 |
|  Receivable for capital stock sold | 4003855 |
|  Affiliated dividends receivable | 2685 |
|  Total assets | 2383558957 |
| **Liabilities** |  |
|  Due to Custodian (includes foreign currency overdraft of $807 with a cost of $812) | 865 |
|  Payable for investment securities purchased and foreign currency transactions | 6936750 |
|  Payable for capital stock redeemed | 3933407 |
|  Advisory fee payable | 1494678 |
|  Payable for collateral received on securities loaned | 541768 |
|  Administrative fee payable | 22621 |
|  Transfer Agent fee payable | 16475 |
|  Distribution fee payable | 4830 |
|  Accrued expenses and other liabilities | 383216 |
|  Total liabilities | 13334610 |
|  Net Assets | $**2370224347** |
| **Composition of Net Assets** |  |
|  Capital stock, at par | $17462 |
|  Additional paid-in capital | 2419166355 |
|  Accumulated loss | (48959470) |
|  | $**2370224347** |

---

**Net Asset Value Per Share—11 billion shares of capital stock authorized, $.0001 par value** 

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Net Assets** | **Shares<br>Outstanding** | **Net Asset<br>Value** |
| **A** | $19471516 | 1440131 | $13.52 \* |
| **C** | $758911 | 57249 | $13.26 |
| **Advisor** | $&nbsp;&nbsp;&nbsp;&nbsp;2349993920 | 173126042 | $&nbsp;&nbsp;&nbsp;&nbsp;13.57 |

---

(a) Includes securities on loan with a value of $501,830 (see Note E).

\* The maximum offering price per share for Class A shares was $14.12 which reflects a sales charge of 4.25%. 

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 19** |

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------

**STATEMENT OF OPERATIONS** 

**Year Ended June 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Investment Income** |  |  |
|  Dividends |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (net of foreign taxes withheld of $2,862,436) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42926064 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers | 10449 |  |
|  Securities lending income | 581182 | $43517695 |
| **Expenses** |  |  |
|  Advisory fee (see Note B) | 19648315 |  |
|  Transfer agency—Class A | 2756 |  |
|  Transfer agency—Class C | 140 |  |
|  Transfer agency—Advisor Class | 310067 |  |
|  Distribution fee—Class A | 58730 |  |
|  Distribution fee—Class C | 9878 |  |
|  Custody and accounting | 287335 |  |
|  Registration fees | 143087 |  |
|  Administrative | 94315 |  |
|  Audit and tax | 69747 |  |
|  Directors' fees | 50319 |  |
|  Legal | 50220 |  |
|  Printing | 15711 |  |
|  Miscellaneous | 70274 |  |
|  Total expenses | 20810894 |  |
|  Less: expenses waived and reimbursed by the Adviser (see Note B and Note E) | (5461) |  |
|  Net expenses |  | 20805433 |
|  Net investment income |  | 22712262 |
| **Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions** |  |  |
|  Net realized gain (loss) on: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment transactions |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;127130916 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions |  | (525268) |
|  Net change in unrealized appreciation/depreciation on: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments |  | (715389882) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency denominated assets and liabilities |  | (183496) |
|  Net loss on investment and foreign currency transactions |  | (588967730) |
|  **Net Decrease in Net Assets from Operations** |  | $**(566255468)** |

---

See notes to financial statements.

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| | |
|:---|:---|
| **20 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**STATEMENT OF CHANGES IN NET ASSETS** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended**<br>**June 30,**<br>**2022** | **Year Ended**<br>**June 30,**<br>**2021** |
| **Increase (Decrease) in Net Assets from Operations** |  |  |
|  Net investment income | $22712262 | $20060433 |
|  Net realized gain on investment and foreign currency transactions | 126605648 | 98711975 |
|  Net change in unrealized appreciation/depreciation on investments and foreign currency denominated assets and liabilities | (715573378) | 473282024 |
|  Net increase (decrease) in net assets from operations | (566255468) | 592054432 |
| **Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | (1102469) | (115326) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | (39486) | – 0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | (126697451) | (13822505) |
| **Capital Stock Transactions** |  |  |
|  Net increase | 561708133 | 691248738 |
|  Total increase (decrease) | (132386741) | 1269365339 |
| **Net Assets** |  |  |
|  Beginning of period | 2502611088 | 1233245749 |
|  End of period | $**2370224347** | $**2502611088** |

---

See notes to financial statements.

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| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 21** |

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------

**NOTES TO FINANCIAL STATEMENTS** 

**June 30, 2022** 

**NOTE A** 

**Significant Accounting Policies** 

AB Cap Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 12 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Global Core Equity Portfolio (the "Fund"), a diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1, and Class 2 shares. Class B, Class R, Class K, Class I, Class Z, Class T, Class 1, and Class 2 shares are not currently being offered. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. Advisor Class shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All 11 classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. 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 Company's Board of Directors (the "Board").

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| | |
|:---|:---|
| **22 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

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 between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (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

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| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 23** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

**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,

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| | |
|:---|:---|
| **24 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Investments in**<br> **Securities** | **Level 1** | **Level 2** |  | **Level 3** | **Total** |
|  **Assets:** |  |  |  |  |  |
|  Common Stocks: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information Technology | $414135064 | $119588168 |  | $– 0 | $533723232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumer Discretionary | 184038688 | 197676061 |  | – 0 | 381714749 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financials | 187051231 | 144914157 |  | – 0 | 331965388 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Health Care | 171594150 | 153931053 |  | – 0 | 325525203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Communication Services | 265171697 | – 0 |  | – 0 | 265171697 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrials | 162887941 | 31421986 |  | – 0 | 194309927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumer Staples | 51486677 | 78396639 |  | – 0 | 129883316 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Energy | 16695132 | 79086818 |  | – 0 | 95781950 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Real Estate | 41044273 | – 0 |  | – 0 | 41044273 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Materials | 36332291 | – 0 |  | – 0 | 36332291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Utilities | – 0 | 25100999 |  | – 0 | 25100999 |
|  Short–Term Investments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment Companies | 4313839 | – 0 |  | – 0 | 4313839 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Time Deposits | – 0 | 1442331 |  | – 0 | 1442331 |
|  Investments of Cash Collateral for Securities Loaned in Affiliated Money Market Fund | 541768 | – 0 |  | – 0 | 541768 |
|  Total Investments in Securities | 1535292751 | 831558212 | <sup>†</sup> | – 0 | 2366850963 |
|  **Other Financial Instruments\*** | – 0 | – 0 |  | – 0 | – 0 |
|  **Total** | $**1535292751** | $**831558212** |  | $**– 0** | $**2366850963** |

---

† A significant portion of the Fund's foreign equity investments are categorized as Level 2 investments since they
are valued using fair value prices based on third party vendor modeling tools to the extent available, see Note A.1.

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|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 25** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

\* 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. 

**3. Currency Translation** 

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at the rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

**4. 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. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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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| | |
|:---|:---|
| **26 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**5. 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.

**6. Class Allocations** 

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each portfolio or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

**7. 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 investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .75% of the first $2.5 billion of the Fund's average daily net assets, .65% of the excess over $2.5 billion up to $5 billion, and .60% of the excess of $5 billion. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) on an annual basis (the "Expense Caps") to 1.15%, 1.90% and .90% of the daily average net assets for Class A, Class C and Advisor Class shares, respectively. For the year ended June 30, 2022, there was no such reimbursement. The Expense Caps may not be terminated by the Adviser before October 31, 2022.

---

| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 27** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended June 30, 2022, the reimbursement for such services amounted to $94,315.

The Fund compensates AllianceBernstein Investor Services, Inc. ("ABIS"), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $184,105 for the year ended June 30, 2022.

AllianceBernstein Investments, Inc. (the "Distributor"), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund's shares. The Distributor has advised the Fund that it has retained front-end sales charges of $376 from the sale of Class A shares and received $19 and $0 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended June 30, 2022.

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, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive 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 June 30, 2022, such waiver amounted to $4,455.

---

| | |
|:---|:---|
| **28 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Market Value<br>6/30/21<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Sales<br>Proceeds<br>(000)** | **Market Value**<br>**6/30/22<br>(000)** | **Dividend<br>Income<br>(000)** |
|  Government Money Market Portfolio | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6187 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;364934 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;366807 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4314 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10 |
|  Government Money Market Portfolio*\**  | 97978 | 196650 | 294086 | 542 | 10 |
|  Total |  |  |  | $4856 | $20 |

---

\* Investment of cash collateral for securities lending transactions (see Note E).

**NOTE C** 

**Distribution Services Agreement** 

The Fund has adopted a Distribution Services Agreement (the "Agreement") pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .25% of the Fund's average daily net assets attributable to Class A shares and 1% of the Fund's average daily net assets attributable to Class C shares. There are no distribution and servicing fees on the Advisor Class. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund's operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $872 for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund's shares.

**NOTE D** 

**Investment Transactions** 

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

---

| | | |
|:---|:---|:---|
|  | **Purchases** | **Sales** |
|  Investment securities (excluding U.S. government securities) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1764286126 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1300496892 |
|  U.S. government securities | – 0 | – 0 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 29** |

---

------

**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;2513421479 |
|  Gross unrealized appreciation | $225630261 |
|  Gross unrealized depreciation | (372200777) |
|  Net unrealized depreciation | $(146570516) |

---

**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 Fund did not engage in derivative transactions for the year ended June 30, 2022.

**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 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 E** 

**Securities Lending** 

The Fund may enter into securities lending transactions. Under the Fund's securities lending program, all loans of securities will be collateralized continually by cash collateral and/or non-cash collateral. Non-cash collateral will include only securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. The Fund cannot sell or repledge any non-cash collateral, such collateral will not be reflected in the portfolio of investments. If a loan is collateralized by cash, the Fund will be compensated for the loan from a portion of the net return from the income earned on cash collateral after a rebate is paid to the borrower (in some cases, this rebate may be a "negative rebate" or fee paid by the borrower to the

---

| | |
|:---|:---|
| **30 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

Fund in connection with the loan), and payments are made for fees of the securities lending agent and for certain other administrative expenses. If the Fund receives non-cash collateral, the Fund will receive a fee from the borrower generally equal to a negotiated percentage of the market value of the loaned securities. The Fund will have the right to call a loan and obtain the securities loaned at any time on notice to the borrower within the normal and customary settlement time for the securities. While the securities are on loan, the borrower is obligated to pay the Fund amounts equal to any dividend income or other distributions from the securities; however, these distributions will not be afforded the same preferential tax treatment as qualified dividends. The Fund will not be able to exercise voting rights with respect to any securities during the existence of a loan, but will have the right to regain ownership of loaned securities in order to exercise voting or other ownership rights. Collateral received and securities loaned are marked to market daily to ensure that the securities loaned are secured by collateral. The lending agent currently invests the cash collateral received in Government Money Market Portfolio, an eligible money market vehicle, in accordance with the investment restrictions of the Fund, and as approved by the Board. The collateral received on securities loaned is recorded as an asset as well as a corresponding liability in the statement of assets and liabilities. The collateral will be adjusted the next business day to maintain the required collateral amount. The amounts of securities lending income from the borrowers and Government Money Market Portfolio are reflected in the statement of operations. When the Fund earns net securities lending income from Government Money Market Portfolio, the income is inclusive of a rebate expense paid to the borrower. In connection with the cash collateral investment by the Fund in the Government Money Market Portfolio, the Adviser has agreed to waive a portion of the Fund's share of the advisory fees of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. When the Fund lends securities, its investment performance will continue to reflect changes in the value of the securities loaned. A principal risk of lending portfolio securities is that the borrower may fail to return the loaned securities upon termination of the loan and that the collateral will not be sufficient to replace the loaned securities. The lending agent has agreed to indemnify the Fund in the case of default of any securities borrower.

---

| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 31** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

A summary of the Fund's transactions surrounding securities lending for the year ended June 30, 2022 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | **Government Money<br>Market Portfolio** | **Government Money<br>Market Portfolio** |
| **Market<br>Value of<br>Securities<br>on Loan\*** |<br>**Cash<br>Collateral\*** |<br>**Market<br>Value of<br>Non-Cash<br>Collateral\*** |<br>**Income from<br>Borrowers** | **Income<br>Earned** | **Advisory Fee<br>Waived** |
| $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;501830 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;541768 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;571405 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9777 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1006 |

---

\* As of June 30, 2022.

**NOTE F** 

**Capital Stock** 

Each class consists of 1,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>June 30, 2022 | Year Ended<br> June 30, 2021 | Year Ended<br>June 30, 2022 | Year Ended<br>June 30, 2021 |
| **Class A** | **Class A** |  |  |  |
|  Shares sold | 288873 | 158331 | $4847681 | $2474598 |
|  Shares issued in reinvestment of dividends and distributions | 64932 | 7634 | 1098643 | 114655 |
|  Shares converted from Class C | 861 | 8490 | 15685 | 148817 |
|  Shares redeemed | (240023) | (181885) | (3662987) | (2947954) |
|  **Net increase (decrease)** | **114643** | **(7430** | $**2299022** | $**(209884** |
| **Class C** |  |  |  |  |
|  Shares sold | 4168 | 11714 | $71507 | $183006 |
|  Shares issued in reinvestment of dividends and distributions | 1853 | – 0 | 30865 | – 0 |
|  Shares converted to Class A | (880) | (8648) | (15685) | (148817) |
|  Shares redeemed | (8068) | (14619) | (125290) | (209743) |
|  **Net decrease** | **(2927)** | **(11553** | $**(38603)** | $**(175554** |

---

---

| | |
|:---|:---|
| **32 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>June 30, 2022 | Year Ended<br> June 30, 2021 | Year Ended<br>June 30, 2022 | Year Ended<br>June 30, 2021 |
| **Advisor Class** | **Advisor Class** |  |  |  |
|  Shares sold | 47947148 | 62179087 | $797624290 | $945466889 |
|  Shares issued in reinvestment of dividends and distributions | 6664397 | 822392 | 113028181 | 12385215 |
|  Shares redeemed | (21581096) | (17315034) | (351204757) | (266217928) |
|  **Net increase** | **33030449** | **45686445** | $**559447714** | $**691634176** |

---

**NOTE G** 

**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 its 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. It includes the risk that a particular style of investing may underperform the market generally.

**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.

**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

---

| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 33** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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 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 for the Fund, 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.

---

| | |
|:---|:---|
| **34 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE H** 

**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 June 30, 2022.

**NOTE I** 

**Distributions to Shareholders** 

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

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Distributions paid from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ordinary income | $83979467 | $13937831 |
| &nbsp;&nbsp;&nbsp;&nbsp; Long-term capital gains | 43859939 | – 0 |
|  Total taxable distributions paid | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;127839406 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13937831 |

---

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

---

| | |
|:---|:---|
|  Undistributed ordinary income | $26385431 |
|  Undistributed capital gains | 71415792 |
|  Unrealized appreciation/(depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(146760693)<sup>(a)</sup> |
|  Total accumulated earnings/(deficit) | $(48959470) |

---

(a) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the
tax deferral of losses on wash sales.

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 June 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 resulted in a net increase in accumulated loss and a net increase in additional paid-in capital. These reclassifications had no effect on net assets.

**NOTE J** 

**Recent Accounting Pronouncements** 

In March 2020, the Financial Accounting Standards Board issued an Accounting Standards Update, ASU 2020-04, "Reference Rate Reform

---

| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 35** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

(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 K** 

**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.

---

| | |
|:---|:---|
| **36 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** 

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $17.63 | $12.83 | $13.31 | $12.42 | $11.72 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income<sup>(a)(b)</sup> | .10 | .12 | .12 | .17 | .16 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (3.42) | 4.77 | (.16) | 1.02 | 1.09 |
|  Contributions from Affiliates | – 0 | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (3.32) | 4.89 | (.04) | 1.19 | 1.25 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | (.14 | (.09 | (.13) | (.12 | (.13 |
|  Distributions from net realized gain on investment and foreign currency transactions | (.65 | – 0 | (.31) | (.18 | (.42 |
|  Total dividends and distributions | (.79 | (.09 | (.44) | (.30 | (.55 |
|  Net asset value, end of period | **$13.52** | **$17.63** | **$12.83** | **$13.31** | **$12.42** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup> | (19.74) | 38.20 | (.48)% | 9.95 | 10.72 |
|  **Ratios/Supplemental<br>Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $19471 | $23362 | $17101 | $15851 | $12925 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements | 1.03 | 1.05 | 1.08% | 1.13 | 1.15 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements | 1.04 | 1.06 | 1.08% | 1.13 | 1.15 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>(b)</sup> | .62 | .79 | .89% | 1.33 | 1.31 |
|  Portfolio turnover rate | 50 | 46 | 52% | 47 | 45 |

---

See footnote summary on page 39.

---

| | |
|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 37** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** |  | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $17.29 | $12.61 |  | $13.10 | $12.29 | $11.63 |
|  **Income From Investment Operations** |  |  |  |  |  |  |
|  Net investment income (loss)<sup>(a)(b)</sup> | (.03 | .00 | <sup>(c)</sup> | .02 | .09 | .06 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (3.34) | 4.68 |  | (.15) | .99 | 1.08 |
|  Contributions from Affiliates | – 0 | – 0 |  | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (3.37) | 4.68 |  | (.13) | 1.08 | 1.14 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |  |
|  Dividends from net investment income | (.01 | – 0 |  | (.05) | (.09 | (.06 |
|  Distributions from net realized gain on investment and foreign currency transactions | (.65 | – 0 |  | (.31) | (.18 | (.42 |
|  Total dividends and distributions | (.66 | – 0 |  | (.36) | (.27 | (.48 |
|  Net asset value, end of period | **$13.26** | **$17.29** |  | **$12.61** | **$13.10** | **$12.29** |
|  **Total Return** |  |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup> | (20.29) | 37.11 | % | (1.17)% | 9.12 | 9.87 |
|  **Ratios/Supplemental<br>Data** |  |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $759 | $1040 |  | $905 | $553 | $150 |
|  Ratio to average net assets of: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements | 1.79 | 1.81 | % | 1.84% | 1.90 | 1.90 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements | 1.79 | 1.81 | % | 1.84% | 1.90 | 1.92 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>(b)</sup> | (.15 | .03 | % | .15% | .69 | .49 |
|  Portfolio turnover rate | 50 | 46 | % | 52% | 47 | 45 |

---

See footnote summary on page 39.

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| **38 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $17.69 | $12.87 | $13.35 | $12.46 | $11.75 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income<sup>(a)(b)</sup> | .14 | .17 | .15 | .20 | .18 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (3.43) | 4.77 | (.15) | 1.02 | 1.10 |
|  Contributions from Affiliates | – 0 | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (3.29) | 4.94 | .00 <sup>(c)</sup> | 1.22 | 1.28 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | (.18 | (.12 | (.17) | (.15 | (.15 |
|  Distributions from net realized gain on investment and foreign currency transactions | (.65 | – 0 | (.31) | (.18 | (.42 |
|  Total dividends and distributions | (.83 | (.12 | (.48) | (.33 | (.57 |
|  Net asset value, end of period | **$13.57** | **$17.69** | **$12.87** | **$13.35** | **$12.46** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup> | (19.54) | 38.54 | (.25)% | 10.21 | 11.02 |
|  **Ratios/Supplemental<br>Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $2349994 | $2478209 | $1215240 | $789168 | $465263 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements | .79 | .81 | .84% | .90 | .90 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements | .79 | .81 | .84% | .90 | .90 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>(b)</sup> | .86 | 1.08 | 1.17% | 1.61 | 1.42 |
|  Portfolio turnover rate | 50 | 46 | 52% | 47 | 45 |

---

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Amount is less than $0.005.

(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. Initial sales charge or contingent deferred sales charge is not reflected in the calculation of total
investment return. Total investment 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 for a period of less than one year is not annualized.

See notes to financial statements.

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| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 39** |

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**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** 

**To the Board of Directors and Shareholders of** 

**AB Global Core Equity Portfolio:** 

***Opinion on the Financial Statements***

We have audited the accompanying statement of assets and liabilities of AB Global Core Equity Portfolio (the "Fund") (one of the funds constituting AB Cap Fund, Inc. (the "Company")), including the portfolio of investments, as of June 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 funds constituting AB Cap Fund, Inc.) at June 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 Company'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 Company 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 Company is not required to have, nor were we engaged to perform, an audit of the Company'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 Company'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 disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 30, 2022, by correspondence with

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| **40 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** (continued)

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](g383574g91r55.jpg)

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

New York, New York

August 26, 2022

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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 June 30, 2022.

For corporate shareholders, 26.91% of dividends paid qualify for the dividends received deduction. For individual shareholders, the Fund designates 59.75% of dividends paid as qualified dividend income.

The Fund designates $43,859,939 of dividends paid as long-term capital gains 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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| **42 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**BOARD OF DIRECTORS** 

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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 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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| | |
|:---|:---|
| **David Dalgas**<sup>(2)</sup>**,** Vice President<br> **Klaus Ingemann**<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> Brown Brothers Harriman & Co.<br> 50 Post Office Square<br> Boston, MA 02110<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 | **Independent Registered Public Accounting Firm**<br> Ernst & Young LLP<br> One Manhattan West<br> New York, NY 10001<br>**Legal Counsel**<br> Seward & Kissel LLP<br> One Battery Park Plaza<br> New York, NY 10004 |

---

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 Investment Policy Team. Messrs. Dalgas and Ingemann are the investment professionals with the most significant responsibility for the day-to-day management of the Fund's portfolio.

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| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 43** |

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**MANAGEMENT OF THE FUND** 

**Board of Directors Information** 

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

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| | | | |
|:---|:---|:---|:---|
| **NAME,**<br> **ADDRESS\*, AGE,**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S)**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER**<br> **INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX**<br> **OVERSEEN BY**<br> **DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY**<br> **DIRECTOR** |
| **INTERESTED DIRECTOR** | **INTERESTED DIRECTOR** |  |  |
| Onur Erzan,<sup>#</sup><br> 1345 Avenue of the Americas<br> New York, NY 10105<br> 46<br> (2021) | Senior Vice President of AllianceBernstein L.P. (the "Adviser"), Head of Global Client Group and Head of Private Wealth. He oversees AB's entire private wealth management business and third-party institutional and retail franchise, 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. Erzan is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, Erzan 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,**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S)**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER**<br> **INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX**<br> **OVERSEEN BY**<br> **DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS** | **DISINTERESTED DIRECTORS** |  |  |
| Marshall C. Turner, Jr.,<sup>##</sup><br> *Chairman of the Board*<br> 80<br> (2014) | Private Investor since prior to 2017. Former Chairman and CEO of DuPont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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,**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S)**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER**<br> **INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX**<br> **OVERSEEN BY**<br> **DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<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<br> Corporation since<br> April 2011 |
| Michael J. Downey,<sup>##</sup><br> 78<br> (2014) | 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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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,**<br> **ADDRESS\*, AGE,**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S)**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER**<br> **INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX**<br> **OVERSEEN BY**<br> **DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<br> **(continued)** |  |  |
| Nancy P. Jacklin,<sup>##</sup><br> 74<br> (2014) | Private Investor since prior to<br> 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 GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 47** |

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**MANAGEMENT OF THE FUND** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **NAME,**<br> **ADDRESS\*, AGE,**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S)**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER**<br> **INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX**<br> **OVERSEEN BY**<br> **DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<br> **(continued)** |  |  |
| Carol C. McMullen,<sup>##</sup><br> 67<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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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **NAME,**<br> **ADDRESS\*, AGE,**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S)**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER**<br> **INFORMATION\*\*\*** | **PORTFOLIOS<br>IN AB FUND<br>COMPLEX**<br> **OVERSEEN BY**<br> **DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<br> **(continued)** |  |  |
| Garry L. Moody,<sup>##</sup><br> 70<br> (2014) | 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 the 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 Investment Company Institute's Board of Governors and the Independent Directors Council's Governing Council, where he serves as Chairman of its Governance Committee. 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 Fund's disinterested Directors 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 Fund's Directors.

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

# Mr. Erzan is an "interested person" of the Fund, 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:

---

| | | |
|:---|:---|:---|
| Onur Erzan<br>46 | President and Chief Executive Officer | See biography above. |
| David Dalgas<br>51 | Vice President | Senior Vice President of the Adviser\*\*, since prior to 2017. Co-Chief Investment Officer - Global Core Equity since 2018. |
| Klaus Ingemann<br> 48 | Vice President | Senior Vice President of the Adviser\*\*, since prior to 2017. Co-Chief Investment Officer - Global Core Equity since 2018. |
| 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> 46 | 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 ("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 Fund's Officers is 1345 Avenue of the Americas, New York, NY 10105.

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

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

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| **50 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**Operation and Effectiveness of the Funds' 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 Directors/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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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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| **52 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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

The disinterested directors (the "directors") of AB Cap Fund, Inc. (the "Company") unanimously approved the continuance of the Company's Advisory Agreement with the Adviser in respect of AB Global Core Equity Portfolio (the "Fund") at a meeting held in-person on May 3-5, 2022 (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 Vice President for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

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.

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

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|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 53** |

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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 directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. 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 2020 and 2021 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, including those relating to its subsidiaries that provide transfer agency, distribution and brokerage services to 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

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| **54 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to soft dollar arrangements (whereby investment advisers receive brokerage and research services from brokers that execute agency transactions for their clients); 12b-1 fees and sales charges received by the Fund's principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund's shares; brokerage commissions paid by the Fund to brokers affiliated with the Adviser; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser's profitability would be somewhat lower without these benefits. 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 Class A Shares 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 performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3- and 5-year periods ended February 28, 2022 (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review and their discussion with the Adviser of the reasons for the Fund's underperformance in the periods reviewed, the directors concluded that the Fund's investment performance was acceptable. The directors determined to continue to monitor the Fund's performance closely.

**Advisory Fees and Other Expenses** 

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared 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 paid by other funds. The directors compared the Fund's contractual effective advisory fee rate with a peer group median. Taking into

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|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 55** |

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account the administrative expense reimbursement paid to the Adviser in the latest fiscal year, the directors noted that the Adviser's total rate of compensation was equal to the median.

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 in a report from the Fund's Senior Vice President 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 the Fund's, on the other. 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, 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 the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

In connection with their review of the Fund's advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund's latest fiscal year. The Adviser had agreed to cap the Fund's expenses, but the directors noted that the Fund's expense ratio was currently below the level of the Adviser's cap. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund's category were lowered by waivers or reimbursements by those funds'

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|:---|:---|
| **56 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser's services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund's expense ratio was acceptable.

**Economies of Scale** 

The directors noted that the advisory fee schedule for the Fund contains breakpoints and that the Fund's net assets were higher than a breakpoint level. Accordingly, the Fund's current effective advisory fee rate reflected a reduction due to the breakpoint and would be further reduced to the extent the net assets of the Fund increase. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund's adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund's operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund's breakpoint arrangements were acceptable and provide a means for sharing any economies of scale.

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|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 57** |

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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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| **58 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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**NOTES** 

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|:---|:---|
| **abfunds.com** | **AB GLOBAL CORE EQUITY PORTFOLIO <sup>\|</sup> 59** |

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**NOTES** 

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|:---|:---|
| **60 <sup>\|</sup> AB GLOBAL CORE EQUITY PORTFOLIO** | **abfunds.com** |

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![LOGO](g383574g43p34.jpg)

AB GLOBAL CORE EQUITY PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

GCE-0151-0622 ![LOGO](g383574g22c48.jpg)

------

**JUN** <sup>06.30.22</sup>

![LOGO](g416088g43p34.jpg)

ANNUAL REPORT

## AB INTERNATIONAL STRATEGIC CORE PORTFOLIO
![LOGO](g416088covart_390.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](g416088g92f19.jpg) |

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Dear Shareholder,

We're pleased to provide this report for the AB International Strategic Core Portfolio (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](g416088g55d83.jpg)

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 1** |

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**ANNUAL REPORT** 

**August 12, 2022** 

This report provides management's discussion of fund performance for the AB International Strategic Core Portfolio for the annual reporting period ended June 30, 2022.

**The Fund's investment objective is to seek long-term growth of capital.** 

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

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| | | |
|:---|:---|:---|
|  | 6 Months | 12 Months |
| **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** |  |  |
| Class A Shares | -17.62% | -14.79% |
| Class C Shares | -17.94% | -15.45% |
| Advisor Class Shares<sup>1</sup> | -17.53% | -14.66% |
| Class Z Shares<sup>1</sup> | -17.53% | -14.60% |
| MSCI EAFE Index (net) | -19.57% | -17.77% |

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|:---|:---|
| 1 | Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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**INVESTMENT RESULTS** 

The table above shows the Fund's performance compared to its benchmark, the Morgan Stanley Capital International Europe, Australasia and the Far East ("MSCI EAFE") Index (net), for the six- and 12-month periods ended June 30, 2022.

All share classes of the Fund outperformed the benchmark for both periods, before sales charges. During the 12-month period, overall stock selection contributed, relative to the benchmark, led by selection within the consumer-staples and industrials sectors, while selection in materials and financials detracted. Sector selection also contributed. Underweights to consumer discretionary and industrials contributed, while an overweight to technology and an underweight to energy detracted. Country allocation (a result of bottom-up security analysis combined with fundamental research) detracted, led by an overweight to Singapore; an underweight to Germany contributed.

For the six-month period, security selection drove outperformance. Selection within consumer staples and technology contributed most, while selection within financials and materials detracted. Sector selection was also positive, particularly an underweight to consumer discretionary and an overweight to communication services, while overweights to

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| **2 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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technology and energy detracted. Country selection detracted from performance. An underweight to Japan detracted, while an underweight to Germany contributed.

The Fund utilized derivatives in the form of currency forwards for hedging purposes and futures for investment purposes, which detracted from absolute performance for both periods.

**MARKET REVIEW AND INVESTMENT STRATEGY** 

US, international and emerging-market stocks declined during the 12-month period ended June 30, 2022. Throughout the first half of the period, accommodative monetary policy underpinned an accelerating global economic recovery, which sent equity markets higher. Volatility increased as persistent inflation prompted the US Federal Reserve (the "Fed") to take a hawkish pivot that raised expectations for an accelerated rate liftoff and led other central banks to tighten monetary policy. Inflation worsened after Russia's invasion of Ukraine caused energy and agricultural prices to surge and China's zero-COVID policy prompted new supply-chain concerns. The Fed raised interest rates three times during the second half of the period, including a 0.75% hike in June—its largest since 1994. The growing fear of recession led to sharp declines and periods of widespread volatility across equity markets. Fed Chair Powell's acknowledgement that the path to a soft landing had narrowed weighed on global equity market sentiment. Against a backdrop of rising rates, growth stocks came under pressure, triggering a rotation into value-oriented stocks. Within large-cap markets, both growth and value stocks declined in absolute terms, but value stocks outperformed growth stocks by a wide margin. Large-cap stocks outperformed small-cap stocks on a relative basis, but both declined in absolute terms.

The Fund's Senior Investment Management Team (the "Team") continues to look for companies that offer a combination of quality and stability at attractive prices, the three core elements that underpin the Team's investment philosophy in good and bad times. For long-term, outcome-oriented investors, the Team believes that companies with these features are best positioned to deliver strong returns through changing environments.

**INVESTMENT POLICIES** 

The Adviser seeks to achieve the Fund's investment objective by investing, under normal circumstances, primarily in common stocks of non-US companies, and in companies in at least three countries other than the United States.

The Fund invests in companies that are determined by the Adviser to offer favorable long-term sustainable profitability, price stability, and

(continued on next page)

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| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 3** |

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attractive valuations. The Adviser employs an integrated approach that combines both fundamental and quantitative research to identify attractive investment opportunities. Factors that the Adviser considers in this regard include: a company's record and projections of profitability, accuracy and availability of information with respect to the company, success and experience of management, competitive advantage, low stock price volatility, and liquidity of the company's securities. The Adviser compares these results to the characteristics of the general stock markets to determine the relative attractiveness of each company at a given time. The Adviser weighs economic, political and market factors in making investment decisions. The Adviser seeks to manage the Fund so that it is subject to less share price volatility than many other international mutual funds, although there can be no guarantee that the Adviser will be successful in this regard.

The Fund primarily invests in mid- and large-capitalization companies, which are currently defined for the Fund as companies that have market capitalizations of $1.5 billion or more. The Fund's holdings of non-US companies will generally include some companies located in emerging markets.

Fluctuations in currency exchange rates can have a dramatic impact on the returns of equity securities. The Adviser may adjust the foreign currency exposure resulting from the Fund's security positions through the use of currency-related derivatives, primarily in an effort to minimize the currency risk to which the Fund is subject. However, the Adviser is not required to use such derivatives.

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| **4 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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**DISCLOSURES AND RISKS** 

**Benchmark Disclosure** 

**The MSCI EAFE Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio.** The MSCI EAFE Index (net, free float-adjusted market capitalization weighted) represents the equity market performance of developed markets, excluding the US and Canada. MSCI makes no express or implied warranties or representations, and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices, any securities or financial products. This report is not approved, reviewed or produced by MSCI. Net returns include the reinvestment of dividends after deduction of non-US withholding tax. 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 markets fluctuate. 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. It includes the risk that a particular style of investing may underperform the market generally.

**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. These risks may be heightened with respect to investments in emerging-market countries, where there may be an increased amount of economic, political and social instability.

**Currency Risk:** Fluctuations in currency exchange rates may negatively affect the value of the Fund's investments or reduce its returns.

**Capitalization Risk:** Investments in mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in mid-capitalization companies may have additional risks because these companies have limited product lines, markets or financial resources.

**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 INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 5** |

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**DISCLOSURES AND RISKS** (continued)

**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 for the Fund, 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 investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. 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 visiting www.abfunds.com.** 

**All fees and expenses related to the operation of the Fund have been deducted. Net asset value ("NAV") returns do not reflect sales charges; if sales charges were reflected, the Fund's quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.** 

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| **6 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** 

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

7/29/2015<sup>1</sup> TO 6/30/2022

![LOGO](g416088g10m10.jpg)

This chart illustrates the total value of an assumed $10,000 investment in AB International Strategic Core Portfolio Class A shares (from 7/29/2015<sup>1</sup> to 6/30/2022) as compared to the performance of the Fund's benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 7/29/2015.

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|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 7** |

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**HISTORICAL PERFORMANCE** (continued)

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

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| | | |
|:---|:---|:---|
|  | NAV Returns | SEC Returns<br> (reflects applicable<br>sales charges) |
| **CLASS A SHARES** |  |  |
| 1 Year | -14.79% | -18.40% |
| 5 Years | 1.94% | 1.06% |
| Since Inception<sup>1</sup> | 3.17% | 2.53% |
| **CLASS C SHARES** |  |  |
| 1 Year | -15.45% | -16.30% |
| 5 Years | 1.16% | 1.16% |
| Since Inception<sup>1</sup> | 2.39% | 2.39% |
| **ADVISOR CLASS SHARES**<sup>2</sup> |  |  |
| 1 Year | -14.66% | -14.66% |
| 5 Years | 2.19% | 2.19% |
| Since Inception<sup>1</sup> | 3.42% | 3.42% |
| **CLASS Z SHARES**<sup>2</sup> |  |  |
| 1 Year | -14.60% | -14.60% |
| Since Inception<sup>1</sup> | -0.80% | -0.80% |

---

**The Fund's prospectus fee table shows the Fund's total annual operating expense ratios as 1.01%, 1.78%, 0.76% and 0.77% for Class A, Class C, Advisor Class and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements reduced the Fund's total annual operating expense ratios to 1.00%, 1.75%, 0.75% and 0.75% for Class A, Class C, Advisor Class and Class Z shares, respectively. These waivers/reimbursements may not be terminated before October 31, 2022, and may be extended by the Adviser for one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.** 

1 Inception dates: 7/29/2015 for all share classes except Class Z; 11/20/2019 for Class Z shares.

---

| | |
|:---|:---|
| 2 | These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

---

---

| | |
|:---|:---|
| **8 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

---

------

**HISTORICAL PERFORMANCE** (continued)

**SEC AVERAGE ANNUAL RETURNS** 

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

**JUNE 30, 2022** (unaudited)

---

| | |
|:---|:---|
|  | SEC Returns<br> (reflects applicable<br>sales charges) |
| **CLASS A SHARES** |  |
| 1 Year | -18.40% |
| 5 Years | 1.06% |
| Since Inception<sup>1</sup> | 2.53% |
| **CLASS C SHARES** |  |
| 1 Year | -16.30% |
| 5 Years | 1.16% |
| Since Inception<sup>1</sup> | 2.39% |
| **ADVISOR CLASS SHARES**<sup>2</sup> |  |
| 1 Year | -14.66% |
| 5 Years | 2.19% |
| Since Inception<sup>1</sup> | 3.42% |
| **CLASS Z SHARES**<sup>2</sup> |  |
| 1 Year | -14.60% |
| Since Inception<sup>1</sup> | -0.80% |

---

1 Inception dates: 7/29/2015 for all share classes except Class Z; 11/20/2019 for Class Z shares.

---

| | |
|:---|:---|
| 2 | Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 9** |

---

------

**EXPENSE EXAMPLE** 

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. 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.

This 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>January 1, 2022** | **Ending<br>Account Value<br>June 30, 2022** | **Expenses Paid<br>During Period\*** | **Annualized<br>Expense Ratio\*** |
| **Class A** |  |  |  |  |
|  Actual | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000 | $823.80 | $4.52 | 1.00% |
|  Hypothetical\*\* | $1000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1019.84 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.01 | 1.00% |

---

---

| | |
|:---|:---|
| **10 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

---

------

**EXPENSE EXAMPLE** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account Value<br>January 1, 2022** | **Ending<br>Account Value<br>June 30, 2022** | **Expenses Paid<br>During Period\*** | **Annualized<br>Expense Ratio\*** |
| **Class C** |  |  |  |  |
|  Actual | $1000 | $820.60 | $7.90 | 1.75% |
|  Hypothetical\*\* | $1000 | $1016.12 | $8.75 | 1.75% |
| **Advisor Class** |  |  |  |  |
|  Actual | $1000 | $824.70 | $3.39 | 0.75% |
|  Hypothetical\*\* | $1000 | $1021.08 | $3.76 | 0.75% |
| **Class Z** |  |  |  |  |
|  Actual | $1000 | $824.70 | $3.39 | 0.75% |
|  Hypothetical\*\* | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1021.08 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.76 | 0.75% |

---

\* Expenses are equal to the classes' annualized expense ratios multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

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

---

| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 11** |

---

------

**PORTFOLIO SUMMARY** 

**June 30, 2022** (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $590.6

------

![LOGO](g416088g58w73.jpg)

------

![LOGO](g416088g40h59.jpg)

---

| | |
|:---|:---|
| 1 | All data are as of June 30, 2022. The Fund's sector and country breakdowns are 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). "Other" country weightings represent 2.3% or less in the following: Belgium, Finland, Germany, Italy, Portugal, South Africa, Spain and Taiwan.  |

---

Please note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard & Poor's. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the broad market. These sector classifications are broadly defined. The "Portfolio of Investments" section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Fund's prospectus.

---

| | |
|:---|:---|
| **12 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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------

**PORTFOLIO SUMMARY** (continued)

**June 30, 2022** (unaudited)

TEN LARGEST HOLDINGS<sup>1</sup>

---

| | | |
|:---|:---|:---|
| Company | U.S. $ Value | Percent of<br>Net Assets |
| Roche Holding AG | $22565908 | 3.8% |
| Novo Nordisk A/S – Class B | 20037623 | 3.4 |
| Equinor ASA | 17118359 | 2.9 |
| Royal Bank of Canada | 16049530 | 2.7 |
| Sanofi | 16000135 | 2.7 |
| RELX PLC | 15693432 | 2.7 |
| Oversea-Chinese Banking Corp., Ltd. | 15407619 | 2.6 |
| Nippon Telegraph & Telephone Corp. | 15090660 | 2.6 |
| Constellation Software, Inc./Canada | 14745705 | 2.5 |
| Shell PLC | 14732818 | 2.5 |
|  | $&nbsp;&nbsp;&nbsp;&nbsp;167441789 | 28.4% |

---

1 Long-term investments.

---

| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 13** |

---

------

**PORTFOLIO OF INVESTMENTS** 

**June 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **COMMON STOCKS – 95.7%** |  |  |
|  **Financials – 23.3%** |  |  |
|  **Banks – 16.0%** |  |  |
|  Bank Leumi Le-Israel BM | 1440188 | $12883957 |
|  DBS Group Holdings Ltd. | 658800 | 14096614 |
|  Hang Seng Bank Ltd. | 159200 | 2821167 |
|  KBC Group NV | 142530 | 8018878 |
|  Mitsubishi UFJ Financial Group, Inc. | 1816200 | 9716765 |
|  Nordea Bank Abp | 556820 | 4918683 |
|  Oversea-Chinese Banking Corp., Ltd. | 1878280 | 15407619 |
|  Royal Bank of Canada | 165749 | 16049530 |
|  Toronto-Dominion Bank (The) | 160820 | 10546004 |
|  |  | 94459217 |
|  **Capital Markets – 3.8%** |  |  |
|  IG Group Holdings PLC | 616815 | 5205956 |
|  London Stock Exchange Group PLC | 32230 | 3007437 |
|  Partners Group Holding AG | 6359 | 5742793 |
|  Singapore Exchange Ltd. | 1243100 | 8469152 |
|  |  | 22425338 |
|  **Insurance – 3.5%** |  |  |
|  Admiral Group PLC | 189860 | 5198396 |
|  NN Group NV | 157390 | 7128647 |
|  Sampo Oyj – Class A | 196038 | 8567085 |
|  |  | 20894128 |
|  |  | 137778683 |
|  **Health Care – 14.1%** |  |  |
|  **Health Care Equipment & Supplies – 1.2%** |  |  |
|  ConvaTec Group PLC<sup>(a)</sup> | 1163500 | 3189133 |
|  Getinge AB – Class B | 167210 | 3875320 |
|  |  | 7064453 |
|  **Health Care Providers & Services – 2.0%** |  |  |
|  Galenica AG<sup>(a)</sup> | 151186 | 11630217 |
|  **Pharmaceuticals – 10.9%** |  |  |
|  Novartis AG (REG) | 70030 | 5937188 |
|  Novo Nordisk A/S – Class B | 180678 | 20037623 |
|  Roche Holding AG | 67502 | 22565908 |
|  Sanofi | 158659 | 16000135 |
|  |  | 64540854 |
|  |  | 83235524 |
|  **Information Technology – 12.0%** |  |  |
|  **IT Services – 3.9%** |  |  |
|  Capgemini SE | 64857 | 11185246 |
|  Nomura Research Institute Ltd. | 192200 | 5157984 |
|  Otsuka Corp. | 218000 | 6487876 |
|  |  | 22831106 |

---

---

| | |
|:---|:---|
| **14 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Semiconductors & Semiconductor Equipment – 1.8%** |  |  |
|  ASML Holding NV | 6570 | $3103917 |
|  Taiwan Semiconductor Manufacturing Co., Ltd. | 476000 | 7628544 |
|  |  | 10732461 |
|  **Software – 6.3%** |  |  |
|  Avast PLC<sup>(a)</sup> | 1098650 | 6914289 |
|  Constellation Software, Inc./Canada | 9933 | 14745705 |
|  Nice Ltd.<sup>(b)</sup> | 14118 | 2724338 |
|  Open Text Corp. | 111840 | 4230492 |
|  Oracle Corp. Japan | 62300 | 3628050 |
|  SAP SE | 54363 | 4955213 |
|  |  | 37198087 |
|  |  | 70761654 |
|  **Communication Services – 11.5%** |  |  |
|  **Diversified Telecommunication Services – 7.5%** |  |  |
|  BCE, Inc. | 192550 | 9464449 |
|  Eurazeo SE | 60360 | 3749813 |
|  HKT Trust & HKT Ltd. – Class SS | 8452000 | 11351402 |
|  Nippon Telegraph & Telephone Corp. | 525200 | 15090660 |
|  TELUS Corp. | 219910 | 4898089 |
|  |  | 44554413 |
|  **Entertainment – 1.8%** |  |  |
|  GungHo Online Entertainment, Inc. | 352900 | 6260956 |
|  Ubisoft Entertainment SA<sup>(b)</sup> | 95320 | 4203929 |
|  |  | 10464885 |
|  **Interactive Media & Services – 2.2%** |  |  |
|  Auto Trader Group PLC | 1345280 | 9110980 |
|  Kakaku.com, Inc. | 224600 | 3730397 |
|  |  | 12841377 |
|  |  | 67860675 |
|  **Industrials – 9.6%** |  |  |
|  **Air Freight & Logistics – 0.6%** |  |  |
|  Kuehne & Nagel International AG (REG) | 14691 | 3490618 |
|  **Building Products – 1.1%** |  |  |
|  Assa Abloy AB – Class B | 319440 | 6816864 |
|  **Commercial Services & Supplies – 0.6%** |  |  |
|  Secom Co., Ltd. | 58600 | 3618241 |
|  **Electrical Equipment – 0.8%** |  |  |
|  Schneider Electric SE (Paris) | 37416 | 4458325 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 15** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Professional Services – 5.9%** |  |  |
|  Experian PLC | 54050 | $1586952 |
|  Meitec Corp. | 349500 | 5634224 |
|  RELX PLC | 577998 | 15693432 |
|  Wolters Kluwer NV | 122770 | 11898621 |
|  |  | 34813229 |
|  **Road & Rail – 0.6%** |  |  |
|  Canadian National Railway Co. | 30737 | 3457435 |
|  |  | 56654712 |
|  **Consumer Staples – 9.1%** |  |  |
|  **Beverages – 0.8%** |  |  |
|  Diageo PLC | 111680 | 4823762 |
|  **Food & Staples Retailing – 2.7%** |  |  |
|  Jeronimo Martins SGPS SA | 176780 | 3832300 |
|  Koninklijke Ahold Delhaize NV | 462140 | 12029051 |
|  |  | 15861351 |
|  **Food Products – 2.7%** |  |  |
|  Nestle SA (REG) | 59941 | 7005470 |
|  Salmar ASA | 129689 | 9181490 |
|  |  | 16186960 |
|  **Tobacco – 2.9%** |  |  |
|  Philip Morris International, Inc. | 66630 | 6579046 |
|  Swedish Match AB | 1046150 | 10673387 |
|  |  | 17252433 |
|  |  | 54124506 |
|  **Energy – 5.4%** |  |  |
|  **Oil, Gas & Consumable Fuels – 5.4%** |  |  |
|  Equinor ASA | 491266 | 17118359 |
|  Shell PLC | 565716 | 14732818 |
|  |  | 31851177 |
|  **Consumer Discretionary – 4.9%** |  |  |
|  **Hotels, Restaurants & Leisure – 0.6%** |  |  |
|  Compass Group PLC | 165080 | 3389322 |
|  **Household Durables – 0.5%** |  |  |
|  Sony Group Corp. | 36800 | 3001289 |
|  **Internet & Direct Marketing Retail – 0.5%** |  |  |
|  ZOZO, Inc. | 164500 | 2976251 |
|  **Leisure Products – 1.6%** |  |  |
|  Bandai Namco Holdings, Inc. | 133600 | 9431221 |
|  **Specialty Retail – 0.6%** |  |  |
|  Kingfisher PLC | 1133690 | 3388017 |

---

---

| | |
|:---|:---|
| **16 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Textiles, Apparel & Luxury Goods – 1.1%** |  |  |
|  LVMH Moet Hennessy Louis Vuitton SE | 6410 | $3928548 |
|  Pandora A/S | 43570 | 2768111 |
|  |  | 6696659 |
|  |  | 28882759 |
|  **Real Estate – 3.7%** |  |  |
|  **Equity Real Estate Investment Trusts (REITs) – 2.5%** |  |  |
|  Link REIT | 560700 | 4581687 |
|  Merlin Properties Socimi SA | 425560 | 4121270 |
|  Nippon Building Fund, Inc. | 1256 | 6268340 |
|  |  | 14971297 |
|  **Real Estate Management & Development – 1.2%** |  |  |
|  Daito Trust Construction Co., Ltd. | 30500 | 2638437 |
|  Vonovia SE | 132791 | 4108616 |
|  |  | 6747053 |
|  |  | 21718350 |
|  **Utilities – 1.1%** |  |  |
|  **Electric Utilities – 1.1%** |  |  |
|  EDP – Energias de Portugal SA | 311170 | 1450157 |
|  Enel SpA | 921983 | 5056359 |
|  |  | 6506516 |
|  **Materials – 1.0%** |  |  |
|  **Chemicals – 0.4%** |  |  |
|  Akzo Nobel NV | 35656 | 2331828 |
|  **Metals & Mining – 0.6%** |  |  |
|  Anglo American PLC | 94550 | 3380027 |
|  |  | 5711855 |
|  Total Common Stocks <br>(cost $549,989,796) |  | 565086411 |
|  **SHORT-TERM INVESTMENTS – 3.8%** |  |  |
|  **Investment Companies – 3.8%** |  |  |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.30%<sup>(c)(d)(e)</sup> <br>(cost $22,753,353) | 22753353 | 22753353 |
|  **Total Investments – 99.5%** <br>(cost $572,743,149) |  | 587839764 |
|  Other assets less liabilities – 0.5% |  | 2733423 |
|  **Net Assets – 100.0%** |  | $**590573187** |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 17** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

**FUTURES (see Note D)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **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** |
|  MSCI EAFE Futures | 134 | September 2022 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12439220 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(96480) |

---

**FORWARD CURRENCY EXCHANGE CONTRACTS (see Note D)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Contracts to<br>Deliver<br>(000)** | **Contracts to<br>Deliver<br>(000)** | **In Exchange<br>For<br>(000)** | **In Exchange<br>For<br>(000)** | **Settlement<br>Date** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  Bank of America, NA | USD | 2244 | CHF | 2224 | 07/13/2022 | $86451 |
|  Bank of America, NA | JPY | 676988 | USD | 5330 | 07/15/2022 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;337865 |
|  Bank of America, NA | USD | 1975 | JPY | 256596 | 07/15/2022 | (82993) |
|  Bank of America, NA | AUD | 4191 | USD | 2943 | 07/21/2022 | 49565 |
|  Bank of America, NA | CAD | 5230 | USD | 4107 | 07/21/2022 | 43399 |
|  Bank of America, NA | USD | 3072 | CAD | 3978 | 07/21/2022 | 18847 |
|  Bank of America, NA | USD | 2680 | CAD | 3423 | 07/21/2022 | (20428) |
|  Bank of America, NA | USD | 5761 | EUR | 5538 | 07/28/2022 | 51398 |
|  Bank of America, NA | NOK | 190852 | USD | 19092 | 09/22/2022 | (319299) |
|  Barclays Bank PLC | AUD | 1303 | USD | 929 | 07/21/2022 | 29167 |
|  Barclays Bank PLC | AUD | 1825 | USD | 1250 | 07/21/2022 | (9497) |
|  Barclays Bank PLC | USD | 4589 | GBP | 3661 | 08/25/2022 | (127969) |
|  BNP Paribas SA | SGD | 45741 | USD | 33439 | 07/08/2022 | 515333 |
|  BNP Paribas SA | TWD | 38852 | USD | 1339 | 07/27/2022 | 30160 |
|  Brown Brothers Harriman & Co. | SGD | 2052 | USD | 1479 | 07/08/2022 | 2478 |
|  Brown Brothers Harriman & Co. | USD | 714 | SGD | 993 | 07/08/2022 | 1152 |
|  Brown Brothers Harriman & Co. | USD | 2315 | SGD | 3205 | 07/08/2022 | (7654) |
|  Brown Brothers Harriman & Co. | CHF | 562 | USD | 584 | 07/13/2022 | (5096) |
|  Brown Brothers Harriman & Co. | USD | 2538 | CHF | 2431 | 07/13/2022 | 10036 |
|  Brown Brothers Harriman & Co. | JPY | 514216 | USD | 3962 | 07/15/2022 | 170215 |
|  Brown Brothers Harriman & Co. | JPY | 86269 | USD | 635 | 07/15/2022 | (1663) |
|  Brown Brothers Harriman & Co. | USD | 10369 | JPY | 1325929 | 07/15/2022 | (591318) |
|  Brown Brothers Harriman & Co. | AUD | 1324 | USD | 951 | 07/21/2022 | 37476 |
|  Brown Brothers Harriman & Co. | USD | 1086 | CAD | 1414 | 07/21/2022 | 12151 |
|  Brown Brothers Harriman & Co. | USD | 1383 | CAD | 1772 | 07/21/2022 | (6496) |
|  Brown Brothers Harriman & Co. | EUR | 1157 | USD | 1225 | 07/28/2022 | 10749 |
|  Brown Brothers Harriman & Co. | USD | 8042 | EUR | 7488 | 07/28/2022 | (183204) |
|  Brown Brothers Harriman & Co. | USD | 4439 | SEK | 44490 | 09/22/2022 | (75031) |
|  Citibank, NA | USD | 1499 | AUD | 2078 | 07/21/2022 | (64480) |
|  Citibank, NA | USD | 2506 | EUR | 2333 | 07/28/2022 | (57766) |
|  Credit Suisse International | USD | 723 | CAD | 945 | 07/21/2022 | 10709 |
|  Deutsche Bank AG | USD | 2298 | CAD | 2966 | 07/21/2022 | 6670 |
|  Deutsche Bank AG | USD | 929 | ILS | 3102 | 07/25/2022 | (40324) |
|  Deutsche Bank AG | USD | 1304 | GBP | 1077 | 08/25/2022 | 8550 |
|  Goldman Sachs Bank USA | USD | 45095 | JPY | 5725750 | 07/15/2022 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2870084) |
|  Goldman Sachs Bank USA | TWD | 174880 | USD | 6016 | 07/27/2022 | 126138 |
|  Goldman Sachs Bank USA | EUR | 884 | USD | 946 | 07/28/2022 | 18562 |
|  HSBC Bank USA | USD | 664 | SGD | 928 | 07/08/2022 | 4201 |
|  HSBC Bank USA | AUD | 1836 | USD | 1281 | 07/21/2022 | 13284 |
|  HSBC Bank USA | USD | 643 | ILS | 2217 | 07/25/2022 | (8075) |

---

---

| | |
|:---|:---|
| **18 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Counterparty** | **Contracts to<br>Deliver<br>(000)** | **Contracts to<br>Deliver<br>(000)** | **In Exchange<br>For<br>(000)** | **In Exchange<br>For<br>(000)** | **Settlement<br>Date** | **Unrealized<br>Appreciation/<br>(Depreciation)** |
|  JPMorgan Chase Bank, NA | USD | 1191 | AUD | 1722 | 07/21/2022 | $(1999) |
|  JPMorgan Chase Bank, NA | USD | 702 | CAD | 903 | 07/21/2022 | (901) |
|  JPMorgan Chase Bank, NA | USD | 1281 | GBP | 1059 | 08/25/2022 | 9147 |
|  Morgan Stanley Capital Services LLC | USD | 50727 | AUD | 70776 | 07/21/2022 | (1869418) |
|  Morgan Stanley Capital Services LLC | EUR | 3691 | USD | 3907 | 07/28/2022 | 32974 |
|  Morgan Stanley Capital Services LLC | EUR | 4433 | USD | 4628 | 07/28/2022 | (24757) |
|  Morgan Stanley Capital Services LLC | USD | 3973 | GBP | 3254 | 08/25/2022 | (8181) |
|  Royal Bank of Scotland PLC | ILS | 42983 | USD | 12904 | 07/25/2022 | 584887 |
|  Royal Bank of Scotland PLC | EUR | 4137 | USD | 4414 | 07/28/2022 | 71700 |
|  Royal Bank of Scotland PLC | EUR | 3343 | USD | 3490 | 07/28/2022 | (19054) |
|  Royal Bank of Scotland PLC | USD | 53420 | EUR | 50477 | 07/28/2022 | (439932) |
|  Royal Bank of Scotland PLC | SEK | 27674 | USD | 2742 | 09/22/2022 | 27473 |
|  UBS AG | CHF | 1142 | USD | 1193 | 07/13/2022 | (3319) |
|  UBS AG | JPY | 244981 | USD | 1914 | 07/15/2022 | 106919 |
|  UBS AG | CAD | 91734 | USD | 73357 | 07/21/2022 | 2089701 |
|  UBS AG | USD | 643 | TWD | 18950 | 07/27/2022 | (4356) |
|  UBS AG | EUR | 3446 | USD | 3634 | 07/28/2022 | 16759 |
|  UBS AG | SEK | 73924 | USD | 7255 | 09/22/2022 | 3782 |
|  |  |  |  |  |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2305396) |

---

(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 June 30, 2022, the aggregate market value of these securities amounted to $21,733,639 or 3.7% of net assets.

(b) Non-income producing security.

(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.

---

| | |
|:---|:---|
| Currency Abbreviations:<br>AUD – Australian Dollar <br> CAD – Canadian Dollar <br> CHF – Swiss Franc <br> EUR – Euro <br> GBP – Great British Pound <br> ILS – Israeli Shekel  | JPY – Japanese Yen <br> NOK – Norwegian Krone<br> SEK – Swedish Krona <br> SGD – Singapore Dollar <br> TWD – New Taiwan Dollar<br> USD – United States Dollar |

---

Glossary:

EAFE – Europe, Australia, and Far East

MSCI – Morgan Stanley Capital International

REG – Registered Shares

REIT – Real Estate Investment Trust

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 19** |

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------

**STATEMENT OF ASSETS & LIABILITIES** 

**June 30, 2022** 

---

| | |
|:---|:---|
| **Assets** |  |
|  Investments in securities, at value <br>Unaffiliated issuers (cost $549,989,796) | $565086411 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers (cost $22,753,353) | 22753353 |
|  Cash collateral due from broker | 737777 |
|  Foreign currencies, at value (cost $620,142) | 610525 |
|  Unrealized appreciation on forward currency exchange contracts | 4537898 |
|  Unaffiliated dividends receivable | 3196002 |
|  Receivable for capital stock sold | 1654779 |
|  Affiliated dividends receivable | 18893 |
|  Total assets | 598595638 |
| **Liabilities** |  |
|  Unrealized depreciation on forward currency exchange contracts | 6843294 |
|  Payable for capital stock redeemed | 513233 |
|  Advisory fee payable | 320284 |
|  Payable for variation margin on futures | 52242 |
|  Administrative fee payable | 23910 |
|  Transfer Agent fee payable | 4463 |
|  Distribution fee payable | 1495 |
|  Accrued expenses | 263530 |
|  Total liabilities | 8022451 |
|  Net Assets | $**590573187** |
| **Composition of Net Assets** |  |
|  Capital stock, at par | $5166 |
|  Additional paid-in capital | 598434332 |
|  Accumulated loss | (7866311) |
|  | $**590573187** |

---

**Net Asset Value Per Share—11 billion shares of capital stock authorized, $.0001 par value** 

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Net Assets** | **Shares<br>Outstanding** | **Net Asset<br>Value** |
| **A** | $6061776 | 533587 | $11.36 \* |
| **C** | $245954 | 22038 | $11.16 |
| **Advisor** | $&nbsp;&nbsp;&nbsp;&nbsp;584252141 | 51101129 | $&nbsp;&nbsp;&nbsp;&nbsp;11.43 |
| **Z** | $13316 | 1165 | $11.43 |

---

\* The maximum offering price per share for Class A shares was $11.86, which reflects a sales charge of 4.25%. 

See notes to financial statements.

---

| | |
|:---|:---|
| **20 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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**STATEMENT OF OPERATIONS** 

**Year Ended June 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Investment Income** |  |  |
|  Dividends |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (net of foreign taxes withheld of $2,153,401) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18374021 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers | 40496 |  |
|  Securities lending income | 30808 | $18445325 |
| **Expenses** |  |  |
|  Advisory fee (see Note B) | 4435123 |  |
|  Transfer agency—Class A | 891 |  |
|  Transfer agency—Class C | 55 |  |
|  Transfer agency—Advisor Class | 72509 |  |
|  Transfer agency—Class Z | 3 |  |
|  Distribution fee—Class A | 21016 |  |
|  Distribution fee—Class C | 2567 |  |
|  Custody and accounting | 193379 |  |
|  Administrative | 118860 |  |
|  Registration fees | 77478 |  |
|  Audit and tax | 71488 |  |
|  Legal | 37257 |  |
|  Directors' fees | 26286 |  |
|  Printing | 13330 |  |
|  Miscellaneous | 39525 |  |
|  Total expenses | 5109767 |  |
|  Less: expenses waived and reimbursed by the Adviser (see Note B and Note E) | (24447) |  |
|  Net expenses |  | 5085320 |
|  Net investment income |  | 13360005 |
| **Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions** |  |  |
|  Net realized loss on: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment transactions |  | (1168634) |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward currency exchange contracts |  | (14013361) |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures |  | (3201777) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions |  | (416549) |
|  Net change in unrealized appreciation/depreciation on: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments |  | (98043169) |
| &nbsp;&nbsp;&nbsp;&nbsp; Forward currency exchange contracts |  | 1225681 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures |  | 12585 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency denominated assets and liabilities |  | (148492) |
|  Net loss on investment and foreign currency transactions |  | (115753716) |
|  **Net Decrease in Net Assets from Operations** |  | $**(102393711)** |

---

See notes to financial statements.

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| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 21** |

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**STATEMENT OF CHANGES IN NET ASSETS** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended**<br>**June 30,**<br>**2022** | **Year Ended**<br>**June 30,**<br>**2021** |
| **Increase (Decrease) in Net Assets<br>from Operations** |  |  |
|  Net investment income | $13360005 | $9684020 |
|  Net realized gain (loss) on investment and foreign currency transactions | (18800321) | 15851000 |
|  Net change in unrealized appreciation/depreciation on investments and foreign currency denominated assets and liabilities | (96953395) | 89539578 |
|  Net increase (decrease) in net assets from operations | (102393711) | 115074598 |
| **Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | (19280) | (163017) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | – 0 | (1731) |
| &nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | (3465103) | (8909286) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class Z | (115) | (168) |
| **Capital Stock Transactions** |  |  |
|  Net increase | 28419162 | 116250954 |
|  Total increase (decrease) | (77459047) | 222251350 |
| **Net Assets** |  |  |
|  Beginning of period | 668032234 | 445780884 |
|  End of period | $**590573187** | $**668032234** |

---

See notes to financial statements.

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| | |
|:---|:---|
| **22 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** 

**June 30, 2022** 

**NOTE A** 

**Significant Accounting Policies** 

AB Cap Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 12 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB International Strategic Core Portfolio (the "Fund"), a diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1, and Class 2 shares. Effective November 20, 2019 the Fund commenced offering of Class Z shares. Class B, Class R, Class K, Class I, Class T, Class 1, and Class 2 shares are not currently being offered. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. Advisor Class shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All 11 classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. 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 Company's Board of Directors (the "Board").

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| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 23** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

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 between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (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

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| | |
|:---|:---|
| **24 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

**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

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| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 25** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in<br>Securities** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets:** |  |  |  |  |
|  Common Stocks: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Financials | $26595534 | $111183149 | $&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $137778683 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care | – 0 | 83235524 | – 0 | 83235524 |
| &nbsp;&nbsp;&nbsp;&nbsp; Information Technology | 25890486 | 44871168 | – 0 | 70761654 |
| &nbsp;&nbsp;&nbsp;&nbsp; Communication Services | 14362538 | 53498137 | – 0 | 67860675 |
| &nbsp;&nbsp;&nbsp;&nbsp; Industrials | 3457435 | 53197277 | – 0 | 56654712 |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer Staples | 6579046 | 47545460 | – 0 | 54124506 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy | – 0 | 31851177 | – 0 | 31851177 |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer Discretionary | – 0 | 28882759 | – 0 | 28882759 |
| &nbsp;&nbsp;&nbsp;&nbsp; Real Estate | – 0 | 21718350 | – 0 | 21718350 |
| &nbsp;&nbsp;&nbsp;&nbsp; Utilities | – 0 | 6506516 | – 0 | 6506516 |
| &nbsp;&nbsp;&nbsp;&nbsp; Materials | – 0 | 5711855 | – 0 | 5711855 |
|  Short-Term Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment Companies | 22753353 | – 0 | – 0 | 22753353 |
|  Total Investments in Securities | 99638392 | 488201372 | – 0 | 587839764 |
|  **Other Financial Instruments\*:** |  |  |  |  |
|  **Assets** |  |  |  |  |
|  Forward Currency Exchange Contracts | – 0 | 4537898 | – 0 | 4537898 |
|  **Liabilities** |  |  |  |  |
|  Futures | (96480) | – 0 | – 0 | (96480) |
|  Forward Currency Exchange Contracts | – 0 | (6843294) | – 0 | (6843294) |
|  **Total** | $**99541912** | $**485895976** | $**– 0** | $**585437888** |

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|:---|:---|
| **26 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

+ A significant portion of the Fund's foreign equity investments are categorized as Level 2 investments since they are valued using fair value prices based on third party vendor modeling tools to the extent available, see Note A.1.

\* 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. 

† 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. Currency Translation** 

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at the rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

**4. 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. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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

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| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 27** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

**5. 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.

**6. Class Allocations** 

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each portfolio or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

**7. 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 investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .65% of the first $2.5 billion, .55% of the excess of $2.5 billion up to $5 billion and .50% of the excess over $5 billion of the Fund's average daily net assets. Prior to November 4, 2020, the Fund paid the Adviser an annual rate of .75% of the first $2.5 billion, .65% of the excess of $2.5 billion up to $5 billion and .60% of the excess over $5 billion of the Fund's average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating

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| | |
|:---|:---|
| **28 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) on an annual basis (the "Expense Caps") to 1.00%, 1.75%, .75% and .75% of the daily average net assets for Class A, Class C, Advisor Class and Class Z shares, respectively. For the year ended June 30, 2022, such reimbursements/waivers amounted to $15. The Expense Caps may not be terminated by the Adviser before October 31, 2022. Prior to November 4, 2020, the Adviser had agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) on an annual basis to 1.20%, 1.95%, .95% and .95% of the daily average net assets for Class A, Class C, Advisor Class and Class Z shares, respectively.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended June 30, 2022, the reimbursement for such services amounted to $118,860.

The Fund compensates AllianceBernstein Investor Services, Inc. ("ABIS"), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $49,233 for the year ended June 30, 2022.

AllianceBernstein Investments, Inc. (the "Distributor"), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund's shares. The Distributor has advised the Fund that it has retained front-end sales charges of $97 from the sale of Class A shares and received $253 and $56 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended June 30, 2022.

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, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the

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| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 29** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

Adviser has contractually agreed to waive its advisory fee from the Fund in an amount equal to the Fund's pro rata share of the effective advisory fees of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. For the year ended June 30, 2022, such waiver amounted to $23,535.

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Market Value<br>6/30/21<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Sales<br>Proceeds<br>(000)** | **Market Value<br>6/30/22<br>(000)** | **Dividend<br>Income<br>(000)** |
|  Government Money Market Portfolio | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23857 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;137588 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;138692 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22753 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40 |
|  Government Money Market Portfolio\* | – 0 | 82558 | 82558 | – 0 | 4 |
|  Total |  |  |  | $22753 | $44 |

---

\* Investment of cash collateral for securities lending transactions (see Note E).

**NOTE C** 

**Distribution Services Agreement** 

The Fund has adopted a Distribution Services Agreement (the "Agreement") pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .25% of the Fund's average daily net assets attributable to Class A shares and 1% of the Fund's average daily net assets attributable to Class C shares. There are no distribution and servicing fees on the Advisor Class and Class Z shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund's operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amount of $339 for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund's shares.

---

| | |
|:---|:---|
| **30 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE D** 

**Investment Transactions** 

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

---

| | | |
|:---|:---|:---|
|  | **Purchases** | **Sales** |
|  Investment securities (excluding<br>U.S. government securities) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;244596308 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;224420060 |
|  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;576956484 |
|  Gross unrealized appreciation | $68171840 |
|  Gross unrealized depreciation | (56621110) |
|  Net unrealized appreciation | $11550730 |

---

**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;**•** **Forward Currency Exchange Contracts** 

The Fund may enter into forward currency exchange contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain firm purchase and sale commitments denominated in foreign currencies and for non-hedging purposes as a means of making direct investments in foreign currencies, as described below under "Currency Transactions".

A forward currency exchange contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The gain or loss arising from the difference between the original contract and the closing of such contract would be included in net realized gain or loss on forward currency exchange contracts. Fluctuations in the value of open forward currency exchange contracts are recorded for financial reporting purposes as unrealized appreciation and/or depreciation by the Fund. Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar.

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| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 31** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

During the year ended June 30, 2022, the Fund held forward currency exchange contracts for hedging purposes.

&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, as described below under "Currency Transactions".

At the time the Fund enters into futures, the Fund deposits and maintains as collateral an initial margin with the broker, as required by 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 June 30, 2022, the Fund held futures 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

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| | |
|:---|:---|
| **32 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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 tables below for additional details.

During the year ended June 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** |
|  Foreign currency <br>contracts | <br>Unrealized<br>appreciation on<br>forward currency<br>exchange contracts | $4537898 | Unrealized<br>depreciation on<br>forward currency<br>exchange contracts | $6843294 |
|  Equity contracts |  |  | Receivable/Payable<br>for variation margin<br>on futures | 96480 \* |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;4537898 |  | $&nbsp;&nbsp;&nbsp;&nbsp;6939774 |

---

\* 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 INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 33** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **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)** |
|  Foreign currency contracts | Net realized gain/(loss) on forward currency exchange contracts; Net change in unrealized appreciation/depreciation on forward currency exchange contracts | $(14013361) | $1225681 |
|  Equity contracts | Net realized gain/(loss) on futures; Net change in unrealized appreciation/depreciation on futures | (3201777) | 12585 |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17215138) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1238266 |

---

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

---

| | |
|:---|:---|
|  Forward Currency Exchange Contracts: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average principal amount of buy contracts | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;204886737 |
| &nbsp;&nbsp;&nbsp;&nbsp; Average principal amount of sale contracts | $181761588 |
|  Futures: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount of buy contracts | $13905036 |

---

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 June 30, 2022. Exchange-traded derivatives and centrally cleared swaps are not subject to netting arrangements and as such are excluded from the tables.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **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** |
|  Bank of America, NA. | $587525 | $(422720) | $– 0 – $| – 0 – $| 164805 |
|  Barclays Bank PLC | 29167 | (29167) | – 0 – | – 0 – | – 0 |
|  BNP Paribas SA | 545493 | – 0 | – 0 – | – 0 – | 545493 |

---

---

| | |
|:---|:---|
| **34 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **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** |
|  Brown Brothers Harriman & Co. | $244257 | $(244257) | $– 0 – $| – 0 – $| – 0 |
|  Credit Suisse International | 10709 | – 0 | – 0 – | – 0 – | 10709 |
|  Deutsche Bank AG | 15220 | (15220) | – 0 – | – 0 – | – 0 |
|  Goldman Sachs Bank USA | 144700 | (144700) | – 0 – | – 0 – | – 0 |
|  HSBC Bank USA. | 17485 | (8075) | – 0 – | – 0 – | 9410 |
|  JPMorgan Chase Bank, NA. | 9147 | (2900) | – 0 – | – 0 – | 6247 |
|  Morgan Stanley Capital Services LLC | 32974 | (32974) | – 0 – | – 0 – | – 0 |
|  Royal Bank of Scotland PLC | 684060 | (458986) | – 0 – | – 0 – | 225074 |
|  UBS AG | 2217161 | (7675) | – 0 – | – 0 – | 2209486 |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4537898 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1366674 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3171224 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **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** |
|  Bank of America, NA. | $422720 | $(422720) | $– 0 – $| – 0 – $| – 0 |
|  Barclays Bank PLC | 137466 | (29167) | – 0 – | – 0 – | 108299 |
|  Brown Brothers Harriman & Co. | 870462 | (244257) | – 0 – | – 0 – | 626205 |
|  Citibank, NA. | 122246 | – 0 | – 0 – | – 0 – | 122246 |
|  Deutsche Bank AG | 40324 | (15220) | – 0 – | – 0 – | 25104 |
|  Goldman Sachs Bank USA | 2870084 | (144700) | – 0 – | – 0 – | 2725384 |
|  HSBC Bank USA. | 8075 | (8075) | – 0 – | – 0 – | – 0 |
|  JPMorgan Chase Bank, NA. | 2900 | (2900) | – 0 – | – 0 – | – 0 |
|  Morgan Stanley Capital Services LLC | 1902356 | (32974) | – 0 – | – 0 – | 1869382 |
|  Royal Bank of Scotland PLC | 458986 | (458986) | – 0 – | – 0 – | – 0 |
|  UBS AG | 7675 | (7675) | – 0 – | – 0 – | – 0 |
|  Total | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6843294 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1366674 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 – $| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5476620 |

---

\* The actual collateral received/pledged may be more than the amount reported due to overcollateralization. 

---

| | |
|:---|:---|
| ^ | 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 INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 35** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**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 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 E**

**Securities Lending** 

The Fund may enter into securities lending transactions. Under the Fund's securities lending program, all loans of securities will be collateralized continually by cash collateral and/or non-cash collateral. Non-cash collateral will include only securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. The Fund cannot sell or repledge any non-cash collateral, such collateral will not be reflected in the portfolio of investments. If a loan is collateralized by cash, the Fund will be compensated for the loan from a portion of the net return from the income earned on cash collateral after a rebate is paid to the borrower (in some cases, this rebate may be a "negative rebate" or fee paid by the borrower to the Fund in connection with the loan), and payments are made for fees of the securities lending agent and for certain other administrative expenses. If the Fund receives non-cash collateral, the Fund will receive a fee from the borrower generally equal to a negotiated percentage of the market value of the loaned securities. The Fund will have the right to call a loan and obtain the securities loaned at any time on notice to the borrower within the normal and customary settlement time for the securities. While the securities are on loan, the borrower is obligated to pay the Fund amounts equal to any dividend income or other distributions from the securities; however, these distributions will not be afforded the same preferential tax treatment as qualified dividends. The Fund will not be able to exercise voting rights with respect to any securities during the existence of a loan, but will have the right to regain ownership of loaned securities in order to exercise voting or other ownership rights. Collateral received and securities loaned are marked to market daily to ensure that the securities loaned are secured by collateral. The lending agent currently invests the cash collateral received in Government Money Market Portfolio, an eligible money market vehicle,

---

| | |
|:---|:---|
| **36 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

in accordance with the investment restrictions of the Fund, and as approved by the Board. The collateral received on securities loaned is recorded as an asset as well as a corresponding liability in the statement of assets and liabilities. The collateral will be adjusted the next business day to maintain the required collateral amount. The amounts of securities lending income from the borrowers and Government Money Market Portfolio are reflected in the statement of operations. When the Fund earns net securities lending income from Government Money Market Portfolio, the income is inclusive of a rebate expense paid to the borrower. In connection with the cash collateral investment by the Fund in the Government Money Market Portfolio, the Adviser has agreed to waive a portion of the Fund's share of the advisory fees of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. When the Fund lends securities, its investment performance will continue to reflect changes in the value of the securities loaned. A principal risk of lending portfolio securities is that the borrower may fail to return the loaned securities upon termination of the loan and that the collateral will not be sufficient to replace the loaned securities. The lending agent has agreed to indemnify the Fund in the case of default of any securities borrower.

A summary of the Fund's transactions surrounding securities lending for the year ended June 30, 2022 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | **Government Money**<br>**Market Portfolio** | **Government Money**<br>**Market Portfolio** |
| **Market**<br> **Value of<br>Securities<br>on Loan\*** |<br>**Cash<br>Collateral\*** |<br>**Market**<br>**Value of**<br>**Non-Cash**<br>**Collateral\*** |<br>**Income from<br>Borrowers** | **Income<br>Earned** | **Advisory Fee**<br>**Waived** |
| $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26742 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4066 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;897 |

---

\* As of June 30, 2022.

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| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 37** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE F** 

**Capital Stock** 

Each class consists of 1,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>June 30,<br> 2022 | Year Ended<br> June 30,<br> 2021 | Year Ended<br>June 30,<br> 2022 | Year Ended<br> June 30,<br> 2021 |
| **Class A** |  |  |  |  |
|  Shares sold | 73360 | 129188 | $964242 | $1581524 |
|  Shares issued in reinvestment of dividends | 374 | 3463 | 5089 | 42317 |
|  Shares converted from Class C | – 0 | 5 | – 0 | 70 |
|  Shares redeemed | (373365) | (153781) | (5037756) | (1910324) |
|  **Net decrease** | **(299631** | **(21125** | $**(4068425** | $**(286413** |
| **Class C** |  |  |  |  |
|  Shares sold | 5847 | 5673 | $75481 | $69799 |
|  Shares issued in reinvestment of dividends | – 0 | 126 | – 0 | 1528 |
|  Shares converted to Class A | – 0 | (5) | – 0 | (70) |
|  Shares redeemed | (5977) | (1079) | (78930) | (13387) |
|  **Net increase (decrease)** | **(130** | **4715** | $**(3449** | $**57870** |
| **Advisor Class** |  |  |  |  |
|  Shares sold | 10553143 | 17666551 | $140219714 | $219414388 |
|  Shares issued in reinvestment of dividends | 202090 | 607328 | 2762564 | 7457993 |
|  Shares redeemed | (8452761) | (8755623) | (110494887) | (110394619) |
|  **Net increase** | **2302472** | **9518256** | $**32487391** | $**116477762** |
| **Class Z** |  |  |  |  |
|  Shares sold | 960 | 7361 | $13178 | $86440 |
|  Shares issued in reinvestment of dividends | 4 | – 0 | 60 | – 0 |
|  Shares redeemed | (701) | (7288) | (9593) | (84705) |
|  **Net increase** | **263** | **73** | $**3645** | $**1735** |

---

**NOTE G** 

**Risks Involved in Investing in the Fund** 

**Market Risk**—The value of the Fund's assets will fluctuate as the stock or bond markets fluctuate. The value of the Fund's investments may decline,

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| | |
|:---|:---|
| **38 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

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. It includes the risk that a particular style of investing may underperform the market generally.

**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. These risks may be heightened with respect to investments in emerging market countries, where there may be an increased amount of economic, political and social instability.

**Currency Risk**—Fluctuations in currency exchange rates may negatively affect the value of the Fund's investments or reduce its returns.

**Capitalization Risk**—Investments in mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in mid-capitalization companies may have additional risks because these companies have limited product lines, markets or financial resources.

**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,

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| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 39** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

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 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 for the Fund, 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 H** 

**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")

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| | |
|:---|:---|
| **40 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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 June 30, 2022.

**NOTE I** 

**Distributions to Shareholders** 

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

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Distributions paid from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ordinary income | $3484498 | $9074202 |
|  Total taxable distributions paid | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3484498 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9074202 |

---

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

---

| | |
|:---|:---|
|  Accumulated capital losses | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18791824)<sup>(a)</sup> |
|  Other losses | (474704)<sup>(b)</sup> |
|  Unrealized appreciation/(depreciation) | 11400217 <sup>(c)</sup> |
|  Total accumulated earnings/(deficit) | $(7866311) |

---

(a) As of June 30, 2022, the Fund had a net capital loss carryforward of $18,791,824.

(b) As of June 30, 2022, the Fund had a qualified late-year ordinary loss deferral of $474,704.

(c) 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 passive foreign investment companies (PFICs), and the tax deferral of losses on wash sales.

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 June 30, 2022, the Fund had a net short-term capital loss carryforward of $18,791,824, which may be carried forward for an indefinite period.

During the current fiscal year, permanent differences primarily due to the disallowance of a net operating loss and taxable overdistributions resulted in a net decrease in accumulated loss and a net decrease in additional paid-in capital. These reclassifications had no effect on net assets.

**NOTE J** 

**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

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|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 41** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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 K** 

**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.

---

| | |
|:---|:---|
| **42 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** 

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
| | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $13.36 | $11.05 | $11.70 | $12.04 | $11.04 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income<sup>(a)(b)</sup> | .21 | .17 | .25 | .27 | .20 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (2.18) | 2.33 | (.74 | (.33) | .93 |
|  Net increase (decrease) in net asset value from operations | (1.97) | 2.50 | (.49 | (.06) | 1.13 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | (.03 | (.19 | (.16 | (.16) | (.07) |
|  Distributions from net realized gain on investment and foreign currency transactions | – 0 | – 0 | – 0 | (.12) | (.06) |
|  Total dividends and distributions | (.03 | (.19 | (.16 | (.28) | (.13) |
|  Net asset value, end of period | **$11.36** | **$13.36** | **$11.05** | **$11.70** | **$12.04** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(c)</sup> | (14.79) | 22.81 | (4.33) | (.28)% | 10.25% |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $6062 | $11136 | $9439 | $1344 | $460 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(d)</sup><sup>†</sup> | .99 | 1.04 | 1.19 | 1.20% | 1.19% |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(d)</sup><sup>†</sup> | .99 | 1.04 | 1.27 | 1.51% | 1.93% |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>(b)</sup> | 1.55 | 1.39 | 2.31 | 2.38% | 1.71% |
|  Portfolio turnover rate | 35 | 35 | 39 | 51% | 53% |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00 | .00% | .01% |

---

See footnote summary on page 46.

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| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 43** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
| | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $13.20 | $10.91 | $11.60 | $11.95 | $11.01 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income<sup>(a)(b)</sup> | .14 | .09 | .06 | .18 | .10 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (2.18) | 2.29 | (.63 | (.32) | .93 |
|  Net increase (decrease) in net asset value from operations | (2.04) | 2.38 | (.57 | (.14) | 1.03 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | – 0 | (.09 | (.12 | (.09) | (.03) |
|  Distributions from net realized gain on investment and foreign currency transactions | – 0 | – 0 | – 0 | (.12) | (.06) |
|  Total dividends and distributions | – 0 | (.09 | (.12 | (.21) | (.09) |
|  Net asset value, end of period | **$11.16** | **$13.20** | **$10.91** | **$11.60** | **$11.95** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(c)</sup> | (15.45) | 21.89 | (5.01) | (1.00)% | 9.34% |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $246 | $292 | $190 | $218 | $118 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(d)</sup><sup>†</sup> | 1.75 | 1.79 | 1.95 | 1.95% | 1.94% |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(d)</sup><sup>†</sup> | 1.76 | 1.81 | 2.00 | 2.28% | 2.68% |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>(b)</sup> | 1.06 | .73 | .55 | 1.56% | .88% |
|  Portfolio turnover rate | 35 | 35 | 39 | 51% | 53% |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00 | .00% | .01% |

---

See footnote summary on page 46.

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| | |
|:---|:---|
| **44 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** |
| | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
| | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $13.46 | $11.10 | $11.74 | $12.06 | $11.06 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income<sup>(a)(b)</sup> | .26 | .21 | .20 | .32 | .25 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (2.22) | 2.35 | (.67 | (.34) | .90 |
|  Net increase (decrease) in net asset value from operations | (1.96) | 2.56 | (.47 | (.02) | 1.15 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | (.07 | (.20 | (.17 | (.18) | (.09) |
|  Distributions from net realized gain on investment and foreign currency transactions | – 0 | – 0 | – 0 | (.12) | (.06) |
|  Total dividends and distributions | (.07 | (.20 | (.17 | (.30) | (.15) |
|  Net asset value, end of period | **$11.43** | **$13.46** | **$11.10** | **$11.74** | **$12.06** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(c)</sup> | (14.66) | 23.26 | (4.14) | .06% | 10.45% |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $584252 | $656592 | $436143 | $201875 | $76473 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(d)</sup><sup>†</sup> | .74 | .78 | .95 | .95% | .94% |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(d)</sup><sup>†</sup> | .75 | .79 | .99 | 1.26% | 1.65% |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>(b)</sup> | 1.96 | 1.70 | 1.74 | 2.80% | 2.12% |
|  Portfolio turnover rate | 35 | 35 | 39 | 51% | 53% |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00 | .00% | .01% |

---

See footnote summary on page 46.

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|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 45** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Class Z** | **Class Z** | **Class Z** |
| | **Year Ended June 30,** | **Year Ended June 30,** | **November 20,<br>2019<sup>(e)</sup> to<br>June 30,<br>2020** |
| | **2022** | **2021** | **November 20,<br>2019<sup>(e)</sup> to<br>June 30,<br>2020** |
|  Net asset value, beginning of period | $13.45 | $11.10 | $12.09 |
|  **Income From Investment Operations** |  |  |  |
|  Net investment income<sup>(a)(b)</sup> | .26 | .16 | .12 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (2.21) | 2.39 | (.94) |
|  Net increase (decrease) in net asset value from operations | (1.95) | 2.55 | (.82) |
|  **Less: Dividends and Distributions** |  |  |  |
|  Dividends from net investment income | (.07) | (.20) | (.17) |
|  Net asset value, end of period | **$11.43** | **$13.45** | **$11.10** |
|  **Total Return** |  |  |  |
|  Total investment return based on net asset value<sup>(c)</sup> | (14.60)% | 23.17% | (6.91)% |
|  **Ratios/Supplemental Data** |  |  |  |
|  Net assets, end of period (000's omitted) | $13 | $12 | $9 |
|  Ratio to average net assets of: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(d)</sup><sup>†</sup> | .74% | .79% | .93 %<sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(d)</sup><sup>†</sup> | .74% | .80% | .97 %<sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>(b)</sup> | 1.93% | 1.35% | 1.76 %<sup>(f)</sup> |
|  Portfolio turnover rate | 35% | 35% | 39% |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00% | .00% | .00 %<sup>(f)</sup> |

---

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(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. Initial sales charge or contingent deferred sales charge is not reflected in the calculation of total
investment return. Total investment 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 for a period of less than one year is not annualized.

(d) In connection with the Fund's investments in affiliated underlying portfolios, the Fund incurs no direct expenses but
bears proportionate shares of the acquired fund fees and expenses (i.e. operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an
amount equal to the Fund's pro rata share of certain acquired fund fees and expenses, and for the year ended June 30, 2018, such waiver amounted to 0.01%.

(e) Commencement of distribution.

(f) Annualized.

See notes to financial statements.

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| | |
|:---|:---|
| **46 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** 

**To the Board of Directors and Shareholders of AB International Strategic Core Portfolio:**

***Opinion on the Financial Statements***

We have audited the accompanying statement of assets and liabilities of AB International Strategic Core Portfolio (the "Fund") (one of the funds constituting AB Cap Fund, Inc. (the "Company")), including the portfolio of investments, as of June 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 funds constituting AB Cap Fund, Inc.) at June 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 Company'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 Company 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 Company is not required to have, nor were we engaged to perform, an audit of the Company'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 Company'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 INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 47** |

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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 June 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](g416088g91r55.jpg)

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

New York, New York

August 26, 2022

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|:---|:---|
| **48 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **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 earnings of the Fund for the taxable year ended June 30, 2022.

For corporate shareholders, 11.43% of dividends paid qualify for the dividends received deduction. For individual shareholders, the Fund designates 100% of dividends paid as qualified dividend income.

The Fund intends to make an election to pass through foreign taxes to its shareholders. For the taxable year ended June 30, 2022, $1,719,152 of foreign taxes may be passed through and the associated foreign source income for information reporting purposes is $20,154,184.

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 INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 49** |

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**BOARD OF DIRECTORS** 

---

| | |
|:---|:---|
| **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> |

---

**OFFICERS** 

---

| | |
|:---|:---|
| **Kent W. Hargis**<sup>(2)</sup>**,** Vice President<br> **Sammy Suzuki**<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> Brown Brothers Harriman & Co.<br> 50 Post Office Square<br> Boston, MA 02110<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 | **Independent Registered Public Accounting Firm**<br> Ernst & Young LLP<br> One Manhattan West<br> New York, NY 10001<br>**Legal Counsel**<br> Seward & Kissel LLP<br> One Battery Park Plaza<br> New York, NY 10004 |

---

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 Strategic Core Investment Team. Messrs. Hargis and Suzuki are the investment professionals with the most significant responsibility for the day-to-day management of the Fund's portfolio.

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| | |
|:---|:---|
| **50 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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------

**MANAGEMENT OF THE FUND** 

**Board of Directors Information** 

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

---

| | | | |
|:---|:---|:---|:---|
| **NAME,**<br> **ADDRESS\*, AGE,**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S)**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER<br>INFORMATION\*\*\*** | **PORTFOLIOS**<br> **IN AB FUND**<br> **COMPLEX**<br> **OVERSEEN BY**<br> **DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY**<br> **DIRECTOR** |
| **INTERESTED DIRECTOR** |  |  |  |
| Onur Erzan,<sup>#</sup><br> 1345 Avenue of the Americas New York, NY 10105<br> 46<br> (2021) | Senior Vice President of AllianceBernstein L.P. (the "Adviser"), Head of Global Client Group and Head of Private Wealth. He oversees AB's entire private wealth management business and third-party institutional and retail franchise, 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. Erzan is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, Erzan 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,**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S)**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER<br>INFORMATION\*\*\*** | **PORTFOLIOS**<br> **IN AB FUND**<br> **COMPLEX**<br> **OVERSEEN BY**<br> **DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS** | **DISINTERESTED DIRECTORS** |  |  |
| Marshall C. Turner, Jr.,<sup>##</sup><br> *Chairman of the Board*<br> 80<br> (2015) | Private Investor since prior to 2017. Former Chairman and CEO of DuPont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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,**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S)**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER<br>INFORMATION\*\*\*** | **PORTFOLIOS**<br> **IN AB FUND**<br> **COMPLEX**<br> **OVERSEEN BY**<br> **DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br>**(continued)** | **DISINTERESTED DIRECTORS**<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<br> since April 2011 |
| Michael J. Downey,<sup>##</sup><br> 78<br> (2015) | 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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**MANAGEMENT OF THE FUND** (continued)

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|:---|:---|:---|:---|
| **NAME,**<br> **ADDRESS\*, AGE,**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S)**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER<br>INFORMATION\*\*\*** | **PORTFOLIOS**<br> **IN AB FUND**<br> **COMPLEX**<br> **OVERSEEN BY**<br> **DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br>**(continued)** | **DISINTERESTED DIRECTORS**<br>**(continued)** |  |  |
| Nancy P. Jacklin,<sup>##</sup><br> 74<br> (2015) | 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 director or trustee 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,**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S)**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER<br>INFORMATION\*\*\*** | **PORTFOLIOS**<br> **IN AB FUND**<br> **COMPLEX**<br> **OVERSEEN BY**<br> **DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br>**(continued)** | **DISINTERESTED DIRECTORS**<br>**(continued)** |  |  |
| Carol C. McMullen,<sup>##</sup><br> 67<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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**MANAGEMENT OF THE FUND** (continued)

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|:---|:---|:---|:---|
| **NAME,**<br> **ADDRESS\*, AGE,**<br> **(YEAR FIRST ELECTED\*\*)** | **PRINCIPAL**<br> **OCCUPATION(S)**<br> **DURING PAST FIVE YEARS**<br> **AND OTHER<br>INFORMATION\*\*\*** | **PORTFOLIOS**<br> **IN AB FUND**<br> **COMPLEX**<br> **OVERSEEN BY**<br> **DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY**<br> **HELD BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br>**(continued)** | **DISINTERESTED DIRECTORS**<br>**(continued)** |  |  |
| Garry L. Moody,<sup>##</sup><br> 70<br> (2015) | Private Investor since prior to 2016. 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 the 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 Investment Company Institute's Board of Governors and the Independent Directors Council's Governing Council, where he serves as Chairman of its Governance Committee. 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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**MANAGEMENT OF THE FUND** (continued)

\* The address for each of the Fund's disinterested Directors 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 Fund's Directors.

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

# Mr. Erzan is an "interested person" of the Fund, 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. |
| Kent W. Hargis<br> 53 | Vice President | Senior Vice President of the Adviser\*\*, with which he has been associated since prior to 2017; Co-Chief Investment Officer – Strategic Core Equities since 2018. |
| Sammy Suzuki<br> 51 | Vice President | Senior Vice President of the Adviser\*\*, with which he has been associated since prior to 2017; Co-Chief Investment Officer – Strategic Core Equities since 2018. |
| 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> 46 | 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 ("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 Fund's Officers is 1345 Avenue of the Americas, New York, NY 10105.

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

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

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**Operation and Effectiveness of the Funds' 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 Directors/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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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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**Information Regarding the Review and Approval of the Fund's Advisory Agreement** 

The disinterested directors (the "directors") of AB Cap Fund, Inc. (the "Company") unanimously approved the continuance of the Company's Advisory Agreement with the Adviser in respect of AB International Strategic Core Portfolio (the "Fund") at a meeting held in-person on May 3-5, 2022 (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 Vice President for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

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.

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

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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 directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. 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 2020 and 2021 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, including those relating to its subsidiaries that provide transfer agency, distribution and brokerage services to 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

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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 and the money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to soft dollar arrangements (whereby investment advisers receive brokerage and research services from brokers that execute agency transactions for their clients); 12b-1 fees and sales charges received by the Fund's principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund's shares; brokerage commissions paid by the Fund to brokers affiliated with the Adviser; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser's profitability would be somewhat lower without these benefits. 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 Class A Shares 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 performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3- and 5-year periods ended February 28, 2022 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund's investment performance was acceptable.

**Advisory Fees and Other Expenses** 

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared 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 paid by other funds. The directors compared the Fund's contractual effective advisory fee rate with a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

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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 Vice President 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 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 the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

In connection with their review of the Fund's advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund's latest fiscal year and the directors considered the Adviser's expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund's category were lowered by waivers or reimbursements by those funds' investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser's services because the Adviser is responsible for coordinating

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services provided to the Fund by others. Based on their review, the directors concluded that the Fund's expense ratio was acceptable.

**Economies of Scale** 

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund's adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund's operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund's shareholders would benefit from a sharing of economies of scale in the event the Fund's net assets exceed a breakpoint in the future.

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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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|:---|:---|
| **66 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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**NOTES** 

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| | |
|:---|:---|
| **abfunds.com** | **AB INTERNATIONAL STRATEGIC CORE PORTFOLIO <sup>\|</sup> 67** |

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**NOTES** 

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| | |
|:---|:---|
| **68 <sup>\|</sup> AB INTERNATIONAL STRATEGIC CORE PORTFOLIO** | **abfunds.com** |

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![LOGO](g416088g43p34.jpg)

AB INTERNATIONAL STRATEGIC CORE PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

ISCP-0151-0622 ![LOGO](g416088g22c48.jpg)

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**JUN** <sup>06.30.22</sup>

![LOGO](g416056g43p34.jpg)

ANNUAL REPORT

## AB SELECT US EQUITY PORTFOLIO
![LOGO](g416056covart_390.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](g416056g92f19.jpg) |

---

Dear Shareholder,

We're pleased to provide this report for the AB Select US Equity Portfolio (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](g416056g55d83.jpg)

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 1** |

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**ANNUAL REPORT** 

**August 9, 2022** 

This report provides management's discussion of fund performance for the AB Select US Equity Portfolio for the annual reporting period ended June 30, 2022.

**The Fund's investment objective is long-term growth of capital.** 

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

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| | | |
|:---|:---|:---|
|  | 6 Months | 12 Months |
| **AB SELECT US EQUITY PORTFOLIO**<sup>1</sup> |  |  |
| Class A Shares | -17.08% | -8.03% |
| Class C Shares | -17.34% | -8.69% |
| Advisor Class Shares<sup>2</sup> | -16.97% | -7.82% |
| Class R Shares<sup>2</sup> | -17.19% | -8.32% |
| Class K Shares<sup>2</sup> | -17.12% | -8.15% |
| Class I Shares<sup>2</sup> | -17.01% | -7.82% |
| S&P 500 Index | -19.96% | -10.62% |

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| | |
|:---|:---|
| 1 | **Includes the impact of proceeds received and credited to the Fund resulting from class-action settlements, which enhanced the performance of all share classes of the Fund for the six- and 12-month periods ended June 30, 2022, by 0.00% and 0.02%, respectively.**  |

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| | |
|:---|:---|
| 2 | Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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**INVESTMENT RESULTS** 

The table above shows the Fund's performance compared to its benchmark, the Standard & Poor's ("S&P") 500 Index, for the six- and 12-month periods ended June 30, 2022.

During the 12-month period, all share classes outperformed the benchmark, before sales charges. Strong security selection within the industrials, health-care and technology sectors contributed, relative to the benchmark, while selection within utilities, consumer staples and communication services detracted. From a sector selection perspective, an overweight to energy, the Fund's transactional cash balance, and an underweight to consumer discretionary contributed, while underweights to utilities, consumer staples and real estate detracted.

During the six-month period, all share classes outperformed the benchmark, before sales charges. Strong security selection within industrials, health care and consumer discretionary contributed to returns, while selection within the consumer-staples, utilities and financials sectors

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| | |
|:---|:---|
| **2 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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detracted. From a sector selection perspective, an overweight to energy, the Fund's transactional cash balance, and an underweight to consumer discretionary added to returns, while underweights to utilities, consumer staples and materials detracted.

The Fund did not utilize derivatives during the six- or 12-month periods.

**MARKET REVIEW AND INVESTMENT STRATEGY** 

US, international and emerging-market stocks declined during the 12-month period ended June 30, 2022. Throughout the first half of the period, accommodative monetary policy underpinned an accelerating global economic recovery, which sent equity markets higher. Volatility increased as persistent inflation prompted the US Federal Reserve (the "Fed") to take a hawkish pivot that raised expectations for an accelerated rate liftoff and led other central banks to tighten monetary policy. Inflation worsened after Russia's invasion of Ukraine caused energy and agricultural prices to surge and China's zero-COVID policy prompted new supply-chain concerns. The Fed raised interest rates three times during the second half of the period, including a 0.75% hike in June—its largest since 1994. The growing fear of recession led to sharp declines and periods of widespread volatility across equity markets. Fed Chair Powell's acknowledgement that the path to a soft landing had narrowed weighed on global equity market sentiment. Against a backdrop of rising rates, growth stocks came under pressure, triggering a rotation into value-oriented stocks. Within large-cap markets, both growth and value stocks declined in absolute terms, but value stocks outperformed growth stocks by a wide margin. Large-cap stocks outperformed small-cap stocks on a relative basis, but both declined in absolute terms.

The Fund's Senior Investment Management Team (the "Team") continues to seek attractive risk-adjusted returns from a flexible approach unconstrained by investment style, with an intense focus on downside risk. The Team uses bottom-up analysis to find companies with growth potential, adjusting expectations based on the short-term market environment.

**INVESTMENT POLICIES** 

Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of US companies. For purposes of this policy, equity securities include common stock, preferred stock and derivatives related to common and preferred stocks.

The Adviser selects investments for the Fund through an intensive "bottom-up" approach that places an emphasis on companies that are engaged in business activities with solid long-term growth potential and operating in industries with high barriers to entry, that have

(continued on next page)

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 3** |

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strong cash flows and other financial metrics, and that have transparent financial statements and business models. The Adviser also evaluates the quality of company management based on a series of criteria, including: (1) management's focus on shareholder returns, such as through a demonstrated commitment to dividends and dividend growth, share buybacks or other shareholder-friendly corporate actions; (2) management's employment of conservative accounting methodologies; (3) management incentives, such as direct equity ownership; and (4) management accessibility. The Adviser seeks to identify companies where events or catalysts may drive the company's share price higher, such as earnings and/or revenue growth above consensus forecasts, potential market recognition of undervaluation or overstated market-risk discount, or the institution of shareholder-focused changes discussed in the preceding sentence. In light of this catalyst-focused approach, the Adviser expects to engage in active and frequent trading for the Fund.

The Adviser may reduce or eliminate the Fund's holdings in a company's securities for a number of reasons, including if its evaluation of the above factors changes adversely, if the anticipated events or catalysts do not occur or do not affect the price of the securities as expected, or if the anticipated events or catalysts do occur and cause the securities to be, in the Adviser's view, overvalued or fully valued. At any given time the Fund may emphasize growth stocks over value stocks, or vice versa.

The Fund's investments will be focused on securities of companies with large- and medium-market capitalizations, but it may also invest in securities of small-capitalization companies. The Fund may invest in non-US companies, but will limit its investments in such companies to no more than 10% of its net assets. The Fund may purchase securities in initial public offerings ("IPOs") and expects to do so on a regular basis.

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| | |
|:---|:---|
| **4 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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**DISCLOSURES AND RISKS** 

**Benchmark Disclosure** 

**The S&P 500<sup>®</sup> Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio.** The S&P 500 Index includes 500 US stocks and is a common representation of the performance of the overall US stock 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, bond or currency markets fluctuate. 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. It includes the risk that a particular style of investing may underperform the market generally.

**Sector Risk:** The Fund may have more risk because it may invest to a significant extent in one or more particular market sectors, such as the information-technology or financial-services sector. 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.

**Capitalization Risk:** Investments in small- and mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in these companies may have additional risks because these companies may have limited product lines, markets or financial resources.

**Active Trading Risk:** The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund's return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

**IPO Risk:** Securities purchased in an IPO may be subject to substantial price volatility due to one or more factors such as unseasoned trading in the securities, the lack of investor knowledge of the issuer, the lack of an operating history of the issuer, and the dependence of the issuer on key personnel, suppliers or a limited number of customers.

**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 for the Fund, but there is no guarantee that its techniques will produce the intended

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 5** |

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**DISCLOSURES AND RISKS** (continued)

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 investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. 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 visiting www.abfunds.com.** 

**All fees and expenses related to the operation of the Fund have been deducted. Net asset value ("NAV") returns do not reflect sales charges; if sales charges were reflected, the Fund's quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.** 

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| | |
|:---|:---|
| **6 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** 

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

6/30/2012 TO 6/30/2022

![LOGO](g416056g09q52.jpg)

This chart illustrates the total value of an assumed $10,000 investment in AB Select US Equity Portfolio Class A shares (from 6/30/2012 to 6/30/2022) as compared to the performance of the Fund's benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 7** |

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**HISTORICAL PERFORMANCE** (continued)

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

---

| | | |
|:---|:---|:---|
|  | NAV Returns | SEC Returns<br> (reflects applicable<br>sales charges) |
| **CLASS A SHARES** |  |  |
| 1 Year | -8.03% | -11.94% |
| 5 Years | 11.34% | 10.38% |
| 10 Years | 12.46% | 11.97% |
| **CLASS C SHARES** |  |  |
| 1 Year | -8.69% | -9.41% |
| 5 Years | 10.51% | 10.51% |
| 10 Years<sup>1</sup> | 11.62% | 11.62% |
| **ADVISOR CLASS SHARES**<sup>2</sup> |  |  |
| 1 Year | -7.82% | -7.82% |
| 5 Years | 11.61% | 11.61% |
| 10 Years | 12.75% | 12.75% |
| **CLASS R SHARES**<sup>2</sup> |  |  |
| 1 Year | -8.32% | -8.32% |
| 5 Years | 11.02% | 11.02% |
| 10 Years | 12.16% | 12.16% |
| **CLASS K SHARES**<sup>2</sup> |  |  |
| 1 Year | -8.15% | -8.15% |
| 5 Years | 11.27% | 11.27% |
| 10 Years | 12.38% | 12.38% |
| **CLASS I SHARES**<sup>2</sup> |  |  |
| 1 Year | -7.82% | -7.82% |
| 5 Years | 11.62% | 11.62% |
| 10 Years | 12.74% | 12.74% |

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**The Fund's current prospectus fee table shows the Fund's total annual operating expense ratios as 1.51%, 2.27%, 1.26%, 1.88%, 1.69% and 1.26% for Class A, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements reduced the Fund's total annual operating expense ratios to 2.26%, 1.80% and 1.55% for Class C, Class R and Class K shares, respectively. These waivers/reimbursements may not be terminated prior to October 31, 2022, and may be extended by the Adviser for additional one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.** 

1 Assumes conversion of Class C shares into Class A shares after eight years.

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| | |
|:---|:---|
| 2 | These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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| | |
|:---|:---|
| **8 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** (continued)

**SEC AVERAGE ANNUAL RETURNS** 

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

**JUNE 30, 2022** (unaudited)

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| | |
|:---|:---|
|  | SEC Returns<br> (reflects applicable<br>sales charges) |
| **CLASS A SHARES** |  |
| 1 Year | -11.94% |
| 5 Years | 10.38% |
| 10 Years | 11.97% |
| **CLASS C SHARES** |  |
| 1 Year | -9.41% |
| 5 Years | 10.51% |
| 10 Years<sup>1</sup> | 11.62% |
| **ADVISOR CLASS SHARES**<sup>2</sup> |  |
| 1 Year | -7.82% |
| 5 Years | 11.61% |
| 10 Years | 12.75% |
| **CLASS R SHARES**<sup>2</sup> |  |
| 1 Year | -8.32% |
| 5 Years | 11.02% |
| 10 Years | 12.16% |
| **CLASS K SHARES**<sup>2</sup> |  |
| 1 Year | -8.15% |
| 5 Years | 11.27% |
| 10 Years | 12.38% |
| **CLASS I SHARES**<sup>2</sup> |  |
| 1 Year | -7.82% |
| 5 Years | 11.62% |
| 10 Years | 12.74% |

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1 Assumes conversion of Class C shares into Class A shares after eight years.

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| | |
|:---|:---|
| 2 | Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 9** |

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**EXPENSE EXAMPLE** 

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. 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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| | |
|:---|:---|
| **10 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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**EXPENSE EXAMPLE** (continued)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account Value<br>January 1, 2022** | **Ending<br>Account Value<br>June 30, 2022** | **Expenses Paid<br>During Period\*** | **Annualized<br>Expense Ratio\*** |
| **Class A** |  |  |  |  |
|  Actual | $1000 | $829.20 | $6.62 | 1.46% |
|  Hypothetical\*\* | $1000 | $1017.55 | $7.30 | 1.46% |
| **Class C** |  |  |  |  |
|  Actual | $1000 | $826.60 | $10.05 | 2.22% |
|  Hypothetical\*\* | $1000 | $1013.79 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.08 | 2.22% |
| **Advisor Class** |  |  |  |  |
|  Actual | $1000 | $830.30 | $5.54 | 1.22% |
|  Hypothetical\*\* | $1000 | $1018.74 | $6.11 | 1.22% |
| **Class R** |  |  |  |  |
|  Actual | $1000 | $828.10 | $8.16 | 1.80% |
|  Hypothetical\*\* | $1000 | $1015.87 | $9.00 | 1.80% |
| **Class K** |  |  |  |  |
|  Actual | $1000 | $828.80 | $7.03 | 1.55% |
|  Hypothetical\*\* | $1000 | $1017.11 | $7.75 | 1.55% |
| **Class I** |  |  |  |  |
|  Actual | $1000 | $829.90 | $5.49 | 1.21% |
|  Hypothetical\*\* | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1000 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1018.79 | $6.06 | 1.21% |

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\* Expenses are equal to the classes' annualized expense ratios multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

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

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 11** |

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**PORTFOLIO SUMMARY** 

**June 30, 2022** (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $209.0

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![LOGO](g416056g43d25.jpg)

TEN LARGEST HOLDINGS<sup>2</sup>

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| | | |
|:---|:---|:---|
| Company | U.S. $ Value | Percent of<br>Net Assets |
| Apple, Inc. | $11793877 | 5.6% |
| Microsoft Corp. | 11242733 | 5.4 |
| Berkshire Hathaway, Inc. – Class B | 10515638 | 5.0 |
| UnitedHealth Group, Inc. | 8531394 | 4.1 |
| Alphabet, Inc. – Class A | 7568570 | 3.6 |
| Fifth Third Bancorp | 7065475 | 3.4 |
| Honeywell International, Inc. | 6815612 | 3.3 |
| PNC Financial Services Group, Inc. (The) | 6536884 | 3.1 |
| Johnson & Johnson | 6456749 | 3.1 |
| Humana, Inc. | 5870534 | 2.8 |
|  | $&nbsp;&nbsp;&nbsp;&nbsp;82397466 | 39.4% |

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| | |
|:---|:---|
| 1 | All data are as of June 30, 2022. The Fund's sector breakdown is expressed as a percentage of total investments and may vary over time.  |

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2 Long-term investments.

Please note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard & Poor's. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the broad market. These sector classifications are broadly defined. The "Portfolio of Investments" section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Fund's prospectus.

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| | |
|:---|:---|
| **12 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** 

**June 30, 2022** 

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| | | | |
|:---|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** | **U.S. $ Value** |
|  **COMMON STOCKS – 96.7%** |  |  |  |
|  **Information Technology – 19.8%** |  |  |  |
|  **Communications Equipment – 1.6%** |  |  |  |
|  F5, Inc.<sup>(a)</sup> | 6671 | $| 1020930 |
|  Motorola Solutions, Inc. | 10569 |  | 2215262 |
|  |  |  | 3236192 |
|  **IT Services – 2.3%** | **IT Services – 2.3%** | **IT Services – 2.3%** | **IT Services – 2.3%** |
|  Visa, Inc. – Class A | 24774 |  | 4877753 |
|  **Semiconductors & Semiconductor Equipment – 3.3%** |  |  |  |
|  Advanced Micro Devices, Inc.<sup>(a)</sup> | 14336 |  | 1096274 |
|  Broadcom, Inc. | 3698 |  | 1796525 |
|  NVIDIA Corp. | 8393 |  | 1272295 |
|  NXP Semiconductors NV | 6625 |  | 980699 |
|  QUALCOMM, Inc. | 13416 |  | 1713760 |
|  |  |  | 6859553 |
|  **Software – 7.0%** | **Software – 7.0%** | **Software – 7.0%** | **Software – 7.0%** |
|  Adobe, Inc.<sup>(a)</sup> | 3349 |  | 1225935 |
|  Microsoft Corp. | 43775 |  | 11242733 |
|  Oracle Corp. | 20178 |  | 1409837 |
|  Salesforce, Inc.<sup>(a)</sup> | 4295 |  | 708847 |
|  |  |  | 14587352 |
|  **Technology Hardware, Storage & Peripherals – 5.6%** |  |  |  |
|  Apple, Inc. | 86263 |  | 11793877 |
|  |  |  | 41354727 |
|  **Health Care – 17.6%** | **Health Care – 17.6%** | **Health Care – 17.6%** | **Health Care – 17.6%** |
|  **Health Care Equipment & Supplies – 1.0%** | **Health Care Equipment & Supplies – 1.0%** | **Health Care Equipment & Supplies – 1.0%** | **Health Care Equipment & Supplies – 1.0%** |
|  Abbott Laboratories | 19697 |  | 2140079 |
|  **Health Care Providers & Services – 6.9%** | **Health Care Providers & Services – 6.9%** | **Health Care Providers & Services – 6.9%** | **Health Care Providers & Services – 6.9%** |
|  Humana, Inc. | 12542 |  | 5870534 |
|  UnitedHealth Group, Inc. | 16610 |  | 8531394 |
|  |  |  | 14401928 |
|  **Life Sciences Tools & Services – 2.8%** | **Life Sciences Tools & Services – 2.8%** | **Life Sciences Tools & Services – 2.8%** | **Life Sciences Tools & Services – 2.8%** |
|  Danaher Corp. | 10909 |  | 2765650 |
|  Thermo Fisher Scientific, Inc. | 5624 |  | 3055407 |
|  |  |  | 5821057 |
|  **Pharmaceuticals – 6.9%** | **Pharmaceuticals – 6.9%** | **Pharmaceuticals – 6.9%** | **Pharmaceuticals – 6.9%** |
|  Eli Lilly & Co. | 6776 |  | 2196982 |
|  Johnson & Johnson | 36374 |  | 6456749 |
|  Pfizer, Inc. | 109614 |  | 5747062 |
|  |  |  | 14400793 |
|  |  |  | 36763857 |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 13** |

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------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Financials – 17.3%** | **Financials – 17.3%** | **Financials – 17.3%** |
|  **Banks – 8.9%** | **Banks – 8.9%** | **Banks – 8.9%** |
|  Fifth Third Bancorp | 210282 | $7065475 |
|  M&T Bank Corp. | 7737 | 1233201 |
|  PNC Financial Services Group, Inc. (The) | 41433 | 6536884 |
|  Wells Fargo & Co. | 95556 | 3742929 |
|  |  | 18578489 |
|  **Capital Markets – 2.8%** | **Capital Markets – 2.8%** | **Capital Markets – 2.8%** |
|  Charles Schwab Corp. (The) | 50493 | 3190148 |
|  Goldman Sachs Group, Inc. (The) | 4224 | 1254612 |
|  Jefferies Financial Group, Inc. | 52461 | 1448973 |
|  |  | 5893733 |
|  **Diversified Financial Services – 5.0%** | **Diversified Financial Services – 5.0%** | **Diversified Financial Services – 5.0%** |
|  Berkshire Hathaway, Inc. – Class B<sup>(a)</sup> | 38516 | 10515638 |
|  **Insurance – 0.6%** | **Insurance – 0.6%** | **Insurance – 0.6%** |
|  Progressive Corp. (The) | 9965 | 1158631 |
|  |  | 36146491 |
|  **Industrials – 15.1%** | **Industrials – 15.1%** | **Industrials – 15.1%** |
|  **Aerospace & Defense – 4.4%** | **Aerospace & Defense – 4.4%** | **Aerospace & Defense – 4.4%** |
|  Northrop Grumman Corp. | 7993 | 3825210 |
|  Raytheon Technologies Corp. | 55222 | 5307386 |
|  |  | 9132596 |
|  **Commercial Services & Supplies – 1.5%** |  |  |
|  Republic Services, Inc. | 23434 | 3066808 |
|  **Industrial Conglomerates – 3.2%** | **Industrial Conglomerates – 3.2%** | **Industrial Conglomerates – 3.2%** |
|  Honeywell International, Inc. | 39213 | 6815612 |
|  **Machinery – 0.9%** | **Machinery – 0.9%** | **Machinery – 0.9%** |
|  Deere & Co. | 6416 | 1921400 |
|  **Professional Services – 0.8%** | **Professional Services – 0.8%** | **Professional Services – 0.8%** |
|  Jacobs Engineering Group, Inc. | 13599 | 1728841 |
|  **Road & Rail – 4.3%** | **Road & Rail – 4.3%** | **Road & Rail – 4.3%** |
|  CSX Corp. | 55363 | 1608849 |
|  Norfolk Southern Corp. | 16610 | 3775287 |
|  Union Pacific Corp. | 16752 | 3572866 |
|  |  | 8957002 |
|  |  | 31622259 |
|  **Communication Services – 7.3%** | **Communication Services – 7.3%** | **Communication Services – 7.3%** |
|  **Diversified Telecommunication Services – 0.5%** |  |  |
|  Comcast Corp. – Class A | 28361 | 1112886 |
|  **Entertainment – 0.4%** | **Entertainment – 0.4%** | **Entertainment – 0.4%** |
|  Walt Disney Co. (The)<sup>(a)</sup> | 9201 | 868574 |

---

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|:---|:---|
| **14 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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------

**PORTFOLIO OF INVESTMENTS** (continued)

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| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Interactive Media & Services – 4.7%** |  |  |
|  Alphabet, Inc. – Class A<sup>(a)</sup> | 3473 | 7568570 |
|  Meta Platforms, Inc. – Class A<sup>(a)</sup> | 13316 | 2147205 |
|  |  | 9715775 |
|  **Wireless Telecommunication Services – 1.7%** |  |  |
|  T-Mobile US, Inc.<sup>(a)</sup> | 26785 | 3603654 |
|  |  | 15300889 |
|  **Energy – 6.8%** | **Energy – 6.8%** | **Energy – 6.8%** |
|  **Energy Equipment & Services – 0.7%** | **Energy Equipment & Services – 0.7%** | **Energy Equipment & Services – 0.7%** |
|  Schlumberger NV | 40521 | 1449031 |
|  **Oil, Gas & Consumable Fuels – 6.1%** | **Oil, Gas & Consumable Fuels – 6.1%** | **Oil, Gas & Consumable Fuels – 6.1%** |
|  Chevron Corp. | 12047 | 1744165 |
|  EOG Resources, Inc. | 32903 | 3633807 |
|  EQT Corp. | 37976 | 1306374 |
|  Exxon Mobil Corp. | 34338 | 2940706 |
|  Pioneer Natural Resources Co. | 13694 | 3054858 |
|  |  | 12679910 |
|  |  | 14128941 |
|  **Consumer Discretionary – 5.6%** | **Consumer Discretionary – 5.6%** | **Consumer Discretionary – 5.6%** |
|  **Hotels, Restaurants & Leisure – 2.1%** | **Hotels, Restaurants & Leisure – 2.1%** | **Hotels, Restaurants & Leisure – 2.1%** |
|  Booking Holdings, Inc.<sup>(a)</sup> | 922 | 1612569 |
|  McDonald's Corp. | 11164 | 2756168 |
|  |  | 4368737 |
|  **Internet & Direct Marketing Retail – 2.0%** | **Internet & Direct Marketing Retail – 2.0%** | **Internet & Direct Marketing Retail – 2.0%** |
|  Amazon.com, Inc.<sup>(a)</sup> | 38316 | 4069542 |
|  **Specialty Retail – 1.5%** | **Specialty Retail – 1.5%** | **Specialty Retail – 1.5%** |
|  Home Depot, Inc. (The) | 9240 | 2534255 |
|  Lowe's Cos., Inc. | 3654 | 638244 |
|  |  | 3172499 |
|  |  | 11610778 |
|  **Consumer Staples – 4.5%** | **Consumer Staples – 4.5%** | **Consumer Staples – 4.5%** |
|  **Beverages – 2.4%** | **Beverages – 2.4%** | **Beverages – 2.4%** |
|  PepsiCo, Inc. | 30610 | 5101463 |
|  **Food & Staples Retailing – 0.7%** | **Food & Staples Retailing – 0.7%** | **Food & Staples Retailing – 0.7%** |
|  Costco Wholesale Corp. | 2954 | 1415793 |
|  **Household Products – 1.4%** | **Household Products – 1.4%** | **Household Products – 1.4%** |
|  Procter & Gamble Co. (The) | 20095 | 2889460 |
|  |  | 9406716 |
|  **Utilities – 1.2%** | **Utilities – 1.2%** | **Utilities – 1.2%** |
|  **Electric Utilities – 1.2%** | **Electric Utilities – 1.2%** | **Electric Utilities – 1.2%** |
|  NextEra Energy, Inc. | 33646 | 2606218 |

---

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|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 15** |

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**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | | |
|:---|:---|:---|:---|
| **Company** | | **Shares** | **U.S. $ Value** |
|  **Materials – 0.9%** |  |  |  |
|  **Chemicals – 0.9%** |  |  |  |
|  FMC Corp. |  | 17054 | $1824949 |
|  **Real Estate – 0.6%** |  |  |  |
|  **Equity Real Estate Investment Trusts (REITs) – 0.6%** |  |  |  |
|  SBA Communications Corp. |  | 3806 | 1218110 |
|  Total Common Stocks <br>(cost $158,169,980) |  |  | 201983935 |
|  **SHORT-TERM INVESTMENTS – 3.3%** |  |  |  |
|  **Investment Companies – 3.2%** |  |  |  |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.30%<sup>(b) (c) (d)</sup> <br>(cost $6,756,877) |  | 6756877 | 6756877 |
|  |  | **Principal<br>Amount<br>(000)** |  |
|  **Time Deposits – 0.1%** |  |  |  |
|  BBH, Grand Cayman <br>0.52%, 07/01/2022 | GBP | 41 | 50166 |
|  Citibank, London <br>(0.78)%, 07/01/2022 | EUR | 35 | 36660 |
|  Hong Kong & Shanghai Bank, Hong Kong <br>0.37%, 07/04/2022 | HKD | 153 | 19477 |
|  Royal Bank of Canada, Toronto <br>0.51%, 07/04/2022 | CAD | 5 | 4049 |
|  Sumitomo, Tokyo <br>(0.36)%, 07/01/2022 | JPY | 1520 | 11201 |
|  Total Time Deposits <br>(cost $121,553) |  |  | 121553 |
|  Total Short-Term Investments <br>(cost $6,878,430) |  |  | 6878430 |
|  **Total Investments – 100.0%** <br> (cost $165,048,410) |  |  | 208862365 |
|  Other assets less liabilities – 0.0% |  |  | 102173 |
|  **Net Assets – 100.0%** |  |  | $**208964538** |

---

(a) Non-income producing security.

(b) Affiliated investments.

(c) 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.

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

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|:---|:---|
| **16 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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**PORTFOLIO OF INVESTMENTS** (continued)

Currency Abbreviations:

CAD – Canadian Dollar

EUR – Euro

GBP – Great British Pound

HKD – Hong Kong Dollar

JPY – Japanese Yen

Glossary:

REIT – Real Estate Investment Trust

See notes to financial statements.

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 17** |

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**STATEMENT OF ASSETS & LIABILITIES** 

**June 30, 2022** 

---

| | |
|:---|:---|
| **Assets** |  |
|  Investments in securities, at value <br>Unaffiliated issuers (cost $158,291,533) | $202105488 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers (cost $6,756,877) | 6756877 |
|  Cash | 3 |
|  Receivable for investment securities sold | 2084966 |
|  Receivable for capital stock sold | 238646 |
|  Unaffiliated dividends receivable | 125160 |
|  Affiliated dividends receivable | 5092 |
|  Total assets | 211316232 |
| **Liabilities** |  |
|  Due to Custodian (includes foreign currency overdraft of $6 with a cost of $8) | 6 |
|  Payable for investment securities purchased | 1465965 |
|  Payable for capital stock redeemed | 463772 |
|  Advisory fee payable | 176996 |
|  Administrative fee payable | 22621 |
|  Distribution fee payable | 10926 |
|  Transfer Agent fee payable | 2647 |
|  Accrued expenses | 208761 |
|  Total liabilities | 2351694 |
|  Net Assets | $**208964538** |
| **Composition of Net Assets** | **Composition of Net Assets** |
|  Capital stock, at par | $1266 |
|  Additional paid-in capital | 163253343 |
|  Distributable earnings | 45709929 |
|  | $**208964538** |

---

**Net Asset Value Per Share—30 billion shares of capital stock authorized, $.0001 par value** 

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Net Assets** | **Shares<br>Outstanding** | **Net Asset<br>Value** |
| **A** | $19868852 | 1199684 | $16.56 \* |
| **C** | $7629456 | 514588 | $14.83 |
| **Advisor** | $&nbsp;&nbsp;&nbsp;&nbsp;176305263 | 10625123 | $&nbsp;&nbsp;&nbsp;&nbsp;16.59 |
| **R** | $131994 | 8330 | $15.85 |
| **K** | $1311972 | 80615 | $16.27 |
| **I** | $3717001 | 227283 | $16.35 |

---

\* The maximum offering price per share for Class A shares was $17.30, which reflects a sales charge of 4.25%. 

See notes to financial statements.

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| | |
|:---|:---|
| **18 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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------

**STATEMENT OF OPERATIONS** 

**Year Ended June 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Investment Income** |  |  |
|  Dividends |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (net of foreign taxes withheld of $4,661) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3424078 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers | 11112 |  |
|  Securities lending income | 776 | $3435966 |
| **Expenses** |  |  |
|  Advisory fee (see Note B) | 2225527 |  |
|  Distribution fee—Class A | 52532 |  |
|  Distribution fee—Class C | 91223 |  |
|  Distribution fee—Class R | 223 |  |
|  Distribution fee—Class K | 3320 |  |
|  Transfer agency—Class A | 4929 |  |
|  Transfer agency—Class C | 2406 |  |
|  Transfer agency—Advisor Class | 43579 |  |
|  Transfer agency—Class R | 104 |  |
|  Transfer agency—Class K | 2743 |  |
|  Transfer agency—Class I | 1337 |  |
|  Registration fees | 99643 |  |
|  Custody and accounting | 98252 |  |
|  Administrative | 93132 |  |
|  Audit and tax | 56062 |  |
|  Legal | 39196 |  |
|  Directors' fees | 20665 |  |
|  Printing | 15819 |  |
|  Miscellaneous | 12298 |  |
|  Total expenses | 2862990 |  |
|  Less: expenses waived and reimbursed by the Adviser (see Note B and Note E) | (5935) |  |
|  Less: expenses waived and reimbursed by the Distributor (see Note C) | (27) |  |
|  Net expenses |  | 2857028 |
|  Net investment income |  | 578938 |
| **Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions** |  |  |
|  Net realized gain (loss) on: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment transactions |  | 22064142 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions |  | (29) |
|  Net change in unrealized appreciation/depreciation on: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments |  | (41341231) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency denominated assets and liabilities |  | (14486) |
|  Net loss on investment and foreign currency transactions |  | (19291604) |
|  **Net Decrease in Net Assets from Operations** |  | $**(18712666)** |

---

See notes to financial statements.

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 19** |

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**STATEMENT OF CHANGES IN NET ASSETS** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended**<br>**June 30,**<br>**2022** | **Year Ended**<br>**June 30,**<br>**2021** |
| **Increase (Decrease) in Net Assets from Operations** |  |  |
|  Net investment income | $578938 | $149367 |
|  Net realized gain on investment and foreign currency transactions | 22064113 | 42295447 |
|  Net change in unrealized appreciation/depreciation on investments and foreign currency denominated assets and liabilities | (41355717) | 31053592 |
|  Net increase (decrease) in net assets from operations | (18712666) | 73498406 |
| **Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | (4092213) | (426922) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | (1967369) | (293236) |
| &nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | (37427860) | (5207495) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R | (9260) | (886) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class K | (260189) | (31288) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | (1146107) | (165778) |
| **Capital Stock Transactions** |  |  |
|  Net increase (decrease) | 55805766 | (48672280) |
|  Total increase (decrease) | (7809898) | 18700521 |
| **Net Assets** |  |  |
|  Beginning of period | 216774436 | 198073915 |
|  End of period | $**208964538** | $**216774436** |

---

See notes to financial statements.

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|:---|:---|
| **20 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** 

**June 30, 2022** 

**NOTE A** 

**Significant Accounting Policies** 

AB Cap Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 12 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Select US Equity Portfolio (the "Fund"), a diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class T, Class 1, and Class 2 shares. Class B, Class T, Class 1, and Class 2 shares are not currently being offered. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. Class R and Class K shares are sold without an initial or contingent deferred sales charge. Advisor Class and Class I shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All 10 classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. 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 Company's Board of Directors (the "Board").

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|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 21** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

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 between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (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

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| | |
|:---|:---|
| **22 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

**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,

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 23** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in<br>Securities** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets:** |  |  |  |  |
|  Common Stocks^ | $201983935 | $– 0 | $– 0 | $201983935 |
|  Short-Term Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment Companies | 6756877 | – 0 | – 0 | 6756877 |
| &nbsp;&nbsp;&nbsp;&nbsp; Time Deposits | – 0 | 121553 | – 0 | 121553 |
|  Total Investments in Securities | 208740812 | 121553 | – 0 | 208862365 |
|  **Other Financial Instruments\*** | – 0 | – 0 | – 0 | – 0 |
|  **Total** | $**208740812** | $**121553** | $**– 0** | $**208862365** |

---

^ See Portfolio of Investments for sector classifications.

\* 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. 

**3. Currency Translation** 

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities

---

| | |
|:---|:---|
| **24 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

were acquired or sold. Income and expenses are translated into U.S. dollars at the rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

**4. 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. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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.

**5. 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.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 25** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**6. Class Allocations** 

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each portfolio or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

**7. 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 investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of 1.00% of the Fund's average daily net assets. The fee is accrued daily and paid monthly. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs), on an annual basis (the "Expense Caps") to 1.55%, 2.30%, 1.30%, 1.80%, 1.55% and 1.30% of the daily average net assets for Class A, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. For the year ended June 30, 2022, such reimbursements/waivers amounted to $1,414. The Expense Caps may not be terminated before October 31, 2022.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended June 30, 2022, the reimbursement for such services amounted to $93,132.

The Fund compensates AllianceBernstein Investor Services, Inc. ("ABIS"), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking

---

| | |
|:---|:---|
| **26 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

services. Such compensation retained by ABIS amounted to $27,425 for the year ended June 30, 2022.

AllianceBernstein Investments, Inc. (the "Distributor"), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund's shares. The Distributor has advised the Fund that it has retained front-end sales charges of $4,372 from the sale of Class A shares and received $49 and $670 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended June 30, 2022.

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, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive 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 June 30, 2022, such waiver amounted to $4,521.

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Fund** | **Market Value<br>6/30/21<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Sales<br>Proceeds<br>(000)** | **Market Value<br>6/30/22<br>(000)** | **Dividend<br>Income<br>(000)** |  |
|  Government Money Market Portfolio | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4606 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100509 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98358 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6757 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11 |  |
|  Government Money Market Portfolio\* | – 0 | 7621 | 7621 | – 0 | 0 | \*\* |
|  Total |  |  |  | $6757 | $11 |  |

---

\* Investment of cash collateral for securities lending transactions (see Note E).

\*\* Amount is less than $500. 

**NOTE C** 

**Distribution Services Agreement** 

The Fund has adopted a Distribution Services Agreement (the "Agreement") pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 27** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

fees to the Distributor at an annual rate of up to .30% of the Fund's average daily net assets attributable to Class A shares, 1% of the Fund's average daily net assets attributable to Class C shares, .50% of the Fund's average daily net assets attributable to Class R shares and .25% of the Fund's average daily net assets attributable to Class K shares. There are no distribution and servicing fees on Advisor Class and Class I shares. As of November 1, 2021, with respect to class R, payments to the Distributor are voluntarily being limited to .40% of the average net assets attributable to Class R. For the year ended June 30, 2022, such waiver amounted to $27. The fees are accrued daily and paid monthly. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares' average daily net assets. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund's operation, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $126,750, $0 and $3,204 for Class C, Class R and Class K shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs, incurred by the Distributor, beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund's shares.

**NOTE D** 

**Investment Transactions** 

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

---

| | | |
|:---|:---|:---|
|  | **Purchases** | **Sales** |
|  Investment securities (excluding U.S. government securities) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;433517957 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;424329958 |
|  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;176572716 |
|  Gross unrealized appreciation | $47924440 |
|  Gross unrealized depreciation | (15634791) |
|  Net unrealized appreciation | $32289649 |

---

---

| | |
|:---|:---|
| **28 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **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 Fund did not engage in derivative transactions for the year ended June 30, 2022.

**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 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 E**

**Securities Lending** 

The Fund may enter into securities lending transactions. Under the Fund's securities lending program, all loans of securities will be collateralized continually by cash collateral and/or non-cash collateral. Non-cash collateral will include only securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. The Fund cannot sell or repledge any non-cash collateral, such collateral will not be reflected in the portfolio of investments. If a loan is collateralized by cash, the Fund will be compensated for the loan from a portion of the net return from the income earned on cash collateral after a rebate is paid to the borrower (in some cases, this rebate may be a "negative rebate" or fee paid by the borrower to the Fund in connection with the loan), and payments are made for fees of the securities lending agent and for certain other administrative expenses. If the Fund receives non-cash collateral, the Fund will receive a fee from the borrower generally equal to a negotiated percentage of the market value of the loaned securities. The Fund will have the right to call a loan and obtain the securities loaned at any time on notice to the borrower within the normal and customary settlement time for the securities. While the securities are on loan, the borrower is obligated to pay the Fund amounts equal

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 29** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

to any dividend income or other distributions from the securities; however, these distributions will not be afforded the same preferential tax treatment as qualified dividends. The Fund will not be able to exercise voting rights with respect to any securities during the existence of a loan, but will have the right to regain ownership of loaned securities in order to exercise voting or other ownership rights. Collateral received and securities loaned are marked to market daily to ensure that the securities loaned are secured by collateral. The lending agent currently invests the cash collateral received in Government Money Market Portfolio, an eligible money market vehicle, in accordance with the investment restrictions of the Fund, and as approved by the Board. The collateral received on securities loaned is recorded as an asset as well as a corresponding liability in the statement of assets and liabilities. The collateral will be adjusted the next business day to maintain the required collateral amount. The amounts of securities lending income from the borrowers and Government Money Market Portfolio are reflected in the statement of operations. When the Fund earns net securities lending income from Government Money Market Portfolio, the income is inclusive of a rebate expense paid to the borrower. In connection with the cash collateral investment by the Fund in the Government Money Market Portfolio, the Adviser has agreed to waive a portion of the Fund's share of the advisory fees of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. When the Fund lends securities, its investment performance will continue to reflect changes in the value of the securities loaned. A principal risk of lending portfolio securities is that the borrower may fail to return the loaned securities upon termination of the loan and that the collateral will not be sufficient to replace the loaned securities. The lending agent has agreed to indemnify the Fund in the case of default of any securities borrower.

A summary of the Fund's transactions surrounding securities lending for the year ended June 30, 2022 is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Government Money<br>Market Portfolio** | **Government Money<br>Market Portfolio** |  |
| **Market<br>Value of<br>Securities<br>on Loan\*** |<br>**Cash<br>Collateral\*** |<br>**Market<br>Value of<br>Non-Cash<br>Collateral\*** |<br>**Income from<br>Borrowers** | **Income<br>Earned** | **Advisory Fee<br>Waived** |  |
| $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;770 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 | \*\* |

---

\* As of June 30, 2022.

\*\* Amount is less than $1. 

---

| | |
|:---|:---|
| **30 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE F** 

**Capital Stock** 

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>June 30,<br>2022 | Year Ended<br> June 30,<br>2021 | Year Ended<br>June 30,<br>2022 | Year Ended<br> June 30,<br>2021 |
| **Class A** |  |  |  |  |
|  Shares sold | 300184 | 272417 | $5933192 | $5550293 |
|  Shares issued in reinvestment of distributions | 186375 | 20903 | 3679042 | 386573 |
|  Shares converted from Class C | 88379 | 79829 | 1859426 | 1598446 |
|  Shares redeemed | (221004) | (249849) | (4359660) | (5002941) |
|  **Net increase** | **353934** | **123300** | $**7112000** | $**2532371** |
| **Class C** |  |  |  |  |
|  Shares sold | 125190 | 51700 | $2232432 | $975350 |
|  Shares issued in reinvestment of distributions | 99213 | 15009 | 1761040 | 256807 |
|  Shares converted to Class A | (97349) | (86329) | (1859426) | (1598446) |
|  Shares redeemed | (65605) | (86949) | (1145007) | (1458085) |
|  **Net increase (decrease)** | **61449** | **(106569)** | $**989039** | $**(1824374)** |
| **Advisor Class** |  |  |  |  |
|  Shares sold | 1801515 | 1292033 | $33926672 | $23637823 |
|  Shares issued in reinvestment of dividends and distributions | 1747540 | 267344 | 34513913 | 4935169 |
|  Shares redeemed | (1069684) | (4091506) | (21023894) | (77467354) |
|  **Net increase (decrease)** | **2479371** | **(2532129)** | $**47416691** | $**(48894362)** |
|  **Class R** |  |  |  |  |
|  Shares sold | 7334 | 1044 | $116360 | $19173 |
|  Shares issued in reinvestment of distributions | 375 | 15 | 7091 | 277 |
|  Shares redeemed | (1866) | (13) | (34548) | (244) |
|  **Net increase** | **5843** | **1046** | $**88903** | $**19206** |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 31** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>June 30,<br>2022 | Year Ended<br> June 30,<br>2021 | Year Ended<br>June 30,<br>2022 | Year Ended<br> June 30,<br>2021 |
|  **Class K** |  |  |  |  |
|  Shares sold | 22657 | 42815 | $423057 | $789404 |
|  Shares issued in reinvestment of distributions | 13405 | 1714 | 260187 | 31287 |
|  Shares redeemed | (19198) | (45078) | (408246) | (825968) |
|  **Net increase (decrease)** | **16864** | **(549)** | $**274998** | $**(5277)** |
| **Class I** |  |  |  |  |
|  Shares sold | 2507 | 10 | $45558 | $187 |
|  Shares issued in reinvestment of dividends and distributions | 58865 | 9084 | 1146105 | 165778 |
|  Shares redeemed | (76200) | (32483) | (1267528) | (665809) |
|  **Net decrease** | **(14828)** | **(23389)** | $**(75865)** | $**(499844)** |

---

**NOTE G** 

**Risks Involved in Investing in the Fund** 

**Market Risk**—The value of the Fund's assets will fluctuate as the stock, bond or currency markets fluctuate. 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. It includes the risk that a particular style of investing may underperform the market generally.

**Sector Risk**—The Fund may have more risk because it may invest to a significant extent in one or more particular market sectors, such as the information technology or financial services sector. 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.

**Capitalization Risk**—Investments in small- and mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in these companies may have additional risks because these companies may have limited product lines, markets or financial resources.

**Active Trading Risk**—The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate may greatly exceed 100%. A higher rate of portfolio turnover increases transaction

---

| | |
|:---|:---|
| **32 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

costs, which may negatively affect the Fund's return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

**IPO Risk**—Securities purchased in an IPO may be subject to substantial price volatility due to one or more factors such as unseasoned trading in the securities, the lack of investor knowledge of the issuer, the lack of an operating history of the issuer, and the dependence of the issuer on key personnel, suppliers or a limited number of customers.

**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

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 33** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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 for the Fund, 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 H** 

**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 June 30, 2022.

**NOTE I** 

**Distributions to Shareholders** 

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

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Distributions paid from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ordinary income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21460603 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3316984 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net long-term capital gains | 23442395 | 2808621 |
|  Total taxable distributions paid | $44902998 | $6125605 |

---

---

| | |
|:---|:---|
| **34 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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

---

| | |
|:---|:---|
|  Undistributed ordinary income | $468507 |
|  Undistributed capital gains | 12967031 |
|  Unrealized appreciation/(depreciation) | 32274391 <sup>(a)</sup> |
|  Total accumulated earnings/(deficit) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45709929 |

---

(a) The differences between book-basis and tax-basis unrealized
appreciation/(depreciation) are attributable primarily to the tax deferral of losses on wash sales.

For tax purposes, net 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 June 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 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 J** 

**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 K** 

**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.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 35** |

---

------

**FINANCIAL HIGHLIGHTS** 

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $22.32 | $16.19 | $16.81 | $17.15 | $16.54 |
|  **Income From Investment<br>Operations** |  |  |  |  |  |
|  Net investment income (loss)<sup>(a)(b)</sup> | .02 | (.03 | .05 | .05 | .05 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.06) | 6.76 | .68 | 1.32 | 2.39 |
|  Contributions from Affiliates | – 0 | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (1.04) | 6.73 | .73 | 1.37 | 2.44 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment<br>income | – 0 | – 0 | (.07) | (.05 | (.03 |
|  Distributions from net realized gain on investment and foreign currency transactions | (4.72) | (.60 | (1.28) | (1.66) | (1.80) |
|  Total dividends and distributions | (4.72) | (.60 | (1.35) | (1.71) | (1.83) |
|  Net asset value, end of period | **$16.56** | **$22.32** | **$16.19** | **$16.81** | **$17.15** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup>\* | (8.03) | 42.31 | 4.18% | 9.08 | 15.03 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's<br>omitted) | $19869 | $18875 | $11699 | $10765 | $12060 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>†</sup> . | 1.47 | 1.51 | 1.53% | 1.50 | 1.45 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>†</sup> . | 1.47 | 1.51 | 1.53% | 1.50 | 1.46 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>(b)</sup> | .08 | (.13 | .28% | .28 | .31 |
|  Portfolio turnover rate | 197 | 148 | 183% | 209 | 236 |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00% | .02 | .02 |

---

See footnote summary on page 42.

---

| | |
|:---|:---|
| **36 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $20.57 | $15.07 | $15.78 | $16.28 | $15.87 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment loss<sup>(a)(b)</sup> | (.13 | (.16 | (.07) | (.07 | (.07 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.89 | 6.26 | .64 | 1.23 | 2.28 |
|  Contributions from Affiliates | – 0 | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (1.02) | 6.10 | .57 | 1.16 | 2.21 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Distributions from net realized gain on investment and foreign currency transactions | (4.72) | (.60 | (1.28) | (1.66) | (1.80) |
|  Net asset value, end of period | **$14.83** | **$20.57** | **$15.07** | **$15.78** | **$16.28** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup>\* | (8.69) | 41.25 | 3.36% | 8.27 | 14.19 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $7629 | $9319 | $8437 | $11463 | $12825 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>†</sup> . | 2.22 | 2.26 | 2.27% | 2.25 | 2.21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>†</sup> . | 2.22 | 2.27 | 2.28% | 2.25 | 2.21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment loss<sup>(b)</sup> | (.68 | (.88 | (.45)% | (.47 | (.45 |
|  Portfolio turnover rate | 197 | 148 | 183% | 209 | 236 |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00% | .02 | .02 |

---

See footnote summary on page 42.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 37** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $22.32 | $16.17 | $16.78 | $17.14 | $16.53 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income<sup>(a)(b)</sup> | .07 | .03 | .09 | .09 | .10 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.07) | 6.74 | .69 | 1.31 | 2.38 |
|  Contributions from Affiliates | – 0 | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (1.00) | 6.77 | .78 | 1.40 | 2.48 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | (.01 | (.02 | (.11) | (.10 | (.07 |
|  Distributions from net realized gain on investment and foreign currency transactions | (4.72) | (.60 | (1.28) | (1.66) | (1.80) |
|  Total dividends and distributions | (4.73) | (.62 | (1.39) | (1.76) | (1.87) |
|  Net asset value, end of period | **$16.59** | **$22.32** | **$16.17** | **$16.78** | **$17.14** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup>,\* | (7.82) | 42.63 | 4.44% | 9.34 | 15.33 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $176306 | $181782 | $172643 | $196566 | $186570 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>†</sup> . | 1.22 | 1.26 | 1.27% | 1.25 | 1.20 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>†</sup> . | 1.22 | 1.26 | 1.27% | 1.25 | 1.21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>(b)</sup> | .33 | .13 | .54% | .53 | .56 |
|  Portfolio turnover rate | 197 | 148 | 183% | 209 | 236 |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00% | .02 | .02 |

---

See footnote summary on page 42.

---

| | |
|:---|:---|
| **38 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class R** | **Class R** | **Class R** | **Class R** | **Class R** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $21.60 | $15.73 | $16.37 | $16.76 | $16.22 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income (loss)<sup>(a)(b)</sup> | (.05 | (.08 | .00 <sup>(c)</sup> | (.00 | .00 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.98 | 6.55 | .67 | 1.28 | 2.34 |
|  Contributions from Affiliates | – 0 | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (1.03) | 6.47 | .67 | 1.28 | 2.34 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | – 0 | – 0 | (.03) | (.01 | – 0 |
|  Distributions from net realized gain on investment and foreign currency transactions | (4.72) | (.60 | (1.28) | (1.66) | (1.80) |
|  Total dividends and distributions | (4.72) | (.60 | (1.31) | (1.67) | (1.80) |
|  Net asset value, end of period | **$15.85** | **$21.60** | **$15.73** | **$16.37** | **$16.76** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup>\* | (8.32) | 41.95 | 3.87% | 8.77 | 14.71 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $132 | $54 | $23 | $19 | $17 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>†</sup> . | 1.80 | 1.80 | 1.80% | 1.78 | 1.76 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>†</sup> . | 1.97 | 1.88 | 1.86% | 1.78 | 1.76 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>(b)</sup> | (.26 | (.43 | .01% | (.02 | .01 |
|  Portfolio turnover rate | 197 | 148 | 183% | 209 | 236 |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00% | .02 | .02 |

---

See footnote summary on page 42.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 39** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class K** | **Class K** | **Class K** | **Class K** | **Class K** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $22.02 | $15.99 | $16.59 | $16.92 | $16.33 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income (loss)<sup>(a)(b)</sup> | (.00 | (.03 | .04 | .03 | .04 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.03) | 6.66 | .68 | 1.30 | 2.35 |
|  Contributions from Affiliates | – 0 | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (1.03) | 6.63 | .72 | 1.33 | 2.39 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | – 0 | – 0 | (.04) | – 0 | – 0 |
|  Distributions from net realized gain on investment and foreign currency transactions | (4.72) | (.60 | (1.28) | (1.66) | (1.80) |
|  Total dividends and distributions | (4.72) | (.60 | (1.32) | (1.66) | (1.80) |
|  Net asset value, end of period | **$16.27** | **$22.02** | **$15.99** | **$16.59** | **$16.92** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup>\* | (8.15) | 42.28 | 4.16% | 8.99 | 14.94 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $1312 | $1404 | $1028 | $875 | $2806 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>†</sup> . | 1.55 | 1.55 | 1.55% | 1.55 | 1.54 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>†</sup> . | 1.65 | 1.69 | 1.70% | 1.66 | 1.63 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>(b)</sup> | (.00 | (.17 | .26% | .18 | .22 |
|  Portfolio turnover rate | 197 | 148 | 183% | 209 | 236 |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00% | .02 | .02 |

---

See footnote summary on page 42.

---

| | |
|:---|:---|
| **40 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $22.06 | $15.99 | $16.60 | $16.97 | $16.38 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income<sup>(a)(b)</sup> | .06 | .02 | .09 | .09 | .10 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (1.04) | 6.67 | .68 | 1.30 | 2.36 |
|  Contributions from Affiliates | – 0 | – 0 | .00 <sup>(c)</sup> | – 0 | – 0 |
|  Net increase (decrease) in net asset value from operations | (.98 | 6.69 | .77 | 1.39 | 2.46 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | (.01 | (.02 | (.10) | (.10 | (.07 |
|  Distributions from net realized gain on investment and foreign currency transactions | (4.72) | (.60 | (1.28) | (1.66) | (1.80) |
|  Total dividends and distributions | (4.73) | (.62 | (1.38) | (1.76) | (1.87) |
|  Net asset value, end of period | **$16.35** | **$22.06** | **$15.99** | **$16.60** | **$16.97** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup>\* | (7.82) | 42.62 | 4.45% | 9.38 | 15.35 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $3717 | $5340 | $4244 | $5401 | $39104 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>†</sup> . | 1.21 | 1.26 | 1.26% | 1.23 | 1.21 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>†</sup> .  | 1.22 | 1.26 | 1.27% | 1.24 | 1.22 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>(b)</sup> | .32 | .13 | .56% | .55 | .57 |
|  Portfolio turnover rate | 197 | 148 | 183% | 209 | 236 |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 | .00 | .00% | .02 | .02 |

---

See footnote summary on page 42.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 41** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(c) Amount is less than $0.005.

(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. Initial sales charge or contingent deferred sales charge is not reflected in the calculation of total
investment return. Total investment 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 for a period of less than one year is not annualized.

\* Includes the impact of proceeds received, and credited to the Fund resulting from class action settlements, which enhanced the performance of each share class, for the years ended June 30, 2022, June 30, 2020 and June 30, 2018 by 0.02%, 0.03% and 0.02%, respectively. 

See notes to financial statements.

---

| | |
|:---|:---|
| **42 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** 

**To the Board of Directors and Shareholders of** 

**AB Select US Equity Portfolio:** 

***Opinion on the Financial Statements***

We have audited the accompanying statement of assets and liabilities of AB Select US Equity Portfolio (the "Fund") (one of the funds constituting AB Cap Fund, Inc. (the "Company")), including the portfolio of investments, as of June 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 funds constituting AB Cap Fund, Inc.) at June 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 Company'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 Company 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 Company is not required to have, nor were we engaged to perform, an audit of the Company'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 Company'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 SELECT US EQUITY PORTFOLIO <sup>\|</sup> 43** |

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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 June 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](g416056g91r55.jpg)

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

New York, New York

August 26, 2022

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| | |
|:---|:---|
| **44 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **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 June 30, 2022. For corporate shareholders, 35.88% of dividends paid qualify for the dividends received deduction. For individual shareholders, the Fund designates 35.23% of dividends paid as qualified dividend income. The Fund designates $23,442,395 of dividends paid as long-term capital gains 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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**BOARD OF DIRECTORS** 

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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 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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| **Kurt A. Feuerman**<sup>(2)</sup>**,** Vice President<br> **Anthony Nappo**<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> Brown Brothers Harriman & Co.<br> 50 Post Office Square<br> Boston, MA 02110<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 | **Independent Registered Public Accounting Firm**<br> Ernst & Young LLP<br> One Manhattan West<br> New York, NY 10001<br>**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.

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| 2 | The day-to-day management of, and investment decisions for, the Fund's portfolio are made by the Adviser's Select Equity Portfolios Investment Team. Messrs. Feuerman and Nappo are the investment professionals with the most significant responsibility for the day-to-day management of the Fund's portfolio.  |

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**MANAGEMENT OF THE FUND** 

**Board of Directors Information** 

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund's Directors 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>DIRECTOR** | **OTHER PUBLIC<br>DIRECTORSHIPS<br>CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **INTERESTED DIRECTOR** |  |  |  |
| Onur Erzan,<sup>+</sup><br> 1345 Avenue of the Americas<br>New York, NY 10105<br> 46<br> (2021) | Senior Vice President of AllianceBernstein L.P. (the "Adviser"), Head of Global Client Group and Head of Private Wealth. He oversees AB's entire private wealth management business and third-party institutional and retail franchise, 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. Erzan is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, Erzan 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>DIRECTOR** | **OTHER PUBLIC<br>DIRECTORSHIPS<br>CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS** | **DISINTERESTED DIRECTORS** |  |  |
| Marshall C. Turner, Jr.,<sup>#</sup><br> *Chairman of the Board*<br>80<br> (2011) | Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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>DIRECTOR** | **OTHER PUBLIC<br>DIRECTORSHIPS<br>CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS<br>(continued)** | **DISINTERESTED DIRECTORS<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> (2011) | 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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**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>DIRECTOR** | **OTHER PUBLIC<br>DIRECTORSHIPS<br>CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS<br>(continued)** | **DISINTERESTED DIRECTORS<br>(continued)** |  |  |
| Nancy P. Jacklin,<sup>#</sup><br> 74<br> (2011) | 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 (ecommerce 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>DIRECTOR** | **OTHER PUBLIC<br>DIRECTORSHIPS<br>CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS<br>(continued)** | **DISINTERESTED DIRECTORS<br>(continued)** |  |  |
| Carol C. McMullen,<sup>#</sup><br> 67<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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**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>DIRECTOR** | **OTHER PUBLIC<br>DIRECTORSHIPS<br>CURRENTLY**<br> **HELD BY<br>DIRECTOR** |
| **DISINTERESTED DIRECTORS<br>(continued)** | **DISINTERESTED DIRECTORS<br>(continued)** |  |  |
| Garry L. Moody,<sup>#</sup><br> 70<br> (2011) | 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 the 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 Investment Company Institute's Board of Governors and the Independent Directors Council's Governing Council, where he serves as Chairman of its Governance Committee. 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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**MANAGEMENT OF THE FUND** (continued)

\* The address for each of the Fund's disinterested Directors 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 Fund's Directors.

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

+ Mr. Erzan is an "interested person" of the Fund, 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 FIVE YEARS** |
| Onur Erzan<br> 46 | President and Chief Executive Officer | See biography above. |
| Kurt A. Feuerman<br> 66 | Vice President | Senior Vice President and Chief Investment Officer – Select US Equity Portfolios of the Adviser\*\*, with which he has been associated since prior to 2017. |
| Anthony Nappo<br> 50 | Vice President | Senior Vice President, and Co-Chief Investment Officer – Select US Equity Portfolios of the Adviser\*\*, 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> 46 | 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 ("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 Fund's Officers is 1345 Avenue of the Americas, New York, NY 10105.

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

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

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**Operation and Effectiveness of the Funds' 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 Directors/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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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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**Information Regarding the Review and Approval of the Fund's Advisory Agreement** 

The disinterested directors (the "directors") of AB Cap Fund, Inc. (the "Company") unanimously approved the continuance of the Company's Advisory Agreement with the Adviser in respect of AB Select US Equity Portfolio (the "Fund") at a meeting held in-person on May 3-5, 2022 (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 Vice President for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

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.

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

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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 directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. 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 2020 and 2021 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, including those relating to its subsidiaries that provide transfer agency, distribution and brokerage services to 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

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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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to soft dollar arrangements (whereby investment advisers receive brokerage and research services from brokers that execute agency transactions for their clients); 12b-1 fees and sales charges received by the Fund's principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund's shares; brokerage commissions paid by the Fund to brokers affiliated with the Adviser; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser's profitability would be somewhat lower without these benefits. 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 Class A Shares 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 performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3-, 5- and 10-year periods ended February 28, 2022 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund's investment performance was acceptable.

**Advisory Fees and Other Expenses** 

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared 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 paid by other funds. The directors compared the Fund's contractual advisory fee rate with a peer group median and discussed with the Adviser the reasons it was above the median. The directors also took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

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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 a report from the Fund's Senior Vice President 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 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, 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 the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

In connection with their review of the Fund's advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund's latest fiscal year. The Adviser had agreed to cap the Fund's expenses, but the directors noted that the Fund's expense ratio was currently below the level of the Adviser's cap. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund's category were lowered by waivers or reimbursements by those funds' investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser's services because the Adviser is responsible for coordinating services provided to the Fund by others. The directors noted

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that the Fund's expense ratio was above the medians. After reviewing and discussing the Adviser's explanations of the reasons for this, the directors concluded that the Fund's expense ratio was acceptable.

**Economies of Scale** 

The directors noted that the advisory fee schedule for the Fund does not contain breakpoints, and that they had discussed their strong preference for breakpoints in advisory contracts with the Adviser. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund's adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund's operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. The directors informed the Adviser that they would monitor the Fund's asset level (which was well below the level at which they would anticipate adding an initial breakpoint) and its profitability to the Adviser and anticipated revisiting the question of breakpoints in the future if circumstances warranted doing so.

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 61** |

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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.

---

| | |
|:---|:---|
| **62 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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**NOTES** 

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|:---|:---|
| **abfunds.com** | **AB SELECT US EQUITY PORTFOLIO <sup>\|</sup> 63** |

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**NOTES** 

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| | |
|:---|:---|
| **64 <sup>\|</sup> AB SELECT US EQUITY PORTFOLIO** | **abfunds.com** |

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![LOGO](g416056g43p34.jpg)

AB SELECT US EQUITY PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

SUE-0151-0622 ![LOGO](g416056g22c48.jpg)

------

**JUN** <sup>06.30.22</sup>

![LOGO](g437791g43p34.jpg)

ANNUAL REPORT

## AB SELECT US LONG/SHORT PORTFOLIO
![LOGO](g437791covart_716.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](g437791g92f19.jpg) |

---

Dear Shareholder,

We're pleased to provide this report for the AB Select US Long/Short Portfolio (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](g437791g55d83.jpg)

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 1** |

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**ANNUAL REPORT** 

**August 9, 2022** 

This report provides management's discussion of fund performance for the AB Select US Long/Short Portfolio for the annual reporting period ended June 30, 2022.

**The Fund's investment objective is long-term growth of capital.** 

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

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| | | |
|:---|:---|:---|
|  | 6 Months | 12 Months |
| **AB SELECT US LONG/SHORT PORTFOLIO** |  |  |
| Class A Shares | -10.21% | -4.49% |
| Class C Shares | -10.55% | -5.18% |
| Advisor Class Shares<sup>1</sup> | -10.05% | -4.24% |
| Class R Shares<sup>1</sup> | -10.31% | -4.76% |
| Class K Shares<sup>1</sup> | -10.05% | -4.20% |
| Class I Shares<sup>1</sup> | -10.08% | -4.22% |
| S&P 500 Index | -19.96% | -10.62% |

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| | |
|:---|:---|
| 1 | Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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**INVESTMENT RESULTS** 

The table above shows the Fund's performance compared to its benchmark, the Standard & Poor's ("S&P") 500 Index, for the six- and 12-month periods ended June 30, 2022.

During the 12-month period, all share classes outperformed the benchmark, before sales charges. The Fund's net market exposure ranged from 47% to 68%, ending the period at 47%. The Fund's below-market exposure led to outperformance, relative to the fully invested benchmark. Security selection within both the Fund's long and short holdings contributed to absolute returns. Within the Fund's long holdings, security selection within the energy, health-care and industrials sectors contributed, while selection within communication services, consumer discretionary and technology detracted. Within the Fund's short holdings selection within consumer discretionary, financials and technology contributed, while selection within health care and industrials detracted.

During the six-month period, all share classes outperformed the benchmark, before sales charges. The Fund's net market exposure ranged from 47% to 51%, ending the period at 47%. The Fund's below-market

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| | |
|:---|:---|
| **2 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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exposure led to outperformance, relative to the fully invested benchmark. Security selection within the Fund's long and short holdings contributed to absolute returns. Within the Fund's long holdings, security selection within the energy, health-care and industrials sectors contributed, while selection within technology, consumer discretionary and communication services detracted. Within the Fund's short holdings, selection within consumer discretionary, financials and real estate added to returns, while selection within health care and industrials detracted.

The Fund utilized derivatives in the form of futures for hedging purposes, which added to absolute returns for both periods.

**MARKET REVIEW AND INVESTMENT STRATEGY** 

US, international and emerging-market stocks declined during the 12-month period ended June 30, 2022. Throughout the first half of the period, accommodative monetary policy underpinned an accelerating global economic recovery, which sent equity markets higher. Volatility increased as persistent inflation prompted the US Federal Reserve (the "Fed") to take a hawkish pivot that raised expectations for an accelerated rate liftoff and led other central banks to tighten monetary policy. Inflation worsened after Russia's invasion of Ukraine caused energy and agricultural prices to surge and China's zero-COVID policy prompted new supply-chain concerns. The Fed raised interest rates three times during the second half of the period, including a 0.75% hike in June—its largest since 1994. The growing fear of recession led to sharp declines and periods of widespread volatility across equity markets. Fed Chair Powell's acknowledgement that the path to a soft landing had narrowed weighed on global equity market sentiment. Against a backdrop of rising rates, growth stocks came under pressure, triggering a rotation into value-oriented stocks. Within large-cap markets, both growth and value stocks declined in absolute terms, but value stocks outperformed growth stocks by a wide margin. Large-cap stocks outperformed small-cap stocks on a relative basis, but both declined in absolute terms.

The Fund's Senior Investment Management Team (the "Team") continues to focus on absolute returns, using a flexible approach to participate in market upside while seeking to mitigate the downside. The Team uses bottom-up analysis to find companies with growth potential, adjusting expectations based on the short-term market environment.

**INVESTMENT POLICIES** 

Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of US companies, short positions in such securities, and cash and US cash equivalents.

(continued on next page)

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 3** |

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The Adviser selects investments for the Fund's long positions through an intensive "bottom-up" approach that places an emphasis on companies that are engaged in business activities with solid long-term growth potential and high barriers to entry, that have strong cash flows and other financial metrics, and that have transparent financial statements and business models. The Adviser also evaluates the quality of company management based on a series of criteria, including: (1) management's focus on shareholder returns, such as through a demonstrated commitment to dividends and dividend growth, share buybacks or other shareholder-friendly corporate actions; (2) management's employment of conservative accounting methodologies; (3) management incentives, such as direct equity ownership; and (4) management accessibility. The Adviser seeks to identify companies where events or catalysts may drive the company's share price higher, such as earnings and/or revenue growth above consensus forecasts, potential market recognition of undervaluation or overstated market-risk discount, or the institution of any of the shareholder-friendly practices discussed in the preceding sentence. In light of this catalyst-focused approach, the Adviser expects to engage in active and frequent trading for the Fund.

The Adviser may reduce or eliminate the Fund's holdings in a company's securities for a number of reasons, including if its evaluation of the above factors changes adversely, if the anticipated events or catalysts do not occur or do not affect the price of the securities as expected, or if the anticipated events or catalysts do occur and cause the securities to be, in the Adviser's view, overvalued or fully valued. At any given time the Fund may emphasize growth stocks over value stocks, or vice versa.

In determining securities to be sold short, the Adviser looks for companies facing near-term difficulties such as high valuations, quality of earnings issues, or weakness in demand due to economic factors or long-term issues such as changing technology or competitive concerns in their industries. The Fund may also sell securities of exchange-traded funds ("ETFs") short, including to hedge its exposure to specific market sectors or if it believes a specific sector or asset will decline in value. When the Fund sells securities short, it sells a stock that it does not own (but has borrowed) at its current market price in anticipation that the price of the stock will decline. To complete, or close out, the short sale transaction, the Fund buys the same stock in the market at a later date and returns it to the lender.

The Adviser derives the ratio between long and short positions for the Fund based on its bottom-up analysis supplemented with

(continued on next page)

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|:---|:---|
| **4 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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macro-economic and market analyses. Under normal market conditions, the net long exposure of the Fund (long exposure minus short exposure) will range between 30% and 70%. The Adviser seeks to minimize the variability of Fund returns through industry diversification as well as by managing long and short exposures and/or by holding a material level of cash and/or cash equivalents. For example, the Fund may hold long positions in equity securities with a value equal to 60% of its net assets and have short sale obligations equal to 15% of its net assets, resulting in 45% net long exposure. Assuming a 60% long exposure, 40% of Fund assets will be held in cash or cash equivalents, including cash and cash equivalents held to cover the Fund's short sale obligations. During periods of excessive market risk, the Adviser may reduce the net long exposure of the Fund. The Fund may at times hold long and short positions that in the aggregate exceed the value of its net assets (i.e., so that the Fund is effectively leveraged).

The Fund's investments will be focused on securities of companies with large- and medium-market capitalizations, but it may also take long and short positions in securities of small-capitalization companies. The Fund may invest in non-US companies, but currently intends to limit its investments in such companies to no more than 10% of its net assets. The Fund may purchase securities in initial public offerings ("IPOs") and expects to do so on a regular basis.

The Fund may enter into derivatives transactions, such as options, futures contracts, forwards and swaps, as part of its investment strategies or for hedging or other risk management purposes. These transactions may be used, for example, as a means to take a short position in a security or sector without actually selling securities short.

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 5** |

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**DISCLOSURES AND RISKS** 

**Benchmark Disclosure** 

**The S&P 500<sup>®</sup> Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio.** The S&P 500 Index includes 500 US stocks and is a common representation of the performance of the overall US stock 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, bond or currency markets fluctuate. 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. It includes the risk that a particular style of investing may underperform the market generally.

**Short Sale Risk:** Short sales involve the risk that the Fund will incur a loss by subsequently buying a security at a higher price than the price at which it sold the security. The amount of such loss is theoretically unlimited, as it will be based on the increase in value of the security sold short. In contrast, the risk of loss from a long position is limited to the Fund's investment in the security, because the price of the security cannot fall below zero. The Fund may not always be able to close out a short position on favorable terms.

**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, the value of its shares may be more volatile because leverage tends to exaggerate the effect of any increase or decrease in the value of the Fund's investments.

**Capitalization Risk:** Investments in small- and mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in these companies may have additional risks because these companies may have limited product lines, markets or financial resources.

**Active Trading Risk:** The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate is expected

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|:---|:---|
| **6 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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**DISCLOSURES AND RISKS** (continued)

to greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund's return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

**IPO Risk:** Securities purchased in an IPO may be subject to substantial price volatility due to one or more factors such as unseasoned trading in the securities, the lack of investor knowledge of the issuer, the lack of an operating history of the issuer, and the dependence of the issuer on key personnel, suppliers or a limited number of customers.

**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 for the Fund, 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 investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. 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 visiting www.abfunds.com.** 

**All fees and expenses related to the operation of the Fund have been deducted. Net asset value ("NAV") returns do not reflect sales charges; if sales charges were reflected, the Fund's quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.** 

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|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 7** |

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**HISTORICAL PERFORMANCE** 

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

12/12/2012<sup>1</sup> TO 6/30/2022

![LOGO](g437791g47a07.jpg)

This chart illustrates the total value of an assumed $10,000 investment in AB Select US Long/Short Portfolio Class A shares (from 12/12/2012<sup>1</sup> to 6/30/2022) as compared to the performance of the Fund's benchmark. The chart reflects the deduction of the maximum 4.25% sales charge from the initial $10,000 investment in the Fund and assumes the reinvestment of dividends and capital gains distributions.

1 Inception date: 12/12/2012.

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| **8 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** (continued)

**AVERAGE RETURNS AS OF JUNE 30, 2022** (unaudited)

---

| | | |
|:---|:---|:---|
|  | NAV Returns | SEC Returns<br> (reflects applicable<br>sales charges) |
| **CLASS A SHARES** |  |  |
| 1 Year | -4.49% | -8.54% |
| 5 Years | 7.47% | 6.53% |
| Since Inception<sup>1</sup> | 7.09% | 6.61% |
| **CLASS C SHARES** |  |  |
| 1 Year | -5.18% | -6.02% |
| 5 Years | 6.66% | 6.66% |
| Since Inception<sup>1,2</sup> | 6.30% | 6.30% |
| **ADVISOR CLASS SHARES**<sup>3</sup> |  |  |
| 1 Year | -4.24% | -4.24% |
| 5 Years | 7.74% | 7.74% |
| Since Inception<sup>1</sup> | 7.36% | 7.36% |
| **CLASS R SHARES**<sup>3</sup> |  |  |
| 1 Year | -4.76% | -4.76% |
| 5 Years | 7.18% | 7.18% |
| Since Inception<sup>1</sup> | 6.81% | 6.81% |
| **CLASS K SHARES**<sup>3</sup> |  |  |
| 1 Year | -4.20% | -4.20% |
| 5 Years | 7.53% | 7.53% |
| Since Inception<sup>1</sup> | 7.12% | 7.12% |
| **CLASS I SHARES**<sup>3</sup> |  |  |
| 1 Year | -4.22% | -4.22% |
| 5 Years | 7.78% | 7.78% |
| Since Inception<sup>1</sup> | 7.40% | 7.40% |

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**The Fund's current prospectus fee table shows the Fund's total annual operating expense ratios as 1.90%, 2.65%, 1.65%, 2.20%, 1.87% and 1.64% for Class A, Class C, Advisor Class, Class R, Class K and Class I shares, respectively, gross of any fee waivers or expense reimbursements. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.** 

1 Inception date: 12/12/2012.

2 Assumes conversion of Class C shares into Class A shares after eight years.

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| | |
|:---|:---|
| 3 | These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 9** |

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**HISTORICAL PERFORMANCE** (continued)

**SEC AVERAGE RETURNS** 

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

**JUNE 30, 2022** (unaudited)

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| | |
|:---|:---|
|  | SEC Returns<br> (reflects applicable<br>sales charges) |
| **CLASS A SHARES** |  |
| 1 Year | -8.54% |
| 5 Years | 6.53% |
| Since Inception<sup>1</sup> | 6.61% |
| **CLASS C SHARES** |  |
| 1 Year | -6.02% |
| 5 Years | 6.66% |
| Since Inception<sup>1,2</sup> | 6.30% |
| **ADVISOR CLASS SHARES**<sup>3</sup> |  |
| 1 Year | -4.24% |
| 5 Years | 7.74% |
| Since Inception<sup>1</sup> | 7.36% |
| **CLASS R SHARES**<sup>3</sup> |  |
| 1 Year | -4.76% |
| 5 Years | 7.18% |
| Since Inception<sup>1</sup> | 6.81% |
| **CLASS K SHARES**<sup>3</sup> |  |
| 1 Year | -4.20% |
| 5 Years | 7.53% |
| Since Inception<sup>1</sup> | 7.12% |
| **CLASS I SHARES**<sup>3</sup> |  |
| 1 Year | -4.22% |
| 5 Years | 7.78% |
| Since Inception<sup>1</sup> | 7.40% |

---

1 Inception date: 12/12/2012.

2 Assumes conversion of Class C shares into Class A shares after eight years.

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|:---|:---|
| 3 | Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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|:---|:---|
| **10 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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**EXPENSE EXAMPLE** 

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including management fees; distribution (12b-1) fees; and other Fund expenses. 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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|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 11** |

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**EXPENSE EXAMPLE** (continued)

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account<br>Value<br>January 1,<br>2022** | **Ending<br>Account<br>Value<br>June 30,<br>2022** | **Expenses<br>Paid<br>During<br>Period\*** | **Annualized<br>Expense<br>Ratio\*** | **Total<br>Expenses<br>Paid<br>During<br>Period+** | **Total<br>Annualized<br>Expense<br>Ratio+** |
| **Class A** |  |  |  |  |  |  |
|  Actual | $&nbsp;&nbsp;&nbsp;&nbsp;1000 | $897.90 | $8.61 | 1.83% | $8.80 | 1.87% |
|  Hypothetical\*\* | $1000 | $&nbsp;&nbsp;&nbsp;&nbsp;1015.72 | $9.15 | 1.83% | $9.35 | 1.87% |
| **Class C** |  |  |  |  |  |  |
|  Actual | $1000 | $894.50 | $&nbsp;&nbsp;&nbsp;&nbsp;12.12 | 2.58% | $&nbsp;&nbsp;&nbsp;&nbsp;12.31 | 2.62% |
|  Hypothetical\*\* | $1000 | $1012.00 | $12.87 | 2.58% | $13.07 | 2.62% |
| **Advisor Class** |  |  |  |  |  |  |
|  Actual | $1000 | $899.50 | $7.44 | 1.58% | $7.63 | 1.62% |
|  Hypothetical\*\* | $1000 | $1016.96 | $7.90 | 1.58% | $8.10 | 1.62% |
| **Class R** |  |  |  |  |  |  |
|  Actual | $1000 | $896.90 | $10.02 | 2.13% | $10.21 | 2.17% |
|  Hypothetical\*\* | $1000 | $1014.23 | $10.64 | 2.13% | $10.84 | 2.17% |
| **Class K** |  |  |  |  |  |  |
|  Actual | $1000 | $899.50 | $7.21 | 1.53% | $7.39 | 1.57% |
|  Hypothetical\*\* | $1000 | $1017.21 | $7.65 | 1.53% | $7.85 | 1.57% |
| **Class I** |  |  |  |  |  |  |
|  Actual | $1000 | $899.20 | $7.20 | 1.53% | $7.39 | 1.57% |
|  Hypothetical\*\* | $1000 | $1017.21 | $7.65 | 1.53% | $7.85 | 1.57% |

---

\* Expenses are equal to the classes' annualized expense ratios, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

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

---

| | |
|:---|:---|
| + | In connection with the Fund's investments in affiliated/unaffiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated/unaffiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund's pro rata share of certain acquired fund fees and expenses of the affiliated underlying portfolios. The Fund's total expenses are equal to the classes' annualized expense ratio plus the Fund's pro rata share of the weighted average expense ratio of the affiliated/unaffiliated underlying portfolios in which it invests, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).  |

---

---

| | |
|:---|:---|
| **12 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

---

------

**PORTFOLIO SUMMARY** 

**June 30, 2022** (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $1,704.4

------

SECTOR BREAKDOWN<sup>1</sup>

---

| | | |
|:---|:---|:---|
|  | Long | Short |
| Communication Services | 3.9% | -0.1% |
| Consumer Discretionary | 2.8 | -0.2 |
| Consumer Staples | 2.4 |  |
| Energy | 3.4 |  |
| Financials | 8.5 | -0.2 |
| Health Care | 8.7 | -0.1 |
| Industrials | 8.0 | -0.0 |
| Information Technology | 9.8 | -0.1 |
| Materials | 0.4 |  |
| Real Estate | 0.3 | -0.1 |
| Utilities | 0.6 |  |

---

TEN LARGEST HOLDINGS<sup>1</sup>

---

| | | | |
|:---|:---|:---|:---|
| Long |  | Short |  |
| Company |  | Company |  |
| Apple, Inc. | 2.8% | T Rowe Price Group, Inc. | -0.1% |
| Microsoft Corp. | 2.7 | Hudson Pacific Properties, Inc. | -0.1 |
| Berkshire Hathaway, Inc. – Class B | 2.5 | Airbnb, Inc. – Class A | -0.1 |
| UnitedHealth Group, Inc. | 2.0 | Cognizant Technology Solutions Corp. – Class A | -0.1 |
| Alphabet, Inc. – Class A | 1.8 | DraftKings, Inc. – Class A | -0.1 |
| Fifth Third Bancorp | 1.7 | Membership Collective Group, Inc. –<br>Class A | -0.1 |
| Honeywell International, Inc. | 1.6 | Laboratory Corp. of America Holdings | -0.1 |
| PNC Financial Services Group, Inc. (The) | 1.5 | SoFi Technologies, Inc. | -0.1 |
| Johnson & Johnson | 1.5 | Lemonade, Inc. | -0.0 |
| Humana, Inc. | 1.4 | AMC Entertainment Holdings, Inc. – Class A | -0.0 |

---

---

| | |
|:---|:---|
| 1 | Holdings are expressed as a percentage of total net assets and may vary over time.  |

---

Please note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard & Poor's. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the broad market. These sector classifications are broadly defined. The "Portfolio of Investments" section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Fund's prospectus.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 13** |

---

------

**PORTFOLIO OF INVESTMENTS** 

**June 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **COMMON STOCKS – 48.8%** |  |  |
|  **Information Technology – 9.8%** |  |  |
|  **Communications Equipment – 0.8%** |  |  |
|  F5, Inc.<sup>(a)</sup> | 26812 | $4103309 |
|  Motorola Solutions, Inc. | 42534 | 8915126 |
|  |  | 13018435 |
|  **IT Services – 1.2%** |  |  |
|  Stripe, Inc.<sup>(a)(b)(c)</sup> | 24598 | 816531 |
|  Visa, Inc. – Class A | 99709 | 19631705 |
|  |  | 20448236 |
|  **Semiconductors & Semiconductor Equipment – 1.6%** |  |  |
|  Advanced Micro Devices, Inc.<sup>(a)</sup> | 57647 | 4408266 |
|  Broadcom, Inc. | 14856 | 7217193 |
|  NVIDIA Corp. | 33775 | 5119952 |
|  NXP Semiconductors NV | 26686 | 3950329 |
|  QUALCOMM, Inc. | 53895 | 6884547 |
|  |  | 27580287 |
|  **Software – 3.4%** |  |  |
|  Adobe, Inc.<sup>(a)</sup> | 13489 | 4937783 |
|  Microsoft Corp. | 176138 | 45237523 |
|  Oracle Corp. | 81170 | 5671348 |
|  Salesforce, Inc.<sup>(a)</sup> | 17261 | 2848755 |
|  |  | 58695409 |
|  **Technology Hardware, Storage & Peripherals – 2.8%** |  |  |
|  Apple, Inc.<sup>(d)</sup> | 347012 | 47443481 |
|  |  | 167185848 |
|  **Health Care – 8.7%** |  |  |
|  **Health Care Equipment & Supplies – 0.5%** |  |  |
|  Abbott Laboratories | 79176 | 8602472 |
|  **Health Care Providers & Services – 3.4%** |  |  |
|  Humana, Inc. | 50439 | 23608983 |
|  UnitedHealth Group, Inc. | 66864 | 34343356 |
|  |  | 57952339 |
|  **Life Sciences Tools & Services – 1.4%** |  |  |
|  Danaher Corp. | 43888 | 11126486 |
|  Thermo Fisher Scientific, Inc. | 22649 | 12304749 |
|  |  | 23431235 |
|  **Pharmaceuticals – 3.4%** |  |  |
|  Eli Lilly & Co. | 27231 | 8829107 |
|  Johnson & Johnson | 146357 | 25979831 |
|  Pfizer, Inc. | 440945 | 23118747 |
|  |  | 57927685 |
|  |  | 147913731 |

---

---

| | |
|:---|:---|
| **14 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Financials – 8.5%** |  |  |
|  **Banks – 4.4%** |  |  |
|  Fifth Third Bancorp | 845810 | $28419216 |
|  M&T Bank Corp. | 31090 | 4955435 |
|  PNC Financial Services Group, Inc. (The) | 166665 | 26294737 |
|  Wells Fargo & Co. | 384473 | 15059808 |
|  |  | 74729196 |
|  **Capital Markets – 1.4%** |  |  |
|  Charles Schwab Corp. (The) | 203113 | 12832680 |
|  Goldman Sachs Group, Inc. (The) | 17014 | 5053498 |
|  Jefferies Financial Group, Inc. | 211308 | 5836327 |
|  |  | 23722505 |
|  **Diversified Financial Services – 2.5%** |  |  |
|  Berkshire Hathaway, Inc. – Class B<sup>(a)(d)</sup> | 154956 | 42306087 |
|  **Insurance – 0.2%** |  |  |
|  Progressive Corp. (The) | 40101 | 4662543 |
|  |  | 145420331 |
|  **Industrials – 8.0%** |  |  |
|  **Aerospace & Defense – 2.3%** |  |  |
|  Howmet Aerospace, Inc. | 89627 | 2818769 |
|  Northrop Grumman Corp. | 32162 | 15391769 |
|  Raytheon Technologies Corp. | 222157 | 21351509 |
|  |  | 39562047 |
|  **Commercial Services & Supplies – 0.7%** |  |  |
|  Republic Services, Inc. – Class A | 94265 | 12336461 |
|  **Construction & Engineering – 0.2%** |  |  |
|  WillScot Mobile Mini Holdings Corp.<sup>(a)</sup> | 75492 | 2447451 |
|  **Industrial Conglomerates – 1.6%** |  |  |
|  Honeywell International, Inc. | 157619 | 27395758 |
|  **Machinery – 0.5%** |  |  |
|  Deere & Co. | 25820 | 7732315 |
|  **Professional Services – 0.4%** |  |  |
|  Jacobs Engineering Group, Inc. | 54679 | 6951341 |
|  **Road & Rail – 2.3%** |  |  |
|  Canadian Pacific Railway Ltd. | 44665 | 3119404 |
|  CSX Corp.<sup>(d)</sup> | 222669 | 6470761 |
|  Norfolk Southern Corp. | 66871 | 15199109 |
|  Union Pacific Corp. | 67379 | 14370593 |
|  |  | 39159867 |
|  |  | 135585240 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 15** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Communication Services – 3.9%** |  |  |
|  **Diversified Telecommunication Services – 0.3%** |  |  |
|  Comcast Corp. – Class A | 114046 | $4475165 |
|  **Entertainment – 0.5%** |  |  |
|  Epic Games, Inc.<sup>(a)(b)(c)</sup> | 5074 | 5371717 |
|  Walt Disney Co. (The)<sup>(a)</sup> | 37026 | 3495254 |
|  |  | 8866971 |
|  **Interactive Media & Services – 2.3%** |  |  |
|  Alphabet, Inc. – Class A<sup>(a)</sup> | 13980 | 30466055 |
|  Meta Platforms, Inc. – Class A<sup>(a)</sup> | 53623 | 8646709 |
|  |  | 39112764 |
|  **Wireless Telecommunication Services – 0.8%** |  |  |
|  T-Mobile US, Inc.<sup>(a)</sup> | 107805 | 14504085 |
|  |  | 66958985 |
|  **Energy – 3.4%** |  |  |
|  **Energy Equipment & Services – 0.4%** |  |  |
|  Schlumberger NV | 163220 | 5836747 |
|  **Oil, Gas & Consumable Fuels – 3.0%** |  |  |
|  Chevron Corp. | 48524 | 7025305 |
|  EOG Resources, Inc.<sup>(d)</sup> | 132448 | 14627557 |
|  EQT Corp. | 152791 | 5256010 |
|  Exxon Mobil Corp. | 138205 | 11835876 |
|  Pioneer Natural Resources Co. | 55147 | 12302193 |
|  |  | 51046941 |
|  |  | 56883688 |
|  **Consumer Discretionary – 2.8%** |  |  |
|  **Hotels, Restaurants & Leisure – 1.0%** |  |  |
|  Booking Holdings, Inc.<sup>(a)</sup> | 3723 | 6511490 |
|  McDonald's Corp. | 44871 | 11077752 |
|  |  | 17589242 |
|  **Internet & Direct Marketing Retail – 1.0%** |  |  |
|  Amazon.com, Inc.<sup>(a)</sup> | 154130 | 16370147 |
|  **Specialty Retail – 0.8%** |  |  |
|  Home Depot, Inc. (The) | 37150 | 10189131 |
|  Lowe's Cos., Inc. | 14730 | 2572889 |
|  |  | 12762020 |
|  |  | 46721409 |
|  **Consumer Staples – 2.4%** |  |  |
|  **Beverages – 1.2%** |  |  |
|  PepsiCo, Inc. | 122999 | 20499013 |

---

---

| | |
|:---|:---|
| **16 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Food & Staples Retailing – 0.5%** |  |  |
|  Albertsons Cos., Inc. – Class A | 137806 | $3682176 |
|  Costco Wholesale Corp. | 11895 | 5701036 |
|  |  | 9383212 |
|  **Household Products – 0.7%** |  |  |
|  Procter & Gamble Co. (The) | 80769 | 11613775 |
|  |  | 41496000 |
|  **Utilities – 0.6%** |  |  |
|  **Electric Utilities – 0.6%** |  |  |
|  NextEra Energy, Inc. | 135389 | 10487232 |
|  **Materials – 0.4%** |  |  |
|  **Chemicals – 0.4%** |  |  |
|  FMC Corp. | 68594 | 7340244 |
|  **Real Estate – 0.3%** |  |  |
|  **Equity Real Estate Investment Trusts (REITs) – 0.3%** |  |  |
|  SBA Communications Corp. | 15348 | 4912127 |
|  Total Common Stocks <br>(cost $887,486,723) |  | 830904835 |
|  **WARRANTS – 0.0%** |  |  |
|  **Financials – 0.0%** |  |  |
|  **Capital Markets – 0.0%** |  |  |
|  Pershing Square Tontine Holdings Ltd. –Class A, expiring 07/24/2025<sup>(a)</sup> <br>(cost $52,400) | 9228 | 3969 |
|  **SHORT-TERM INVESTMENTS – 51.6%** |  |  |
|  **Investment Companies – 51.2%** |  |  |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.30%<sup>(e)(f)(g)</sup> <br>(cost $871,948,427) | 871948427 | 871948427 |
|  | **Principal<br>Amount<br>(000)** |  |
|  **U.S. Treasury Bills – 0.4%** |  |  |
|  **United States – 0.4%** |  |  |
|  U.S. Treasury Bill <br>Zero Coupon, 08/11/2022 <br>(cost $6,992,865) | $7000 | 6989158 |
|  Total Short-Term Investments <br>(cost $878,941,292) |  | 878937585 |
|  **Total Investments Before Securities Sold Short – 100.4%** <br>(cost $1,766,480,415) |  | 1709846389 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 17** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **SECURITIES SOLD SHORT – (0.8)%** |  |  |
|  **COMMON STOCKS – (0.8)%** |  |  |
|  **Financials – (0.2)%** |  |  |
|  **Capital Markets – (0.1)%** |  |  |
|  T Rowe Price Group, Inc. | (16794) | $(1907966) |
|  **Consumer Finance – (0.1)%** |  |  |
|  SoFi Technologies, Inc.<sup>(a)</sup> | (162411) | (855906) |
|  Upstart Holdings, Inc.<sup>(a)</sup> | (16630) | (525841) |
|  |  | (1381747) |
|  **Insurance – (0.0)%** |  |  |
|  Lemonade, Inc.<sup>(a)</sup> | (43685) | (797688) |
|  |  | (4087401) |
|  **Consumer Discretionary – (0.2)%** |  |  |
|  **Hotels, Restaurants & Leisure – (0.2)%** |  |  |
|  Airbnb, Inc. – Class A<sup>(a)</sup> | (10970) | (977208) |
|  DraftKings, Inc. – Class A<sup>(a)</sup> | (81451) | (950533) |
|  Membership Collective Group, Inc. – Class A<sup>(a)</sup> | (142248) | (921767) |
|  |  | (2849508) |
|  **Internet & Direct Marketing Retail – (0.0)%** |  |  |
|  DoorDash, Inc. – Class A<sup>(a)</sup> | (3796) | (243589) |
|  **Textiles, Apparel & Luxury Goods – (0.0)%** |  |  |
|  Rent the Runway, Inc. – Class A<sup>(a)</sup> | (161766) | (496622) |
|  |  | (3589719) |
|  **Real Estate – (0.1)%** |  |  |
|  **Equity Real Estate Investment Trusts (REITs) – (0.1)%** |  |  |
|  Acadia Realty Trust | (13011) | (203232) |
|  Agree Realty Corp. | (2469) | (178089) |
|  Chatham Lodging Trust<sup>(a)</sup> | (20087) | (209909) |
|  Hudson Pacific Properties, Inc. | (77699) | (1153053) |
|  |  | (1744283) |
|  **Health Care – (0.1)%** |  |  |
|  **Health Care Equipment & Supplies – (0.0)%** |  |  |
|  Stryker Corp. | (737) | (146611) |
|  **Health Care Providers & Services – (0.1)%** |  |  |
|  Laboratory Corp. of America Holdings | (3870) | (906973) |
|  **Life Sciences Tools & Services – (0.0)%** |  |  |
|  IQVIA Holdings, Inc.<sup>(a)</sup> | (2912) | (631875) |
|  |  | (1685459) |

---

---

| | |
|:---|:---|
| **18 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Information Technology – (0.1)%** |  |  |
|  **IT Services – (0.1)%** |  |  |
|  Cognizant Technology Solutions Corp. – Class A | (14301) | $(965175) |
|  **Communication Services – (0.1)%** |  |  |
|  **Entertainment – (0.1)%** |  |  |
|  AMC Entertainment Holdings, Inc. – Class A<sup>(a)</sup> | (57423) | (778082) |
|  **Industrials – (0.0)%** |  |  |
|  **Machinery – (0.0)%** |  |  |
|  Snap-on, Inc. | (737) | (145211) |
|  Total Securities Sold Short <br>(proceeds $14,471,209) |  | (12995330) |
|  **Total Investments, Net of Securities Sold Short – 99.6%** <br>(cost $1,752,009,206) |  | 1696851059 |
|  Other assets less liabilities – 0.4% |  | 7500300 |
|  **Net Assets – 100.0%** |  | $**1704351359** |

---

**FUTURES (see Note D)** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Number of<br>Contracts** | **Expiration<br>Month** | **Current<br>Notional** | **Value and<br>Unrealized<br>Appreciation/<br>(Depreciation)** |
|  **Sold Contracts** | **Sold Contracts** | **Sold Contracts** | **Sold Contracts** | **Sold Contracts** |
|  S&P 500 E-Mini Futures | 111 | September 2022 | $21031725 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;274512 |

---

(a) Non-income producing security.

(b) Security in which significant unobservable inputs (Level 3) were used in determining fair value.

(c) Fair valued by the Adviser.

(d) Position, or a portion thereof, has been segregated to collateralize short sales.

(e) Affiliated investments.

(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.

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

Glossary: 

REIT – Real Estate Investment Trust

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 19** |

---

------

**STATEMENT OF ASSETS & LIABILITIES** 

**June 30, 2022** 

---

| | |
|:---|:---|
| **Assets** |  |
|  Investments in securities, at value |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (cost $894,531,988) | $837897962 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers (cost $871,948,427) | 871948427 |
|  Cash collateral due from broker | 3496500 |
|  Foreign currencies, at value (cost $1,020,401) | 923097 |
|  Deposit at broker for securities sold short | 18331369 |
|  Receivable for investment securities sold | 12929767 |
|  Receivable for capital stock sold | 5350916 |
|  Affiliated dividends receivable | 736583 |
|  Unaffiliated dividends receivable | 490282 |
|  Receivable for variation margin on futures | 178730 |
|  Total assets | 1752283633 |
| **Liabilities** | **Liabilities** |
|  Due to custodian | 262000 |
|  Payable for investment securities purchased | 30949925 |
|  Payable for securities sold short, at value (proceeds received $14,471,209) | 12995330 |
|  Advisory fee payable | 2055446 |
|  Payable for capital stock redeemed | 1198284 |
|  Distribution fee payable | 63156 |
|  Administrative fee payable | 22932 |
|  Transfer Agent fee payable | 16606 |
|  Foreign capital gains tax payable | 11792 |
|  Dividend expense payable | 3432 |
|  Accrued expenses | 353371 |
|  Total liabilities | 47932274 |
|  Net Assets | $**1704351359** |
| **Composition of Net Assets** | **Composition of Net Assets** |
|  Capital stock, at par | $13120 |
|  Additional paid-in capital | 1745235575 |
|  Accumulated loss | (40897336) |
|  **Net Assets** | $**1704351359** |

---

**Net Asset Value Per Share—30 billion shares of capital stock authorized, $.0001 par value** 

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Net Assets** | **Shares<br>Outstanding** | **Net Asset<br>Value** |
| **A** | $118589799 | 9358559 | $&nbsp;&nbsp;&nbsp;&nbsp;12.67 \* |
| **C** | $44731676 | 3878763 | $11.53 |
| **Advisor** | $&nbsp;&nbsp;&nbsp;&nbsp;1506544498 | 115334600 | $13.06 |
| **R** | $295429 | 24081 | $12.27 |
| **K** | $12716 | 1000.66 | $12.71 |
| **I** | $34177241 | 2606827 | $13.11 |

---

\* The maximum offering price per share for Class A shares was $13.23 which reflects a sales charge of 4.25%. 

See notes to financial statements.

---

| | |
|:---|:---|
| **20 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

---

------

**STATEMENT OF OPERATIONS** 

**Year Ended June 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Investment Income** |  |  |
|  Dividends |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (net of foreign taxes withheld of $25,998) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15577030 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers | 1447032 |  |
|  Securities lending income | 38599 | $17062661 |
| **Expenses** |  |  |
|  Advisory fee (see Note B) | 24242997 |  |
|  Distribution fee—Class A | 301803 |  |
|  Distribution fee—Class C | 553069 |  |
|  Distribution fee—Class R | 1536 |  |
|  Distribution fee—Class K | 36 |  |
|  Transfer agency—Class A | 74353 |  |
|  Transfer agency—Class C | 33679 |  |
|  Transfer agency—Advisor Class | 868401 |  |
|  Transfer agency—Class R | 428 |  |
|  Transfer agency—Class K | 7 |  |
|  Transfer agency—Class I | 9500 |  |
|  Registration fees | 184829 |  |
|  Custody and accounting | 153349 |  |
|  Administrative | 95792 |  |
|  Printing | 69438 |  |
|  Audit and tax | 60256 |  |
|  Legal | 43313 |  |
|  Directors' fees | 37488 |  |
|  Miscellaneous | 71116 |  |
|  Total operating expenses (see Note B) | 26801390 |  |
|  Dividend expense on securities sold short and interest expense | 91843 |  |
|  Broker fee on securities sold short | 28484 |  |
|  Total expenses | 26921717 |  |
|  Less: expenses waived and reimbursed by the Adviser (see Notes B & E) | (468430) |  |
|  Less: expenses waived and reimbursed by the Distributor (see Note C) | (30) |  |
|  Net expenses |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26453257 |
|  Net investment loss |  | (9390596) |

---

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 21** |

---

------

**STATEMENT OF OPERATIONS** (continued)

---

| | |
|:---|:---|
| **Realized and Unrealized Gain (Loss) on Investment and Foreign Currency Transactions** |  |
|  Net realized gain (loss) on: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment transactions<sup>(a)</sup> | $99461108 |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | 2091700 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures | (662743) |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency transactions | (30280) |
|  Net change in unrealized appreciation/depreciation of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments | (180770961) |
| &nbsp;&nbsp;&nbsp;&nbsp; Securities sold short | 2083124 |
| &nbsp;&nbsp;&nbsp;&nbsp; Futures | 1011283 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foreign currency denominated assets and liabilities | (100330) |
|  Net loss on investment and foreign currency transactions | (76917099) |
|  Contributions from Affiliates (see Note B) | 6170 |
|  **Net Decrease in Net Assets from Operations** | $**(86301525)** |

---

(a) Net of foreign realized capital gains taxes of $43,895.

See notes to financial statements.

---

| | |
|:---|:---|
| **22 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

---

------

**STATEMENT OF CHANGES IN NET ASSETS** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>June 30,<br>2022** | **Year Ended<br>June 30,<br>2021** |
| **Increase (Decrease) in Net Assets<br>from Operations** |  |  |
|  Net investment loss | $(9390596) | $(8746666) |
|  Net realized gain on investment and foreign currency transactions | 100859785 | 205048510 |
|  Net change in unrealized appreciation/depreciation of investments and foreign currency denominated assets and liabilities | (177776884) | 72810529 |
|  Contributions from Affiliates<br>(see Note B) | 6170 | 20023 |
|  Net increase (decrease) in net assets from operations | (86301525) | 269132396 |
| **Distributions to Shareholders** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A | (13638795) | (3987292) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class C | (6975453) | (2763145) |
| &nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | (149689082) | (41936613) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class R | (35584) | (11930) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class K | (1738) | (595) |
| &nbsp;&nbsp;&nbsp;&nbsp; Class I | (4234326) | (773878) |
| **Capital Stock Transactions** |  |  |
|  Net increase | 552601106 | 151025466 |
|  Total increase | 291724603 | 370684409 |
| **Net Assets** |  |  |
|  Beginning of period | 1412626756 | 1041942347 |
|  End of period | $**1704351359** | $**1412626756** |

---

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 23** |

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------

**NOTES TO FINANCIAL STATEMENTS** 

**June 30, 2022** 

**NOTE A** 

**Significant Accounting Policies** 

AB Cap Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 12 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Select US Long/Short Portfolio (the "Fund"), a diversified portfolio. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class T, Class 1 and Class 2 shares. Class B, Class T, Class 1 and Class 2 shares have not been issued. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. Class R and Class K shares are sold without an initial or contingent deferred sales charge. Advisor Class and Class I shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All 10 classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. 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 Company's Board of Directors (the "Board").

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| | |
|:---|:---|
| **24 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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 between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (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

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 25** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

**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)

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified

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| | |
|:---|:---|
| **26 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in<br>Securities:** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets:** | **Assets:** | **Assets:** | **Assets:** | **Assets:** |
|  Common Stocks: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Information Technology | $166369317 | $– 0 | $816531 | $167185848 |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care | 147913731 | – 0 | – 0 | 147913731 |
| &nbsp;&nbsp;&nbsp;&nbsp; Financials | 145420331 | – 0 | – 0 | 145420331 |
| &nbsp;&nbsp;&nbsp;&nbsp; Industrials | 135585240 | – 0 | – 0 | 135585240 |
| &nbsp;&nbsp;&nbsp;&nbsp; Communication Services | 61587268 | – 0 | 5371717 | 66958985 |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy | 56883688 | – 0 | – 0 | 56883688 |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer Discretionary | 46721409 | – 0 | – 0 | 46721409 |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer Staples | 41496000 | – 0 | – 0 | 41496000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Utilities | 10487232 | – 0 | – 0 | 10487232 |
| &nbsp;&nbsp;&nbsp;&nbsp; Materials | 7340244 | – 0 | – 0 | 7340244 |
| &nbsp;&nbsp;&nbsp;&nbsp; Real Estate | 4912127 | – 0 | – 0 | 4912127 |
|  Warrants | 3969 | – 0 | – 0 | 3969 |
|  Short-Term Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment Companies | 871948427 | – 0 | – 0 | 871948427 |
| &nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bills | – 0 | 6989158 | – 0 | 6989158 |
|  **Liabilities:** |  |  |  |  |
|  Common Stocks: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Financials | (4087401) | – 0 | – 0 | (4087401) |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer Discretionary | (3589719) | – 0 | – 0 | (3589719) |
| &nbsp;&nbsp;&nbsp;&nbsp; Real Estate | (1744283) | – 0 | – 0 | (1744283) |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care | (1685459) | – 0 | – 0 | (1685459) |
| &nbsp;&nbsp;&nbsp;&nbsp; Information Technology | (965175) | – 0 | – 0 | (965175) |
| &nbsp;&nbsp;&nbsp;&nbsp; Communication Services | (778082) | – 0 | – 0 | (778082) |
| &nbsp;&nbsp;&nbsp;&nbsp; Industrials | (145211) | – 0 | – 0 | (145211) |
|  Total Investments in Securities | &nbsp;&nbsp;&nbsp;&nbsp;1683673653 | &nbsp;&nbsp;&nbsp;&nbsp;6989158 | &nbsp;&nbsp;&nbsp;&nbsp;6188248 | &nbsp;&nbsp;&nbsp;&nbsp;1696851059 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 27** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Investments in<br>Securities:** | **Level 1** | **Level 2** | **Level 3** | **Total** |  |
|  **Other Financial Instruments<sup>(a)</sup>:** |  |  |  |  |  |
|  **Assets:** |  |  |  |  |  |
|  Futures | $274512 | $– 0 | $– 0 | $274512 | <sup>(b)</sup> |
|  **Liabilities** | – 0 | – 0 | – 0 | – 0 |  |
|  **Total** | $**1683948165** | $**6989158** | $**6188248** | $**1697125571** |  |

---

(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. Currency Translation** 

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

**4. 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. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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| | |
|:---|:---|
| **28 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

**5. 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.

**6. Class Allocations** 

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each portfolio or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

**7. 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 investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of 1.50% of the first $2.5 billion and 1.475% thereafter of the Fund's average daily net assets. The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total operating expenses (excluding dividend expense, borrowing costs and brokerage expense on securities sold short) on an

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 29** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

annual basis (the "Expense Caps") to 1.90%, 2.65%, 1.65%, 2.15%, 1.90% and 1.65%, of average daily net assets for Class A, Class C, Advisor Class, Class R, Class K and Class I shares, respectively. For the year ended June 30, 2022, such reimbursements/waivers amounted to $91. The Expense Caps may not be terminated by the Adviser before October 31, 2022.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the year ended June 30, 2022, the reimbursement for such services amounted to $95,792.

The Fund compensates AllianceBernstein Investor Services, Inc. ("ABIS"), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $234,895 for the year ended June 30, 2022.

AllianceBernstein Investments, Inc. (the "Distributor"), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund's shares. The Distributor has advised the Fund that it has retained front-end sales charges of $11,971 from the sale of Class A shares and received $0 and $5,045 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the year ended June 30, 2022.

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, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive 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 June 30, 2022, such waiver amounted to $468,335.

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| | |
|:---|:---|
| **30 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Fund** | **Market Value<br>6/30/21<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Sales<br>Proceeds<br>(000)** | **Market Value<br>6/30/22<br>(000)** | **Dividend<br>Income<br>(000)** |  |
|  Government Money Market Portfolio | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;408365 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1361850 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;898267 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;871948 | $1447 |  |
|  Government Money Market Portfolio\* | 5144 | 26405 | 31549 | – 0 | 0 | \*\* |
|  Total |  |  |  | $871948 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1447 |  |

---

\* Investments of cash collateral for securities lending transactions (see Note E).

\*\* Amount is less than $500. 

During the year ended June 30, 2022, the Adviser reimbursed the Fund $6,170 for trading losses incurred due to a pricing error. During the year ended June 30, 2021, the Adviser reimbursed the Fund $20,023 for trading losses incurred due to a trade entry error.

**NOTE C** 

**Distribution Services Agreement** 

The Fund has adopted a Distribution Services Agreement (the "Agreement") pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .30% of the Fund's average daily net assets attributable to Class A shares, 1% of the Fund's average daily net assets attributable to Class C shares, .50% of the Fund's average daily net assets attributable to Class R shares, and .25% of the Fund's average daily net assets attributable to Class K shares. There are no distribution and servicing fees on the Advisor Class and Class I shares. The fees are accrued daily and paid monthly. Payments under the Agreement in respect of Class A shares are currently limited to an annual rate of .25% of Class A shares' average daily net assets. As of September 1, 2021, with respect to Class K shares, payments to the Distributor are voluntarily being limited to 0% of the average daily net assets attributable to Class K shares. For the year ended June 30, 2022, such waivers amounted to $30. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund's operations, the Distributor has incurred expenses in excess of the distribution costs reimbursed by the Fund in the amounts of $1,670,413, $8,114 and $0 for Class C, Class R and Class K shares, respectively. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect,

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 31** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund's shares.

**NOTE D** 

**Investment Transactions** 

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

---

| | | | |
|:---|:---|:---|:---|
| **Purchases** | **Sales** | **Securities**<br>**Sold Short** | **Covers on<br>Securities Sold<br>Short** |
| $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2384778343 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2452629146 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38032240 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22721741 |

---

There were no purchases or sales of U.S. government and government agency obligations for the year ended June 30, 2022.

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Gross Unrealized** | **Gross Unrealized** | **Net<br>Unrealized<br>Depreciation<br>on<br>Investments** | **Net<br>Unrealized**<br>**Appreciation<br>on<br>Securities<br>Sold Short** | **Net<br>Unrealized<br>Depreciation** |
|<br>**Cost of<br>Investments** | **Appreciation<br>on<br>Investments** | **Depreciation<br>on<br>Investments** | **Net<br>Unrealized<br>Depreciation<br>on<br>Investments** | **Net<br>Unrealized**<br>**Appreciation<br>on<br>Securities<br>Sold Short** | **Net<br>Unrealized<br>Depreciation** |
| $&nbsp;&nbsp;&nbsp;&nbsp;1860450436 | $&nbsp;&nbsp;&nbsp;&nbsp;6038436 | $&nbsp;&nbsp;&nbsp;&nbsp;(156642483) | $&nbsp;&nbsp;&nbsp;&nbsp;(150604047) | $&nbsp;&nbsp;&nbsp;&nbsp;721760 <sup>(a)</sup> | $&nbsp;&nbsp;&nbsp;&nbsp;(149882287) |

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(a) Gross unrealized appreciation was $721,760 and gross unrealized depreciation was $0 resulting in net unrealized
appreciation of $721,760.

**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

---

| | |
|:---|:---|
| **32 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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, as described below under "Currency Transactions".

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

During the year ended June 30, 2022, the Fund held futures 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

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 33** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

derivatives were held at period end, please refer to netting arrangements by the OTC counterparty table below for additional details.

During the year ended June 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** |
|  Equity contracts | Receivable/Payable for variation margin on futures | $274512 \* |  |  |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;274512 |  |  |

---

\* 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)** |
|  Equity contracts | Net realized gain (loss) on futures; Net change in unrealized appreciation/depreciation of futures | $(662743) | $1011283 |
|  Total |  | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(662743) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1011283 |

---

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

---

| | |
|:---|:---|
|  Futures: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Average notional amount of sale contracts | $54371790.0 |

---

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.

**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

---

| | |
|:---|:---|
| **34 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

securities denominated in that currency are not held by the Fund and do not present attractive investment opportunities. Such transactions may also be used when the Adviser believes that it may be more efficient than a direct investment in a foreign currency-denominated security. 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).

**3. Short Sales** 

The Fund may sell securities short. A short sale is a transaction in which the Fund sells securities it does not own, but has borrowed, in anticipation of a decline in the market price of the securities. The Fund is obligated to replace the borrowed securities at their market price at the time of settlement. The Fund's obligation to replace the securities borrowed in connection with a short sale will be fully secured by collateral deposited with the broker. The Fund is liable to the buyer for any dividends/interest payable on securities while those securities are in a short position. These dividends/interest are recorded as an expense of the Fund. Short sales by the Fund involve certain risks and special considerations. Possible losses from short sales differ from losses that could be incurred from a purchase of a security because losses from short sales may be unlimited, whereas losses from purchases cannot exceed the total amount invested.

**NOTE E** 

**Securities Lending** 

The Fund may enter into securities lending transactions. Under the Fund's securities lending program, all loans of securities will be collateralized continually by cash collateral and/or non-cash collateral. Non-cash collateral will include only securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. The Fund cannot sell or repledge any non-cash collateral, such collateral will not be reflected in the portfolio of investments. If a loan is collateralized by cash, the Fund will be compensated for the loan from a portion of the net return from the income earned on cash collateral after a rebate is paid to the borrower (in some cases, this rebate may be a "negative rebate" or fee paid by the borrower to the Fund in connection with the loan), and payments are made for fees of the securities lending agent and for certain other administrative expenses. If the Fund receives non-cash collateral, the Fund will receive a fee from the borrower generally equal to a negotiated percentage of the market value of the loaned securities. The Fund will have the right to call a loan and obtain the securities loaned at any time on notice to the borrower within the normal and customary settlement time for the securities. While the securities are on loan, the borrower is obligated to pay the Fund amounts equal to any dividend income or other distributions from the securities; however, these distributions will not be afforded the same preferential tax treatment as

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 35** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

qualified dividends. The Fund will not be able to exercise voting rights with respect to any securities during the existence of a loan, but will have the right to regain ownership of loaned securities in order to exercise voting or other ownership rights. Collateral received and securities loaned are marked to market daily to ensure that the securities loaned are secured by collateral. The lending agent currently invests the cash collateral received in Government Money Market Portfolio, an eligible money market vehicle, in accordance with the investment restrictions of the Fund, and as approved by the Board. The collateral received on securities loaned is recorded as an asset as well as a corresponding liability in the statement of assets and liabilities. The collateral will be adjusted the next business day to maintain the required collateral amount. The amounts of securities lending income from the borrowers and Government Money Market Portfolio are reflected in the statement of operations. When the Fund earns net securities lending income from Government Money Market Portfolio, the income is inclusive of a rebate expense paid to the borrower. In connection with the cash collateral investment by the Fund in Government Money Market Portfolio, the Adviser has agreed to waive a portion of the Fund's share of the advisory fees of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. When the Fund lends securities, its investment performance will continue to reflect changes in the value of the securities loaned. A principal risk of lending portfolio securities is that the borrower may fail to return the loaned securities upon termination of the loan and that the collateral will not be sufficient to replace the loaned securities. The lending agent has agreed to indemnify the Fund in the case of default of any securities borrower.

A summary of the Fund's transactions surrounding securities lending for the year ended June 30, 2022 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | **Government Money<br>Market Portfolio** | **Government Money<br>Market Portfolio** |
| **Market<br>Value of<br>Securities**<br> **on Loan\*** |<br>**Cash<br>Collateral\*** |<br>**Market<br>Value of<br>Non-Cash<br>Collateral\*** |<br>**Income from<br>Borrowers** | **Income**<br>**Earned** | **Advisory Fee<br>Waived** |
| $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 – | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 – | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 – | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38356 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;243 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 |

---

\* As of June 30, 2022.

---

| | |
|:---|:---|
| **36 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE F** 

**Capital Stock** 

Each class consists of 3,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>June 30,<br>2022 | Year Ended<br>June 30,<br>2021 | Year Ended<br>June 30,<br>2022 | Year Ended<br>June 30,<br>2021 |
| **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  Shares sold | 2086470 | 1373092 | $29400435 | $19077623 |
|  Shares issued in reinvestment of distributions | 822221 | 261097 | 11527545 | 3475203 |
|  Shares converted from Class C | 1130833 | 947426 | 16020612 | 12792470 |
|  Shares redeemed | (2149501) | (1835517) | (29810146) | (25030963) |
|  **Net increase** | **1890023** | **746098** | $**27138446** | $**10314333** |
| **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
|  Shares sold | 777627 | 416283 | $10093105 | $5426145 |
|  Shares issued in reinvestment of distributions | 504047 | 206983 | 6456837 | 2562443 |
|  Shares converted to Class A | (1234668) | (1015885) | (16020612) | (12792470) |
|  Shares redeemed | (492135) | (779039) | (6406042) | (9886052) |
|  **Net decrease** | **(445129)** | **(1171658)** | $**(5876712)** | $**(14689934)** |
| **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** |
|  Shares sold | 50470675 | 22890452 | $726157767 | $323314691 |
|  Shares issued in reinvestment of distributions | 7510020 | 2274290 | 108369595 | 30975825 |
|  Shares redeemed | (21335023) | (15293889) | (304707487) | (215358758) |
|  **Net increase** | **36645672** | **9870853** | $**529819875** | $**138931758** |
| **Class R** | **Class R** | **Class R** | **Class R** | **Class R** |
|  Shares sold | 1299 | 4216 | $17958 | $55891 |
|  Shares issued in reinvestment of distributions | 2617 | 918 | 35582 | 11929 |
|  Shares redeemed | (11) | (2449) | (147) | (33868) |
|  **Net increase** | **3905** | **2685** | $**53393** | $**33952** |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 37** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Amount** | **Amount** |
|  | Year Ended<br>June 30,<br>2022 | Year Ended<br>June 30,<br>2021 | Year Ended<br>June 30,<br>2022 | Year Ended<br>June 30,<br>2021 |
| **Class K** | **Class K** | **Class K** | **Class K** | **Class K** |
|  Shares sold | 0 <sup>(a)</sup> | – 0 | $0 <sup>(b)</sup> | $– 0 |
|  Shares issued in reinvestment of distributions | 0 <sup>(a)</sup> | 0 | 0 <sup>(b)</sup> | 0 |
|  **Net increase** | **0** **<sup>(a)</sup>** | **0** | $**0** **<sup>(b)</sup>** | $**0** |
| **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
|  Shares sold | 118288 | 1499765 | $1662638 | $20799663 |
|  Shares issued in reinvestment of distributions | 291542 | 56399 | 4221533 | 770418 |
|  Shares redeemed | (306705) | (357486) | (4418067) | (5134724) |
|  **Net increase** | **103125** | **1198678** | $**1466104** | $**16435357** |

---

(a) Amount is less than one share

(b) Amount is less than $.50.

**NOTE G** 

**Risks Involved in Investing in the Fund** 

**Market Risk**—The value of the Fund's assets will fluctuate as the stock, bond or currency markets fluctuate. 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. It includes the risk that a particular style of investing may underperform the market generally.

**Short Sale Risk**—Short sales involve the risk that the Fund will incur a loss by subsequently buying a security at a higher price than the price at which it sold the security. The amount of such loss is theoretically unlimited, as it will be based on the increase in value of the security sold short. In contrast, the risk of loss from a long position is limited to the Fund's investment in the security, because the price of the security cannot fall below zero. The Fund may not always be able to close out a short position on favorable terms.

**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.

---

| | |
|:---|:---|
| **38 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**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.

**Capitalization Risk**—Investments in small- and mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in these companies may have additional risks because these companies may have limited product lines, markets or financial resources.

**Active Trading Risk**—The Fund expects to engage in active and frequent trading of its portfolio securities and its portfolio turnover rate is expected to greatly exceed 100%. A higher rate of portfolio turnover increases transaction costs, which may negatively affect the Fund's return. In addition, a high rate of portfolio turnover may result in substantial short-term gains, which may have adverse tax consequences for Fund shareholders.

**IPO Risk**—Securities purchased in an IPO may be subject to substantial price volatility due to one or more factors such as unseasoned trading in the securities, the lack of investor knowledge of the issuer, the lack of an operating history of the issuer, and the dependence of the issuer on key personnel, suppliers or a limited number of customers.

**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

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 39** |

---

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**NOTES TO FINANCIAL STATEMENTS** (continued)

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 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 for the Fund, 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.

---

| | |
|:---|:---|
| **40 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE H** 

**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 June 30, 2022.

**NOTE I** 

**Distributions to Shareholders** 

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

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Distributions paid from: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ordinary income | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;124544283 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34453240 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net long-term capital gains | 50030695 | 15020213 |
|  Total taxable distributions paid | $174574978 | $49473453 |

---

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

---

| | |
|:---|:---|
|  Undistributed ordinary income | $59287888 |
|  Undistributed capital gains | 49807122 |
|  Unrealized appreciation/(depreciation) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(149980553)<sup>(a)</sup> |
|  Total accumulated earnings/(deficit) | $(40885543) |

---

(a) 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 and the tax deferral of losses on wash sales.

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 June 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 contributions from the Adviser resulted in a net increase in accumulated loss and a net increase in additional paid-in capital. These reclassifications had no effect on net assets.

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 41** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**NOTE J** 

**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 K** 

**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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| | |
|:---|:---|
| **42 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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------

**FINANCIAL HIGHLIGHTS** 

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $14.91 | $12.48 | $12.54 | $12.86 | $12.28 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment loss<sup>(a)(b)</sup> | (.11) | (.12) | (.04) | (.00 | (.04) |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.39) | 3.14 | .42 | .69 | 1.26 |
|  Contributions from Affiliates | .00 <sup>(c)</sup> | .00 <sup>(c)</sup> | .00 <sup>(c)</sup> | – 0 | .00 <sup>(c)</sup> |
|  Net increase (decrease) in net asset value from operations | (.50) | 3.02 | .38 | .69 | 1.22 |
|  **Less: Distributions** |  |  |  |  |  |
|  Distributions from net realized gain on investment transactions | (1.74) | (.59) | (.44) | (1.01) | (.64) |
|  Net asset value, end of period | **$12.67** | **$14.91** | **$12.48** | **$12.54** | **$12.86** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup>\* | (4.49)% | 24.80% | 3.11% | 5.93 | 10.10% |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $118590 | $111374 | $83866 | $89337 | $92102 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(e)(f)</sup><sup>‡</sup> | 1.83% | 1.86% | 1.91% | 1.91 | 1.88% |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(e)(f)</sup><sup>‡</sup> | 1.86% | 1.88% | 1.94% | 1.94 | 1.94% |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment loss<sup>(b)</sup> | (.78)% | (.90)% | (.28)% | (.00 | (.30)% |
|  Portfolio turnover rate (excluding securities sold short) | 242% | 181% | 191% | 253 | 291% |
|  Portfolio turnover rate (including securities sold short) | 243% | 181% | 207% | 266 | 346% |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .03% | .02% | .04% | .04 | .07% |

---

See footnote summary on page 49.

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 43** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $13.82 | $11.68 | $11.85 | $12.30 | $11.86 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment loss<sup>(a)(b)</sup> | (.20) | (.21) | (.12) | (.09 | (.13) |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.35) | 2.94 | .39 | .65 | 1.21 |
|  Contributions from Affiliates | .00 <sup>(c)</sup> | .00 <sup>(c)</sup> | .00 <sup>(c)</sup> | – 0 | .00 <sup>(c)</sup> |
|  Net increase (decrease) in net asset value from operations | (.55) | 2.73 | .27 | .56 | 1.08 |
|  **Less: Distributions** |  |  |  |  |  |
|  Distributions from net realized gain on investment transactions | (1.74) | (.59) | (.44) | (1.01) | (.64) |
|  Net asset value, end of period | **$11.53** | **$13.82** | **$11.68** | **$11.85** | **$12.30** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup>\* | (5.18)% | 23.91% | 2.25% | 5.11 | 9.34% |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $44732 | $59740 | $64205 | $86097 | $98333 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(e)(f)</sup><sup>‡</sup> | 2.58% | 2.61% | 2.66% | 2.66 | 2.63% |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(e)(f)</sup><sup>‡</sup> | 2.61% | 2.63% | 2.69% | 2.69 | 2.69% |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment loss<sup>(b)</sup> | (1.54)% | (1.65)% | (1.01)% | (.76 | (1.05)% |
|  Portfolio turnover rate (excluding securities sold short) | 242% | 181% | 191% | 253 | 291% |
|  Portfolio turnover rate (including securities sold short) | 243% | 181% | 207% | 266 | 346% |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .03% | .02% | .04% | .04 | .07% |

---

See footnote summary on page 49.

---

| | |
|:---|:---|
| **44 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $15.29 | $12.74 | $12.78 | $13.06 | $12.43 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income (loss)<sup>(a)(b)</sup> | (.08 | (.09 | (.00)<sup>(c)</sup> | .03 | (.01 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.41 | 3.23 | .42 | .70 | 1.28 |
|  Contributions from Affiliates | .00 | .00 | .00 <sup>(c)</sup> | – 0 | .00 |
|  Net increase (decrease) in net asset value from operations | (.49 | 3.14 | .42 | .73 | 1.27 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | – 0 | – 0 | (.02) | – 0 | – 0 |
|  Distributions from net realized gain on investment transactions | (1.74) | (.59 | (.44) | (1.01) | (.64 |
|  Total dividends and distributions | (1.74) | (.59 | (.46) | (1.01) | (.64 |
|  Net asset value, end of period | **$13.06** | **$15.29** | **$12.74** | **$12.78** | **$13.06** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup>\* | (4.24) | 25.17 | 3.27% | 6.24 | 10.39 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $1506544 | $1202820 | $876972 | $902381 | $762575 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(e)(f)</sup><sup>‡</sup> | 1.58 | 1.61 | 1.66% | 1.66 | 1.64 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(e)(f)</sup><sup>‡</sup> | 1.61 | 1.63 | 1.69% | 1.69 | 1.69 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>(b)</sup> | (.53 | (.65 | (.03)% | .24 | (.04 |
|  Portfolio turnover rate (excluding securities sold short) | 242 | 181 | 191% | 253 | 291 |
|  Portfolio turnover rate (including securities sold short) | 243 | 181 | 207% | 266 | 346 |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .03 | .02 | .04% | .04 | .07 |

---

See footnote summary on page 49.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 45** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class R** | **Class R** | **Class R** | **Class R** | **Class R** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $14.53 | $12.20 | $12.30 | $12.67 | $12.14 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment loss<sup>(a)(b)</sup> | (.15) | (.16) | (.06) | (.03 | (.07) |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.37) | 3.08 | .40 | .67 | 1.24 |
|  Contributions from Affiliates | .00 <sup>(c)</sup> | .00 <sup>(c)</sup> | .00 <sup>(c)</sup> | – 0 | .00 <sup>(c)</sup> |
|  Net increase (decrease) in net asset value from operations | (.52) | 2.92 | .34 | .64 | 1.17 |
|  **Less: Distributions** |  |  |  |  |  |
|  Distributions from net realized gain on investment transactions | (1.74) | (.59) | (.44) | (1.01) | (.64) |
|  Net asset value, end of period | **$12.27** | **$14.53** | **$12.20** | **$12.30** | **$12.67** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup>\* | (4.76)% | 24.55% | 2.75% | 5.69 | 9.80% |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $295 | $293 | $213 | $283 | $455 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(e)(f)</sup><sup>‡</sup> | 2.13% | 2.13% | 2.16% | 2.16 | 2.15% |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(e)(f)</sup><sup>‡</sup> | 2.19% | 2.18% | 2.20% | 2.34 | 2.38% |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment loss<sup>(b)</sup> | (1.08)% | (1.17)% | (.51)% | (.28 | (.55)% |
|  Portfolio turnover rate (excluding securities sold short) | 242% | 181% | 191% | 253 | 291% |
|  Portfolio turnover rate (including securities sold short) | 243% | 181% | 207% | 266 | 346% |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .03% | .02% | .04% | .04 | .07% |

---

See footnote summary on page 49.

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| | |
|:---|:---|
| **46 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class K** | **Class K** | **Class K** | **Class K** | **Class K** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $14.92 | $12.48 | $12.54 | $12.86 | $12.28 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment loss<sup>(a)(b)</sup> | (.08) | (.12) | (.04) | (.00 | (.04) |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.39) | 3.15 | .42 | .69 | 1.26 |
|  Contributions from Affiliates | .00 <sup>(c)</sup> | .00 <sup>(c)</sup> | .00 <sup>(c)</sup> | – 0 | .00 <sup>(c)</sup> |
|  Net increase (decrease) in net asset value from operations | (.47) | 3.03 | .38 | .69 | 1.22 |
|  **Less: Distributions** | **Less: Distributions** | **Less: Distributions** | **Less: Distributions** | **Less: Distributions** | **Less: Distributions** |
|  Distributions from net realized gain on investment transactions | (1.74) | (.59) | (.44) | (1.01) | (.64) |
|  Net asset value, end of period | **$12.71** | **$14.92** | **$12.48** | **$12.54** | **$12.86** |
|  **Total Return** | **Total Return** | **Total Return** | **Total Return** | **Total Return** | **Total Return** |
|  Total investment return based on net asset value<sup>(d)</sup>\* | (4.20)% | 24.80% | 3.11% | 5.93 | 10.10% |
|  **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** | **Ratios/Supplemental Data** |
|  Net assets, end of period (000's omitted) | $13 | $15 | $12 | $13 | $13 |
|  Ratio to average net assets of: | Ratio to average net assets of: | Ratio to average net assets of: | Ratio to average net assets of: | Ratio to average net assets of: | Ratio to average net assets of: |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(e)(f)</sup><sup>‡</sup> | 1.59% | 1.83% | 1.92% | 1.92 | 1.90% |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(e)(f)</sup><sup>‡</sup> | 1.83% | 1.85% | 1.96% | 2.05 | 2.05% |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment loss<sup>(b)</sup> | (.54)% | (.86)% | (.31)% | (.02 | (.32)% |
|  Portfolio turnover rate (excluding securities sold short) | 242% | 181% | 191% | 253 | 291% |
|  Portfolio turnover rate (including securities sold short) | 243% | 181% | 207% | 266 | 346% |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .03% | .02% | .04% | .04 | .07% |

---

See footnote summary on page 49.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 47** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  Net asset value, beginning of period | $15.33 | $12.78 | $12.81 | $13.09 | $12.45 |
|  **Income From Investment Operations** |  |  |  |  |  |
|  Net investment income (loss)<sup>(a)(b)</sup> | (.07 | (.09 | .00 <sup>(c)</sup> | .04 | .00 |
|  Net realized and unrealized gain (loss) on investment and foreign currency transactions | (.41 | 3.23 | .44 | .69 | 1.28 |
|  Contributions from Affiliates | .00 | .00 | .00 <sup>(c)</sup> | – 0 | .00 |
|  Net increase (decrease) in net asset value from operations | (.48 | 3.14 | .44 | .73 | 1.28 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |
|  Dividends from net investment income | – 0 | – 0 | (.03) | – 0 | – 0 |
|  Distributions from net realized gain on investment transactions | (1.74) | (.59 | (.44) | (1.01) | (.64 |
|  Total dividends and distributions | (1.74) | (.59 | (.47) | (1.01) | (.64 |
|  Net asset value, end of period | **$13.11** | **$15.33** | **$12.78** | **$12.81** | **$13.09** |
|  **Total Return** |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(d)</sup>\* | (4.22) | 25.17 | 3.37% | 6.22 | 10.46 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $34177 | $38385 | $16674 | $18422 | $13299 |
|  Ratio to average net assets of: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>(e)(f)</sup><sup>‡</sup> | 1.55 | 1.60 | 1.62% | 1.61 | 1.58 |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>(e)(f)</sup><sup>‡</sup> | 1.57 | 1.62 | 1.66% | 1.65 | 1.64 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>(b)</sup> | (.50 | (.64 | .01% | .31 | .01 |
|  Portfolio turnover rate (excluding securities sold short) | 242 | 181 | 191% | 253 | 291 |
|  Portfolio turnover rate (including securities sold short) | 243 | 181 | 207% | 266 | 346 |
|  <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying | <sup>‡</sup> Expense ratios exclude the estimated acquired fund fees of the affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .03 | .02 | .04% | .04 | .07 |

---

See footnote summary on page 49.

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| | |
|:---|:---|
| **48 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

(a) Based on average shares outstanding.

(b) Net of expenses waived/reimbursed by the Adviser.

(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. Initial sales charges or contingent deferred sales charges are not reflected in the calculation of total
investment return. 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.

(e) The expense ratios presented below exclude non-operating expenses:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** | **Year Ended June 30,** |
|  | **2022** | **2021** | **2020** | **2019** | **2018** |
|  **Class A** | **Class A** | **Class A** | **Class A** | **Class A** | **Class A** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net of waivers/reimbursements | 1.83% | 1.85% | 1.86% | 1.85% | 1.83% |
| &nbsp;&nbsp;&nbsp;&nbsp; Before waivers/reimbursements | 1.85% | 1.88% | 1.89% | 1.89% | 1.88% |
|  **Class C** | **Class C** | **Class C** | **Class C** | **Class C** | **Class C** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net of waivers/reimbursements | 2.57% | 2.60% | 2.60% | 2.60% | 2.58% |
| &nbsp;&nbsp;&nbsp;&nbsp; Before waivers/reimbursements | 2.60% | 2.63% | 2.64% | 2.64% | 2.64% |
|  **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net of waivers/reimbursements | 1.58% | 1.60% | 1.61% | 1.61% | 1.58% |
| &nbsp;&nbsp;&nbsp;&nbsp; Before waivers/reimbursements | 1.61% | 1.63% | 1.64% | 1.64% | 1.64% |
|  **Class R** | **Class R** | **Class R** | **Class R** | **Class R** | **Class R** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net of waivers/reimbursements | 2.12% | 2.13% | 2.11% | 2.12% | 2.09% |
| &nbsp;&nbsp;&nbsp;&nbsp; Before waivers/reimbursements | 2.18% | 2.18% | 2.15% | 2.29% | 2.33% |
|  **Class K** | **Class K** | **Class K** | **Class K** | **Class K** | **Class K** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net of waivers/reimbursements | 1.59% | 1.83% | 1.87% | 1.86% | 1.84% |
| &nbsp;&nbsp;&nbsp;&nbsp; Before waivers/reimbursements | 1.82% | 1.85% | 1.91% | 2.00% | 2.00% |
|  **Class I** | **Class I** | **Class I** | **Class I** | **Class I** | **Class I** |
| &nbsp;&nbsp;&nbsp;&nbsp; Net of waivers/reimbursements | 1.54% | 1.60% | 1.57% | 1.55% | 1.53% |
| &nbsp;&nbsp;&nbsp;&nbsp; Before waivers/reimbursements | 1.57% | 1.62% | 1.61% | 1.59% | 1.59% |

---

(f) In connection with the Fund's investments in affiliated underlying portfolios, the Fund incurs no direct expenses,
but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal
to the Fund's pro rata share of certain acquired fund fees and expenses, and for the years ended June 30, 2022, June 30, 2021, June 30, 2020, June 30, 2019 and June 30, 2018, such waiver amounted to .03%, .03%, .04%,
..03% and .06%, respectively.

(g) Less than 0.005%.

\* Includes the impact of proceeds received and credited to the Fund resulting from class action settlements, which enhanced the Fund's performance for the year ended June 30, 2020 by .03%. 

See notes to financial statements.

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 49** |

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**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** 

**To the Board of Directors and Shareholders of** 

**AB Select US Long/Short Portfolio:** 

***Opinion on the Financial Statements***

We have audited the accompanying statement of assets and liabilities of AB Select US Long/Short Portfolio (the "Fund") (one of the funds constituting AB Cap Fund, Inc. (the "Company")), including the portfolio of investments, as of June 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 funds constituting AB Cap Fund, Inc.) at June 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 Company'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 Company 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 Company is not required to have, nor were we engaged to perform, an audit of the Company'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 Company'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 SELECT US LONG/SHORT PORTFOLIO** | **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 June 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](g437791g91r55.jpg)

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

New York, New York

August 26, 2022

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| | |
|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <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 June 30, 2022. For corporate shareholders, 11.46% of dividends paid qualify for the dividends received deduction. For individual shareholders, the fund designates 11.18% of dividends paid as qualified dividend income. The Fund designates $50,030,695 of dividends paid as long-term capital gains 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 SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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**BOARD OF DIRECTORS** 

---

| | |
|:---|:---|
| **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> |

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**OFFICERS** 

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|:---|:---|
| **Kurt A. Feuerman**<sup>(2)</sup>**,** Vice President<br> **Anthony Nappo**<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 | **Independent Registered Public Accounting Firm**<br> Ernst & Young LLP<br>One Manhattan West<br>New York, NY 10001<br>**Transfer Agent**<br> AllianceBernstein Investor Services, Inc.<br>P.O. Box 786003<br>San Antonio, TX 78278-6003<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.

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|:---|:---|
| 2 | The day-to-day management of, and investment decisions for, the Fund's portfolio are made by the Adviser's Select Equity Portfolios Investment Team. Messrs. Feuerman and Nappo are the investment professionals with the most significant responsibility for the day-to-day management of the Fund's portfolio.  |

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|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 53** |

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**MANAGEMENT OF THE FUND** 

**Board of Directors Information** 

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund's Directors 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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY HELD<br>BY**<br> **DIRECTOR** |
| **INTERESTED DIRECTOR** | **INTERESTED DIRECTOR** |  |  |
| Onur Erzan,<sup>+</sup><br> 1345 Avenue of the Americas New York, NY 10105<br> 46<br> (2021) | Senior Vice President of AllianceBernstein L.P. (the "Adviser"), Head of Global Client Group and Head of Private Wealth. He oversees AB's entire private wealth management business and third-party institutional and retail franchise, 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. Erzan is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, Erzan 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 SELECT US LONG/SHORT PORTFOLIO** | **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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY HELD**<br> **BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS** | **DISINTERESTED DIRECTORS** |  |  |
| Marshall C. Turner, Jr.,<sup>#</sup><br> *Chairman of the Board*<br>80<br> (2012) | Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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 SELECT US LONG/SHORT PORTFOLIO <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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY HELD**<br> **BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<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> (2012) | 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 SELECT US LONG/SHORT PORTFOLIO** | **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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY HELD**<br> **BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<br> **(continued)** |  |  |
| Nancy P. Jacklin,<sup>#</sup><br> 74<br> (2012) | 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 SELECT US LONG/SHORT PORTFOLIO <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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY HELD**<br> **BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<br> **(continued)** |  |  |
| Carol C. McMullen,<sup>#</sup><br> 67<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 SELECT US LONG/SHORT PORTFOLIO** | **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>DIRECTOR** | **OTHER**<br> **PUBLIC COMPANY**<br> **DIRECTORSHIPS**<br> **CURRENTLY HELD**<br> **BY**<br> **DIRECTOR** |
| **DISINTERESTED DIRECTORS**<br> **(continued)** | **DISINTERESTED DIRECTORS**<br> **(continued)** |  |  |
| Garry L. Moody,<sup>#</sup><br> 70<br> (2012) | 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 Investment Company Institute's Board of Governors and the Independent Directors Council's Governing Council, where he serves as Chairman of its Governance Committee. 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 Fund's disinterested Directors 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 Fund's Directors.

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

+ Mr. Erzan is an "interested person", as defined in the 1940 Act, of the Fund 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 SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 59** |

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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 FIVE YEARS** |
| Onur Erzan<br>46 | President and Chief Executive Officer | See biography above. |
| Kurt A. Feuerman<br>66 | Vice President | Senior Vice President and Chief Investment Officer – Select US Equity Portfolios of the Adviser\*\*, with which he has been associated since prior to 2017. |
| Anthony Nappo<br>50 | Vice President | Senior Vice President, and Co-Chief Investment Officer – Select US Equity Portfolios of the Adviser\*\*, 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>46 | 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 ("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 Fund's Officers is 1345 Avenue of the Americas, New York, NY 10105.

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

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

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| **60 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **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 Directors (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 Fund's LRMP is adequately designed, has been implemented as intended,

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| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 61** |

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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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| **62 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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

The disinterested directors (the "directors") of AB Cap Fund, Inc. (the "Company") unanimously approved the continuance of the Company's Advisory Agreement with the Adviser in respect of AB Select US Long/Short Portfolio (the "Fund") at a meeting held in-person on May 3-5, 2022 (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 Vice President for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

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.

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

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| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 63** |

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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 directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. 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 2020 and 2021 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, including those relating to its subsidiaries that provide transfer agency, distribution and brokerage services to 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

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| **64 <sup>\|</sup> AB SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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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 money market fund advised by the Adviser in which the Fund invests, including, but not limited to, benefits relating to soft dollar arrangements (whereby investment advisers receive brokerage and research services from brokers that execute agency transactions for their clients); 12b-1 fees and sales charges received by the Fund's principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund's shares; brokerage commissions paid by the Fund to brokers affiliated with the Adviser; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Adviser's profitability would be somewhat lower without these benefits. 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 Class A Shares 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 performance of the Class A Shares against a broad-based securities market index, in each case for the 1-, 3- and 5-year periods ended February 28, 2022 and (in the case of comparisons with the broad-based securities market index) for the period from inception. Based on their review, the directors concluded that the Fund's investment performance was acceptable.

**Advisory Fees and Other Expenses** 

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared 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 paid by other funds. The directors compared the Fund's contractual effective advisory fee rate with a peer group median and discussed with the Adviser the reasons it was above the median. The directors also took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

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| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <sup>\|</sup> 65** |

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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 Vice President 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 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, 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 the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

The directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund's latest fiscal year and the directors considered the Adviser's expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund's category were lowered by waivers or reimbursements by those funds' investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser's services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund's expense ratio was acceptable.

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**Economies of Scale** 

The directors noted that the advisory fee schedule for the Fund contains a breakpoint that reduces the fee rate on assets above a specified level. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund's adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund's operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund's shareholders would benefit from a sharing of economies of scale in the event the Fund's net assets exceed the breakpoint in the future.

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|:---|:---|
| **abfunds.com** | **AB SELECT US LONG/SHORT PORTFOLIO <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 SELECT US LONG/SHORT PORTFOLIO** | **abfunds.com** |

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![LOGO](g437791g43p34.jpg)

AB SELECT US LONG/SHORT PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

SULS-0151-0622 ![LOGO](g437791g22c48.jpg)

------

**JUN** <sup>06.30.22</sup>

![LOGO](g460415g43p34.jpg)

ANNUAL REPORT

## AB SUSTAINABLE US THEMATIC PORTFOLIO
![LOGO](g460415covart_390.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](g460415g92f19.jpg) |

---

Dear Shareholder,

We're pleased to provide this report for the AB Sustainable US Thematic Portfolio (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](g460415g55d83.jpg)

Onur Erzan

President and Chief Executive Officer, AB Mutual Funds

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|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 1** |

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**ANNUAL REPORT** 

**August 8, 2022** 

This report provides management's discussion of fund performance for the AB Sustainable US Thematic Portfolio for the annual reporting period ended June 30, 2022. Prior to August 23, 2021, the Fund was named AB FlexFee US Thematic Portfolio.

Prior to January 1, 2022, the Fund was subject to a performance-based, or fulcrum, advisory fee. Accordingly, performance information shown reflects performance fee adjustments and would have been different if the Fund had been managed under the current advisory fee arrangement.

**The Fund's investment objective is long-term growth of capital.** 

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

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| | | |
|:---|:---|:---|
|  | 6 Months | 12 Months |
| **AB SUSTAINABLE US THEMATIC PORTFOLIO** |  |  |
| Class A Shares | -17.84%<sup>1</sup> |  |
| Class C Shares | -8.40%<sup>1</sup> |  |
| Advisor Class Shares<sup>2</sup> | -26.56% | -17.33% |
| Class Z Shares<sup>2</sup> | -17.74%<sup>1</sup> |  |
| S&P 500 Index | -19.96% | -10.62% |

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1 Since inception on 1/31/2022 for Class A and Class Z shares; 4/29/2022 for Class C shares.

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|:---|:---|
| 2 | Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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**INVESTMENT RESULTS** 

The table above shows the Fund's performance compared to its benchmark, the Standard and Poor's ("S&P") 500 Index, for the six- and 12-month periods ended June 30, 2022. The inception date for Class A and Class Z shares was January 31, 2022. The inception date for Class C shares was April 29, 2022. Due to limited performance history, there is no discussion of performance relative to the benchmark for these share classes.

The Fund underperformed the benchmark for both periods. During the 12-month period, overall security selection was negative, relative to the benchmark. Selection within technology and health care detracted most; only selection within real estate contributed. Sector selection was positive. Losses from underweights to energy and consumer staples were offset by gains from an underweight to communication services and cash held for transactional purposes. From a theme perspective, Empowerment contributed to performance, while Health and Climate detracted.

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|:---|:---|
| **2 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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Security selection also drove underperformance during the six-month period. Selection within health care and industrials detracted the most, while selection within real estate contributed modestly. Sector selection was positive. Underweights to energy and consumer staples detracted but were offset by contributions from cash held for transactional purposes and an underweight to communication services. From a theme perspective Climate, Empowerment and Health detracted.

Efforts to stem climate change are gaining momentum around the world. The Climate theme consists of companies that improve overall resource efficiency and provide environmentally positive solutions in fields such as energy production, manufacturing, construction, transportation, agriculture and sanitation. Improving health is an important theme for developed and emerging markets alike. The Health theme consists of companies that develop innovative health treatments and therapies, broaden access to high-quality and affordable care, ensure a steady supply of nutritious food and clean water, and promote overall physical and emotional well-being. Too many sectors of society are marginalized by economic and social forces. The Empowerment theme consists of companies that provide the physical, financial and technological infrastructure and services that allow more people to gain control of their lives by enabling sustainable economic development, employment growth, poverty eradication, knowledge sharing and social inclusion.

The Fund did not utilize derivatives during either period.

**MARKET REVIEW AND INVESTMENT STRATEGY** 

US, international and emerging-market stocks declined during the 12-month period ended June 30, 2022. Throughout the first half of the period, accommodative monetary policy underpinned an accelerating global economic recovery, which sent equity markets higher. Volatility increased as persistent inflation prompted the US Federal Reserve (the "Fed") to take a hawkish pivot that raised expectations for an accelerated rate liftoff and led other central banks to tighten monetary policy. Inflation worsened after Russia's invasion of Ukraine caused energy and agricultural prices to surge and China's zero-COVID policy prompted new supply-chain concerns. The Fed raised interest rates three times during the second half of the period, including a 0.75% hike in June—its largest since 1994. The growing fear of recession led to sharp declines and periods of widespread volatility across equity markets. Fed Chair Powell's acknowledgement that the path to a soft landing had narrowed weighed on global equity market sentiment. Against a backdrop of rising rates, growth stocks came under pressure, triggering a rotation into value-oriented stocks. Within large-cap markets, both growth and value stocks declined in absolute terms, but value stocks outperformed growth stocks by a wide margin. Large-cap stocks outperformed small-cap stocks on a relative basis, but both declined in absolute terms.

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|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 3** |

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The Fund's Senior Investment Management Team (the "Team") seeks to capitalize on long-term sustainable investment themes that impact multiple industries. The Team targets US companies with strong environmental, social and governance ("ESG") practices using a combination of bottom-up and top-down research. The Team's approach to building a sustainable portfolio with attractive financial return potential is to invest in companies aligned with the United Nations Sustainable Development Goals ("SDGs"), which 193 nations have committed to advancing. The estimated cost to achieve these goals between 2016 and 2030 is $90 trillion, creating substantial opportunity for investment in companies aligned with these goals.

**INVESTMENT POLICIES** 

The Fund pursues opportunistic growth by investing primarily in a portfolio of US companies whose business activities the Adviser believes position the issuer to benefit from certain environmentally or socially oriented sustainable investment themes that align with one or more of the SDGs. These themes principally include the advancement of health, climate and empowerment. Under normal conditions, the Fund invests at least 80% of its net assets in equity securities of US companies that satisfy the Fund's sustainable thematic criteria. A company that derives at least 25% of its total revenues from activities consistent with the achievement of the SDGs meets such criteria, although many of the companies in which the Fund invests will derive a much greater portion of their revenues from such activities.

The Adviser employs a combination of "top-down" and "bottom-up" investment processes with the goal of identifying, based on its internal research and analysis, the most attractive securities of US companies that fit into sustainable investment themes. First, the Adviser identifies through its "top-down" process the sustainable investment themes. In addition to this "top-down" thematic approach, the Adviser then uses a "bottom-up" analysis of individual companies that focuses on prospective earnings growth, valuation and quality of company management and on evaluating a company's risks, including those related to ESG factors. ESG factors, which can vary across companies and industries, may include environmental impact, corporate governance, ethical business practices, diversity and employee practices, product safety, supply chain management and community impact. Eligible investments include securities of issuers that the Adviser believes will maximize total return while also contributing to positive societal impact aligned with one or more SDGs. While the Adviser emphasizes focusing on individual companies with favorable ESG attributes over the use of broad-based negative screens (e.g., disqualifying business activities) in assessing a company's exposure to ESG factors, the Fund will not invest in companies that derive

(continued on next page)

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|:---|:---|
| **4 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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revenue from direct involvement in alcohol, coal, gambling, pornography, prisons, tobacco or weapons.

The Adviser normally considers a universe of primarily US mid- to large-capitalization companies for investment. The Adviser expects that normally the Fund's portfolio will emphasize investments in securities issued by US companies, although it may invest in foreign securities.

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|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 5** |

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**DISCLOSURES AND RISKS** 

**Benchmark Disclosure** 

**The S&P 500<sup>®</sup> Index is unmanaged and does not reflect fees and expenses associated with the active management of a mutual fund portfolio.** The S&P 500 Index includes 500 US stocks and is a common representation of the performance of the overall US stock 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 its 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. It includes the risk that a particular style of investing, such as the Fund's growth approach, may underperform the market generally.

**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 of companies with ESG practices 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 sustainable thematic 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 factors relevant to a particular investment.

**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.

**Capitalization Risk:** Investments in mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in mid-capitalization companies may have additional risks because these companies may have limited product lines, markets or financial resources.

**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 for the Fund,

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|:---|:---|
| **6 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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**DISCLOSURES AND RISKS** (continued)

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 investment return and principal value of an investment in the Fund will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. 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 visiting www.abfunds.com.** 

**All fees and expenses related to the operation of the Fund have been deducted. Net asset value ("NAV") returns do not reflect sales charges; if sales charges were reflected, the Fund's quoted performance would be lower. SEC returns reflect the applicable sales charges for each share class: a 4.25% maximum front-end sales charge for Class A shares and a 1% 1-year contingent deferred sales charge for Class C shares. Returns for the different share classes will vary due to different expenses associated with each class. Performance assumes reinvestment of distributions and does not account for taxes.** 

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|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 7** |

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**HISTORICAL PERFORMANCE** 

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

6/28/2017<sup>1</sup> TO 6/30/2022

![LOGO](g460415g78p05.jpg)

This chart illustrates the total value of an assumed $10,000 investment in AB Sustainable US Thematic Portfolio Advisor Class shares (from 6/28/2017<sup>1</sup> to 6/30/2022) as compared to the performance of the Fund's benchmark.

1 Inception date: 6/28/2017.

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|:---|:---|
| **8 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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**HISTORICAL PERFORMANCE** (continued)

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

---

| | | |
|:---|:---|:---|
|  | NAV Returns | SEC Returns<br>(reflects applicable<br>sales charges) |
| **CLASS A SHARES** |  |  |
| Since Inception<sup>1</sup> | -17.84% | -21.33% |
| **CLASS C SHARES** |  |  |
| Since Inception<sup>1</sup> | -8.40% | -9.32% |
| **ADVISOR CLASS SHARES**<sup>2</sup> |  |  |
| 1 Year | -17.33% | -17.33% |
| 5 Years | 12.67% | 12.67% |
| Since Inception<sup>1</sup> | 12.45% | 12.45% |
| **CLASS Z SHARES**<sup>2</sup> |  |  |
| Since Inception<sup>1</sup> | -17.74% | -17.74% |

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**The Fund's current prospectus fee table shows the Fund's total annual operating expense ratios as 1.09%, 1.84%, 0.84% and 0.81% for Class A, Class C, Advisor Class and Class Z shares, respectively, gross of any fee waivers or expense reimbursements. Contractual fee waivers and/or expense reimbursements reduced the Fund's total annual operating expense ratios (excluding acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) to 0.90%, 1.65%, 0.65% and 0.65% for Class A, Class C, Advisor Class and Class Z shares, respectively. These waivers/reimbursements may not be terminated before October 31, 2023, and may be extended by the Adviser for one-year terms. Absent reimbursements or waivers, performance would have been lower. The Financial Highlights section of this report sets forth expense ratio data for the current reporting period; the expense ratios shown above may differ from the expense ratios in the Financial Highlights section since they are based on different time periods.** 

1 Inception dates: 6/28/2017 for Advisor Class shares; 1/31/2022 for Class A and Class Z shares; 4/29/2022 for Class C shares.

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| | |
|:---|:---|
| 2 | These share classes are offered at NAV to eligible investors and their SEC returns are the same as their NAV returns. Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 9** |

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**HISTORICAL PERFORMANCE** (continued)

**SEC AVERAGE ANNUAL RETURNS** 

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

**JUNE 30, 2022** (unaudited)

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| | |
|:---|:---|
|  | SEC Returns<br>(reflects applicable<br>sales charges) |
| **CLASS A SHARES** |  |
| Since Inception<sup>1</sup> | -21.33% |
| **CLASS C SHARES** |  |
| Since Inception<sup>1</sup> | -9.32% |
| **ADVISOR CLASS SHARES**<sup>2</sup> |  |
| 1 Year | -17.33% |
| 5 Years | 12.67% |
| Since Inception<sup>1</sup> | 12.45% |
| **CLASS Z SHARES**<sup>2</sup> |  |
| Since Inception<sup>1</sup> | -17.74% |

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1 Inception dates: 6/28/2017 for Advisor Class shares; 1/31/2022 for Class A and Class Z shares; 4/29/2022 for Class C shares.

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| | |
|:---|:---|
| 2 | Please note that these share classes are for investors purchasing shares through accounts established under certain fee-based programs sponsored and maintained by certain broker-dealers and financial intermediaries, institutional pension plans and/or investment advisory clients of, and certain other persons associated with, the Adviser and its affiliates or the Fund.  |

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|:---|:---|
| **10 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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**EXPENSE EXAMPLE** 

(unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, contingent deferred sales charges on redemptions and (2) ongoing costs, including advisory fees; distribution (12b-1) fees; and other Fund expenses. 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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|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 11** |

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**EXPENSE EXAMPLE** (continued)

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Beginning<br>Account<br>Value<br>January 1,<br>2022** | **Ending<br>Account<br>Value<br>June 30,<br>2022** | **Expenses<br>Paid<br>During<br>Period\*** |  | **Annualized<br>Expense<br>Ratio\*** |  | **Total<br>Expenses<br>Paid<br>During<br>Period+** |  | **Total<br>Annualized<br>Expense<br>Ratio+** |  |
| **Class A** |  |  |  |  |  |  |  |  |  |  |
|  Actual | $1000 | $821.60 | $3.37 | \*\*\* | 0.90 | %\*\*\* | $3.37 | \*\*\* | 0.90 | %\*\*\* |
|  Hypothetical\*\* | $1000 | $1020.33 | $4.51 |  | 0.90 | % | $4.51 |  | 0.90 | % |
| **Class C** |  |  |  |  |  |  |  |  |  |  |
|  Actual | $1000 | $916.00 | $2.58 | \*\*\*\* | 1.64 | %\*\*\*\* | $2.60 | \*\*\*\* | 1.65 | %\*\*\*\* |
|  Hypothetical\*\* | $1000 | $1016.66 | $8.20 |  | 1.64 | % | $8.25 |  | 1.65 | % |
| **Advisor Class** |  |  |  |  |  |  |  |  |  |  |
|  Actual | $1000 | $734.40 | $2.80 |  | 0.65 | % | $2.80 |  | 0.65 | % |
|  Hypothetical\*\* | $1000 | $1021.57 | $3.26 |  | 0.65 | % | $3.26 |  | 0.65 | % |
|  **Class Z** |  |  |  |  |  |  |  |  |  |  |
|  Actual | $1000 | $822.60 | $2.43 | \*\*\* | 0.65 | %\*\*\* | $2.43 | \*\*\* | 0.65 | %\*\*\* |
|  Hypothetical\*\* | $&nbsp;&nbsp;&nbsp;&nbsp;1000 | $&nbsp;&nbsp;&nbsp;&nbsp;1021.57 | $&nbsp;&nbsp;&nbsp;&nbsp;3.26 |  | 0.65 | % | $&nbsp;&nbsp;&nbsp;&nbsp;3.26 |  | 0.65 | % |

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\* Expenses are equal to the classes' annualized expense ratios multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

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| | |
|:---|:---|
| + | In connection with the Fund's investments in affiliated/unaffiliated underlying portfolios, the Fund incurs no direct expenses, but bears proportionate shares of the fees and expenses (i.e., operating, administrative and investment advisory fees) of the affiliated/unaffiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an amount equal to the Fund's pro rata share of certain acquired fund fees and expenses of the affiliated underlying portfolios. The Fund's total expenses are equal to the classes' annualized expense ratio plus the Fund's pro rata share of the weighted average expense ratio of the affiliated/unaffiliated underlying portfolios in which it invests, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).  |

---

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

\*\*\* Expenses paid are based on the period from February 1, 2022 (commencement of distribution) and are equal to the Class's annualized expense ratio, multiplied by 150/365 (to reflect the since inception period).

\*\*\*\* Expenses paid are based on the period from May 2, 2022 (commencement of distribution) and are equal to the Class's annualized expense ratio, multiplied by 60/365 (to reflect the since inception period*).*

---

| | |
|:---|:---|
| **12 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

---

------

**PORTFOLIO SUMMARY** 

**June 30, 2022** (unaudited)

PORTFOLIO STATISTICS

Net Assets ($mil): $109.3

------

![LOGO](g460415g00a18.jpg)

TEN LARGEST HOLDINGS<sup>2</sup>

---

| | | |
|:---|:---|:---|
| Company | U.S. $ Value | Percent of<br>Net Assets |
| Danaher Corp. | $3332267 | 3.0% |
| Waste Management, Inc. | 3187032 | 2.9 |
| Microsoft Corp. | 3073485 | 2.8 |
| NextEra Energy, Inc. | 3030855 | 2.8 |
| STERIS PLC | 2848581 | 2.6 |
| Beckton Dickinson and Co. | 2784803 | 2.6 |
| Lumentum Holdings, Inc. | 2775173 | 2.5 |
| Aflac, Inc. | 2735902 | 2.5 |
| Flex Ltd. | 2682521 | 2.5 |
| MSCI, Inc. – Class A | 2609322 | 2.4 |
|  | $&nbsp;&nbsp;&nbsp;&nbsp;29059941 | 26.6% |

---

---

| | |
|:---|:---|
| 1 | All data are as of June 30, 2022. The Fund's sector breakdown is expressed as a percentage of total investments (excluding security lending collateral) and may vary over time.  |

---

2 Long-term investments.

Please note: The sector classifications presented herein are based on the Global Industry Classification Standard (GICS) which was developed by Morgan Stanley Capital International and Standard & Poor's. The components are divided into sector, industry group, and industry sub-indices as classified by the GICS for each of the market capitalization indices in the broad market. These sector classifications are broadly defined. The "Portfolio of Investments" section of the report reflects more specific industry information and is consistent with the investment restrictions discussed in the Fund's prospectus.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 13** |

---

------

**PORTFOLIO OF INVESTMENTS** 

**June 30, 2022** 

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **COMMON STOCKS – 95.7%** |  |  |
|  **Information Technology – 33.5%** |  |  |
|  **Communications Equipment – 4.9%** |  |  |
|  Ciena Corp.<sup>(a)</sup> | 56811 | $2596263 |
|  Lumentum Holdings, Inc.<sup>(a)</sup> | 34943 | 2775173 |
|  |  | 5371436 |
|  **Electronic Equipment, Instruments & Components – 6.8%** |  |  |
|  Flex Ltd.<sup>(a)</sup> | 185385 | 2682521 |
|  Keysight Technologies, Inc.<sup>(a)</sup> | 15673 | 2160523 |
|  TE Connectivity Ltd. | 22437 | 2538746 |
|  |  | 7381790 |
|  **IT Services – 5.3%** |  |  |
|  Accenture PLC – Class A | 3906 | 1084501 |
|  Block, Inc.<sup>(a)</sup> | 14607 | 897746 |
|  MAXIMUS, Inc. | 23191 | 1449670 |
|  Visa, Inc. – Class A | 11917 | 2346338 |
|  |  | 5778255 |
|  **Semiconductors & Semiconductor Equipment – 6.3%** |  |  |
|  Monolithic Power Systems, Inc. | 5974 | 2294255 |
|  NVIDIA Corp. | 9020 | 1367342 |
|  NXP Semiconductors NV | 14463 | 2140958 |
|  Wolfspeed, Inc.<sup>(a)(b)</sup> | 16601 | 1053333 |
|  |  | 6855888 |
|  **Software – 6.7%** |  |  |
|  Adobe, Inc.<sup>(a)</sup> | 5132 | 1878620 |
|  ANSYS, Inc.<sup>(a)</sup> | 5391 | 1290012 |
|  Intuit, Inc. | 2943 | 1134350 |
|  Microsoft Corp. | 11967 | 3073485 |
|  |  | 7376467 |
|  **Technology Hardware, Storage & Peripherals – 3.5%** |  |  |
|  Apple, Inc. | 18079 | 2471761 |
|  Dell Technologies, Inc. – Class C | 28966 | 1338519 |
|  |  | 3810280 |
|  |  | 36574116 |
|  **Health Care – 21.7%** |  |  |
|  **Health Care Equipment & Supplies – 8.6%** |  |  |
|  Alcon, Inc. | 36773 | 2570065 |
|  Becton Dickinson and Co. | 11296 | 2784803 |
|  Koninklijke Philips NV | 54251 | 1168024 |
|  STERIS PLC | 13818 | 2848581 |
|  |  | 9371473 |

---

---

| | |
|:---|:---|
| **14 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Health Care Providers & Services – 3.8%** |  |  |
|  Laboratory Corp. of America Holdings | 8219 | $1926205 |
|  UnitedHealth Group, Inc. | 4387 | 2253295 |
|  |  | 4179500 |
|  **Life Sciences Tools & Services – 9.3%** |  |  |
|  Bio-Rad Laboratories, Inc. – Class A<sup>(a)</sup> | 4655 | 2304225 |
|  Bruker Corp. | 36110 | 2266263 |
|  Danaher Corp. | 13144 | 3332267 |
|  West Pharmaceutical Services, Inc. | 7500 | 2267775 |
|  |  | 10170530 |
|  |  | 23721503 |
|  **Industrials – 17.7%** |  |  |
|  **Aerospace & Defense – 1.6%** |  |  |
|  Hexcel Corp. | 32726 | 1711897 |
|  **Building Products – 3.5%** |  |  |
|  Owens Corning | 29398 | 2184566 |
|  Trex Co., Inc.<sup>(a)</sup> | 30412 | 1655021 |
|  |  | 3839587 |
|  **Commercial Services & Supplies – 4.9%** |  |  |
|  Tetra Tech, Inc. | 16011 | 2186302 |
|  Waste Management, Inc. | 20833 | 3187032 |
|  |  | 5373334 |
|  **Electrical Equipment – 4.2%** |  |  |
|  Rockwell Automation, Inc. | 10516 | 2095944 |
|  Vestas Wind Systems A/S (Sponsored ADR) | 361230 | 2534028 |
|  |  | 4629972 |
|  **Machinery – 3.5%** |  |  |
|  Deere & Co. | 8376 | 2508361 |
|  Xylem, Inc./NY | 16575 | 1295833 |
|  |  | 3804194 |
|  |  | 19358984 |
|  **Financials – 9.3%** |  |  |
|  **Banks – 2.3%** |  |  |
|  SVB Financial Group<sup>(a)</sup> | 6412 | 2532676 |
|  **Capital Markets – 4.5%** |  |  |
|  Intercontinental Exchange, Inc. | 24112 | 2267492 |
|  MSCI, Inc. – Class A | 6331 | 2609322 |
|  |  | 4876814 |
|  **Insurance – 2.5%** |  |  |
|  Aflac, Inc. | 49447 | 2735902 |
|  |  | 10145392 |
|  **Consumer Discretionary – 6.7%** |  |  |
|  **Auto Components – 1.2%** |  |  |
|  Aptiv PLC<sup>(a)</sup> | 15090 | 1344066 |

---

---

| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 15** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

---

| | | |
|:---|:---|:---|
| **Company** | **Shares** | **U.S. $ Value** |
|  **Household Durables – 1.8%** |  |  |
|  TopBuild Corp.<sup>(a)</sup> | 11647 | $1946913 |
|  **Specialty Retail – 1.8%** |  |  |
|  Home Depot, Inc. (The) | 7162 | 1964322 |
|  **Textiles, Apparel & Luxury Goods – 1.9%** |  |  |
|  NIKE, Inc. – Class B | 20887 | 2134651 |
|  |  | 7389952 |
|  **Utilities – 4.7%** |  |  |
|  **Electric Utilities – 2.8%** |  |  |
|  NextEra Energy, Inc. | 39128 | 3030855 |
|  **Water Utilities – 1.9%** |  |  |
|  American Water Works Co., Inc. | 14284 | 2125031 |
|  |  | 5155886 |
|  **Real Estate – 2.1%** |  |  |
|  **Equity Real Estate Investment Trusts (REITs) – 2.1%** |  |  |
|  SBA Communications Corp. | 7102 | 2272995 |
|  Total Common Stocks <br>(cost $82,174,434) |  | 104618828 |
|  **SHORT-TERM INVESTMENTS – 4.3%** |  |  |
|  **Investment Companies – 4.3%** |  |  |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB,<br>1.30%<sup>(c)(d)(e)</sup><br>(cost $4,696,530) | 4696530 | 4696530 |
|  **Total Investments Before Security Lending Collateral for Securities Loaned – 100.0%**<br> (cost $86,870,964) |  | 109315358 |
|  **INVESTMENTS OF CASH COLLATERAL FOR SECURITIES LOANED – 1.8%** |  |  |
|  **Investment Companies – 1.8%** | **Investment Companies – 1.8%** | **Investment Companies – 1.8%** |
|  AB Fixed Income Shares, Inc. – Government Money Market Portfolio – Class AB, 1.30%<sup>(c)(d)(e)</sup> <br>(cost $1,982,527) | 1982527 | 1982527 |
|  **Total Investments – 101.8%** <br>(cost $88,853,491) |  | 111297885 |
|  Other assets less liabilities – (1.8)% |  | (2006707) |
|  **Net Assets – 100.0%** |  | $**109291178** |

---

---

| | |
|:---|:---|
| **16 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

---

------

**PORTFOLIO OF INVESTMENTS** (continued)

(a) Non-income producing security.

(b) Represents entire or partial securities out on loan. See Note E for securities lending information.

(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:

ADR – American Depositary Receipt

REIT – Real Estate Investment Trust

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 17** |

---

------

**STATEMENT OF ASSETS & LIABILITIES** 

**June 30, 2022** 

---

| | |
|:---|:---|
| **Assets** |  |
|  Investments in securities, at value <br>Unaffiliated issuers (cost $82,174,434) | $104618828 <sup>(a)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers (cost $6,679,057—including investment of cash collateral for securities loaned of $1,982,527) | 6679057 |
|  Receivable for capital stock sold | 79144 |
|  Unaffiliated dividends receivable | 47407 |
|  Affiliated dividends receivable | 5458 |
|  Receivable from Adviser | 2355 |
|  Total assets | 111432249 |
| **Liabilities** |  |
|  Payable for collateral received on securities loaned | 1982527 |
|  Payable for capital stock redeemed | 16913 |
|  Transfer Agent fee payable | 2003 |
|  Distribution fee payable | 33 |
|  Accrued expenses | 139595 |
|  Total liabilities | 2141071 |
|  Net Assets | $**109291178** |
| **Composition of Net Assets** |  |
|  Capital stock, at par | $685 |
|  Additional paid-in capital | 76165749 |
|  Distributable earnings | 33124744 |
|  | $**109291178** |

---

**Net Asset Value Per Share—11 billion shares of capital stock authorized, $.0001 par value** 

---

| | | | |
|:---|:---|:---|:---|
| **Class** | **Net Assets** | **Shares<br>Outstanding** | **Net Asset<br>Value** |
| **A** | $25239 | 1584 | $15.93 \* |
| **C** | $53969 | 3390 | $15.92 |
| **Advisor** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;109203720 | 6847093 | $15.95 |
| **Z** | $8250 | 517.265 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.95 |

---

(a) Includes securities on loan with a value of $869,265 (see Note E).

\* The maximum offering price per share for Class A shares was $16.64, which reflects a sales charge of 4.25%. 

See notes to financial statements.

---

| | |
|:---|:---|
| **18 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

---

------

**STATEMENT OF OPERATIONS** 

---

| | | |
|:---|:---|:---|
|  | **For the Period**<br>**January 1,**<br>**2022 to**<br>**June 30,**<br>**2022<sup>(a)</sup>** | **Year Ended**<br>**December 31,**<br>**2021** |
| **Investment Income** |  |  |
|  Dividends |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unaffiliated issuers (net of foreign taxes withheld of $13,808 and $24,061, respectively) | $529712 | $1247018 |
| &nbsp;&nbsp;&nbsp;&nbsp; Affiliated issuers | 10421 | 1041 |
|  Securities lending income | 4398 | 7453 |
|  Total income | 544531 | 1255512 |
| **Expenses** |  |  |
|  Advisory fee (see Note B) | 379020 | 95411 |
|  Transfer agency—Class A | 7 | – 0 |
|  Transfer agency—Class C | 6 | – 0 |
|  Transfer agency—Advisor Class | 54512 | 89804 |
|  Transfer agency—Class Z | 1 | – 0 |
|  Distribution fee—Class A | 21 | – 0 |
|  Distribution fee—Class C | 35 | – 0 |
|  Registration fees | 66173 | 37164 |
|  Audit and tax | 50265 | 49796 |
|  Administrative | 41516 | 94904 |
|  Custody and accounting | 32748 | 70336 |
|  Printing | 28787 | 38661 |
|  Legal | 16329 | 182345 |
|  Directors' fees | 9639 | 20928 |
|  Miscellaneous | 8774 | 14867 |
|  Total expenses | 687833 | 694216 |
|  Less: expenses waived and reimbursed by the Adviser (see Note B and Note E) | (242785) | (473226) |
|  Net expenses | 445048 | 220990 |
|  Net investment income | 99483 | 1034522 |
| **Realized and Unrealized Gain (Loss) on Investments** |  |  |
|  Net realized gain on investment transactions | 10555890 | 19203209 |
|  Net change in unrealized appreciation/depreciation on investments | (56096570) | 23410836 |
|  Net gain (loss) on investments | (45540680) | 42614045 |
|  **Net Increase (Decrease) in Net Assets from Operations** | $**(45441197)** | $**43648567** |

---

(a) The Fund changed its fiscal year end from December 31 to June 30.

See notes to financial statements.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 19** |

---

------

**STATEMENT OF CHANGES IN NET ASSETS** 

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Period**<br>**January 1,**<br>**2022 to**<br>**June 30,**<br>**2022<sup>(a)</sup>** | **Year Ended<br>December 31,**<br>**2021** | **Year Ended<br>December 31,**<br>**2020** |
| **Increase (Decrease) in Net Assets from Operations** |  |  |  |
|  Net investment income (loss) | $99483 | $1034522 | $(470644) |
|  Net realized gain on investments | 10555890 | 19203209 | 5302823 |
|  Net change in unrealized appreciation/depreciation on investments | (56096570) | 23410836 | 36792733 |
|  Net increase (decrease) in net assets from operations | (45441197) | 43648567 | 41624912 |
| **Distributions to Shareholders** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Advisor Class | – 0 | (17008039) | (3003460) |
| **Capital Stock Transactions** |  |  |  |
|  Net increase (decrease) | (37013738) | (16863811) | 42634035 |
|  Total increase (decrease) | (82454935) | 9776717 | 81255487 |
| **Net Assets** |  |  |  |
|  Beginning of period | 191746113 | 181969396 | 100713909 |
|  End of period | $**109291178** | $**191746113** | $**181969396** |

---

(a) The Fund changed its fiscal year end from December 31 to June 30.

See notes to financial statements.

---

| | |
|:---|:---|
| **20 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** 

**June 30, 2022** 

**NOTE A** 

**Significant Accounting Policies** 

AB Cap Fund, Inc. (the "Company") is registered under the Investment Company Act of 1940 as an open-end management investment company. The Company, which is a Maryland corporation, operates as a series company comprised of 12 portfolios currently in operation. Each portfolio is considered to be a separate entity for financial reporting and tax purposes. This report relates only to the AB Sustainable US Thematic Portfolio (the "Fund"), a diversified portfolio. On August 23, 2021, the Fund's name was changed from AB FlexFee US Thematic Portfolio to AB Sustainable US Thematic Portfolio. Effective January 1, 2022, the Fund changed its fiscal year end from December 31 to June 30. The Fund has authorized the issuance of Class A, Class B, Class C, Advisor Class, Class R, Class K, Class I, Class Z, Class T, Class 1, and Class 2 shares. Effective February 1, 2022, the Fund commenced offering of Class A and Class Z shares. Effective May 2, 2022, the Fund commenced offering of Class C shares. Class B, Class R, Class K, Class I, Class T, Class 1, and Class 2 shares have not been issued. Class A shares are sold with a front-end sales charge of up to 4.25% for purchases not exceeding $1,000,000. With respect to purchases of $1,000,000 or more, Class A shares redeemed within one year of purchase may be subject to a contingent deferred sales charge of 1%. Class C shares are subject to a contingent deferred sales charge of 1% on redemptions made within the first year after purchase, and 0% after the first year of purchase. Effective May 31, 2021, Class C shares automatically convert to Class A shares eight years after the end of the calendar month of purchase. Prior to May 31, 2021, Class C shares automatically converted to Class A shares 10 years after the end of the calendar month of purchase. Advisor Class and Class Z shares are sold without an initial or contingent deferred sales charge and are not subject to ongoing distribution expenses. All 11 classes of shares have identical voting, dividend, liquidation and other rights, except that the classes bear different distribution and transfer agency expenses. Each class has exclusive voting rights with respect to its distribution plan. 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.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 21** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**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 Company's Board of Directors (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 between the current bid and ask prices. If either a current bid or current ask price is unavailable, AllianceBernstein L.P. (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.

---

| | |
|:---|:---|
| **22 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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.

**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)

---

| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 23** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Investments in Securities** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets:** |  |  |  |  |
|  Common Stocks^ | $104618828 | $– 0 | $– 0 | $104618828 |
|  Short-Term Investments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment Companies | 4696530 | – 0 | – 0 | 4696530 |
|  Investments of Cash Collateral for Securities Loaned in Affiliated Money Market Fund | 1982527 | – 0 | – 0 | 1982527 |
|  Total Investments in Securities | 111297885 | – 0 | – 0 | 111297885 |
|  **Other Financial Instruments\*** | – 0 | – 0 | – 0 | – 0 |
|  **Total** | $**111297885** | $**– 0** | $**– 0** | $**111297885** |

---

^ See Portfolio of Investments for sector classifications.

\* 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. 

**3. Currency Translation** 

Assets and liabilities denominated in foreign currencies and commitments under forward currency exchange contracts are translated into U.S. dollars at the mean of the quoted bid and ask prices of such currencies against the U.S. dollar. Purchases and sales of portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities were acquired or sold. Income and expenses are translated into U.S. dollars at the rates of exchange prevailing when accrued.

Net realized gain or loss on foreign currency transactions represents foreign exchange gains and losses from sales and maturities of foreign fixed income investments, holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on foreign

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|:---|:---|
| **24 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

investment transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund's books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains and losses from valuing foreign currency denominated assets and liabilities at period end exchange rates are reflected as a component of net unrealized appreciation or depreciation of foreign currency denominated assets and liabilities.

**4. 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. The Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and net unrealized appreciation/depreciation as such income and/or gains are earned.

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.

**5. 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.

**6. Class Allocations** 

All income earned and expenses incurred by the Fund are borne on a pro-rata basis by each outstanding class of shares, based on the proportionate interest in the Fund represented by the net assets of such class, except for class specific expenses which are allocated to the respective class. Expenses of the Company are charged proportionately to each portfolio or based on other appropriate methods. Realized and unrealized gains and losses are allocated among the various share classes based on respective net assets.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 25** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

**7. 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 current investment advisory agreement, the Fund pays the Adviser an advisory fee at an annual rate of .55% of the first $2.5 billion, .50% of the next $2.5 billion and .45% in excess of $5 billion of the Fund's average daily net assets. Under the investment advisory agreement in effect prior to August 23, 2021, the Fund calculated and accrued daily a base fee, at an annual rate of .55% of the Fund's average daily net assets ("Base Fee"). The prior advisory fee was increased or decreased from the Base Fee by a performance adjustment ("Performance Adjustment") that depended on whether, and to what extent, the investment performance of the Advisor Class shares of the Fund ("Measuring Class") exceeded, or was exceeded by, the performance of the S&P 500 Index ("Index") plus 1.40% ("Index Hurdle") over the Performance Period (as defined below). The Performance Adjustment was calculated and accrued daily, according to a schedule that added or subtracted .00357% of the Fund's average daily net assets for each .01% of absolute performance by which the performance of the Measuring Class exceeded or lagged the Index Hurdle for the period from the beginning of the Performance Period through the current business day. The maximum Performance Adjustment (positive or negative) could not exceed an annualized rate of +/- .50% ("Maximum Performance Adjustment") of the Fund's average daily net assets, which would occur when the performance of the Measuring Class exceeded, or was exceeded by, the Index Hurdle by 1.40% or more for the Performance Period. On a monthly basis, the Fund paid the Adviser the minimum fee rate of .05% on an annualized basis (Base Fee minus the Maximum Performance Adjustment) applied to the average daily net assets for the month. At the end of the Performance Period, the Fund paid to the Adviser the total advisory fee, less the amount of any minimum fees paid during the Performance Period and any waivers described below. The period over which performance was measured ("Performance Period") was each 12-month period beginning on the first day in the month of January through December 31 of the same year. In addition, the Adviser had agreed to waive its advisory fee by limiting the Fund's accrual of the advisory fee (Base Fee plus Performance Adjustment) on any day to the amount corresponding to the maximum fee rate multiplied by the Fund's

---

| | |
|:---|:---|
| **26 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

current net assets if such amount was less than the amount that would have been accrued based on the Fund's average daily net assets for the Performance Period. For the year ended December 31, 2021, the Fund paid the minimum fee under the prior advisory fee arrangement (.05% of the Fund's average daily net assets), partly as a result of fee waivers by the Adviser as described below.

The Adviser has agreed to waive its fees and bear certain expenses to the extent necessary to limit total expenses (other than acquired fund fees and expenses other than the advisory fees of any AB mutual funds in which the Fund may invest, interest expense, taxes, extraordinary expenses, and brokerage commissions and other transaction costs) on an annual basis (the "Expense Cap") to .90%, 1.65%, .65% and .65% of daily average net assets for Class A, Class C, Advisor Class and Class Z shares, respectively. For the period ended June 30, 2022, such reimbursements/waivers amounted to $197,959. The Expense Cap will remain in effect until October 31, 2023 and then may be continued thereafter from year to year by the Adviser. Prior to August 23, 2021, the Adviser had agreed to waive its fees and bear certain expenses to the extent necessary to limit total expenses (other than the advisory fees of the Fund and the other excluded expenses noted above) on an annual basis from exceeding .05% of average daily net assets. For the period from August 23, 2021 until December 31, 2021, the Adviser agreed to waive fees so that the investment advisory fee was the lesser of (i) the amount payable under the current investment advisory agreement or (ii) the amount that would have been payable under the prior investment advisory agreement. Under the terms of this waiver, the Fund paid the amount that would have been payable under the prior investment advisory agreement and the Adviser waived its fees and bore certain expenses to the extent necessary to limit total expenses (other than advisory fees and other excluded expenses) on an annual basis from exceeding .10% of average daily net assets.

Pursuant to the investment advisory agreement, the Fund may reimburse the Adviser for certain legal and accounting services provided to the Fund by the Adviser. For the period ended June 30, 2022, the Adviser voluntarily agreed to waive such fees in the amount of $41,516.

The Fund compensates AllianceBernstein Investor Services, Inc. ("ABIS"), a wholly-owned subsidiary of the Adviser, under a Transfer Agency Agreement for providing personnel and facilities to perform transfer agency services for the Fund. ABIS may make payments to intermediaries that provide omnibus account services, sub-accounting services and/or networking services. Such compensation retained by ABIS amounted to $11,680 for the period ended June 30, 2022.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 27** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

AllianceBernstein Investments, Inc. (the "Distributor"), a wholly-owned subsidiary of the Adviser, serves as the distributor of the Fund's shares. The Distributor has advised the Fund that it has retained front-end sales charges of $18 from the sale of Class A shares and received $0 and $0 in contingent deferred sales charges imposed upon redemptions by shareholders of Class A and Class C shares, respectively, for the period ended June 30, 2022.

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, 2023. In connection with the investment by the Fund in Government Money Market Portfolio, the Adviser has contractually agreed to waive 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 period ended June 30, 2022, such waiver amounted to $3,107.

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Market Value<br>12/31/21<br>(000)** | **Purchases<br>at Cost<br>(000)** | **Sales<br>Proceeds<br>(000)** | **Market Value<br>6/30/22<br>(000)** | **Dividend<br>Income<br>(000)** |
|  Government Money Market Portfolio | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14083 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52842 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62228 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4697 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10 |
|  Government Money Market Portfolio\* | 1982 | 17040 | 17040 | 1982 | 1 |
|  |  |  |  | $6679 | $11 |

---

\* Investment of cash collateral for securities lending transactions (see Note E).

**NOTE C** 

**Distribution Services Agreement** 

The Fund has adopted a Distribution Services Agreement (the "Agreement") pursuant to Rule 12b-1 under the Investment Company Act of 1940. Under the Agreement, the Fund pays distribution and servicing fees to the Distributor at an annual rate of up to .25% of the Fund's average daily net assets attributable to Class A shares and 1% of the Fund's average daily net assets attributable to Class C shares. There are no

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| | |
|:---|:---|
| **28 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

---

------

**NOTES TO FINANCIAL STATEMENTS** (continued)

distribution and servicing fees on the Advisor Class and Class Z shares. The fees are accrued daily and paid monthly. The Agreement provides that the Distributor will use such payments in their entirety for distribution assistance and promotional activities. Since the commencement of the Fund's operations, the Distributor has incurred no expenses in excess of the distribution costs reimbursed by the Fund for Class C shares. While such costs may be recovered from the Fund in future periods so long as the Agreement is in effect, the rate of the distribution and servicing fees payable under the Agreement may not be increased without a shareholder vote. In accordance with the Agreement, there is no provision for recovery of unreimbursed distribution costs incurred by the Distributor beyond the current fiscal year for Class A shares. The Agreement also provides that the Adviser may use its own resources to finance the distribution of the Fund's shares.

**NOTE D** 

**Investment Transactions** 

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

---

| | | |
|:---|:---|:---|
|  | **Purchases** | **Sales** |
|  Investment securities (excluding U.S. government securities) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23193772 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;58285101 |
|  U.S. government securities | – 0 | – 0 |

---

As of June 30, 2022, the cost of investments for federal income tax purposes, gross unrealized appreciation and unrealized depreciation are as follows:

---

| | |
|:---|:---|
|  Cost | $89767417 |
|  Gross unrealized appreciation | $27277795 |
|  Gross unrealized depreciation | (5747327) |
|  Net unrealized appreciation | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21530468 |

---

**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 Fund did not engage in derivative transactions for the period ended June 30, 2022.

**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

---

| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 29** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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 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 E** 

**Securities Lending** 

The Fund may enter into securities lending transactions. Under the Fund's securities lending program, all loans of securities will be collateralized continually by cash collateral and/or non-cash collateral. Non-cash collateral will include only securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. The Fund cannot sell or repledge any non-cash collateral, such collateral will not be reflected in the portfolio of investments. If a loan is collateralized by cash, the Fund will be compensated for the loan from a portion of the net return from the income earned on cash collateral after a rebate is paid to the borrower (in some cases, this rebate may be a "negative rebate" or fee paid by the borrower to the Fund in connection with the loan), and payments are made for fees of the securities lending agent and for certain other administrative expenses. If the Fund receives non-cash collateral, the Fund will receive a fee from the borrower generally equal to a negotiated percentage of the market value of the loaned securities. The Fund will have the right to call a loan and obtain the securities loaned at any time on notice to the borrower within the normal and customary settlement time for the securities. While the securities are on loan, the borrower is obligated to pay the Fund amounts equal to any dividend income or other distributions from the securities; however, these distributions will not be afforded the same preferential tax treatment as qualified dividends. The Fund will not be able to exercise voting rights with respect to any securities during the existence of a loan, but will have the right to regain ownership of loaned securities in order to exercise voting or other ownership rights. Collateral received and securities loaned are marked to market daily to ensure that the securities loaned are secured by collateral. The lending agent currently invests the cash collateral received in Government Money Market Portfolio, an eligible money market vehicle, in accordance with the investment restrictions of the Fund, and as approved by the Board. The collateral received on securities loaned is recorded as an asset as well as a corresponding liability in the statement

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| | |
|:---|:---|
| **30 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

of assets and liabilities. The collateral will be adjusted the next business day to maintain the required collateral amount. The amounts of securities lending income from the borrowers and Government Money Market Portfolio are reflected in the statement of operations. When the Fund earns net securities lending income from Government Money Market Portfolio, the income is inclusive of a rebate expense paid to the borrower. In connection with the cash collateral investment by the Fund in the Government Money Market Portfolio, the Adviser has agreed to waive a portion of the Fund's share of the advisory fees of Government Money Market Portfolio, as borne indirectly by the Fund as an acquired fund fee and expense. When the Fund lends securities, its investment performance will continue to reflect changes in the value of the securities loaned. A principal risk of lending portfolio securities is that the borrower may fail to return the loaned securities upon termination of the loan and that the collateral will not be sufficient to replace the loaned securities. The lending agent has agreed to indemnify the Fund in the case of default of any securities borrower.

A summary of the Fund's transactions surrounding securities lending for the period ended June 30, 2022 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | **Government Money<br>Market Portfolio** | **Government Money<br>Market Portfolio** |
| **Market<br>Value of<br>Securities<br>on Loan\*** |<br>**Cash<br>Collateral\*** |<br>**Market<br>Value of<br>Non-Cash<br>Collateral\*** |<br>**Income from<br>Borrowers** | **Income<br>Earned** | **Advisory Fee<br>Waived** |
| $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;869265 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1982527 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3807 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;591 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;203 |

---

\* As of June 30, 2022.

**NOTE F** 

**Capital Stock** 

Each class consists of 1,000,000,000 authorized shares. Transactions in capital shares for each class were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Shares** | **Amount** | **Amount** | **Amount** |
|  | January 1,<br> 2022 to<br> June 30,<br> 2022<sup>(a)</sup> | Year Ended<br>December 31,<br> 2021 | Year Ended<br>December 31,<br> 2020 | January 1,<br> 2022 to<br> June 30,<br> 2022<sup>(a)</sup> | Year Ended<br>December 31,<br> 2021 | Year Ended<br>December 31,<br> 2020 |
| **Class A\*** |  |  |  |  |  |  |
|  Shares sold | 1584 | – 0 | – 0 | $30355 | $– 0 | $– 0 |
|  **Net increase** | **1584** | **– 0** | **– 0** | $**30355** | $**– 0** | $**– 0** |
|  **Class C\*\*** |  |  |  |  |  |  |
|  Shares sold | 3390 | – 0 | – 0 | $54719 | $– 0 | $– 0 |
|  **Net increase** | **3390** | **– 0** | **– 0** | $**54719** | $**– 0** | $**– 0** |

---

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| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 31** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Shares** | **Shares** | **Shares** | **Amount** | **Amount** | **Amount** |
|  | January 1,<br> 2022 to<br> June 30,<br> 2022<sup>(a)</sup> | Year Ended<br>December 31,<br> 2021 | Year Ended<br>December 31,<br> 2020 | January 1,<br> 2022 to<br> June 30,<br> 2022<sup>(a)</sup> | Year Ended<br>December 31,<br> 2021 | Year Ended<br>December 31,<br> 2020 |
|  **Advisor Class** |  |  |  |  |  |  |
|  Shares sold | 1301116 | 3816898 | 8546022 | $24229827 | $78415285 | $&nbsp;&nbsp;&nbsp;&nbsp;131718270 |
|  Shares issued in reinvestment of dividends and distributions | – 0 | 547598 | 139789 | – 0 | 11893826 | 2632230 |
|  Shares redeemed | (3284910) | (5196377) | (6247117) | (61338669) | &nbsp;&nbsp;&nbsp;&nbsp;(107172922 | (91716465) |
|  **Net increase**<br> **(decrease)** | **(1983794** | **(831881** | **2438694** | $**(37108842** | $**(16863811** | $**42634035** |
|  **Class Z\*** |  |  |  |  |  |  |
|  Shares sold | 517 | – 0 | – 0 | $10030 | $– 0 | $– 0 |
|  **Net increase** | **517** | **– 0** | **– 0** | $**10030** | $**– 0** | $**– 0** |

---

(a) The Fund changed its fiscal year end from December 31 to June 30.

\* Commenced distribution on February 1, 2022.

\*\* Commenced distribution on May 2, 2022.

**NOTE G** 

**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 its 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. It includes the risk that a particular style of investing, such as the Fund's growth approach, may underperform the market generally.

**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 of companies with favorable ESG characteristics 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 sustainable thematic 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 factors relevant to a particular investment.

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| | |
|:---|:---|
| **32 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

**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.

**Capitalization Risk**—Investments in mid-capitalization companies may be more volatile than investments in large-capitalization companies. Investments in mid-capitalization companies may have additional risks because these companies may have limited product lines, markets or financial resources.

**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

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|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 33** |

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**NOTES TO FINANCIAL STATEMENTS** (continued)

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 for the Fund, 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 H** 

**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 period ended June 30, 2022.

**NOTE I** 

**Distributions to Shareholders** 

The tax character of distributions paid during the fiscal period ended June 30, 2022 and tax years ended December 31, 2021 and December 31, 2020 were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June**<br>**2022** | **December**<br>**2021** | **December**<br>**2020** |
|  Distributions paid from: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ordinary income | $– 0 | $8862176 | $1145944 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net long-term capital gains | – 0 | 8145863 | 1857516 |
|  Total taxable distributions paid | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;– 0 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17008039 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3003460 |

---

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| | |
|:---|:---|
| **34 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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------

**NOTES TO FINANCIAL STATEMENTS** (continued)

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

---

| | |
|:---|:---|
|  Undistributed ordinary income | $99483 |
|  Undistributed capital gains | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11494793 |
|  Unrealized appreciation/(depreciation) | 21530468 <sup>(a)</sup> |
|  Total accumulated earnings/(deficit) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33124744 |

---

(a) The differences between book-basis and tax-basis unrealized appreciation/(depreciation) are attributable primarily to the
tax deferral of losses on wash sales.

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 June 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 distributable earnings or additional paid-in capital.

**NOTE J** 

**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 K** 

**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.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 35** |

---

------

**FINANCIAL HIGHLIGHTS** 

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | |
|:---|:---|
|  | **Class A** |
|  | **February 1,**<br> **2022<sup>(a)</sup> to**<br> **June 30,**<br> **2022<sup>(b)</sup>** |
|  Net asset value, beginning of period | $19.39 |
|  **Income From Investment Operations** |  |
|  Net investment income<sup>(c)(d)</sup> | .01 |
|  Net realized and unrealized loss on investments | (3.47) |
|  Net decrease in net asset value from operations | (3.46) |
|  Net asset value, end of period | **$15.93** |
|  **Total Return** |  |
|  Total investment return based on net asset value<sup>(e)</sup> | (17.84)% |
|  **Ratios/Supplemental Data** |  |
|  Net assets, end of period (000's omitted) | $25 |
|  Ratio to average net assets of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>†</sup> | .90 %<sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>†</sup> | 1.42 %<sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>(d)</sup> | .13 %<sup>(f)</sup> |
|  Portfolio turnover rate | 17% |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .01 %<sup>(f)</sup> |

---

See footnote summary on page 40.

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|:---|:---|
| **36 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | |
|:---|:---|
|  | **Class C** |
|  | **May 2,**<br> **2022<sup>(a)</sup> to**<br> **June 30,**<br> **2022<sup>(b)</sup>** |
|  Net asset value, beginning of period | $17.38 |
|  **Income From Investment Operations** |  |
|  Net investment loss<sup>(c)(d)</sup> | (.01) |
|  Net realized and unrealized loss on investments | (1.45) |
|  Net decrease in net asset value from operations | (1.46) |
|  Net asset value, end of period | **$15.92** |
|  **Total Return** |  |
|  Total investment return based on net asset value<sup>(e)</sup> | (8.40)% |
|  **Ratios/Supplemental Data** |  |
|  Net assets, end of period (000's omitted) | $54 |
|  Ratio to average net assets of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>†(g)</sup> | 1.64 %<sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>†(g)</sup> | 3.44 %<sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment loss<sup>(d)</sup> | (.43)%<sup>(f)</sup> |
|  Portfolio turnover rate | 17% |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .01 %<sup>(</sup><sup>f)</sup> |

---

See footnote summary on page 40.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 37** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** | **Advisor Class** |
| | **January 1,<br>2022 to<br>June 30,<br>2022<sup>(b)</sup>** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **June 28,<br>2017<sup>(h)</sup> to<br>December 31,<br>2017** |
| | **January 1,<br>2022 to<br>June 30,<br>2022<sup>(b)</sup>** | **2021** | **2020** | **2019** | **2018** | **June 28,<br>2017<sup>(h)</sup> to<br>December 31,<br>2017** |
|  Net asset value, beginning of period | $21.71 | $18.83 | $13.94 | $10.59 | $11.11 | $10.00 |
|  **Income From Investment Operations** |  |  |  |  |  |  |
|  Net investment income (loss)<sup>(c)(d)</sup>. | .01 | .11 | (.06) | .09 | .08 | .04 |
|  Net realized and unrealized gain (loss) on investments | (5.77) | 4.83 | 5.26 | 3.34 | (.54) | 1.09 |
|  Net increase (decrease) in net asset value from operations | (5.76) | 4.94 | 5.20 | 3.43 | (.46) | 1.13 |
|  **Less: Dividends and Distributions** |  |  |  |  |  |  |
|  Dividends from net investment income | – 0 | (.13) | (.00)<sup>(i)</sup> | (.08 | (.06) | (.02 |
|  Distributions from net realized gain on investments | – 0 | (1.93) | (.31) | – 0 | (.00)<sup>(i)</sup> | – 0 |
|  Total dividends and distributions | – 0 | (2.06) | (.31) | (.08 | (.06) | (.02 |
|  Net asset value, end of period | **$15.95** | **$21.71** | **$18.83** | **$13.94** | **$10.59** | **$11.11** |
| **Total Return** |  |  |  |  |  |  |
|  Total investment return based on net asset value<sup>(e)</sup> | (26.56) | 26.26% | 37.34% | 32.41 | (4.15)% | 11.32 |
|  **Ratios/Supplemental Data** |  |  |  |  |  |  |
|  Net assets, end of period (000's omitted) | $109204 | $191746 | $181969 | $100714 | $65208 | $1111 |
|  Ratio to average net assets of: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>†</sup><sup>(g)</sup> | .65 | .12% | 1.09% | .43 | .42 %<sup>(j)</sup> | .33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>†</sup><sup>(g)</sup> | 1.00 | .36% | 1.32% | .84 | 1.05 %<sup>(j)</sup> | 37.77 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income (loss)<sup>(d)</sup> | .14 | .54% | (.38)% | .69 | .73% | .66 |
|  Portfolio turnover rate | 17 | 37% | 51% | 41 | 31% | 22 |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; portfolios | .01 | .00% | .01% | .01 | .01% | .01 |

---

See footnote summary on page 40.

---

| | |
|:---|:---|
| **38 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

---

| | |
|:---|:---|
|  | **Class Z** |
|  | **February 1,**<br> **2022<sup>(a)</sup> to**<br> **June 30,**<br> **2022<sup>(b)</sup>** |
|  Net asset value, beginning of period | $19.39 |
|  **Income From Investment Operations** |  |
|  Net investment income<sup>(c)(d)</sup> | .03 |
|  Net realized and unrealized loss on investments | (3.47) |
|  Net decrease in net asset value from operations | (3.44) |
|  Net asset value, end of period | **$15.95** |
|  **Total Return** |  |
|  Total investment return based on net asset value<sup>(e)</sup> | (17.74)% |
|  **Ratios/Supplemental Data** |  |
|  Net assets, end of period (000's omitted) | $8 |
|  Ratio to average net assets of: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, net of waivers/reimbursements<sup>†</sup> | .65 %<sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses, before waivers/reimbursements<sup>†</sup> | 1.02 %<sup>(f)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income<sup>(d)</sup> | .36 %<sup>(f)</sup> |
|  Portfolio turnover rate | 17% |
|  <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying | <sup>†</sup> Expense ratios exclude the estimated acquired fund fees of affiliated/unaffiliated underlying |
| &nbsp;&nbsp;&nbsp;&nbsp; portfolios | .00 %<sup>(f)</sup> |

---

See footnote summary on page 40.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 39** |

---

------

**FINANCIAL HIGHLIGHTS** (continued)

**Selected Data For A Share Of Capital Stock Outstanding Throughout Each Period** 

(a) Commencement of distribution.

(b) The Fund changed its fiscal year end from December 31 to June 30.

(c) Based on average shares outstanding.

(d) Net of expenses waived/reimbursed by the Adviser.

(e) 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 investment 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 for a period of less than one year is not annualized.

(f) Annualized.

(g) In connection with the Fund's investments in affiliated underlying portfolios, the Fund incurs no direct expenses but
bears proportionate shares of the acquired fund fees and expenses (i.e. operating, administrative and investment advisory fees) of the affiliated underlying portfolios. The Adviser has contractually agreed to waive its fees from the Fund in an
amount equal to the Fund's pro rata share of certain acquired fund fees and expenses, for the period ended June 30, 2022, the years ended December 31, 2020, December 31, 2019, December 31, 2018, and the period ended
December 31, 2017, such waiver amounted to 0.01% (annualized), 0.01%, 0.01%, 0.01% and 0.01% (annualized), respectively.

(h) Commencement of operations.

(i) Amount is less than $0.005.

(j) The advisory fee reflected in the Fund's expense ratio may be higher or lower than the Base Fee plus Performance
Adjustment due to the different time periods over which the fee is calculated (i.e., the financial reporting period vs. the Performance Period).

See notes to financial statements.

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|:---|:---|
| **40 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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------

**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** 

**To the Shareholders and the Board of Directors of** 

**AB Sustainable US Thematic Portfolio** 

***Opinion on the Financial Statements***

We have audited the accompanying statement of assets and liabilities of AB Sustainable US Thematic Portfolio, formerly known as AB Flex Fee US Thematic Portfolio (the "Fund"), (one of the portfolios constituting AB Cap Fund, Inc. (the "Company")), including the portfolio of investments, as of June 30, 2022, and the related statements of operations for the period from January 1, 2022 to June 30, 2022 and for the year ended December 31, 2021, the statements of changes in net assets for the period January 1, 2022 to June 30, 2022 and for each of the two years in the period ended December 31, 2021, the financial highlights for the period from January 1, 2022 to June 30, 2022 and for each of the four years in the period ended December 31, 2021 and for the period from June 28, 2017 (commencement of operations) to December 31, 2017 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 portfolios constituting AB Cap Fund, Inc.) at June 30, 2022, the results of its operations for the period from January 1, 2022 to June 30, 2022 and for the year ended December 31, 2021, the changes in its net assets for the period from January 1, 2022 to June 30, 2022 and each of the two years in the period ended December 31, 2021, and its financial highlights for the period from January 1, 2022 to June 30, 2022 and for each of the four years in the period ended December 31, 2021 and for the period from June 28, 2017 (commencement of operations) to December 31, 2017, in conformity with U.S. generally accepted accounting principles.

***Basis for Opinion***

These financial statements are the responsibility of the Company'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 Company 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 Company is not required to have, nor were we engaged to perform, an audit of the

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|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 41** |

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**REPORT OF INDEPENDENT REGISTERED** 

**PUBLIC ACCOUNTING FIRM** (continued)

Company'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 Company'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 disclosures in the financial statements. Our procedures included confirmation of securities owned as of June 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](g460415g91r55.jpg)

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

New York, New York

August 26, 2022

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| **42 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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**BOARD OF DIRECTORS** 

---

| | |
|:---|:---|
| **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>  |

---

**OFFICERS** 

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| | |
|:---|:---|
| **Daniel C. Roarty**<sup>(2)</sup>**,** Vice President<br> **Benjamin Ruegsegger**<sup>(2)</sup>**,** <br> 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> Brown Brothers Harriman & Co.<br> 50 Post Office Square<br> Boston, MA 02110<br>**Principal Underwriter**<br> AllianceBernstein Investments, Inc.<br> 501 Commerce Street<br> Nashville, TN 37203 | **Independent Registered Public Accounting Firm**<br> Ernst & Young LLP<br> One Manhattan West<br> New York, NY 10001<br>**Legal Counsel**<br> Seward & Kissel LLP<br> One Battery Park Plaza<br> New York, NY 10004 |

---

**Transfer Agent** 

AllianceBernstein Investor Services, Inc.

P.O. Box 786003

San Antonio, TX 78278

Toll-Free (800) 221-5672

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

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| | |
|:---|:---|
| 2 | The day-to-day management of, and investment decisions for, the Fund's portfolio are made by the Adviser's Sustainable Thematic Equities Investment Team. Messrs. Roarty and Ruegsegger are the investment professional with the most significant responsibility for the day-to-day management of the Fund's portfolio.  |

---

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|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 43** |

---

------

**MANAGEMENT OF THE FUND** 

**Board of Directors Information** 

The business and affairs of the Fund are managed under the direction of the Board of Directors. Certain information concerning the Fund's Directors 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>DIRECTOR** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY HELD<br>BY DIRECTOR** |
| **INTERESTED DIRECTOR** | **INTERESTED DIRECTOR** |  |  |
| Onur Erzan,<sup>#</sup><br> 1345 Avenue of the Americas<br> New York, NY 10105<br> 46<br> (2021) | Senior Vice President of AllianceBernstein L.P. (the "Adviser"), Head of Global Client Group and Head of Private Wealth. He oversees AB's entire private wealth management business and third-party institutional and retail franchise, 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. Erzan is also a member of the Equitable Holdings Management Committee. Prior to joining the firm in 2021, he spent over 19 years with McKinsey, most recently as a senior partner and co-leader of its Wealth & Asset Management practice. In addition, Erzan co-led McKinsey's Banking & Securities Solutions (a portfolio of data, analytics and digital assets and capabilities) globally. | 73 |  |

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|:---|:---|
| **44 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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------

**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **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>DIRECTOR** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY HELD<br>BY DIRECTOR** |
| **DISINTERESTED DIRECTORS** | **DISINTERESTED DIRECTORS** |  |  |
| Marshall C. Turner, Jr.,<sup>##</sup><br> *Chairman of the Board*<br> 80<br> (2017) | Private Investor since prior to 2017. Former Chairman and CEO of Dupont Photomasks, Inc. (semi-conductor manufacturing equipment). 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 board of the George Lucas Educational Foundation. 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 SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 45** |

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**MANAGEMENT OF THE FUND** (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>DIRECTOR** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY HELD<br>BY DIRECTOR** |
| **DISINTERESTED DIRECTORS<br>(continued)** | **DISINTERESTED DIRECTORS<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> (2017) | 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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|:---|:---|
| **46 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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**MANAGEMENT OF THE FUND** (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>DIRECTOR** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY HELD<br>BY DIRECTOR** |
| **DISINTERESTED DIRECTORS<br>(continued)** | **DISINTERESTED DIRECTORS<br>(continued)** |  |  |
| Nancy P. Jacklin,<sup>##</sup><br> 74<br> (2017) | 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 director or trustee of the AB Funds since April 2020. | 73 | Apollo Investment Corp. (business development company) since August 2011 |

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|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 47** |

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**MANAGEMENT OF THE FUND** (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>DIRECTOR** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY HELD<br>BY DIRECTOR** |
| **DISINTERESTED DIRECTORS<br>(continued)** | **DISINTERESTED DIRECTORS<br>(continued)** |  |  |
| Carol C. McMullen,<sup>##</sup><br> 67<br> (2017) | 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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| | |
|:---|:---|
| **48 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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**MANAGEMENT OF THE FUND** (continued)

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| | | | |
|:---|:---|:---|:---|
| **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>DIRECTOR** | **OTHER PUBLIC<br>COMPANY<br>DIRECTORSHIPS<br>CURRENTLY HELD<br>BY DIRECTOR** |
| **DISINTERESTED DIRECTORS<br>(continued)** | **DISINTERESTED DIRECTORS<br>(continued)** |  |  |
| Garry L. Moody,<sup>##</sup><br> 70<br> (2017) | 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 the 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 Investment Company Institute's Board of Governors and the Independent Directors Council's Governing Council, where he serves as Chairman of its Governance Committee. 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 Fund's disinterested Directors is c/o AllianceBernstein L.P., Attention: Legal & Compliance Department—Mutual Fund Legal, 1345 Avenue of the Americas, New York, NY 10105.

\*\* There is no stated term of office for the Fund's Directors.

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

# Mr. Erzan is an "interested person" of the Fund, 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.

---

| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 49** |

---

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**MANAGEMENT OF THE FUND** (continued)

**Officers Information** 

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

---

| | | |
|:---|:---|:---|
| **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. |
| Benjamin Ruegsegger<br> 43 | Vice President | Senior Vice President and Senior Research Analyst of the Adviser\*\*, with which he has been associated since prior to 2017. |
| Daniel C. Roarty<br> 50 | Vice President | Senior Vice President of the Adviser\*\*, with which he has been associated since prior to 2017. He is also Chief Investment Officer of Sustainable Thematic Equities. |
| 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> 46 | 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 ("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. |
| Vince S. Noto<br> 57 | Chief Compliance Officer | Senior Vice President 2017 and Mutual Fund Chief Compliance Officer of the Adviser\*\* since prior to 2017. |

---

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

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

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

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|:---|:---|
| **50 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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**Operation and Effectiveness of the Funds' 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 Directors/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 SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 51** |

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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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| | |
|:---|:---|
| **52 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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

The disinterested directors (the "directors") of AB Cap Fund, Inc. (the "Company") unanimously approved the continuance of the Company's Advisory Agreement with the Adviser in respect of AB Sustainable US Thematic Portfolio (formerly AB FlexFee<sup>TM</sup> US Thematic Portfolio) (the "Fund") at a meeting held in-person on May 3-5, 2022 (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 Vice President for the Fund. The directors also discussed the proposed continuance in private sessions with counsel.

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.

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

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| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 53** |

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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 directors also considered that the Advisory Agreement provides that the Fund will reimburse the Adviser for the cost to it of providing certain clerical, accounting, administrative and other services to the Fund by employees of the Adviser or its affiliates. Requests for these reimbursements are made on a quarterly basis and subject to approval by the directors. Reimbursements, to the extent requested and paid, result in a higher rate of total compensation from the Fund to the Adviser than the fee rate stated in the Advisory Agreement. The directors noted that the methodology used to determine the reimbursement amounts had been reviewed by an independent consultant at the request of the directors. 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 2020 and 2021 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, including those relating to its subsidiaries that provide transfer agency, distribution and brokerage services to 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

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|:---|:---|
| **54 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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expenses. The directors concluded that the Adviser's level of profitability from its relationship with the Fund in 2020 was not unreasonable and noted that the Fund was not profitable to the Adviser in 2021.

**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, including, but not limited to, benefits relating to soft dollar arrangements (whereby investment advisers receive brokerage and research services from brokers that execute agency transactions for their clients); 12b-1 fees and sales charges received by the Fund's principal underwriter (which is a wholly owned subsidiary of the Adviser) in respect of certain classes of the Fund's shares; brokerage commissions paid by the Fund to brokers affiliated with the Adviser; and transfer agency fees paid by the Fund to a wholly owned subsidiary of the Adviser. The directors recognized that the Fund's recent unprofitability to the Adviser would be exacerbated without these benefits. 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 Class A Shares 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 performance of the Class A Shares against a broad-based securities market index, in each case for the 1- and 3-year periods ended February 28, 2022. Based on their review, the directors concluded that the Fund's investment performance was acceptable.

**Advisory Fees and Other Expenses** 

The directors considered the advisory fee rate payable by the Fund to the Adviser and information prepared 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 paid by other funds. The directors compared the Fund's contractual effective advisory fee rate with a peer group median and took into account the impact on the advisory fee rate of the administrative expense reimbursement paid to the Adviser in the latest fiscal year.

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| | |
|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 55** |

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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 Vice President 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 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 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, 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 the different risk profile, the directors considered these fee comparisons inapt and did not place significant weight on them in their deliberations.

In connection with their review of the Fund's advisory fee, the directors also considered the total expense ratio of the Class A shares of the Fund in comparison to a peer group and a peer universe selected by the 15(c) service provider. The Class A expense ratio of the Fund was based on the Fund's latest fiscal year and the directors considered the Adviser's expense cap for the Fund. The directors noted that it was likely that the expense ratios of some of the other funds in the Fund's category were lowered by waivers or reimbursements by those funds' investment advisers, which in some cases might be voluntary or temporary. The directors view expense ratio information as relevant to their evaluation of the Adviser's services because the Adviser is responsible for coordinating services provided to the Fund by others. Based on their review, the directors concluded that the Fund's expense ratio was acceptable.

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| **56 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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**Economies of Scale** 

The directors noted that the advisory fee schedule for the Fund contains breakpoints that reduce the fee rates on assets above specified levels. The directors took into consideration prior presentations by an independent consultant on economies of scale in the mutual fund industry and for the AB Funds, and presentations from time to time by the Adviser concerning certain of its views on economies of scale. The directors also had requested and received from the Adviser certain updates on economies of scale in advance of the Meeting. The directors believe that economies of scale may be realized (if at all) by the Adviser across a variety of products and services, and not only in respect of a single fund. The directors noted that there is no established methodology for setting breakpoints that give effect to the fund-specific services provided by a fund's adviser and to the economies of scale that an adviser may realize in its overall mutual fund business or those components of it which directly or indirectly affect a fund's operations. The directors observed that in the mutual fund industry as a whole, as well as among funds similar to the Fund, there is no uniformity or pattern in the fees and asset levels at which breakpoints (if any) apply. The directors also noted that the advisory agreements for many funds do not have breakpoints at all. Having taken these factors into account, the directors concluded that the Fund's shareholders would benefit from a sharing of economies of scale in the event the Fund's net assets exceed a breakpoint in the future.

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|:---|:---|
| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 57** |

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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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| **58 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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**NOTES** 

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| **abfunds.com** | **AB SUSTAINABLE US THEMATIC PORTFOLIO <sup>\|</sup> 59** |

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**NOTES** 

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| **60 <sup>\|</sup> AB SUSTAINABLE US THEMATIC PORTFOLIO** | **abfunds.com** |

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![LOGO](g460415g43p34.jpg)

AB SUSTAINABLE US THEMATIC PORTFOLIO

1345 Avenue of the Americas

New York, NY 10105

800 221 5672

SUT-0151-0622 ![LOGO](g460415g22c48.jpg)

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**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 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 and quarterly press release review (for those Funds which issue press releases), and preferred stock maintenance testing (for those Funds that issue preferred stock); and (iii) tax compliance, tax advice and tax return preparation.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | Audit Fees | Audit-Related<br>Fees | Tax Fees |
|  AB Select US Equity | 2021 | $34514 | $– $| 19309 |
|  | 2022 | $36240 | $– $| 18748 |
|  AB Select US Long/Short | 2021 | $38286 | $– $| 20725 |
|  | 2022 | $40200 | $– $| 19571 |
|  AB Concentrated Growth | 2021 | $21212 | $– $| 17552 |
|  | 2022 | $22273 | $– $| 18866 |
|  AB Concentrated International Growth | 2021 | $25735 | $– $| 19994 |
|  | 2022 | $27022 | $– $| 19661 |
|  AB Global Core Equity | 2021 | $41926 | $– $| 23318 |
|  | 2022 | $44022 | $– $| 21259 |
|  AB International Strategic Core | 2021 | $44953 | $– $| 25002 |
|  | 2022 | $47201 | $– $| 21806 |
|  AB Sustainable US Thematic | 2021 | $30100 | $– $| 31741 |
|  | 2022 | $31605 | $– $| 19195 |

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(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.

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(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:

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| | | | |
|:---|:---|:---|:---|
|  | | All Fees for<br>Non-Audit Services<br>Provided to the<br>Portfolio, the Adviser<br>and Service 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 Select US Equity | 2021 | $1021568 | $19309 |
|  |  |  | $— |
|  |  |  | $(19309) |
|  | 2022 | $1951342 | $18748 |
|  |  |  | $— |
|  |  |  | $(18748) |
|  AB Select US Long/Short | 2021 | $1022984 | $20725 |
|  |  |  | $— |
|  |  |  | $(20725) |
|  | 2022 | $1952165 | $19571 |
|  |  |  | $— |
|  |  |  | $(19571) |
|  AB Concentrated Growth | 2021 | $1019811 | $17552 |
|  |  |  | $— |
|  |  |  | $(17552) |
|  | 2022 | $1951460 | $18866 |
|  |  |  | $— |
|  |  |  | $(18866) |
|  AB Concentrated International Growth | 2021 | $1022253 | $19994 |
|  |  |  | $— |
|  |  |  | $(19994) |
|  | 2022 | $1952255 | $19661 |
|  |  |  | $— |
|  |  |  | $(19661) |
|  AB Global Core Equity | 2021 | $1025577 | $23318 |
|  |  |  | $— |
|  |  |  | $(23318) |
|  | 2022 | $1953853 | $21259 |
|  |  |  | $— |
|  |  |  | $(21259) |
|  AB International Strategic Core | 2021 | $1027261 | $25002 |
|  |  |  | $— |
|  |  |  | $(25002) |
|  | 2022 | $1954400 | $21806 |
|  |  |  | $— |
|  |  |  | $(21806) |
|  AB Sustainable US Thematic | 2021 | $1150626 | $31741 |
|  |  |  | $— |
|  |  |  | $(31741) |
|  | 2022 | $1951789 | $19195 |
|  |  |  | $— |
|  |  |  | $(19195) |

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(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.

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**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-2(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.** 

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](d487979dex99codeeth.htm) |
| 12 (b) (1) | [Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](d487979dex99cert.htm) |
| 12 (b) (2) | [Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](d487979dex99cert.htm#ex12) |
| 12 (c) | [Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](d487979dex99906cert.htm) |

---

------

**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 Cap Fund, Inc.

---

| | |
|:---|:---|
| 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.

------

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;

------

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

------

• 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.

------

**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

------

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 Cap Fund, Inc., certify that:

1. I have reviewed this report on Form N-CSR of AB Cap Fund, Inc.;

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

------

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

---

| |
|:---|
| /s/ Onur Erzan |
| Onur Erzan |
| President |

---

------

**Exhibit 12 (b)(2)** 

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER** 

I, Joseph J. Mantineo, Treasurer and Chief Financial Officer of AB Cap Fund, Inc., certify that:

1. I have reviewed this report on Form N-CSR of AB Cap Fund, Inc.;

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

---

| |
|:---|
| /s/ Joseph J. Mantineo |
| Joseph J. Mantineo |
| Treasurer and Chief Financial Officer |

---

## 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 Cap Fund, Inc. (the "Registrant"), hereby certifies that the Registrant's report on Form N-CSR for the period ended June 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 |

---

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.