output_PyMiner.txt

AB FCP I 

Additional Information for Hong Kong Investors 

Multi-Asset/Asset Allocation 

Equity 

Fixed-Income 

>  Dynamic Diversified Portfolio 

>  Global Equity Blend Portfolio 

>  Short Duration Bond Portfolio 

>  Emerging Markets Growth 

>  Global High Yield Portfolio 

Portfolio 

>  Asia Ex-Japan Equity Portfolio 

> 

Japan Strategic Value Portfolio 

>  China Low Volatility Equity 

Portfolio 

>  American Income Portfolio 

>  European Income Portfolio 

>  Emerging Markets Debt Portfolio 

>  Mortgage Income Portfolio 

April 2023 

AB FCP I (the “Fund”) is a mutual investment fund (fonds commun de placement) organized under the laws of the Grand 
Duchy of Luxembourg.  Purchase orders can be accepted only on the basis of the Prospectus of the Fund dated 31 March 
2023  (the  “Prospectus”)  and  this  statement  of  additional  information  for  Hong  Kong  investors  (this  “Hong  Kong 
Supplement”), which together form the offering documents for the Fund for the purpose of marketing Shares of the Fund in 
the Hong Kong Special Administrative Region of the People’s Republic of China (“Hong Kong”) (the “Hong Kong Offering 
Document”).  

If  you  are  in  any  doubt  about  the  contents  of  the  Prospectus,  this  Hong  Kong  Supplement  or  the  financial 
statements accompanying this document you should seek independent professional advice. 

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Important Notice 

WARNING: Please note that the Prospectus is a global offering document and therefore also contains details of funds 
which are not authorized by the Securities and Futures Commission (the “SFC”) for offering to the public in Hong Kong or 
share classes not available to Hong Kong investors.   

Investors  should  note  that  the  Hong  Kong  Offering  Document  of  the  Fund  is  authorized  on  the  condition  that  the 
Management Company shall ensure that only the share classes of the SFC-authorized funds listed on pages 4 to 6 of this 
Hong Kong Supplement which are specified as available to Hong Kong investors are and shall be offered to the public in 
Hong Kong.  

It is an offence to offer any non-SFC authorized share classes to the public in Hong Kong unless an exemption under 
section 103 of the Securities and Futures Ordinance of Hong Kong (Cap. 571) (“SFO”) applies. Intermediaries should 
take note of this restriction. 

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Information for Hong Kong Investors 

The aim of this Hong Kong Supplement is to set out all the information relating to the Fund and each of its Portfolios that is 
particular to the offering of the Portfolios to investors in Hong Kong. Notwithstanding the reference in the Prospectus, the 
SFDR  Pre-Contractual  Disclosures  referred  to  therein  will  only  be  available  in  English  upon  request  with  the  Hong  Kong 
Representative. 

All terms used in this Hong Kong Supplement shall bear the same meaning as in the Prospectus unless the context otherwise 
requires. 

The managers of the Management Company (the “Managers”) have taken all reasonable care to ensure that the facts stated 
herein are true and accurate in all material respects at the date hereof and that there are no other material facts the omission 
of which makes misleading any statement herein, whether of fact or opinion. The Managers accept responsibility accordingly. 

In the event of any inconsistency between the contents of the Prospectus and this Hong Kong Supplement, the information 
contained in the latter shall prevail. 

Investors should note that the Portfolios are generally entitled to use derivative instruments for hedging and risk management 
purposes, as well as investment purposes, including, for example, efficient portfolio management and as an alternative to 
investing in the underlying securities or instruments. The use of derivatives may involve additional risks.  

The Fund was created on 21 August 1991 and its registered address is 2-4, rue Eugène Ruppert, L-2453 Luxembourg. 

Authorization in Hong Kong 

Warning: In relation to the Portfolios as set out in the Prospectus, the following Portfolios are authorized by the SFC pursuant 
to section 104 of the SFO and hence may be offered to the public of Hong Kong: 

1.  Dynamic Diversified Portfolio 
2.  Global Equity Blend Portfolio 
3.  Emerging Markets Growth Portfolio 
4.  Asia Ex-Japan Equity Portfolio  
5. 
Japan Strategic Value Portfolio 
6.  China Low Volatility Equity Portfolio  
7.  Short Duration Bond Portfolio 
8.  Global High Yield Portfolio 
9.  American Income Portfolio 
10.  European Income Portfolio 
11.  Emerging Markets Debt Portfolio 
12.  Mortgage Income Portfolio  

Please note that the Prospectus is a global offering document and therefore also contains information of the share classes 
which are not authorized by the SFC. 

No  offer  shall  be  made  to  the  public  of  Hong  Kong  in  respect  of  unauthorized  funds.  The  issue  of  the  Prospectus  was 
authorized by the SFC only in relation to the offer of the above SFC-authorized funds to the public of Hong Kong. 

Intermediaries should take note of this restriction. 

SFC authorization is not a recommendation or endorsement of the Fund or the Portfolios nor does it guarantee the commercial 
merits of the Fund or any Portfolio or its performance. It does not mean the Fund and the Portfolios are suitable for all investors 
nor is it an endorsement of its suitability for any particular investor or class of investors.   

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The following classes of shares are offered to the public of Hong Kong1:  

1.  Dynamic Diversified Portfolio 

Class A Shares 
Class AX Shares# 
Class BX Shares# 
Class C Shares 

A USD, A EUR, A EUR H 
AX USD, AX EUR  
BX USD 
C USD, C EUR  

2.  Global Equity Blend Portfolio 

Class A Shares 
Class B Shares* 
Class C Shares 

A USD, A EUR 
B USD 
C USD, C EUR 

3.  Emerging Markets Growth Portfolio 

Class A Shares 
Class B Shares* 
Class C Shares 
Class I Shares 

A USD, A EUR, A HKD, A SGD, A AUD H, A SGD H 
B USD 
C USD, C EUR, C AUD H  
I USD, I EUR, I AUD H  

4.  Asia Ex-Japan Equity Portfolio 

Class A Shares 

Class C Shares 
Class I Shares 

A USD,  A EUR,  A HKD, AD USD, AD EUR, AD HKD, A AUD H, A 
SGD H, AD AUD H, AD CAD H, AD EUR H, AD GBP H, AD NZD H, 
AD SGD H 
C USD, C EUR, C AUD H  
I USD, I EUR, ID USD, I AUD H, ID AUD H  

5.  Japan Strategic Value Portfolio 

Class A Shares 

Class C Shares 
Class I Shares 
Class S and S1 Shares 

6.  China Low Volatility Equity Portfolio 

Class A Shares 

Class B Shares* 
Class C Shares 
Class I Shares 

7.  Short Duration Bond Portfolio 

Class A Shares 

A JPY, A EUR, A SGD, A USD, AD JPY, A AUD H, A EUR H, A NZD 
H, A SGD H, A USD H, AD AUD H, AD NZD H, AD SGD H, AD USD 
H  
C JPY, C EUR, C USD, C EUR H  
I JPY, I EUR, I SGD, I USD, I EUR H, I USD H  
S JPY, S1 EUR, S1 USD, S EUR H,  S1 USD H   

A USD, A EUR, A HKD, AD USD, AD HKD, AD AUD H, AD CAD H, 
AD EUR H, AD GBP H, AD NZD H, AD SGD H 
B USD, B EUR  
C USD, C EUR  
I USD, I EUR  

A USD, A EUR, A2 USD, A2 EUR, A2 HKD, AT USD, AT EUR, AT 
HKD, AA USD, AA HKD, A2 EUR H, A2 SGD H, AT AUD H, AT CAD 

1 Different minimum investment and additional investment limits apply to different classes of shares denominated in different 
currencies.  Investors  should  refer  to  the  Prospectus  for  details.  Classes  S  and  S1  Shares  are  reserved  for  institutional 
investors.  

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Class B Shares* 
Class C Shares 
Class I Shares 
Class S and S1 Shares 

8.  Global High Yield Portfolio 

Class A Shares 

Class B Shares* 
Class C Shares 
Class I Shares 

Class S1 Shares 
Class W Shares 

9.  American Income Portfolio 

Class A Shares 

Class B Shares* 
Class C Shares 
Class I Shares 

Class W Shares 

10. European Income Portfolio  

Class A Shares 

Class B Shares* 
Class C Shares 
Class I Shares 

11. Emerging Markets Debt Portfolio 

Class A Shares 

Class B Shares* 
Class C Shares 
Class I Shares 
Class S and S1 Shares 

H, AT EUR H, AT GBP H, AT NZD H, AT SGD H, AA AUD H, AA CAD 
H, AA GBP H, AA NZD H, AA SGD H 
B USD  
C USD, C2 USD, C2 EUR H  
I2 USD, I2 EUR, IT USD, I2 AUD H, I2 EUR H, IT AUD H  
S USD, S EUR H, S1 EUR H  

A USD, A EUR,  A2 USD, A2 EUR,  A2 HKD, A2 SGD, AT USD, AT 
EUR,  AT HKD, AT SGD,  AA USD, AA HKD, A2 EUR H, A2 SGD H, 
AT AUD H, AT CAD H, AT EUR H, AT GBP H, AT NZD H, AT RMB H, 
AT SGD H, AA AUD H, AA CAD H, AA EUR H, AA GBP H, AA NZD 
H, AA RMB H, AA SGD H, AA ZAR H 
B USD, B2 USD, BT USD, BT AUD H 
C USD, C EUR, C2 USD, C2 EUR, CT USD, C2 EUR H 
I2 USD, I2 EUR, I2 SGD, IT USD, IT HKD, I2 AUD H, I2 EUR H, I2 
RMB H, I2 SGD H, IT AUD H, IT CAD H,  IT EUR H, IT GBP H, IT 
NZD H, IT RMB H, IA AUD H  
S1 USD, S1 EUR  
WT USD  

A USD, A EUR,  A2 USD,  A2 EUR,  A2 HKD, A2 SGD,  AT USD, AT 
EUR, AT HKD,  AT SGD, AA USD, AA HKD,  A2 EUR H, A2 SGD H,  
AT AUD H, AT CAD H, AT EUR H,  AT GBP H, AT NZD H, AT RMB H, 
AT SGD H, AA AUD H, AA CAD H, AA EUR H, AA GBP H, AA NZD 
H, AA RMB H, AA SGD H, AA ZAR H 
B USD,  B2 USD, BT USD  
C USD, C EUR, C2 USD, C2 EUR, CT USD, C2 EUR H 
I USD, I EUR, I2 USD, I2 EUR, I2 HKD, I2 SGD, IT USD, IT HKD,  IT 
SGD, IA USD, I2 EUR H, I2 SGD H, IT AUD H,  IT CAD H, IT EUR H, 
IT GBP H, IT NZD H, IT RMB H, IT SGD H, IA AUD H  
W2 USD, WT USD, WT HKD, WT GBP H, WT SGD H 

A EUR, A USD,  A2 EUR, A2 USD,  AT EUR, AT USD, AA EUR,  A2 
SGD H, A2 USD H, AT AUD H, AT GBP H, AT SGD H, AT USD H, AA 
AUD H, AA HKD H, AA RMB H, AA SGD H, AA USD H 
B USD, B2 EUR, B2 USD 
C EUR, C USD, C2 EUR, C2 USD, C2 USD H, CT USD H  
I2 EUR, I2 USD, IT EUR, IA EUR, I2 AUD H, I2 USD H, IT SGD H, IT 
USD H,  IA HKD H, IA SGD H, IA USD H 

A USD, A EUR,  A2 USD, A2 EUR, A2 HKD, AT USD, AT EUR, AT 
HKD, AA USD, AA HKD,  A2 EUR H, A2 SGD H, AT AUD H, AT CAD 
H,  AT EUR H, AT GBP H, AT NZD H, AT SGD H, AA AUD H, AA CAD 
H, AA EUR H, AA GBP H, AA NZD H, AA SGD H, AA ZAR H  
BT USD 
C USD, C EUR, C2 USD, C2 EUR, CT USD, C2 EUR H 
I2 USD, I2 EUR, I2 EUR H, IT AUD H, IT SGD H 
S USD, S EUR H, S GBP H, S1 EUR H, S1 GBP H 

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12. Mortgage Income Portfolio 

Class A Shares 

Class AX and A2X Shares# 
Class BX Shares# 
Class C Shares 
Class CX Shares# 
Class I Shares 
Class IX and I2X Shares# 

A USD, A2 USD, A2 EUR, A2 HKD, A2 SGD, AT USD, AT EUR, AT 
HKD, AT SGD, AA USD, AA HKD, AT AUD H, AT CAD H, AT EUR H, 
AT GBP H, AT NZD H, AT SGD H, AA AUD H, AA CAD H, AA EUR H, 
AA GBP H, AA NZD H, AA RMB H, AA SGD H 
AX USD, AX EUR, A2X USD, A2X EUR  
BX USD, BX EUR  
C USD, C2 USD, C2 EUR 
CX USD   
I USD, I EUR, I2 USD, I2 EUR 
IX USD, I2X USD 

#  Classes AX, A2X, BX, CX, IX and I2X Shares are no longer open for subscription by new investors, except to the existing 

shareholders holding the relevant Class of Shares as more particularly described in the Prospectus.  

*  All Classes B, B2 Shares and Class BT Shares (and corresponding H Shares) are no longer open for subscription by new 
and existing investors. However, investors may request the exchange of their holdings of Classes B, B2 Shares and Class 
BT  Shares  (and  corresponding  H  Shares)  for  the  same  share  class  of  another  AB-sponsored  Luxembourg-domiciled 
UCITS fund authorized in Hong Kong for retail distribution or otherwise available through an AB authorized dealer in Hong 
Kong. 

Hong Kong Representative 

The Hong Kong Representative of the Fund (the “Hong Kong Representative”) is AllianceBernstein Hong Kong Limited of 
39th Floor, One Island East, Taikoo Place, 18 Westlands Road, Quarry Bay, Hong Kong (Tel: +852 2918 7888 and Fax: +852 
2918 0200).  

Investment Manager’s Delegate 

As disclosed in the section headed “Investment Management” in the Prospectus, the Investment Manager may sub-delegate 
certain discretionary investment management functions to entities within the AB Group, and such entities may, as the case 
may be, have investment discretion when implementing the investment strategy for a respective portfolio in conjunction with 
the Investment Manager.  

In this connection, the following entities are appointed as the Investment Manager’s delegate(s) (“Investment Manager’s 
Delegate(s)”) of the following Portfolios:  

Investment Manager’s Delegate(s) 

Relevant Portfolio 

AllianceBernstein (Japan) Ltd. 

Japan Strategic Value Portfolio 

AllianceBernstein (Singapore) Ltd.  

Emerging Markets Growth Portfolio 

AllianceBernstein Hong Kong Limited and 

Asia Ex-Japan Equity Portfolio 

AllianceBernstein Australia Limited 

AllianceBernstein Hong Kong Limited,  

China Low Volatility Equity Portfolio 

AllianceBernstein Australia Limited and 

AllianceBernstein (Singapore) Ltd. 

AllianceBernstein Limited  

European Income Portfolio                     

Global Equity Blend Portfolio                 

Short Duration Bond Portfolio 

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AllianceBernstein Limited and 

Emerging Markets Debt Portfolio 

AllianceBernstein Hong Kong Limited 

AllianceBernstein (Japan) Ltd. 

AllianceBernstein  (Japan)  Ltd.  whose  principal  office  is  situated  at  Hibiya  Park  Front  Building  14F,  2-1-6  Uchisaiwaicho, 
Chiyoda-ku, 14th Floor, Tokyo 100-0011, Japan is a company established in Japan on 28 October 1996 and is registered with 
the Financial Services Agency as a financial instruments business operator to provide (i) Type I financial instruments business; 
(ii)  Type  II  financial  instruments  business;  (iii)  investment  advisory  and  agency  business;  (iv)  investment  management 
business; and (v) securities – related business. 

AllianceBernstein (Singapore) Ltd. 

AllianceBernstein (Singapore) Ltd. whose principal office is situated at One Raffles Quay, #27-11 South Tower, Singapore 
048583 is a company established in Singapore on 17 May 1997. It is regulated by the Monetary Authority of Singapore and is 
licensed with a Capital Markets Service Licence under the Securities and Futures Act to conduct dealing in capital markets 
products and fund management regulated activities.  

AllianceBernstein Hong Kong Limited  

AllianceBernstein Hong Kong Limited is a limited liability company incorporated in Hong Kong and is currently licensed by the 
SFC to conduct Type 1 (dealing in securities), Type 2 (dealing in futures contracts), Type 4 (advising on securities), Type 5 
(advising on futures contracts) and Type 9 (asset management) regulated activities under the SFO with CE number ADX555. 
AllianceBernstein  Hong  Kong  Limited  is  part  of  AB  Group  and  AB  Group  provides  research,  diversified  investment 
management and related services globally to a broad range of clients including institutional clients, retail clients and private 
clients. 

AllianceBernstein Australia Limited  

AllianceBernstein Australia Limited, whose principal office is situated at Level 32, Aurora Place, 88 Phillip Street, Sydney, 
NSW  2000,  is  a  company  established  in  Australia  on  9  November  2000.  It  is  regulated  by  the  Australian  Securities  and 
Investments Commission and is licensed with an Australian Financial Services Licence (“AFS Licence”) to, amongst other 
things, carry on a financial services business to provide general financial product advice and deal in financial products to retail 
investors.  Under  the  terms  of  its  AFS  Licence,  AllianceBernstein  Australia  Limited  may  provide  discretionary  investment 
management  services  to  wholesale  clients  including  responsible  entities  (operators)  of  registered  managed  investment 
schemes (publicly offered investment products / collective investment vehicles), private funds and superannuation (pension) 
funds,  meaning  that  the  AFS  Licence  enables  AllianceBernstein  Australia  Limited  to  manage  the  investment  portfolios  of 
registered managed investment schemes. 

AllianceBernstein Limited 

AllianceBernstein  Limited  whose  principal  office  is  situated  at  60  London  Wall,  London,  EC2M  5SJ,  United  Kingdom  is  a 
company established in the United Kingdom on 23 October 1990 and is registered with the Financial Conduct Authority to, 
amongst  other  things,  advice  on  investments,  carry  on  a  regulated  activity,  bring  about  deals  in  investments,  deal  in 
investments as agent and manage investments. 

The Investment Manager shall continue to have ongoing supervision and regular monitoring of the competence of its delegates 
to ensure that its accountability to investors is not diminished. Although the investment management function of the Investment 
Manager may be delegated to the Investment Manager’s Delegates, its responsibilities and obligations may not be delegated. 

Investment Restrictions 

Securities Lending Transactions: The Fund may enter into securities lending transactions. The Fund, however, will not enter 
into such transactions with the affiliates of the Management Company or the Investment Manager. No securities lending 

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agent will be an affiliate of the Management Company or the Investment Manager. All incremental income generated from 
such transactions will be accrued to the relevant Portfolios of the Fund. 

No  securities  lending  may  be  made  for  more  than  50%  of  the  value  of  the  securities  of  the  relevant  Portfolio  and  the 
Investment Manager may choose to terminate any securities lending transaction at any time.  

Repurchase/Reverse  Repurchase  Agreements  or  Similar  Over  the  Counter  Transactions:  The  Fund  may  enter  into 
repurchase/reverse repurchase agreements or similar over-the-counter transactions. The Fund, however, will not enter into 
repurchase/reverse repurchase agreements or similar over-the-counter transactions with the affiliates of the Management 
Company or the Investment Manager. All repurchase/reverse repurchase agreement transactions entered into by the Fund 
are  collateralized  with  OECD  member  state  government  securities  with  value  at  least  equal  to  the  cash  received 
from/delivered to the counterparty.  

Taking into account factors including the types of transactions, exposure, concentration to a particular counterparty 
and  credit  rating,  the  Investment  Manager  conducts  initial  and  on-going  counterparty  reviews  with  a  view  to 
evaluating the creditworthiness of its proposed and existing counterparties. The Investment Manager maintains a 
list of approved counterparties which provides the names of the entities and the types of transactions for which 
each entity has been approved.  

Investment Types 

Each Portfolio of the Fund may invest in certain types of investments as illustrated in the chart commencing on page II-15 of 
the Prospectus (which should however not be construed as limiting a Portfolio’s ability to invest in other types of securities). 
For  the  avoidance  of  doubt,  American  Income  Portfolio,  Short  Duration  Bond  Portfolio,  Global  High  Yield  Portfolio  and 
Emerging Markets Debt Portfolio may invest in commercial mortgage-backed securities, U.S. government agency mortgage-
backed securities, asset-backed securities and credit-linked notes. 

Other Types of Investments 

Pooled Vehicles 

Emerging Markets Debt Portfolio may invest up to 10% of its Net Asset Value in pooled vehicles sponsored by the Investment 
Manager which may include mutual investment funds or open-ended investment companies. In order to more efficiently 
manage its assets and to gain exposure to certain asset classes, including alternatives, Dynamic Diversified Portfolio may 
invest  in  pooled  vehicles  or  other  products  sponsored  and/or  managed  by  the  Investment  Manager  or  its  affiliates  or 
unaffiliated third parties. 

REITs 

Certain Portfolios (such as Dynamic Diversified Portfolio) may invest in real estate investment trusts (“REITs”). In the case 
of Dynamic Diversified Portfolio, it may invest up to 10% of its Net Asset Value in REITs.  

Investors should note that the underlying REITs which a Portfolio may invest in may not be authorized by the SFC and their 
dividend or payout policies may not be representative of the dividend or payout policy of a Portfolio. 

Derivatives and Other Debt Securities 

Investors should note that the Portfolios are generally entitled to use derivative instruments for hedging and risk management 
purposes, as well as investment purposes, including, for example, efficient portfolio management and as an alternative to 
investing directly in the underlying securities or instruments. The use of derivatives may involve additional risks. In adverse 
situations,  the  Portfolio’s  use  of  derivative  instruments  may  become  ineffective  in  hedging,  risk  management  or  efficient 
portfolio management and the Portfolio may suffer significant losses. Save for Dynamic Diversified Portfolio which has a net 
derivative exposure of more than 50% but up to 100% of its Net Asset Value, the net derivative exposure of all other Portfolios 
may be up to 50% of the respective Portfolio’s Net Asset Value. 

Each of Emerging Markets Debt Portfolio, Dynamic Diversified Portfolio, Global High Yield Portfolio, Asia Ex-Japan Equity 
Portfolio, Mortgage Income Portfolio and American Income Portfolio may invest in certain derivative instruments and strategies 

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which allow itself to obtain exposure to certain markets, sectors and individual securities and facilitate more effective currency 
management. Such derivatives may include options, interest rate swaps, currency swaps, total return swaps, credit default 
swaps, futures and forwards.  

Emerging Markets Debt Portfolio, Short Duration Bond Portfolio, Japan Strategic Value Portfolio, Global High Yield Portfolio, 
American Income Portfolio, European Income Portfolio, Mortgage Income Portfolio and Dynamic Diversified Portfolio may 
invest in structured securities (both Investment Grade and non-Investment Grade) originated by a wide range of originators 
and sponsors.  Investments in structured securities will not exceed 20% of its Net Asset Value in the case of Short Duration 
Bond Portfolio.  Investments in non-Investment Grade securities may at any time exceed 50% of Net Asset Value in the case 
of Emerging Markets Debt Portfolio.  

It is important to note that the use of derivatives by Dynamic Diversified Portfolio does not alter its existing guidelines with 
respect to credit quality, duration and currency exposures. In addition, Dynamic Diversified Portfolio’s use of derivatives does 
not  alter  the  acceptable  ranges  for  some  of its  other  key  risk  parameters—including  interest  rate  risk,  credit  risk,  foreign 
exchange risk and liquidity risk. Dynamic Diversified Portfolio’s average weighted maturity will continue to not exceed 15 years. 
Investments in derivatives may be subject to high volatility and involve significant risk, which may potentially result in significant 
losses in your investment in the Portfolio. 

While judicious use of derivatives can be beneficial, derivative instruments and strategies may carry different risks from those 
presented by more traditional investments and may expose the fund to significant losses. These risks include, for example, 
counterparty default risk (risk that the direct counterparty of an over the counter (“OTC”) derivative does not make timely 
interest or principal payments as contracted) or insolvency risk (risk that the counterparty may not have sufficient funds and 
files for bankruptcy), risk involved with effective management of derivative strategies (risk that the underlying investments in 
the derivatives-based investment strategy do not perform as expected), risk of mispricing or improper valuation of derivatives 
(operational risk that the derivative is not priced properly), risk of higher volatility, risk of illiquidity in the market for certain 
derivative strategies (risk that certain OTC derivatives may not be as easily exchangeable as others). Derivatives may give 
rise to leverage and the risk of loss may be greater than the amount invested in the derivative and may expose the Portfolios 
to significant losses. Please also refer to Section II of the Prospectus for greater details and in particular the section entitled 
“Derivatives Risk”. 

Investment in instruments with loss-absorption features 

American Income Portfolio, Dynamic Diversified Portfolio, Emerging Markets Debt Portfolio, European Income Portfolio, Global 
High Yield Portfolio, Mortgage Income Portfolio and Short Duration Bond Portfolio may invest less than 30% of its respective 
Net Asset Value in debt instruments with loss-absorption features as defined by the SFC. Examples of the debt instruments 
with  loss-absorption  features  which  may  be  invested  by  the  relevant  Portfolios  include,  but  are  not  limited  to,  contingent 
convertible securities, senior non-preferred debts and other Tier 1 and Tier 2 capital instruments. These instruments may be 
subject to contingent write-down or contingent conversion to ordinary shares on the occurrence of trigger events. 

China A-shares and B-shares 

China Low Volatility Equity Portfolio may invest up to 40% of its Net Asset Value in China A shares, in aggregate, through one 
or more capital markets regimes providing access to China, including the China Connect Scheme, the QFI scheme, and/or 
through other schemes as may be launched from time to time as approved by the Commission de Surveillance du Secteur 
Financier.   

Emerging Markets Growth Portfolio may invest up to 10% of its Net Asset Value and investment exposure in B-shares listed 
on the Shenzhen Stock Exchange or Shanghai Stock Exchange. The Portfolio may invest up to 10% of its Net Asset Value in 
or have exposure to A-shares listed on the Shenzhen Stock Exchange or Shanghai Stock Exchange. 

Short Duration Bond Portfolio 

The Portfolio may invest less than 30% of its Net Asset Value in onshore RMB-denominated fixed income securities through 
the China InterBank Bond Market via the Bond Connect (or via other channels as the market develops). 

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China Low Volatility Equity Portfolio 

The Portfolio will seek to achieve its investment objective by investing at least 80% of its Net Asset Value in securities which 
provide exposure to Chinese companies that the Investment Manager believes have fundamentally lower volatility and less 
downside risks in the future. Lower volatility equity securities are equity securities which characteristically exhibit lower volatility 
in terms of, among other things, standard deviation of returns, relative to the market or a benchmark. The Investment Manager 
measures the volatility of a given equity security and of the Portfolio as a whole using proprietary risk models, quantitative 
analysis and market research. The Investment Manager uses its proprietary risk and return models as well as its judgment 
and experience in managing investment portfolios to construct a portfolio with a balance of quality, stability and reasonable 
valuation. The Investment Manager seeks to achieve the investment objective while limiting volatility relative to the MSCI 
China Index USD. In order to achieve the investment strategy, the Investment Manager will seek to construct a portfolio with 
a balance of quality stability with lower volatility relative to the MSCI China Index USD.  

Dynamic Diversified Portfolio 

Dynamic Asset Allocation Diversification Strategy 

The  Investment  Manager  will  utilize  its  proprietary  “Dynamic  Asset  Allocation”  strategy  to  adjust  the  Dynamic  Diversified 
Portfolio’s various investment exposures among these asset classes with the goal of producing what the Investment Manager 
considers to be the Portfolio’s optimal risk/return profile at any particular point in time. 

Dynamic Asset Allocation  comprises a series of analytical and forecasting tools  employed by the  Investment Manager to 
gauge  market  fluctuations  in  the  risk/return  profile  of  various  asset  classes.  Dynamic  Asset  Allocation  aims  to  adjust  the 
Portfolio’s investment exposure to changing market conditions and thereby to reduce overall portfolio volatility by mitigating 
the effects of market fluctuations, including “tail” events in extreme market environments, while preserving consistent long-
term return potential. For example, the Investment Manager may seek to reduce the Portfolio’s risk exposure to one or more 
asset classes when the Dynamic Asset Allocation tool suggests that market risks relevant to these asset classes are rising 
but return opportunities are declining. 

Conversely, the Investment Manager may tend to seek a more aggressive posture when the Dynamic Asset Allocation tool 
suggests that return opportunities for one or more of these asset classes are rising and market risks are declining. While the 
Portfolio may obtain investment exposures to individual asset classes through direct investment in securities or through the 
use of financial derivative instruments, dynamic adjustments to the Portfolio’s various investment exposures are expected to 
be implemented principally through the use of financial derivative instruments.  

Strategies In Using Derivative Instruments For Investment Purposes 

Dynamic Diversified Portfolio 

The Investment Manager may use derivatives (for investment purposes) such as futures (both short and long), and “total 
return” or “excess return” swaps to change allocations among various different asset classes within the Portfolio, such as 
between return-oriented asset classes (e.g. equities) and more stable asset classes (e.g. bonds).  This enables the Investment 
Manager to efficiently pursue the Portfolio’s multi-asset strategy, seeking to capture the positive returns associated with asset 
classes such as equities when market conditions are favorable, and flexing the allocations towards more stable asset classes 
such as bonds when market conditions become less favorable. 

Additional Risk Factors  

Concentration Risk 

Certain Portfolios’ investments are concentrated in specific industry sectors, instruments or geographical locations. The value 
of the Portfolios may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the 

- 10 - 

 
 
 
 
Portfolios may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory 
event affecting the market. 

Custodial Risk  

The assets of the Fund and its Portfolios are be held in custody by the Depositary and, to the extent permitted by applicable 
laws  and  regulations,  through  third-party  custodian/sub-custodian(s)  and/or  any  other  prime  broker  and/or  broker-dealers 
appointed by the Fund. Investors are hereby informed that cash and fiduciary deposits may not be treated as segregated 
assets and might therefore not be segregated from the relevant depositary, sub-custodian(s), other custodian/third party bank, 
prime broker and/or broker dealer’s own assets in the event of the insolvency or the opening of  bankruptcy, moratorium, 
liquidation or reorganization proceedings of the depositary, sub-custodian(s), other custodian/third party bank, prime broker 
or the broker dealer as the case may be. Subject to specific depositor’s preferential rights in bankruptcy proceedings set forth 
by regulation in the jurisdiction of the relevant depositary, sub-custodian(s), other custodian/third party bank, prime broker or 
the broker dealer, the Fund’s claim might not be privileged and may only rank pari passu with all other unsecured creditors’ 
claims. The Fund and/or its Portfolios might not be able to recover all of their assets in full. 

Emerging Markets Risks 

Prospective investors should note that investments in emerging markets involve special considerations and risks.  In addition 
to the risks disclosed under the section “Country Risks – Emerging Markets” on page II-36 of the Prospectus, prospective 
investors  should  also  note  that  underlying  investments  in  emerging  markets  may  be  affected  by  changes  in  law  and 
government policy and requirements imposed by stock exchanges such as price constraint and market suspension as well as 
political changes which may affect the stability of governments and markets and/or result in restrictions on foreign investment 
or the repatriation of monies. 

Risks of Early Termination 

A Portfolio and certain classes of Shares may be terminated by the Management Company under certain conditions and in 
the  manner  as  specified  under  the  paragraph  headed  “Duration  of  the  Fund,  Liquidation,  Amalgamation”  in  the  section 
“Additional Information” of the Prospectus. It is possible that, at the time of such termination, investors have to realize their 
investment loss and will not be able to receive an amount equal to their capital originally invested. 

Dynamic Asset Allocation Risk 

Although not specifically detailed in the section “Risk Factors” on page II-27 of the Prospectus, if the Investment Manager’s 
forecasts for market volatilities and correlations deviate from actual market volatilities and correlations, the dynamic asset 
allocation strategy may not be able to achieve its objective to reduce volatility and exposure to tail event risks (i.e., to mitigate 
extreme losses and outsized gains), than a strategy that relies solely on longer-term metrics to build asset allocation strategy. 
Investors may suffer losses as a consequence. 

Volatility Risk 

Although not specifically specified in the section “Derivatives Risk” on page II-40 of the Prospectus, prospective investors 
should also note that investments in derivatives may be subject to high volatility to the Net Asset Value of the relevant Portfolios 
and involve significant risk, which may potentially result in significant losses in your investment in the Portfolios. 

Eurozone Risk 

In light of ongoing concerns over the sovereign debt risk of countries within the Eurozone, certain Portfolios’ investments in 
the  region  may  be  subject  to  higher  volatility,  liquidity,  currency  and  default  risks.  Any  adverse  events,  such  as  credit 
downgrade of a sovereign or exit of EU members from the Eurozone, may have a negative impact on the value of the Portfolios. 

Risks associated with Payment of Dividends out of Capital 

The Management Company has the sole and absolute discretion to amend the dividend policy of the Portfolios, subject to the 
SFC’s  prior  approval  (if  required)  and  by  giving  no  less  than  one  month’s  prior  notice  to  investors.  Dividend  yield  is  not 
indicative of return of the Portfolios. Dividends may be paid from capital or effectively out of capital of certain Portfolios at the 

- 11 - 

 
 
 
 
discretion of the Management Company, which may amount to a partial return or withdrawal of an investor’s original investment 
or from any capital gains attributable to that original investment, and result in an immediate decrease of the Net Asset Value 
per Share. The distribution amount and Net Asset Value of the currency hedged share classes may be adversely affected by 
differences  in  the  interest  rates  of  the  reference  currency  of  the  currency  hedged  share  classes  and  the  Portfolio’s  base 
currency, resulting in an increase in the amount of distribution that is paid out of capital and hence a greater erosion of capital 
than other non-hedged share classes. 

Risks associated with Exchange-Traded Funds (“ETFs”) 

A Portfolio investing in ETFs is subject to the following risks associated with ETFs: 

Passive investment risk: An ETF is passively managed and the manager of the ETF will not have the discretion to adapt to 
market changes due to the inherent investment nature of the ETF. Falls in the index are expected to result in corresponding 
falls in the value of the ETF, and thus the value of the Portfolio investing in such ETF. 

Tracking error risk: An ETF may be subject to tracking error risk, which is the risk that its performance may not track that of 
the index exactly. This tracking error may result from the investment strategy used, and fees and expenses. The manager of 
the ETF will monitor and seek to manage such risk in minimizing tracking error. There can be no assurance of exact or identical 
replication at any time of the performance of the index. 

Risks in connection with the Investment Strategy 

The  investment  strategy  adopted  by  a  Portfolio  may  not  be  effective  and/or  may  not  achieve  a  level  of  volatility.  The 
performance of a Portfolio is heavily subject to the Investment Manager’s judgment and experience in stock selection. In the 
case of market downturn, a Portfolio may not provide a positive return or outperform the general equity market. Hence, the 
value of a Portfolio may be adversely affected. Low volatility stocks are seen as having a lower risk profile than the overall 
markets. Investors should note that lower volatility does not necessarily mean lower risk. 

Risks  associated  with  Collateralized  and/or  Securitized  Products  (such  as  Asset-Backed  Securities,  Mortgage-Backed 
Securities and Asset-Backed Commercial Papers) 

Certain Portfolios invest in mortgage-backed securities which may be highly illiquid and prone to substantial price volatility. 
These instruments may be subject to greater credit, liquidity and interest rate risk compared to other debt securities. They are 
often exposed to extension and prepayment risks and risks that the payment obligations relating to the underlying assets are 
not met, which may adversely impact the returns of the securities. 

Risks associated with instruments with loss-absorption features 

A  Portfolio  may  invest  in  instruments  with  loss-absorption  features  which  are  subject  to  greater  risks  when  compared  to 
traditional debt instruments as such instruments typically include terms and conditions which may result in them being partly 
or wholly written off, written down, or converted to ordinary shares of the issuer upon the occurrence of a pre-defined trigger 
event (e.g. when the issuer is near or at the point of non-viability or when the issuer’s capital ratio falls to a specified level). 

Such trigger events are likely to be outside of the issuer’s control and are complex, difficult to predict and can result in a 
significant or total reduction in the value of such instruments, giving rise to consequential loss of the Portfolio. 

In particular, certain Portfolios may invest in contingent convertibles, which are a type of instruments with loss-absorption 
features and can be exposed to several risks (including but not limited to): 

Trigger level risk: The trigger event is ordinarily linked to the financial position of the issuer and therefore the conversion is 
likely to occur as a result of a deterioration of the relative capital strength of the underlying. The relative risk associated with 
different contingent convertibles will depend on the distance between the current capital ratio and the effective trigger level. It 
is likely that the conversion to equity would occur at a share price, which is lower than when the bond was issued or purchased. 

- 12 - 

 
 
 
 
Capital structure inversion risk: In the case of a principal write down contingent convertible bond, it is possible that the holder 
could take a write down before equity holders, which is contrary to the typical capital structure hierarchy. 

Liquidity risk: In stressed market conditions, the liquidity profile of the issuer can deteriorate significantly and it may be difficult 
to find a ready buyer which means that a significant discount may be required in order to sell it. 

Call extension risk: Contingent convertibles can also be issued as perpetual bonds (i.e. bonds without a maturity date - please 
refer to relevant risk associated to perpetual bonds), while these will have call dates, there is no guarantee that the issue will 
be called on this date and there is a possibility that the bond may never be called resulting in a total loss of the original capital 
investment. 

Unknown/uncertainty  risk:  Contingent  convertibles  are  a  relatively  new  instrument  and  the  trigger  events  are  generally 
untested, therefore it is uncertain how the asset class will perform in stressed market conditions and risk to capital, and volatility 
could be significant. 

Coupon cancellation risk: Coupon payments may be discretionary and can be cancelled at any time, for any reason. 

Valuation  risk:  Investment  in  contingent  convertibles  may  have  a  higher  yield,  however,  they  can  carry  higher  risk  than 
investment  in  traditional  debt  instruments/convertibles  and  in  certain  cases  equities;  the  volatility  and  risk  of  loss  can  be 
significant. 

Conversion  risk/write-down  risk:  The  value  of  such  instrument  may  be  impacted  by  the  mechanism  through  which  the 
instruments are converted into equity or written-down, which may vary across different securities which may have varying 
structures and terms. Contingent convertibles structures may be complex and terms may vary from issuer to issuer and bond 
to bond. In equity contingent convertibles, the conversion share price is important as this determines the economic loss that 
a  Portfolio,  as  a  holder  of  such  instruments  will  suffer  upon  conversion  and  may  not  be  pre-determined.  In  the  event  of 
conversion into equity, the Investment Manager may be forced to sell the equity shares if the relevant Portfolio does not permit 
the holding of equity securities which may lead to losses to the Portfolio. For principal write-down contingent convertibles, 
write-down can be immediate and in many cases there may be a full loss with no expectation of any return of principal.  

Sector  concentration  risk:  Contingent  convertibles  are  issued  by  banking/insurance  institutions.  If  a  Portfolio  invests 
significantly in contingent convertibles its performance will depend to a greater extent on the overall condition of the financial 
services industry than a Portfolio following a more diversified strategy. 

Liquidity Risk Management 

The  Management  Company  operates  as  a  UCITS-compliant  Management  Company  subject  to  the  supervision  of  the 
Commission de Surveillance du Secteur Financier, the Luxembourg financial supervisory authority.  As such, the Management 
Company has established a UCITS-compliant overall risk management framework in respect of its various activities. 

The Management Company has appointed AllianceBernstein L.P., the Investment Manager, as its delegate with respect to 
investment  management  and  advisory  functions  for  each  Portfolio.    The  Investment  Manager  is  registered  with  the  U.S. 
Securities and Exchange Commission as an investment adviser under the U.S. Investment Advisers Act of 1940, as amended. 

The  Investment  Manager  has  established  a  liquidity  risk  management  framework  for  the  identification,  assessment, 
measurement, control and mitigation of liquidity risks both at a firm-wide level and in respect of each Portfolio.   

The liquidity risk management of each Portfolio is primarily the responsibility of the Investment Manager’s portfolio investment 
function,  with  independent  oversight  carried  out  by  the  Investment  Manager’s  risk  management  function.  The  Investment 
Manager’s  Liquidity  Risk  Management  Committee  consisting  of  senior  representations  from  compliance,  portfolio 
management, quantitative research, trading, technology and risk management generally meets on a monthly (and ad hoc) 
basis.  Issues,  concerns  and  exceptions  relating  to  liquidity  risk  of  a  Portfolio  shall  be  escalated  to  the  Liquidity  Risk 
Management Committee and/or directly to the appropriate portfolio management team. 

- 13 - 

 
 
 
 
The Investment Manager employs a holistic approach to liquidity risk management by assessing fund product characteristics, 
assets/liabilities in each Portfolio, Shareholder profiles, liquidity stress testing of each Portfolio and other ongoing assessments 
as necessary.  

The Investment Manager aims to ensure that the liquidity profile of each Portfolio is appropriate to facilitate compliance with 
each such Portfolio’s obligation to meet redemption requests in an orderly manner under normal and stressed markets.  Such 
framework,  combined  with  the  liquidity  management  tools  that  may  be  employed,  also  seeks  to achieve  fair  treatment  of 
Shareholders and safeguard the interests of remaining Shareholders in case of sizeable redemptions.   

The  Investment  Manager  may  use  a  range  of  quantitative  metrics  and  qualitative  factors  in  assessing  the  liquidity  of  a 
Portfolio’s assets including, but not limited to, trading volumes, turnover ratios, average trade size, number of counterparties, 
dealer inventory, price impact measures, days to liquidate measures, bid/ask spreads, sector, maturity, credit rating and bond 
age. 

The following tools may be employed by the Management Company, or the Investment Manager, on behalf of the Management 
Company, as the case may be, to manage liquidity risks:  

- 

- 

- 

The number of Shares of any Portfolio redeemed on any Trade Date may be limited to 10% of the Shares or class 
of the relevant Portfolio outstanding as of such date (subject to the conditions under the section headed “How to 
redeem Shares” in the Prospectus). If such limitation is imposed, this would restrict the ability of a Shareholder to 
redeem in full the Shares he intends to redeem on a particular Trade Date; 

Redemptions may be suspended under certain circumstances as set out in the section headed “Determination of 
Net Asset Value – Suspension of Issue, Redemption and Exchange of Shares and Calculation of Net Asset Value” 
in the Prospectus. During such period of suspension, Shareholders would not be able to redeem their investments 
in the relevant Portfolio; 

In  order  to  counter  the  effects  of  dilution  on  a  Portfolio’s  Net  Asset  Value  brought  about  by  large  purchases  or 
redemptions of the Portfolio’s Shares, a swing pricing policy has been implemented.  Please refer to the section 
headed “Determination of Net Asset Value – Swing Pricing Adjustment” in the Prospectus for details.  As a result of 
such adjustment, the purchase price or the redemption price (as the case may be) will be higher or lower than the 
original Net Asset Value of a Portfolio which otherwise would be if such adjustment has not been made. 

Under  applicable  law,  liquidity  risk  management  measures  such  as  implementing  swing  pricing  or  applying  gating  for 
redemption are the responsibility of the Management Company. The Management Company is required to provide its liquidity 
policies to the Depositary, as part of the Depositary’s periodic reviews, in order for the Depositary to confirm the Management 
Company’s  policies  are  compliant  with  applicable  regulations.  Accordingly,  the  Depositary  will  be  fully  aware  of  the 
Management Company’s liquidity measures and will provide comments and consultation, as appropriate.  

The Management Company exercises its independent oversight of investment management and advisory functions delegated 
to the Investment Manager in respect of each Portfolio as set out under Luxembourg law. These activities include monthly (or 
ad hoc) review of Portfolio-specific liquidity profiles and each Portfolio’s “Liquidity Coverage Ratio” (LCR). 

In addition, AB Group Risk Management monitors liquidity across all accounts for which the AB Group acts as investment 
manager, including regular stress testing.   

Investors should note that there is a risk that these tools may be ineffective to manage liquidity and redemption risks (that is, 
risk that the redemption of the investor's investments may be delayed in accordance with the Prospectus).  

Publication of Net Asset Value of Shares  

The Net Asset Value per Share of each class of Shares, expressed in the Currency of the relevant Portfolio and any other 
Offered Currency, will be determined by the Management Company as of 4:00 p.m. U.S. Eastern time or otherwise as indicated 
in the relevant part of Section I of the Prospectus on each Business Day (business day of both New York Stock Exchange and 
Luxembourg banks) for publication daily on the website at www.alliancebernstein.com.hk or alternatively, you may contact 

- 14 - 

 
 
 
 
AllianceBernstein Hong Kong Limited (as the Hong Kong Representative of the Fund) at +852 2918 7888.  To the extent 
feasible, investment income, interest payable, fees and other liabilities (including management fees) will be accrued daily. 

Information Published on Website 

The above website has not been reviewed by the SFC and may contain information of funds not authorized by the SFC. 

Dealings in Shares 

A “Trade Date” is a business day of both New York Stock Exchange and Luxembourg banks as of which any transaction in 
Shares (purchase, redemption or exchange) for a Portfolio is recorded in the Shareholder register of the Fund in respect of 
one or more Portfolios, as the context requires, as having been accepted. 

A “Hong Kong Business Day” is any day, other than Saturday, on which banks in Hong Kong are open for normal banking 
business provided that where, as a result of a number 8 typhoon signal or higher or a black rain storm warning or other similar 
event in Hong Kong, the period during which banks in Hong Kong are open for normal banking business on any day is reduced, 
such day shall not be a Hong Kong Business Day unless otherwise determined by the relevant authorized dealer. 

Order Processing and Deadlines 

Hong Kong investors should submit their Share purchase, exchange and redemption orders to an authorized dealer before 
the daily time deadline set by the dealer through whom their Shares are controlled for order processing on any Hong Kong 
Business Day, and such dealer will in turn forward such orders to the Transfer Agent for review.  The Transfer Agent will review 
such orders and, upon acceptance, processes them on the same date, provided such date is a Trade Date; if such date is not 
a Trade Date, accepted orders will be processed on the next following Trade Date.  At the discretion of the authorized dealer, 
orders received by the dealer after the daily time deadline set by the dealer for order processing, may be forwarded to the 
Transfer Agent on the next  Hong Kong  Business Day.   Investors should  inquire with their dealer regarding such dealer’s 
deadlines for order processing.  More detailed instructions for submitting Share purchase, exchange and redemption orders 
are found below. 

Purchase of Shares 

Application to Purchase Shares 

To make an initial investment, investors should carefully read the contents of the Prospectus and this Hong Kong Supplement, 
complete the AB Funds Application Form (received from an authorized dealer or the Hong Kong Representative) and return it 
to an authorized dealer together with a cheque or, in the case of payment by telegraphic transfer, a copy of the investor’s 
remittance instructions (as explained in the section entitled “Payment for Purchase of Shares” below), as well as either (i) for 
investors who are individuals, a photocopy of the investor’s Hong Kong Identity Card or passport or (ii) for investors that are 
companies  or  other  entities,  a  certified  extract  of  the  commercial  registry  or  companies  registry  together  with  information 
concerning beneficial owners’ constituent documents.  

Investors  whose  application  forms  are  accepted  will  be  allotted  Shares  as  of  the  Trade  Date  on  which  the  application  is 
received by the Management Company in Luxembourg from the authorized dealer. 

Shares will be allotted at a price based on the Net Asset Value in the Currency of the relevant Portfolio and any other Offered 
Currency for each class of Share determined as of the relevant Trade Date increased by the relevant sales charge (as set out 
in the Prospectus and supplemented in the section entitled “Fees and Expenses” below). The purchase price shall be rounded 
to 2 decimal places (e.g. HK$10.125 shall be rounded up to HK$10.13 and HK$10.124 shall be rounded down to HK$10.12). 
Any amount corresponding to such rounding will accrue to the relevant Portfolio. The Management Company retains the right 
to offer an additional class, or additional classes, of shares of the Portfolios. 

Numerical Example of How Shares are Allotted 

Based on an investment amount of US$10,000 at the notional net asset value of US$10.00 per Share, the number of Shares 
allotted will be calculated as follows: 

- 15 - 

 
 
 
 
Classes for which an initial sales charge applies (i.e. where sales charge is payable at subscription) 

Example 1: 

Assume: 
Initial sales charge = 4% 
No adjustment to purchase price to be made 

Example 2: 

Purchase price = 

Thus, 

net asset value – adjustment∗ 

100% − initial sales charge%

Purchase price = 

 = 

Shares allotted = 

                        =

US$10.00 − 0

US$10.00

100% − 4%

0.96

Investment amount

�

Purchase price

  = 959.693 

�

US$10,000
US$10.00
0.96

Assume: 
Initial sales charge = 1% 
No adjustment to purchase price to be made 

Purchase price = 

Thus, 

2
net asset value – adjustment∗

100% − initial sales charge%

Purchase price = 

 = 

Shares allotted = 

                        =

US$10.00 − 0

US$10.00

100% − 1%

0.99

Investment amount

�

Purchase price

  = 990.099 

�

The above examples are for illustrative purposes only and are not a forecast or indication of any expectation of performance. 

US$10,000
US$10.00
0.99

Payment for Purchase of Shares 

Payment may be made in currency in which the  Shares are offered as indicated in the Prospectus and can be made by 
telegraphic transfer (or bank wire).  

If  an  investor  makes  payment  by  telegraphic  transfer,  a  copy  of  the  remittance  instruction  should  be  enclosed  with  the 
investor’s application. No responsibility will be accepted by the Fund for reconciling investors remittances where problems 
occur in the transmission or as a result of inadequate details of the transfer. Payment should be made in full, taking into 
account any wire transfer fees or other bank charges. 

Payment information for an initial purchase of Shares should reference the confirmation number, investor’s name, the name 
of the Portfolio of the Fund and individual class of Shares for which the investor is subscribing (for example, “AB FCP I —
Dynamic Diversified  Portfolio, Class A”).  In addition, payment  information in respect of subsequent purchases of Shares 
should reference the AB funds account number issued to the investor upon the investor’s initial purchase of Shares. For ease 
of identification, the wire should include as much information as possible. 

* 

If any, as determined in accordance with Section II of the Prospectus.

- 16 - 

 
 
 
 
 
 
  
 
 
 
  
                                                                        
 
 
No money should be paid by investors to any intermediary in Hong Kong who is not licensed or registered to carry 
out Type 1 regulated activity under Part V of the SFO. 

Confirmation of Purchase of Shares 

The Fund will send to the investor a confirmation note generally within five Trade Dates following the issuance of the Shares, 
providing full details of the transactions. Investors transacting orders through an authorized dealer should inquire with their 
dealer regarding such dealer's timing for providing confirmation of purchase.   

Fractions of a Share (rounded to 3 decimal places (e.g. 10.1225 Shares shall be rounded up to 10.123 Shares and 10.1224 
Shares shall be rounded down to 10.122 Shares)) may be issued. Any amount corresponding to such rounding will accrue to 
the relevant Portfolio. 

Redemption of Shares 

Shareholders  may  redeem  their Shares  by  sending  redemption  orders  to  an  authorized  dealer.   Such  dealer  will  forward 
redemption orders received before the daily time deadline set by the dealer for order processing on any Hong Kong Business 
Day to the Transfer Agent for review.  The Transfer Agent will review such redemption orders and, upon acceptance, process 
them on the same date, provided such date is a Trade Date; if such date is not a Trade Date, accepted redemption orders will 
be processed on the next following Trade Date.  At the discretion of the authorized dealer, redemption orders received by the 
dealer after the daily time deadline set by the dealer for order processing may be forwarded to the Transfer Agent on the next 
Hong Kong Business Day.  Investors should inquire with their dealer regarding such dealer's deadlines for order processing.  
Redemption orders must identify the name of the relevant Portfolio of the Fund, the class of Shares and number of Shares to 
be redeemed or the total value of Shares (in the Offered Currency in which the Shareholder purchased the Shares) to be 
redeemed, together with the  Shareholder's name and AB funds  account number (for that Offered Currency).  Incomplete 
redemption orders cannot be processed and will be rejected.   

The redemption price will be equal to the Net Asset Value per Share in the relevant Offered Currency of the relevant share 
class determined for the appropriate Trade Date as of the Valuation Point, which is 4:00 p.m. U.S. Eastern time or otherwise 
as defined in the relevant part of Section I of the Prospectus on such Trade Date. The redemption price shall be rounded to 2 
decimal places (e.g. HK$10.125 shall be rounded up to HK$10.13 and HK$10.124 shall be rounded down to HK$10.12). Any 
amount corresponding to such rounding will accrue to the relevant Portfolio.  

Payments of redemption proceeds will be made in the Offered  Currency in which the  Shareholder’s AB funds account is 
denominated.  Under normal circumstances it is expected that proceeds of redemptions will be paid by the Depositary or its 
agents not later than five Trade Dates after the relevant redemption date. Notwithstanding the foregoing, if in exceptional 
circumstances the liquidity of the Fund is not sufficient to enable payment or redemption to be made within this period, such 
payment will be made as soon as reasonably practicable and in any event no later than one calendar month after receipt of 
properly documented redemption orders. 

Exchange of Shares 

Shareholders have the option to exchange Shares for Shares of the same class of any other Portfolio of the Fund or Shares 
of the same class of certain other AB funds authorized by the SFC from time to time. Shareholders should check the relevant 
Portfolio’s  or  fund’s  authorized  status  prior  to  exchange.  Any  such  exchange  will  be  subject  to  the  minimum  investment 
requirements and any other applicable terms set out in the Prospectus relating to the shares of the Portfolio of the Fund or 
other AB fund to be acquired upon exchange.  The Management Company reserves the right, in its discretion, to waive any 
applicable minimum investment amounts. 

Following receipt by the Management Company from an authorized dealer and acceptance by the Fund of valid and complete 
exchange orders, exchanges will be effected, in each case, at the Net Asset Value as next determined in accordance with the 
terms set out in the Prospectus.  Exchanges involving other AB funds will be effected by means of a redemption of the original 
shares and a subscription for and purchase of the shares to be acquired upon exchange. 

In respect of any exchange instruction involving a class of Shares possessing a contingent deferred sales charge, the holding 
period for purposes of calculating any contingent deferred sales charge due upon redemption, if applicable, relating to Shares 

- 17 - 

 
 
 
 
acquired in an exchange, will be based on the date of purchase of the original Shares; furthermore, the amount of any such 
contingent deferred sales charge will be based upon the rates relating to the original Shares.  Such restrictions may be waived 
under certain circumstances in the sole discretion of the Management Company, on behalf of the Fund. 

Investors interested in exchanging Shares should contact their financial adviser or the Hong Kong Representative for more 
information about the exchange option. Neither the Fund nor the Management Company currently charges any administrative 
or other fees in connection with exchanges. However, shareholders who hold their shares through accounts with a dealer 
should contact their dealer to determine if it charges any fees in connection with exchanges. 

Fees and Expenses 

The Fund is subject to the payment of fees and expenses as set forth in the Prospectus under “Summary Information—Share 
Class Fees and Charges” and “Other Portfolio Information—Management Company, Administrator, Depositary and Transfer 
Agent Fees” in the portion of Section I relating to each Portfolio and under “Additional Information—Fees and Expenses” in 
Section II.   

Please refer to the Prospectus for a description of fees and expenses borne by the Portfolios. 

In addition, an initial sales charge or contingent deferred sales charge may be assessed. Please contact your financial adviser 
or the Hong Kong Representative for more information. 

Hong Kong Tax 

For so long as the Fund maintains its authorization with the SFC under the SFO, the Fund will be a specified investment 
scheme under section 26A(1A) of the Inland Revenue Ordinance of Hong Kong (Cap.112). Any sums received or accrued to 
a specified investment scheme (whether they are sourced from Hong Kong or not) will not be subject to Hong Kong profits 
tax. 

Shareholders resident in Hong Kong will not be subject to any Hong Kong tax on distributions from any of the Portfolios or on 
capital gains realized on the redemption of any Shares in the Fund unless the acquisition and realization of Shares in the Fund 
is or forms part of a trade, profession or business carried on in Hong Kong and such gains arise in or are derived from Hong 
Kong. Shares will not attract Hong Kong estate duty and Hong Kong stamp duty will not be payable on the issue, redemption 
or transfer of Shares. 

The above information is based on the enacted laws and current practice of Hong Kong. It is not comprehensive and is subject 
to change. Prospective investors should consult their own professional advisers as to the implications of buying, holding or 
disposing of Shares and to the provision of the laws of the jurisdiction in which they are subject to tax. 

FATCA and Identity of Beneficial Ownership and Withholding on Certain Payments 

The Foreign Account Tax Compliance Act (“FATCA”), a portion of the Hiring Incentives to Restore Employment Act, became 
law in the United States in 2010. In order to avoid a U.S. withholding tax of 30% on certain payments (including payments of 
gross proceeds) made with respect to certain actual and deemed U.S. investments, the Fund generally will be required to 
timely register with the United States Internal Revenue Service (the “Service”) and agree to identify certain direct and indirect 
U.S. account holders (including debtholders and equityholders).  If the Fund failed to comply with such requirements, the Fund 
may be subject to the above 30% withholding tax. Generally, withholding tax reduces the net asset value of the Fund by the 
amount of the withholding imposed and may result in a material loss to investors and inhibit the Fund’s ability to pursue its 
investment strategy.  

Luxembourg has signed a Model 1A (reciprocal) inter-governmental agreement with the United States (the “US IGA”) to give 
effect  to  the  foregoing  withholding  and  reporting  rules.  So  long  as  the  Fund  complies  with  the  US  IGA  and  the  enabling 
legislation, the Investment Manager anticipates that the Fund will not be subject to the related U.S. withholding tax. The Fund 
is a Sponsored Foreign Financial Institution and the Management Company has obtained a global intermediary identification 
number as sponsor on behalf of the Fund. 

A non-U.S. investor in the Fund will generally be required to provide to the Fund (or in certain cases, a distributor, intermediary 
or certain other entities through which a non-U.S. investor invests (each, an “Intermediary”)) information which identifies its 

- 18 - 

 
 
 
 
direct and indirect U.S. ownership.  Under the US IGA, any such information provided to the Fund will be shared with the 
Luxembourg Minister of Finance or its delegate (the “Luxembourg MOF”), unless such U.S. ownership is exempt from the 
reporting rules. The Luxembourg MOF will provide the information reported to it with the Service annually on an automatic 
basis.   A non-U.S. investor that is a “foreign financial institution” within the meaning of Section 1471(d)(4) of the U.S. Internal 
Revenue Code of 1986, as amended, will generally be required to register with the Service and agree to identify certain of its 
own  direct  and  indirect  U.S.  account  holders  (including  debtholders  and  equityholders).   A  non-U.S.  investor  who  fails  to 
provide such information to the Fund (or, if applicable, an Intermediary) or register and agree to identify or report information 
with respect to such account holders (as applicable), may be subject to the 30% withholding tax with respect to its share of 
any such payments attributable to actual and deemed U.S. investments of the Fund, and the Management Company may 
take  any  action  permitted  in  relation  to  an  investor’s  Shares  or  redemption  proceeds  to  ensure  that  such  withholding  is 
economically  borne  by  the  relevant  investor  whose  failure  to  provide  the  necessary  information  or  comply  with  such 
requirements  gave  rise  to  the  withholding,  subject  to  applicable  laws  and  regulations  and  provided  that  the  Management 
Company acts in good faith and on reasonable grounds. Shareholders should consult their own tax advisors regarding the 
possible implications of these rules on their investments in the Fund. 

Solicitors 

The solicitors to the Fund in Hong Kong are Deacons, 5th Floor, Alexandra House, 18 Chater Road, Hong Kong. 

Cash Rebates 

Neither the Investment Manager nor any of its connected persons have retained or are entitled to retain any cash rebates from 
any broker or dealer in consideration of directing transactions on behalf of the Portfolio to that broker or dealer. Any such cash 
rebates received shall be held for the account of the relevant Portfolio. 

Advertising and Promotional Expenses 

For so long as the Fund is authorized in Hong Kong under Section 104 of the SFO, advertising and promotional expenses will 
not be paid out of the Fund’s assets. 

Increase in Fees 

The SFC may require up to three months’ notice of any increase in the Management Fee of each Share class of the Portfolios 
from the current level as stated in the Prospectus and this Hong Kong Supplement to be provided to Hong Kong investors.  

Report and Accounts 

The financial year of the Fund and each of the Portfolios ends on 31 August each year. The Fund’s annual report incorporating 
audited financial statements will be published within four months after the end of the financial year. The Fund will publish a 
semi-annual unaudited financial report within two months of the end of the semi-annual period. Such reports will be available 
at www.alliancebernstein.com.hk. In addition, printed copies of the annual and semi-annual reports will be made available at 
the principal office of the Hong Kong Representative, free of charge. Hong Kong investors will be notified when the financial 
reports are available. The audited annual report and unaudited semi-annual reports of the Fund will be issued in English only. 

Liquidation and Amalgamation 

In the event of liquidation and/or amalgamation of any of the Portfolios, prior approval from the SFC would be sought and 
normally, one month’s prior notice would be given to Hong Kong investors. Upon liquidation of a Portfolio, liquidation proceeds 
will be paid to the Shareholders in the manner as specified under the paragraph headed “Duration of the Fund, Liquidation, 
Amalgamation” in the section “Additional Information” of the Prospectus. Liquidation proceeds which cannot be distributed to 
the persons entitled thereto at the close of liquidation will be deposited with the Caisse de Consignation in Luxembourg. Such 
deposit should in principle be made at the latest nine months following the liquidation process. Claims by Shareholders on the 
proceeds of liquidation to which they are entitled shall lapse only thirty years after these shall have been deposited at the 
Caisse de Consignation in Luxembourg. 

- 19 - 

 
 
 
 
Complaints/Enquiries Policy 

Investors are encouraged to direct all complaints and/or enquiries in the first instance to their financial advisors.  The Hong 
Kong  Representative  has  established  procedures  for  complaints  and  may  be  contacted  on  +852  2918  7878.   A  written 
response with respect to a complaint or enquiry will be provided to the financial advisor within 30 calendar days of the Hong 
Kong Representative being notified.  

Availability of Documents 

For  as  long  as  the  Fund  maintains  its  authorization  with  the  SFC  under  Section  104  of  the  SFO,  copies  of  the  following 
documents in relation to the Fund and the Portfolios may be inspected free of charge during usual business hours at the 
principal office of the Hong Kong Representative (whose address is given above) and copies obtained at a reasonable charge 
(except for annual and semi-annual reports and audited accounts of the Fund where copies can be obtained free of charge):- 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

the Articles of Association of the Management Company; 

the Investment Management Agreement; 

the Depositary Agreement; 

the Management Regulations of the Fund; 

the Administration Agreement; 

the Distribution Agreement; 

the Transfer Agency Agreement between the Management Company and the Transfer Agent relating to each of the 
Portfolios; 

the latest published annual and semi-annual reports and audited accounts of the Fund;  

the Agreement appointing the Hong Kong Representative to act as such;  

the investment restrictions under the UCITS regulations under which the Fund is currently being managed; 

the UCITS Risk Management Statement with respect to the use of financial derivative instruments; and 

the list of authorized dealers of the Fund. 

- 20 - 

 
 
 
 
PROSPECTUS 

AB FCP I 

31 MARCH 2023 

Multi-Asset/Asset Allocation 

Equity 

Fixed-Income 

>  Dynamic Diversified Portfolio 

>  Global Equity Blend Portfolio 

>  Short Duration Bond Portfolio  

>  Emerging Markets Growth Portfolio 

>  Global High Yield Portfolio 

> 

 Asia Ex-Japan Equity Portfolio 

>  American Income Portfolio 

>  Japan Strategic Value Portfolio 

>  European Income Portfolio 

>  China Low Volatility Equity Portfolio 

>  Emerging Markets Debt Portfolio 

>  Mortgage Income Portfolio 

The Fund is a mutual investment fund (fonds commun de placement) organized under the laws of the Grand Duchy of Luxembourg. 
AllianceBernstein and the AB logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein L.P. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
Important Information

If you are in any doubt about the contents of this offering 
document, you should seek independent professional 
financial advice.  Prospective investors should inform 
themselves as to the legal requirements, exchange control 
regulations and tax consequences within the countries of 
their residence and domicile for the acquisition, holding or 
disposal of shares and any foreign exchange restrictions that 
may be relevant to them.  Shares that are acquired by 
persons not entitled under the Management Regulations to 
hold them may be redeemed by the Management Company 
on behalf of the Fund at the current Net Asset Value. 
Subscriptions can be made on the basis of this document 
and the KIDs, which shall be updated by the latest available 
annual report of the Fund containing its audited accounts, 
and by the latest semi-annual report, if later than such annual 
report.  Copies of such reports may be requested from an 
authorized financial advisor or at the registered office of the 
Management Company. 

The Shares referred to in this document are offered solely on 
the basis of the information contained herein and in the 
reports and documents referred to herein.  In connection with 
the offer made hereby, no person is authorized to give any 
information or to make any representations other than those 
contained herein or in the documents referred to herein.  If 
given or made, such information or representations must not 
be relied upon as having been authorized by the Fund, the 
Management Company or the Distributor and any purchase 
made by any person on the basis of statements or 
representations which are not contained in or which are 
inconsistent with the information contained herein or in the 
documents referred to herein shall be solely at the risk of the 
purchaser. 

All references herein to (i) “Dollar” and to “$” are to the U.S. 
Dollar, (ii) “Euro” and “€” are to the Euro, (iii) “GBP” and “£” 
are to the Great Britain Pound Sterling, (iv) “SGD” or “S$” are 
to the Singapore Dollar, (v) “HKD” and “HK$” are to the Hong 
Kong Dollar, (vi) “AUD” and “A$” are to the Australian Dollar, 
(vii) “Yen” or “¥” are to the Japan Yen, (viii) “CAD” and “C$” 
are to the Canadian Dollar, (ix) “NZD” or “NZ$” are to the 
New Zealand Dollar, (x) “CHF” is to Swiss Franc, (xi) “ZAR” is 
to South African Rand, (xii) “RMB” refers to offshore RMB 
(“CNH”) and not onshore RMB known as CNY, (xiii) “CZK” 
are to the Czech Koruna, (xiv) “PLN” are to the Polish Zloty 
and (xv) “BRL” are to Brazilian Real.  

None of the Shares has been or will be registered under 
the U.S. Securities Act of 1933, as amended, and the 
Shares may not be offered, sold, transferred or delivered, 
directly or indirectly, in the United States (as defined in 
the glossary of defined terms) or to any U.S. Person (as 
defined in the glossary of defined terms).  The Fund has 
not been registered under the U.S. Investment Company 
Act of 1940, as amended. 

AllianceBernstein Investments, a unit of the Management 
Company and/or AllianceBernstein Investments, a unit of 
AllianceBernstein Investments, Inc., will act as Distributor of 
the Shares in connection with the offering of the Shares 
referred to herein.  Application forms for Shares are subject 
to acceptance by the Distributor and the Management 
Company on behalf of the Fund. 

ii 

Any information contained herein or in any other sales 
document relating to the Fund or on the AB funds website, 
www.alliancebernstein.com, does not constitute an offer or 
solicitation by anyone in any jurisdiction in which such offer or 
solicitation is not lawful or in which the person making such 
offer or solicitation is not qualified to do so or to anyone to 
whom it is unlawful to make such offer or solicitation.  In 
particular, the information in the AB funds website is not for 
distribution in the United States or to U.S. Persons other than 
in accordance with the laws of the United States.  If a 
prospective investor has accessed the AB funds website from 
another website, the Fund, the Management Company and 
the Distributor are not responsible for the accuracy of 
information contained within the websites of other providers 
which have links to any page of the AB funds website. 

Copies of the Fund's Prospectus, Management Regulations, 
latest annual report and, if issued thereafter, the latest semi-
annual report, as well as copies of the KIDs of the Fund, may 
be obtained at the office of the Management Company and 
the Distributor without cost. 

Data Protection.  
Personal Data processing 
Shareholders are informed that certain data relating to them 
as natural persons or to other identified or identifiable natural 
persons - such as but not limited to their representatives and 
ultimate beneficial owners - (all together referred herein as 
the “Data Subjects”) and their holdings in Shares (the 
“Personal Data”) will be collected, stored and/or processed 
by the Fund and/or the Management Company acting on 
behalf of the Fund (acting as joint data controllers) and/or by 
the Transfer Agent, the Depositary, the Paying Agent (if any) 
and/or certain of the Management Company’s and/or the 
Transfer Agent's affiliates within the AB Group as well as 
their authorized agents (acting as data processors) (the 
“Relevant Parties”). The personal data will be processed (i) 
as a result of the contractual relationship between the 
Shareholder and the Fund and to provide related services to 
the Shareholders and/or (ii) to comply with applicable laws 
and regulations (including in situations where the 
Shareholder has no direct contractual relationship with the 
Fund). 

Personal Data will only be used for the purpose for which it 
was collected, unless the Shareholders are informed in 
advance of its use for a different purpose. 

Personal Data transfer 
Personal Data may be transferred, subject to applicable laws 
and regulations, to the Relevant Parties, acting as data 
processors or as data controllers, which may be located in or 
outside the European Economic Area (“EEA”). Personal Data 
may therefore be transferred to entities located in countries 
which are not covered by an adequacy decision of the 
European Commission (such as, but not limited to, 
Singapore, Taiwan, India, Canada and United States of 
America) or where data protection laws might not exist or be 
of a lower standard than in the EEA. Such Personal Data 
transfers outside the European Union may be carried out (i) 
based on binding corporate rules concluded within the AB 
Group and/or (ii) based on standard data protection clauses 
adopted by the European Commission and/or (iii) where such 

 
 
 
 
transfer is necessary for the performance of the services 
provided to the Fund and/or the Shareholder, and/or (iv) 
where such transfer is necessary for the performance of the 
services based on a contract concluded between the Fund 
and/or the Management Company with a third party to which 
Shareholders are indirectly part and which is concluded in the 
Shareholders’ interest. 

Mandatory disclosure of Personal Data 
In addition, the Data Subjects are informed that the Relevant 
Parties may disclose and transfer Personal Data to third 
parties such as courts and/or legal, governmental or 
regulatory bodies including tax authorities, auditors and 
accountants in Luxembourg as well as in other jurisdictions 
for the purpose of complying with applicable laws and 
regulations, as long as an international agreement, such as a 
mutual legal assistance treaty, is in force between the 
requesting third country and the EEA or Luxembourg. 

Personal Data retention 
Personal Data will be retained only as long as necessary for 
fulfilling the services required by Shareholders or in 
accordance with applicable laws and regulations. 

Shareholders’ representation 
By submitting Personal Data to the Relevant Parties, the 
Shareholders represent that they have authority to provide 
that Personal Data to the Relevant Parties. The Management 
Company and the Fund may assume, where applicable, that 
the Data Subjects have, where necessary, given such 
consent and have been informed of the processing of their 
Personal Data and of their rights as described herein. 

Shareholders’ rights 
The Shareholders (and where applicable, their Data 
Subjects) are entitled to request (i) the access to, (ii) the 
correction or completion, (iii) the erasure, (iv) a limitation of 
the processing of, (v) the portability of any Personal Data 
processed by the Fund and/or the Management Company, in 
the manner and subject to the limitations prescribed in 
applicable laws and regulations. Such request must be 
directed to the Data Protection Officer of the Management 
Company via post mail or e-mail. 

Additional information 
Additional information related to the processing or transfer of 
Personal Data and contact details of the Data Protection 
Officer of the Management Company are available at 
https://www.alliancebernstein.com/funds/abii/documents/ann
oucement/ab-lux-data-protection-disclosure-to-investors.pdf 

iii 

 
 
 
 
 
Contents 

Section I:  Portfolio Details 
Specific information on each portfolio of the Fund and its classes of shares, including investment objective and policies, summary 
information, and other portfolio information 

Multi-Asset/Asset Allocation 
Dynamic Diversified Portfolio .............................................................I-1 
Equity 
Global Equity Blend Portfolio .............................................................I-11 
Emerging Markets Growth Portfolio ...................................................I-25 
Asia Ex-Japan Equity Portfolio ...........................................................I-39 
Japan Strategic Value Portfolio ..........................................................I-48 
China Low Volatility Equity Portfolio ..................................................I-56 
Fixed-Income 
Short Duration Bond Portfolio  ...........................................................I-63 
Global High Yield Portfolio .................................................................I-74 
American Income Portfolio .................................................................I-89 
European Income Portfolio ................................................................I-103 
Emerging Markets Debt Portfolio .......................................................I-112 
Mortgage Income Portfolio .................................................................I-124 

Section II:  Core Information 
General information on the Fund and the portfolios 

The Fund ...........................................................................................II-1 
How to Purchase Shares ...................................................................II-2 
How to Redeem Shares .....................................................................II-8 
How to Exchange or Convert Shares .................................................II-9 
Determination of Net Asset Value ......................................................II-11 
Investment Types ..............................................................................II-14 
Risk Factors .......................................................................................II-27 
Meetings and Reports to Shareholders..............................................II-44 
Management and Administration .......................................................II-45 
Additional Information ........................................................................II-50 
Local Information ...............................................................................II-62 
Appendix A:  Investment Restrictions ................................................II-65 
Appendix B:  Excessive and Short-Term Trading 
Policy and Procedures .......................................................................II-71 
Appendix C:  Additional Information relating to Financial Derivative 
 Instruments, Financial Techniques and Instruments and 
 Collateral Management .....................................................................II-72 
Appendix D:  Additional Information for UK Investors ........................II-77 
Appendix E: SFDR Pre-Contractual Disclosures……………………….II-79 

Directory 

iv 

 
 
 
 
 
 
 
 
 
 
 
 
Important Considerations 

The Fund is structured as an "umbrella fund" comprising 
separate pools of assets (each a "Portfolio").  Investors should 
reference Section I to determine the particular portfolios to 
which this Prospectus relates and read these "Important 
Considerations" with particular attention to those important 
considerations which pertain to the underlying investments of 
each such Portfolio.  In addition, investors should read carefully 
the "Risk Profile" set out in Section I relating to each Portfolio, 
as well as the "Risk Factors" in Section II. 

The value of Shares of the portfolios to which this Prospectus 
relates will change with the value of such portfolios' underlying 
investments.  Hence, the value of Shares and any income 
arising from them will fluctuate and is not guaranteed.  
Consequently, investors may not get back the full amount of 
their investment upon redemption. 

For any portfolio that invests in stocks, the value of underlying 
investments may fluctuate, sometimes dramatically, in 
response to the activities and results of individual companies or 
because of general market or economic conditions.  For any 
portfolio that invests in fixed-income securities, the value of the 
underlying investments will depend generally upon interest 
rates and the credit quality of the issuer as well as general 
market or economic conditions. 

For any portfolio that invests in fixed-income securities, the 
value of the shares of such portfolio and any income arising 
from such shares will change in response to fluctuations in 
interest rates and currency exchange rates.  A portfolio may 
invest in high yielding securities where the risk of depreciation 
and realization of capital losses on some of the securities held 
will be unavoidable.  In addition, medium- and lower-rated 
securities and unrated securities of comparable quality may be 
subject to wider fluctuations in yield and market values than 
higher-rated securities. 

countries will have less exposure to the risks of any one 
country, but will be exposed to risks in a larger number of 
countries. 

Many of the underlying investments of a particular portfolio 
may be denominated in different currencies than that of the 
particular portfolio.  This means currency movements in 
underlying investments may significantly affect the value of 
any such portfolio's share prices. 

In addition, a particular portfolio may invest, in whole or in 
part, in emerging markets securities to the extent permitted 
by such portfolio's stated investment objective and policies.  
Investors should appreciate that these securities may be 
more volatile than securities issued by issuers located in 
more developed markets.  As a result, there may be a 
greater risk of price fluctuation and of the suspension of 
redemptions in such portfolios, compared with a portfolio 
investing in more mature markets.  This volatility may stem 
from political and economic factors, and may be 
exacerbated by legal, trading liquidity, settlement, transfer 
of securities and currency factors.  Some emerging market 
countries have relatively prosperous economies but may be 
sensitive to world commodity prices.  Others are especially 
vulnerable to economic conditions in other countries.  
Although care is taken to understand and manage these 
risks, the respective portfolios and their Shareholders 
ultimately bear the risks associated with investing in these 
markets. 

A particular portfolio may use various techniques for 
hedging against market risks.  These techniques and the 
instruments used are described in Appendix A to Section II.  
In addition, a particular portfolio may make ancillary use of 
these techniques and instruments for the purpose of 
efficient portfolio management. 

Any portfolio which invests in essentially only one country will 
have greater exposure to market, political and economic risks 
of that country.  Any portfolio which invests in multiple 

Investors are encouraged to consult their independent 
financial advisors regarding the suitability of shares of a 
particular portfolio for their investment needs. 

v 

 
 
 
Glossary of Defined Terms
AB funds means the collective investment undertakings 
distributed under the service mark "AB" and sponsored by 
AllianceBernstein L.P. and/or its affiliates 

AB funds account means a notional account established by the 
Management Company or the Transfer Agent for each 
Shareholder and reflecting all his or her shareholdings in AB funds 

AB Group means AllianceBernstein L.P. and its subsidiaries and 
affiliates 

Administration Agreement means the agreement between the 
Management Company and the Administrator 

Administrator means Brown Brothers Harriman (Luxembourg) 
S.C.A. 

ADRs means American Depositary Receipts 

Business Day means any day when both the New York Stock 
Exchange and Luxembourg banks are open for business, unless 
otherwise provided for in the Summary Information of a specific 
portfolio 

Cash equivalent means a security that can be easily converted 
into cash (treasury bill or other short-term government bond, bank 
deposit, money-market instrument or fund) 

CDSC Shares means Shares possessing a contingent deferred 
sales charge  

Currency of the Portfolio means the base currency of a portfolio 
in which its accounting records are kept as indicated under 
"Summary Information" in Section I with respect to that portfolio 

dealer means, as the context requires, broker-dealers, banks, 
registered investment advisers, independent financial advisers and 
other financial intermediaries with whom the Distributor has 
agreements 

Depositary means Brown Brothers Harriman (Luxembourg) 
S.C.A. 
Depositary Agreement means the agreement between the 
Management Company and the Depositary 
Distribution Agreements means the relevant agreements 
between the Management Company and the Distributor relating to 
each of the portfolios 

Distributor means AllianceBernstein Investments, a unit of the 
Management Company 

EDRs means European Depositary Receipts 

EEA means member states of the EU and Iceland, Norway and 
Liechtenstein 

Eligible State means any Member State, any member state of the 
Organisation for Economic Co-operation and Development 
("OECD"), and any other state which the Board of Managers of the 
Management Company deems appropriate with regard to the 
investment objectives of each Portfolio 

EU means the European Union 

Fund means AB FCP I, a mutual investment fund (fonds commun 
de placement) organized under the laws of the Grand Duchy of 
Luxembourg 

GDRs means Global Depositary Receipts 

Interested Party means the Investment Manager or its affiliates 
(which includes the Management Company) 

Investment Grade means fixed-income securities rated Baa 
(including Baa1, Baa2 and Baa3) or higher by Moody's or BBB 
(including BBB+ and BBB-) or higher by S&P, or the equivalent 
thereof by at least one IRSO 

vi 

Investment Management Agreement means the agreement 
between the Management Company and the Investment 
Manager  

Investment Manager means AllianceBernstein L.P., a 
Delaware limited partnership 

IRC means the U.S. Internal Revenue Code of 1986, as 
amended 

IRS means the United States Internal Revenue Service 

IRSO means an internationally recognized statistical ratings 
organization 

KID means the key information documents relating to a 
specific portfolio’s share class 
Law of 2010 means the law of 17 December 2010 on 
undertakings for collective investment, as amended 

Management Company means AllianceBernstein 
(Luxembourg) S.à r.l., a société à responsabilité limitée 
organized under the laws of the Grand Duchy of Luxembourg 

Management Regulations means the latest version of the 
Management Regulations of the Fund 

Mémorial means the Mémorial C, Recueil des Sociétés et 
Associations 

Moody's means Moody's Investors Services, Inc. 

Net Asset Value means the value of the total assets of a 
portfolio less the total liabilities of such portfolio as described 
under "Determination of the Net Asset Value of Shares" in 
Section II 

OECD means the Organization for Economic Cooperation and 
Development 

Offered Currency means, for a portfolio, each currency in 
which the Shares are offered, as indicated under "Summary 
Information" in Section I with respect to that portfolio 

Order Cut-off Time means point in time by which orders for 
purchase, exchange, or redemption must be received on each 
Business Day, which is 4:00 p.m. U.S. Eastern time or 
otherwise as indicated under "Summary Information" in Section 
I with respect to a portfolio 

OTC means over the counter 

Portfolio means the portfolio(s) of the Fund identified in 
Section I hereof (or in a subsection of Section I as the context 
requires) 

portfolio means one or more portfolios of the Fund as the 
context requires 

Prospectus means this version of the Prospectus of the Fund 

QFI means qualified foreign investor(s) (including, if applicable, 
qualified foreign institutional investors (QFII) and Renminbi 
qualified foreign institutional investors (RQFII)) approved 
pursuant to the relevant People's Republic of China (“PRC”)  
laws and regulations, as may be promulgated and/or amended 
from time to time  
Regulated Market means a regulated market according to the 
European Parliament and the Council Directive 2014/65/EU of 
15 May 2014 on market in financial instruments, as amended 
by the European Parliament and the Council Directive 
2016/1034, as well as any other market in an Eligible State 
which is regulated, operates regularly and is recognized and 
open to the public 
RESA means the Recueil Electronique des Sociétés et 
Associations 
S&P means S&P Global Ratings, a division of S&P Global, Inc. 

 
U.S. Person means (i) with respect to any person, any 
individual or entity that would be a U.S. Person under 
Regulation S promulgated under the U.S. Securities Act of 
1933, as amended; (2) with respect to individuals, any U.S. 
citizen or "resident alien" within the meaning of U.S. income 
tax laws as in effect from time to time; or (iii) with respect to 
persons other than individuals, (A) a corporation or partnership 
created or organized in the United States or under the laws of 
the United States or any U.S. state; (B) a trust where (I) a U.S. 
court is able to exercise primary supervision over the 
administration of the trust and (II) one or more U.S. persons 
have the authority to control all substantial decisions of the 
trust; and (C) an estate which is subject to U.S. tax on its 
worldwide income from all sources 

Valuation Point means the point in time at which the Net Asset 
Value  per  Share  is  calculated  with  respect  to  a  Trade  Date, 
being 4:00 p.m. U.S. Eastern time on each Business Day  

SFT Regulation means Regulation (EU) 2015/2365 of the 
European Parliament and of the Council of 25 November 2015 on 
transparency of securities financing transactions and of reuse and 
amending Regulation (EU) No 648/2012 

Shareholders means the owners of Shares, as reflected in the 
shareholder register of the Fund, in respect of one or more 
portfolios, as the context requires 

Shares means shares of the Fund of whatever class and whatever 
portfolio 

total assets means total net assets of the Portfolio as the context 
requires 

Trade Date means the Business Day as of which any transaction 
in Shares (purchase, redemption or exchange) for a portfolio is 
recorded in the Shareholder register of the Fund, in respect of one 
or more portfolios, as the context requires, as having been 
accepted 

Transfer Agent means the Management Company or 
AllianceBernstein Investor Services, a unit of the Management 
Company, the Fund's registrar and transfer agent 

UCI means an Undertaking for Collective Investment  

UCITS means an open-end mutual investment fund or investment 
company qualifying as an undertaking for collective investment in 
transferable securities 

UCITS  Directive  means  Directive  2009/65/EC  of  the  European 
Parliament and of the Council of 13 July 2009 on the coordination 
of  laws,  regulations  and  administrative  provisions  relating  to 
undertakings  for  collective  investment  in  transferable  securities 
(UCITS), as amended 

United Kingdom means the United Kingdom of Great Britain and 
Northern Ireland 
United States means the United States of America or any of its 
territories or possessions or any area subject to its jurisdiction, 
including the Commonwealth of Puerto Rico 

vii 

 
 
Multi-Asset/Asset Allocation 

AB FCP I— Dynamic Diversified Portfolio  

Investment Objective and Policies 

Investment Objective 
The Portfolio seeks to maximize total return. 

Investment Policies 
Overview.  The Portfolio is designed as a solution for investors 
who seek long-term growth of capital with moderate volatility by 
investing in a multi-asset fund which dynamically adjusts 
investment exposures. 

The Portfolio invests in a globally diversified portfolio of 
securities and other financial instruments, including financial 
derivative instruments (“Derivatives”), that provide investment 
exposures to a variety of asset classes.  These asset classes 
may include equity securities and fixed income instruments, 
including high-yield securities, real estate-related securities, 
currencies, commodity-related securities and alternatives with 
no prescribed limits.  In normal market conditions the 
Investment Manager anticipates that a majority of the 
Portfolio’s exposure will be to equities.  The Portfolio may 
invest in smaller capitalization as well as larger capitalization 
companies.  The Portfolio is not subject to any limitation on the 
portion of its net assets that may be invested in any one 
country or region, including in any developed or emerging 
market country.    

The Investment Manager will utilize its proprietary “Dynamic 
Asset Allocation” strategy to adjust the Portfolio’s various 
investment exposures among these asset classes with the goal 
of producing what the Investment Manager considers to be the 
Portfolio’s optimal risk/return profile at any particular point in 
time.      

The Portfolio may obtain active or passive investment 
exposures to individual asset classes, and subsequently adjust 
these exposures, through investment in individual securities or 
through the use of Derivatives or otherwise. 

Equities.  The Portfolio may obtain equity exposure by 
investing in common stocks, but also may invest in preferred 
stocks, warrants and convertible securities for global issuers 
including sponsored and unsponsored American Depository 
Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”), 
as well as Derivatives. 

Fixed-Income.   The Portfolio may obtain fixed-income 
exposure by investing in fixed-income instruments and 
Derivatives.  The Portfolio may also invest in cash, cash 
equivalents, or short-term fixed-income obligations, including 
money market instruments. 

Many types of fixed income instruments may be purchased by 
the Portfolio, including, without limitation, debt obligations 
issued by sovereign or other governmental or municipal 
entities, including, but not limited to, governmental agencies 
and instrumentalities (collectively, "governmental entities"), as 
well as debt obligations issued or guaranteed by various 
organizations or entities established generally to promote 
global, regional or country-specific economic reconstruction or 
development (collectively, "supranational entities"), corporate 
bonds, various types of asset-backed securities, various types 
of mortgage-related securities, preferred stock and inflation-
protected securities, as well as fixed-income instruments 

I-1   

issued by other entities in the Investment Manager’s 
discretion. The Portfolio’s investments in mortgage- and 
asset-backed securities will not exceed 20% of its net 
assets, provided that such limit will not apply to investments 
in such securities issued or guaranteed by the United 
States government or any other Eligible State or United 
States or other Eligible State government sponsored 
entities 

The Portfolio may purchase fixed-income instruments rated 
Investment Grade or below Investment Grade, as well as 
those instruments which possess no rating.      

Real Estate.   The Portfolio may obtain indirect exposure to 
global real estate and/or the global real estate industry 
through certain permitted investments such as equity 
securities of global real estate investments trusts ("REITs") 
or via equity securities of global mortgage REITs or other 
global real estate industry-related companies, such as real 
estate operating companies ("REOCs"), as well as 
Derivatives.  

Commodities.  The Portfolio may obtain indirect exposure 
to commodities through permitted investments such as 
certain Derivatives on commodity indices and exchange-
traded funds qualified as UCITS or eligible UCI within the 
meaning of the Law of 2010.  The Portfolio may also seek 
commodity-related exposures through investment in 
equities of commodity producers or other commodity-
related issuers.  

Currencies.  The Portfolio may invest without limitation in 
securities denominated in developed and emerging market 
currencies.   

Based upon its currency research and outlook, the 
Investment Manager may adjust the Portfolio's various 
currency exposures at any point in time.  The Investment 
Manager utilizes its in-house risk and return models 
developed specifically for this purpose, taking into account 
the Portfolio’s various currency exposures.  In addition, the 
Portfolio may invest in currencies for which the Portfolio 
may or may not possess underlying currency exposures.  

The Portfolio offers one or more “Currency Hedged Share 
Classes” listed in the Summary Information table in this 
Section I (below).  These share classes are designed for 
non-base currency investors who seek to reduce the effect 
of currency fluctuations between the Portfolio’s base 
currency and their investing currency. 

For additional information on Currency Hedged Share 
Classes, see “Currency Hedged Share Classes” in this 
Section I (below) and “How to Purchase Shares – Currency 
Hedged Share Classes” in Section II.  

Alternatives.  The Portfolio may invest in equities and fixed 
income instruments which provide exposures to various 
types of alternative investments, in the Investment 
Manager’s discretion, including but not limited to hedge 
funds, and private equity provided that such securities and 
instruments qualify as “transferable securities” under UCITS 

 
 
 
regulations and then only within the limits prescribed for 
UCITS.  These alternative investments may include pooled 
vehicles or other products sponsored and/or managed by the 
Investment Manager or its affiliates or unaffiliated third parties.    

Dynamic Asset Allocation Strategy   

The Investment Manager will utilize its proprietary “Dynamic 
Asset Allocation” strategy to adjust the Portfolio’s various 
investment exposures with the goal of producing what the 
Investment Manager considers to be the Portfolio’s optimal 
risk/return profile at any particular point in time.   

Dynamic Asset Allocation comprises a series of volatility, 
correlation and expected return forecasting tools that allows 
the Investment Manager to gauge short-term fluctuations in 
risk/return trade-offs across various asset classes.  Dynamic 
Asset Allocation aims to reduce overall portfolio volatility thus 
mitigating the effects of these short-term fluctuations, including 
“tail” events in extreme market environments, without 
sacrificing consistent long-term return potential. 

For example, the Investment Manager may seek to reduce the 
Portfolio’s risk exposure to one or more asset classes when the 
Dynamic Asset Allocation tool suggests that market risks 
relevant to these asset classes are rising but return 
opportunities are declining.  Conversely, the Investment 
Manager may tend to seek a more aggressive posture when 
the Dynamic Asset Allocation tool suggests that return 
opportunities for one or more of these asset classes are rising 
and market risks are declining.   

The Portfolio may obtain investment exposures to individual 
asset classes, and subsequently adjust these exposures, 
through investment in individual securities or through the use of 
Derivatives.  Dynamic adjustments to the Portfolio’s various 
investment exposures among asset classes are expected to be 
implemented principally through Derivatives.  In choosing the 
method and instruments for implementation of its Dynamic 
Asset Allocation strategy, the Investment Manager will evaluate 
trading costs, liquidity, and the expected period of adjustment 
for each asset allocation. 

Financial Derivative Instruments/Efficient Portfolio 
Management Techniques 

The Investment Manager may use Derivatives for efficient 
portfolio management, hedging or investment purposes.    

The Investment Manager may use, without limitation, 
exchange-traded Derivatives (e.g., options, stock index futures 
or bond futures) and over-the-counter Derivatives (e.g., 
currency forwards, options, total return swaps, interest rate 
swaps and credit default swaps).  The Portfolio also may seek 
exposures to a particular issuer or asset class through various 
other types of Derivatives and/or structured products.   

In accordance with the transparency requirements of the SFT 
Regulation the chart below reflects, where applicable, the 
expected and maximum level of the Portfolio’s net assets that 
will be subject to securities financing transactions (i.e. 
securities lending transactions as well as repurchase 
agreements and reverse repurchase agreements) (“SFTs”) and 
total return swaps and/or other financial derivative instruments 
with similar characteristics (“TRS”); being specified that in 
certain circumstances this proportion may be higher.   

I-2 

AB FCP I—Dynamic Diversified Portfolio 

Expected Range  Maximum 

0%-25% 

0%-5% 

100% 

10% 

N/A 

N/A 

Type of 
Transactions 

TRS 

Repurchase 
agreements and 
reverse repurchase 
agreements 

Securities lending 
transactions 

For further details concerning SFTs and TRS, please refer 
to “Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and 
Instruments and Collateral Management.” 

Leverage. The Investment Manager does not expect to 
utilize bank borrowing in implementing the Portfolio’s 
investment strategy.  The expected level of leverage of the 
Portfolio is estimated to be in the 0% to 300% range of its 
Net Asset Value. The expected level of leverage is 
calculated as the sum of the notionals of the financial 
derivative instruments held by the Portfolio. Pursuant to the 
CSSF Circular 11/512 dated 30 May 2011, this calculation 
methodology neither takes into account the fact that a 
particular financial derivative instrument increases or 
decreases the Portfolio’s investment risks nor permits to net 
financial derivative instruments with reverse positions. With 
this methodology, the use of derivatives for hedging 
purposes will automatically increase the level of leverage. 
Consequently, shareholders should be aware that a higher 
level of expected leverage does not automatically imply a 
higher level of investment risk. In addition, the actual 
leverage of the Portfolio may deviate from the above 
mentioned expected level of leverage. 

Risk measurement. The Investment Manager will utilize a 
Value-at-Risk (“VaR”) methodology to monitor the global 
exposure (market risk) for the Portfolio. The global 
exposure of the Portfolio is measured by the absolute VaR 
methodology pursuant to which the VaR of the Portfolio 
may not exceed 20% of its Net Asset Value.  

Benchmark. The Portfolio’s benchmark is the Secured 
Overnight Financing Rate (SOFR). The Portfolio uses the 
benchmark for performance comparison. The Portfolio is 
actively managed and the Investment Manager is not 
constrained by its benchmark when implementing the 
Portfolio’s investment strategy. Although the Portfolio may 
hold, in certain market conditions and subject to the 
Investment Manager’s full discretion, a significant part of 
the components of the benchmark, it will not hold every 
component of the benchmark and may also hold securities 
that are not part of it. 

Other Investment Policies 
The Portfolio is not subject to any limitation on the portion of 
its total assets that may be invested in any one country or 
region, including in any emerging market country or region.  
The Portfolio's investments in securities of issuers 
domiciled in emerging market countries are not expected to 
exceed 30% of the Portfolio's net assets.  The Investment 
Manager, in its discretion, will determine which countries 

 
 
 
 
AB FCP I—Dynamic Diversified Portfolio 

fees charged at the level of each pooled vehicle.  The 
Portfolio will not charge an Investment Management fee in 
respect of that portion of its assets the Investment Manager 
has allocated to another pooled vehicle or other product 
sponsored and/or managed by the Investment Manager or 
an affiliate.  Where the Portfolio invests in a pooled vehicle 
or another product sponsored and/or managed by the 
Investment Manager or its affiliates, the manager of the 
underlying pooled vehicle or product will not charge a front-
end sales charge or other subscription or redemption fee 
paid to the Investment Manager or its affiliates in respect of 
such investment.  Transaction fees or charges designed to 
protect investors of a pooled vehicle and paid to such 
pooled vehicle (and not to the Investment Manager or its 
affiliates) for the benefit of shareholders are permissible 
however.   

Currency Hedged Share Classes   

One or more of the Portfolio’s share classes offered in a 
particular currency (each, an “Offered Currency”) may be 
hedged to such Offered Currency.  Any such share class 
will constitute a “Currency Hedged Share Class.”   Currency 
Hedged Share Classes aim to provide investors a return 
more closely correlated to the Portfolio’s base currency 
return by reducing the effect of exchange rate fluctuations 
between the Portfolio’s base currency (i.e., Dollar) and the 
relevant Offered Currency, taking into account practical 
considerations such as transaction costs.  The hedging 
strategy employed is designed to reduce, but may not 
eliminate, currency exposure between the Portfolio’s base 
currency and the Offered Currency. 

Currency Hedged Share Classes do not affect the 
investment management of the Portfolio’s underlying assets 
since it is only the net asset value (NAV) of the Currency 
Hedged Share Classes, not the Portfolio’s underlying 
assets, which is hedged to the Offered Currency.  
Expenses incurred as a result of such hedging activity will 
be borne by the Currency Hedged Share Class in relation to 
which such expenses are incurred. 

For additional information on share class hedging, see 
“How to Purchase Shares—Currency Hedged Share 
Classes” in Section II. 

Responsible investing. The Portfolio integrates ESG 
considerations. The Portfolio applies certain exclusions and 
details can be found at 
www.alliancebernstein.com/go/ABFCPIExclusionChart.  

The Portfolio is of the category that promotes environmental 
and social characteristics (SFDR Article 8; see “Appendix 
E: SFDR Pre-Contractual Disclosures” for more 
information).  

constitute "emerging market countries."  In general, emerging 
market countries will be countries considered by the global 
financial community to be developing countries, including 
countries from time to time included in the MSCI Emerging 
Markets IndexSM, a free float-adjusted market capitalization 
index designed to measure equity market performance in the 
global emerging markets.  The Investment Manager's 
determination of which countries constitute emerging market 
countries may change from time to time.   

As a temporary defensive measure or to provide for 
redemptions, the Portfolio may, without limit, hold cash, cash 
equivalents, or short-term fixed-income obligations, including 
money market instruments. 

The Portfolio may invest up to 10% of its net assets in 
securities for which there is no ready market.  See paragraph 
(5) of "Investment Restrictions" in Appendix A to Section II.  
The Portfolio may therefore not be readily able to sell such 
securities.  Moreover, there may be contractual restrictions on 
the resale of such securities. 

Use of Pooled Vehicles   

In order to more efficiently manage its assets and to gain 
exposure to certain asset classes, including alternatives, the 
Portfolio may invest in pooled vehicles or other products 
sponsored and/or managed by the Investment Manager or its 
affiliates or unaffiliated third parties.   

These pooled vehicles or other products must comply with the 
requirements of the CSSF in relation to UCITS-eligible 
collective investment schemes. The ability of the Portfolio to 
invest in open ended UCITS or other UCIs is not subject to the 
10% limitation contained in paragraph (8) of "Investment 
Restrictions" in Appendix A to Section II. Therefore, the 
Portfolio may invest in open ended UCITS or other UCIs in 
accordance with the UCITS Regulations. 

The Investment Manager expects that the majority of the 
Portfolio’s investments in pooled vehicles or other products will 
be in those pooled vehicles sponsored and/or managed by the 
Investment Manager or its affiliates.  However, the Investment 
Manager may invest in pooled vehicles sponsored and/or 
managed by unaffiliated third parties if, in the Investment 
Manager’s discretion, such investments may provide more 
efficient exposure to certain asset classes. 

The Portfolio may only invest in an open ended UCITS or non-
UCITS scheme which it itself can invest no more than 10% of 
net asset value in other UCITS or other collective investment 
undertakings.  

The Portfolio may invest up to 10% of its net assets in 
aggregate in unlisted securities and unregulated investment 
funds, including hedge funds, in accordance with the UCITS 
Regulations. 

The Portfolio’s investments in other pooled vehicles sponsored 
and/or managed by the Investment Manager, its affiliates or 
unaffiliated third parties may be subject to the investment 
management fees and to the extent applicable, performance 

I-3 

 
 
  
 
 
Summary Information 
Portfolio Features 
Currency of the Portfolio 

USD 

Net Asset Value 
Calculation 

Net Asset Value 
Publication 

Class Names 

Each Business Day 

Available at 
www.alliancebernstein.com 

H means Currency Hedged Share 
Classes.  For additional information 
on share class hedging, see “How 
to Purchase Shares—Currency 
Hedged Share Classes” and “Risk 
Factors -- Currency Hedged Share 
Class Risk” in Section II. 

AB FCP I—Dynamic Diversified Portfolio 

Order Cut-Off 
Times 

Distributions* 

For USD-Denominated Share 
Classes, EUR-Denominated 
Share Classes and SGD-
Denominated Share Classes 
4:00 P.M. U.S. Eastern Time on 
each Business Day 

For Currency Hedged Share 
Classes 
6:00 P.M. Central European 
Time on each Business Day 

For class AR shares 
To be declared and payable 
annually with a distribution rate 
to be derived from gross 
income (before deduction of 
fees and expenses) 

For class A, C, I, S, S1, SP, 
S1P, AX, BX, CX, IX shares 
None.   

See "Distributions" below. 

* Includes Hedged Share 
Classes 

Share Class Fees and 
Charges1 

USD-Denominated Share Classes 

Initial Sales Charge3 

Management 
Fee4 

Distribution 
Fee5 

Contingent Deferred Sales 
Charge6 

Class A Shares 

Class C Shares 

Class I Shares8 
Class S Shares7 
Class S1 Shares 
Class SP Shares7†† 
Class S1P Shares†† 

Up to 5.00% 

None 

Up to 1.50% 
None 
None 
None 
None 

1.70% 

1.90% 

0.90% 
None 
0.70% 
None 
0.70% 

None 

None 

None 
None 
None 
None 
None 

None 

0—1 year held=1.0% 
thereafter 0% 
None 
None 
None 
None 
None 

Class AX Shares† 

Up to 5.00% 

1.40% 

None 

None 

Class BX Shares2† 

No longer offered 

1.40% 

1.00% 

Class CX Shares† 

None 

1.70% 

None 

0–1 year held=4.0% 
1–2 yrs=3.0% 
2–3 yrs=2.0% 
3–4 yrs=1.0% 
4+ yrs=0% 

0—1 year held=1.0% 
thereafter 0% 

Class IX Shares†8 

Up to 1.50% 

0.70% 

None 

None 

EUR-Denominated Share Classes 

Class A Shares 

Up to 5.00% 

1.70% 

None 

None 

I-4 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class AX Shares† 

Up to 5.00% 

1.40% 

None 

None 

AB FCP I—Dynamic Diversified Portfolio 

Class C Shares 

Class I Shares8 

None 

Up to 1.50% 

1.90% 

0.90% 

None 

None 

0—1 year held=1.0% 
thereafter 0% 
None 

SGD-Denominated Share Classes 

Class AX Shares† 

Up to 5.00% 

1.40% 

None 

None 

EUR Hedged Share Classes 

Class A EUR H Shares 

Up to 5.00% 

1.70% 

None 

Class AR EUR H Shares 

Up to 5.00% 

1.70% 

None 

Class C EUR H Shares 

None 

Class I EUR H Shares8 
Class S EUR H Shares7 
Class S1 EUR H Shares 
Class SP EUR H 
Shares8†† 
Class S1P EUR H 
Shares†† 
GBP Hedged Share Classes 
Class S GBP H Shares7 
Class S1 GBP H Shares 
Class SP GBP H 
Shares7†† 
Class S1P GBP H 
Shares†† 

Up to 1.50% 
None 
None 

None 

None 

None 
None 

None 

None 

1.90% 

0.90% 
None 
0.70% 

None 

0.70% 

None 
0.70% 

None 

0.70% 

None 

None 
None 
None 

None 

None 

None 
None 

None 

None 

None 

None 

0—1 year held=1.0% 
thereafter 0% 
None 
None 
None 

None 

None 

None 
None 

None 

None 

1 

2 

The Management Company, Administrator, Depositary and Transfer 
Agent are entitled to receive, out of the assets of the Portfolio, fees as 
described under "Other Portfolio Information—Management 
Company, Administrator, Depositary and Transfer Agent Fees" below.  
The Portfolio also bears all of its other expenses.  See "How to 
Purchase Shares" and "Additional Information—Fees and Expenses" 
in Section II.  The Management Company has voluntarily undertaken, 
until the Management Company on behalf of the Fund notifies 
Shareholders to the contrary, that if, in any fiscal year, the aggregate 
fees and expenses with respect to the following share classes of the 
Portfolio (including any management fee and all other fees and 
expenses set out in "Additional Information—Fees and Expenses" in 
Section II, including Luxembourg Taxe d'Abonnement but exclusive of 
certain other taxes, brokerage (if applicable) and  interest on 
borrowings) exceed the following percentages of the Portfolio's 
average Net Asset Value for the fiscal year attributable to the 
Portfolio's share classes (and  corresponding H shares) as follows:  A 
(1.95%), AX (1.90%), AR (1.95%), BX (2.90%), C (2.25%), CX 
(2.20%), I (1.25%), IX (1.20%), S (0.10%), S1 (0.80%), SP (0.09%) 
and S1P (0.79%), the Fund may deduct from the payment to be made 
to the Management Company, or the Management Company will 
otherwise bear, such excess fees and expenses. 
After six years from the date of purchase, BX shares are eligible for 
conversion to class AX shares without charge from either the Fund or 
the Management Company.  For further details on the conversion of 
shares, please refer to "How to Exchange or Convert Shares—
Conversion of CDSC Shares" in Section II of the Prospectus. 

3 
4 

5 
6 

As a percentage of purchase price. 
As an annual percentage of average daily Net Asset Value. With 
respect to certain share classes, the management fee may also 
include a component that is paid to distributors or other financial 
intermediaries and service providers.  For further details on the 
management fee, please refer to "Additional Information—Fees 
and Expenses" in Section II.   
As an annual percentage of average daily Net Asset Value.   
As a percentage of the lesser of the current Net Asset Value or 
original cost of the Shares being redeemed and based upon the 
duration that such Shares are held.  CDSC Shares may only be 
purchased through a dealer authorized by the Distributor to offer 
such shares.  Those investors considering an investment in 
CDSC Shares should speak with their financial advisor for details. 
With respect to class C shares (and corresponding H shares), a 
dealer may elect to waive the contingent deferred sales charge in 
certain circumstances. 

7  Class S and SP shares (and corresponding H shares) are reserved 
for institutional investors that have entered into an agreement with 
the Management Company and are being charged an investment 
management fee separately. 
For further information on this share class, see “Additional Share 
Class Information” in Section II. 

8 

†  Class AX, BX, CX and IX shares have been retired and are no 

longer open to new purchases, except from existing shareholders 
of these share classes. 

I-5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—Dynamic Diversified Portfolio 

††  Class SP and S1P shares (and corresponding H shares) are reserved 

for pension plan investors. 

Other Share Class Features 

Offered Currencies 

Minimum Initial 
Investment* 

Minimum 
Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

USD-Denominated Share Classes 

Class A Shares 

Class C Shares 

Class I Shares 

Class S Shares 

Class S1 Shares 

Class SP Shares 

Class S1P Shares 

Class AX Shares 

Class BX Shares 

Class CX Shares 

Class IX Shares 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

EUR-Denominated Share Classes 
EUR 
Class A Shares 
EUR 

Class AX Shares 

Class C Shares 
Class I Shares 

EUR 
EUR 

$2,000 

$2,000 

$1 million** 

$100 million** 

$10 million** 

$100 million** 

$10 million** 

No longer offered 
to new investors 

$750 

$750 

None 

None 

None 

None 

None 

$750 

None 

None 

None 

None 

None 

None 

None 

None 

0.05% 

0.05% 

0.05% 

0.01% 

0.01% 

0.01% 

0.01% 

0.05% 

No longer offered 

No longer offered 

No longer offered 

0.05% 

No longer offered 
to new investors 

No longer offered 
to new investors 

€2,000 
No longer offered  
to new investors 
€2,000 
€1 million** 

$750 

None 

€750 

€750 

€750 
None 

None 

None 

None 

None 

None 
None 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 
0.05% 

SGD-Denominated Share Classes 

Class AX Shares 

SGD 

No longer offered 
to new investors 

Hedged 
Currencies 

Minimum Initial 
Investment* 

S$1,000 

Minimum 
Subsequent 
Investment* 

None 

0.05% 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

EUR Hedged Share Classes 
Class A EUR H Shares 
Class AR EUR H Shares 
Class C EUR H Shares 
Class I EUR H Shares 
Class S EUR H Shares 
Class S1 EUR H Shares 
Class SP EUR H Shares 
Class S1P EUR H Shares 

GBP Hedged Share Classes 
Class S GBP H Shares 
Class S1 GBP H Shares 
Class SP GBP H Shares 
Class S1P GBP H Shares 

Euro 
Euro 
Euro 
Euro 
Euro 
Euro 
Euro 
Euro 

GBP 
GBP 
GBP 
GBP 

€2,000 
€2,000 
€2,000 
€1 million** 
€100 million** 
€10 million** 
€100 million** 
€10 million** 

£50million** 
£5 million** 
£50 million** 
£5 million** 

I-6 

€750 
€750 
€750 
None 
None 
None 
None 
None 

None 
None 
None 
None 

None 
None 
None 
None 
None 
None 
None 
None 

None 
None 
None 
None 

0.05% 
0.05% 
0.05% 
0.05% 
0.01% 
0.01% 
0.01% 
0.01% 

0.01% 
0.01% 
0.01% 
0.01% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* 
Does not apply to automatic investment plans, where offered. 
**  May be waived by the Management Company in its sole discretion. 

***  Annual Luxembourg tax payable quarterly by each portfolio. 

AB FCP I—Dynamic Diversified Portfolio 

I-7 

 
 
Other Portfolio Information 

Principal Investment Types 

For a chart summarizing the principal types of investments 
used by the Portfolio and a description of securities and other 
instruments in which the Portfolio may invest, investors should 
refer to "Investment Types" in Section II.  The ability of the 
Portfolio to invest in any securities or instruments is subject to 
the restrictions in the Portfolio's stated investment objective 
and policies and the limitations contained in "Investment 
Restrictions" in Appendix A to Section II. 

Risk Profile 

The Portfolio may make use of financial derivative instruments. 
The investment restrictions (9) to (13) set forth in Appendix A 
to Section II will not apply. This Portfolio shall employ instead 
the Value-at-Risk (VaR) approach. For further details 
concerning the VaR approach, please refer to “Appendix C: 
Additional Information relating to Financial Derivative 
Instruments, Financial Techniques and Instruments and 
Collateral Management”. 

Investments of the Portfolio are subject to higher risks inherent 
in equity investments. In general, the value of equity 
investments may fluctuate, sometimes dramatically, in 
response to the activities and results of individual companies or 
because of general market, economic, political and natural 
conditions that are difficult to predict.  Such factors include the 
possibility of sudden or prolonged market declines and risks 
associated with individual companies.  Historically, equity 
securities have provided greater long-term returns and have 
entailed greater short-term risks than other investment choices. 

Fixed-income securities in which the Portfolio will invest are 
subject to the credit risk of the private and public institutions 
offering these securities and their market value is influenced by 
changes in interest rates.  The Portfolio's fixed-income 
securities investments will generally be of Investment Grade or 
equivalent quality.  There can be no assurance that any 
distribution payments will occur and the Portfolio has no 
specific maturity. 

The Portfolio is subject to market, interest rate and currency 
fluctuations and to other risks inherent in investing in securities.  
Therefore, no assurance can be given that the investment 
objective will be achieved, that invested capital will be 
preserved, or that capital appreciation will occur.  Investment 
results may vary substantially on a monthly, quarterly or annual 
basis. An investment in the Portfolio does not represent a 
complete investment program. 

Allocation of investments among different global asset classes 
utilizing the Investment Manager’s proprietary Dynamic Asset 
Allocation diversification strategy may involve additional risks.  
See "Risks Factors and Special Considerations—General 
Risks—Dynamic Asset Allocation Risk" in Section II. 

For a chart summarizing the principal risks of the Portfolio and 
a more detailed discussion of these and other risks applicable 
to the Portfolio, investors should refer to "Risk Factors" in 
Section II. 

AB FCP I—Dynamic Diversified Portfolio 

investment exposures. Investors are encouraged to consult 
their independent financial advisors regarding the suitability 
of Shares of the Portfolio for their investment needs. 

Distributions 

For class AR shares (and corresponding H shares), the 
Management Company intends to declare and make annual 
distributions.   Distributions may come from gross income 
(before reduction for fees and expenses), realized and 
unrealized gains and capital attributable to the relevant 
class. Distributions in excess of net income (gross income 
less fees and expenses) may represent a return of the 
investor’s original investment amount and as such may 
result in a decrease in the NAV per share for the relevant 
class.  

The Management Company also may determine if and to 
what extent dividends paid include realized capital gains 
and/or are paid out of capital, attributable to the relevant 
class of Shares. To the extent the net income and net 
realized profits attributable to these Shares exceed the 
amount declared payable, the excess return will be 
reflected in the respective Net Asset Value of such Shares. 
Dividends may be automatically reinvested at the election 
of the Shareholder. 

For class A, C, I, S, S1, SP, S1P, AX, BX, CX and IX 
shares (and corresponding H shares), the Management 
Company currently does not intend to pay dividends with 
respect to the Shares. Therefore, any net income and net 
realized profits attributable to the Shares will be reflected in 
the respective Net Asset Value of the Shares. 

Management Company, Administrator, Depositary and 
Transfer Agent Fees 

For all Shares of the Portfolio (and corresponding H shares) 
except class S, S1, SP and S1P shares (and corresponding 
H shares), the Management Company is paid an annual fee 
out of the assets of the Portfolio on the aggregate Net Asset 
Value attributable to the Shares equal to 0.10% of average 
daily Net Asset Value.  The Management Company is paid 
an annual fee out of the assets of the Portfolio on the 
aggregate Net Asset Value attributable to the class S, S1, 
SP and S1P shares (and corresponding H shares) equal to 
the lesser of $50,000 or 0.01% of average daily Net Asset 
Value. 

The Administrator fee, Depositary fee and Transfer Agent 
fee for the Portfolio are paid out of the assets of the 
Portfolio in accordance with the usual practice in 
Luxembourg and shall not exceed a fixed maximum 
specified under Section II of the prospectus under 
“Administrator, Depositary and Transfer Agent Fees”.  
These fees may decrease or increase depending on the 
assets of the Portfolio and transaction volume or for other 
reasons. 

Organizational Expenses 

Profile of the Typical Investor 

The Portfolio has no unamortized organizational expenses. 

The Portfolio is designed as a solution for investors who seek 
medium to long-term growth of capital with moderate volatility 
by investing in a multi-asset fund which dynamically adjusts 

Historical Performance 

Information on the historical performance of the Portfolio 
may be found at www.alliancebernstein.com.

I-8 

 
 
History 

The Portfolio was established as a portfolio of the Fund under 
the name Global Balanced Portfolio on 2 November 2004, and 
subsequently renamed Dynamic Diversified Portfolio on 15 
April 2011. 

AB FCP I—Dynamic Diversified Portfolio 

I-9 

 
 
 
 
 
 
Equity 

AB FCP I—Global Equity Blend Portfolio 

Investment Objective and Policies 

Investment Objective 
The Portfolio seeks to achieve long-term growth of capital. 

The Portfolio invests in global equity portfolios that are 
designed as solutions for investors who seek equity returns but 
also want broad diversification of the related risks across 
styles, sectors and geographic regions.  In managing the 
Portfolio, the Investment Manager efficiently diversifies 
between growth and value equity investment styles.  The 
Investment Manager selects growth and value equity securities 
by drawing from a variety of its fundamental growth and value 
investment disciplines to produce a blended portfolio.   

Normally, the Investment Manager's targeted allocation for the 
Portfolios is an equal weighting of 50% growth stocks and 50% 
value stocks.  The Investment Manager will allow the relative 
weightings of the Portfolio's growth and value components to 
vary in response to markets, but ordinarily only within a range 
of +/- 5% of the Portfolio.  Beyond those ranges, the 
Investment Manager will generally rebalance the Portfolio 
toward the targeted allocation.  However, under extraordinary 
circumstances, when the Investment Manager believes that 
conditions favoring one or the other investment are compelling, 
the range may expand to +/-10% of the Portfolio before 
rebalancing occurs. 

Description of Investment Disciplines and Processes 

Global Growth.  The Portfolio's growth stocks are selected 
using the Investment Manager's growth investment discipline.  
The growth investment team selects stocks using a process 
that seeks to identify companies with superior earnings growth 
prospects.  This discipline relies heavily upon the fundamental 
analysis and research of the Investment Manager's large 
internal growth research staff of approximately 50 dedicated 
growth analysts, which follows approximately 1,400 
companies.   

The Investment Manager places research emphasis on 
identifying companies whose substantially above-average 
prospective earnings growth potential appears likely to outpace 
market expectations. 

The Portfolio's total net assets invested in global equity 
securities utilizing the Investment Manager's Global Growth 
investment discipline will be allocated by the Investment 
Manager among various industry sectors determined by the 
Investment Manager to possess superior growth potential, 
each such industry sector designated a "subportfolio."  The 
individual global equity securities represented by a subportfolio 
relating to a particular industry sector will be selected by the 
Investment Manager's in-house research specialist(s) 
responsible for that particular industry sector. 

The current subportfolios designated by the Investment 
Manager in conjunction with the Investment Manager's Global 
Growth investment discipline are as follows:  (1) technology, 
(2) consumer, (3) finance and (4) industrial cyclicals.  The 
percentage of the Portfolio's total net assets allocated to any 
one subportfolio will depend upon the Investment Manager's 
assessment of current and forecasted investment opportunities 
and conditions. 

I-10 

The Investment Manager's Investment Team may (i) 
redesignate or alter the criteria relating to an existing 
subportfolio as a particular industry sector's growth 
potential fluctuates, (ii) retire an existing subportfolio as the 
growth potential of the relevant industry sector decreases or 
(iii) establish a new subportfolio as the growth potential of a 
new or different industry sector increases.   

Global Value.  The Portfolio's value stocks are selected 
using the fundamental value investment discipline of the 
Investment Manager's Bernstein Unit.  In selecting stocks, 
the Investment Manager's value investment teams seek to 
identify companies whose long-term earning power and 
dividend paying capability are not reflected in the current 
market price of their securities.  This fundamental value 
discipline relies heavily upon the Investment Manager's 
large internal value research staff, which follows over 2,700 
companies.  Teams within the value research staff cover a 
given industry worldwide, to better understand each 
company's competitive position in a global context.  The 
Investment Manager's staff of approximately 70 dedicated 
value analysts prepares its own earnings estimates and 
financial models for each company analyzed.  The 
Investment Manager identifies and quantifies the critical 
variables that control a business's performance and 
analyzes the results in order to forecast each company's 
long-term prospects and expected returns.  

The "Value" investment discipline attempts to identify 
securities that are undervalued using a disciplined 
fundamental value approach.  The Investment Manager 
believes that, over time, a company's stock price will come 
to reflect its intrinsic economic value.  The Investment 
Manager's fundamental value approach to equity investing 
generally defines value by reference to the relationship 
between a security's current price and its intrinsic economic 
value as measured by long-term earnings prospects.  In 
each market, this approach seeks to identify a universe of 
securities that are considered to be undervalued because 
they are attractively priced relative to their future earnings 
power.  Accordingly, forecasting corporate earnings and 
dividend-paying capability is the heart of the fundamental 
approach.  Securities of companies in any industry, country 
or region can become mispriced, and the Investment 
Manager will seek to exploit all such opportunities when 
selecting securities for the Portfolio.   

Other Investment Policies 
The Portfolio is not subject to any limitation on the portion of 
its total assets that may be invested in any one country or 
region.  The Portfolio intends to spread investment risk and 
expect to invest in equity securities of issuers domiciled in 
developed countries, including Australia, Canada, Japan, 
the United States and the developed nations in Europe and 
Asia.  The Portfolio will be permitted to invest in securities 
of issuers domiciled, or with significant operations, in other 
countries, including emerging market countries.  

The Portfolio's investments in securities of issuers 
domiciled in emerging market countries are not expected to 

 
 
exceed 30% of the Portfolio's net assets.  The Investment 
Manager, in its discretion, will determine which countries 
constitute "emerging market countries."  In general, emerging 
market countries will be countries considered by the global 
financial community to be developing countries, including 
countries from time to time included in the MSCI Emerging 
Markets IndexSM, a free float-adjusted market capitalization 
index designed to measure equity market performance in the 
global emerging markets.  The Investment Manager's 
determination of which countries constitute emerging market 
countries may change from time to time.   

The Investment Manager will, based upon its currency 
research and outlook, adjust the Portfolio's currency exposures 
while taking into account both  (a) the Portfolio's overall non-
base currency exposure, as well as  (b) the expected risk and 
return of each of the particular currencies in the Portfolio's 
portfolio.  The Investment Manager uses its in-house models 
developed specifically for this purpose.  Accordingly, the 
Investment Manager may hedge all, some or none of the 
currency exposures depending on whether its research 
indicates that the currency is poised to fall or rise against the 
Portfolio's base currency. 

As a temporary defensive measure or to provide for 
redemptions, the Portfolio may, without limit, hold cash, cash 
equivalents, or short-term fixed-income obligations, including 
money market instruments. 

The Portfolio may invest up to 10% of its net assets in 
securities for which there is no ready market.  See paragraph 
(5) of "Investment Restrictions" in Appendix A to Section II.  
The Portfolio may therefore not be readily able to sell such 
securities.  Moreover, there may be contractual restrictions on 
the resale of such securities. 

The Investment Manager expects that at any time at least 90% 
of the Portfolio’s total assets will be invested in equity 
securities and in no case will the amount of the Portfolio’s 
assets invested in such securities be less than two-thirds of the 
Portfolio’s total assets.   

Financial Derivative Instruments/Efficient Portfolio 
Management Techniques. 

Efficient portfolio management and hedging techniques may 
include use of exchange-traded and OTC derivative 
instruments, including swaps, options, futures and currency 
transactions. 

In accordance with the transparency requirements of the SFT 
Regulation the chart below reflects, where applicable, the 
expected and maximum level of the Portfolio’s net assets that 
will be subject to securities financing transactions (i.e. 
securities lending transactions as well as repurchase 
agreements and reverse repurchase agreements) (“SFTs”) and 
total return swaps and/or other financial derivative instruments 
with similar characteristics (“TRS”); being specified that in 
certain circumstances this proportion may be higher.   

AB FCP I—Global Equity Blend Portfolio 

Expected Range  Maximum 

0%-10% 

N/A 

50% 

N/A 

0%-10% 

25% 

Type of 
Transactions 

TRS 

Repurchase 
agreements and 
reverse repurchase 
agreements 

Securities lending 
transactions 

For further details concerning SFTs and TRS, please refer 
to “Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and 
Instruments and Collateral Management.” 

Risk Measurement. The methodology used in order to 
monitor the global exposure (market risk) resulting from the 
use of financial derivative instruments is the commitment 
approach in accordance with the CSSF Circular 11/512. 

Benchmark. The Portfolio’s benchmark is the MSCI World 
Index. The Portfolio uses the benchmark for performance 
comparison. The Portfolio is actively managed and the 
Investment Manager is not constrained by its benchmark 
when implementing the Portfolio’s investment strategy. 
Although the Portfolio may hold, in certain market 
conditions and subject to the Investment Manager’s full 
discretion, a significant part of the components of the 
benchmark, it will not hold every component of the 
benchmark and may also hold securities that are not part of 
it. 

Currency Hedged Share Classes  

One or more of the Portfolio’s share classes offered in a 
particular currency (each, an “Offered Currency”) may be 
hedged to such Offered Currency.  Any such share class 
will constitute a “Currency Hedged Share Class.”   Currency 
Hedged Share Classes aim to provide investors a return 
more closely correlated to the Portfolio’s base currency 
return by reducing the effect of exchange rate fluctuations 
between the Portfolio’s base currency (i.e., Dollar) and the 
relevant Offered Currency, taking into account practical 
considerations such as transaction costs. The hedging 
strategy employed is designed to reduce, but may not 
eliminate, currency exposure between the Portfolio’s base 
currency and the Offered Currency. 

Currency Hedged Share Classes do not affect the 
investment management of the Portfolio’s underlying assets 
since it is only the net asset value (NAV) of the Currency 
Hedged Share Classes, not the Portfolio’s underlying 
assets, which is hedged to the Offered Currency. Expenses 
incurred as a result of such hedging activity will be borne by 
the Currency Hedged Share Class in relation to which such 
expenses are incurred.  

For additional information on share class hedging, see 
“How to Purchase Shares—Currency Hedged Share 
Classes” in Section II. 

I-11 

 
 
 
 
 
 
 
 
Responsible investing. The Portfolio integrates ESG 
considerations. The Portfolio applies certain exclusions and 
details can be found at 
www.alliancebernstein.com/go/ABFCPIExclusionChart.  

The Portfolio is of the category that promotes environmental 
and social characteristics (SFDR Article 8; see “Appendix E: 
SFDR Pre-Contractual Disclosures” for more information).  

AB FCP I—Global Equity Blend Portfolio 

I-12 

 
 
 
 
 
 
Summary Information  

Portfolio Features 
Currency of the 
Portfolio 

USD 

Net Asset Value 
Calculation 

Net Asset Value 
Publication 

Cut-Off Times 

Each Business Day 

Available at www.alliancebernstein.com 

For USD-Denominated Share Classes, EUR-
Denominated Share Classes, GBP-Denominated 
Share Classes, HKD-Denominated Share Classes 
and SGD-Denominated Share Classes 
4:00 P.M. U.S. Eastern Time on each Business 
Day 

For Currency Hedged Share Classes 
6:00 P.M. Central European Time on each 
Business Day 

AB FCP I—Global Equity Blend Portfolio 

Class Names 

H means Currency Hedged Share 
Classes.  For additional information 
on share class hedging, see “How 
to Purchase Shares—Currency 
Hedged Share Classes” and “Risk 
Factors -- Currency Hedged Share 
Class Risk” in Section II. 

Distributions* 

None.  See "Distributions" below. 

* Includes Hedged Share Classes. 

Share Class Fees and Charges1 

USD-Denominated Share Classes 
Class A Shares 

Up to 5.00% 

1.60% 

None 

Initial Sales 
Charge3 

Management Fee4 

Distribution Fee5 

Class B Shares2* 

None 

1.60% 

1.00% 

Class C Shares 

Class I Shares9 
Class S1 Shares 

EUR-Denominated Share Classes 
Class A Shares 

Class C Shares 

Class I Shares9 
Class S1 Shares 

None 

Up to 1.50% 
None 

Up to 5.00% 

None 

Up to 1.50% 
None 

2.05% 

0.80% 
0.70% 

1.60% 

2.05% 

0.80% 
0.70% 

HKD-Denominated Share Classes 
Class S Shares7 

SGD-Denominated Share Classes 
Class A Shares 

None 

None 

Up to 5.00% 

1.60% 

None 

None 
None 

None 

None 

None 
None 

None 

None 

Class B Shares2* 

Class S1 Shares 

None 

None 

EUR Hedged Share Classes 
Class A EUR H Shares 

Up to 5.00% 

1.60% 

1.60% 

1.00% 

0.70% 

None 

None 

Fiscally Transparent Share Classes [for Certain Eligible Investors with approval from the Management Company]8 
Class SA GB Shares 
Class S1A GB and S1B GB Shares 

None 
0.70% 

None 
None 

None 
None 

I-13 

Contingent Deferred 
Sales Charge6 

None 
0–1 year held=4.0% 
1–2 yrs=3.0% 
2–3 yrs=2.0% 
3–4 yrs=1.0% 
4+ yrs=0% 
0—1 year held=1.0% 
thereafter 0% 
None 
None 

None 
0—1 year held=1.0% 
thereafter 0% 
None 
None 

None 

None 
0–1 year held=4.0% 
1–2 yrs=3.0% 
2–3 yrs=2.0% 
3–4 yrs=1.0% 
4+ yrs=0% 
None 

None 

None 
None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1   The Management Company, Administrator, Depositary and Transfer 

Agent are entitled to receive, out of the assets of the Portfolio, fees as 
described under "Other Portfolio Information—Management 
Company, Administrator, Depositary and Transfer Agent Fees" below.  
The Portfolio also bears all of its other expenses.  See "How to 
Purchase Shares" and "Additional Information—Fees and Expenses" 
in Section II.  The Management Company has voluntarily undertaken, 
until the Management Company on behalf of the Fund notifies 
Shareholders to the contrary, that if, in any fiscal year, the aggregate 
fees and expenses with respect to the following share classes of the 
Portfolio (including any management fee and all other fees and 
expenses set out in "Additional Information—Fees and Expenses" in 
Section II, including Luxembourg Taxe d'Abonnement but exclusive of 
certain other taxes, brokerage (if applicable) and  interest on 
borrowings) exceed the following percentages of the average Net 
Asset Value for the fiscal year attributable to the Portfolio's share 
classes (and corresponding H shares) as follows: A (2.10%), B 
(3.10%), C (2.55%), I (1.30%), S (0.10%), S1 (0.80%), SA GB 
(0.10%) and S1A GB (0.80%) and S1B GB (0.80%), the Fund may 
deduct from the payment to be made to the Management Company, 
or the Management Company will otherwise bear, such excess fees 
and expenses. 

2   After six years from the date of purchase, class B shares are eligible 

for conversion to class A shares without charge. For further details on 
the conversion of shares, please refer to "How to Exchange or 
Convert Shares—Conversion of CDSC Shares" in Section II. 

3   As a percentage of purchase price.  
4   As an annual percentage of average daily Net Asset Value. With 
respect to certain share classes, the management fee may also 
include a component that is paid to distributors or other financial 
intermediaries and service providers.  For further details on the 
management fee, please refer to "Additional Information—Fees and 
Expenses" in Section II.   

5   As an annual percentage of average daily Net Asset Value.   

6   As a percentage of the lesser of the current Net Asset Value or 
original cost of the Shares being redeemed and based upon the 
duration that such Shares are held.  CDSC Shares may only be 
purchased through a dealer authorized by the Distributor to offer 
such shares.  Those investors considering an investment in 
CDSC Shares should speak with their financial advisor for details. 
With respect to class C shares, a dealer may elect to waive the 
contingent deferred sales charge in certain circumstances. 
7  Class S shares are reserved for institutional investors that have 
entered into an agreement with the Management Company and 
are being charged an investment management fee separately. 

8  Class SA GB and S1A GB Shares are available only to those UK 

institutional investors who demonstrate to the satisfaction of the 
Management Company that they are exempt from withholding tax 
on U.S.-source dividend income under the relevant tax treaty 
between the investor's country of tax residence and the United 
States and agree to provide the Management Company certain 
other certifications and information to the extent required to 
establish their eligibility for these shares.  

Class S1B GB Shares are available only to those UK/Irish 
institutional investors who demonstrate to the satisfaction of the 
Management Company that they entitled to reduced withholding 
tax of 15% on US-source dividend income under the relevant tax 
treaty between the investor's country of tax residence and the 
United States and agree to provide the Management Company 
certain other certifications and information to the extent required 
to establish their eligibility for these shares. 
For further information on this share class, see “Additional Share 
Class Information” in Section II. 

Effective 15 December 2016, Class B shares will no longer be 
offered. However, Class B shares may be made available for 
exchange to shareholders holding Class B shares (or a variation 
thereof including hedged share classes) in another Portfolio or 
other AB fund. 

9 

* 

Minimum Initial 
Investment* 

Minimum Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

Other Share Class Features 

Offered 
Currencies 
USD-Denominated Share Classes 
Class A Shares 

Dollar 

Class B Shares 
Class C Shares 

Class I Shares 

Class S1 Shares 

Dollar 

Dollar 

Dollar 

Dollar 

EUR-Denominated Share Classes 
Class A Shares 
Class C Shares 
Class I Shares 
Class S1 Shares 

EUR 
EUR 
EUR 
EUR 

HKD-Denominated Share Classes 
Class S Shares 

HKD 

SGD-Denominated Share Classes 
Class A Shares 
Class B Shares 
Class S1 Shares 

SGD 
SGD 
SGD 

$2,000 

$2,000 

$2,000 

$1 million*** 

$25 million** 

€2,000 
€2,000 
€1,000,000** 
€20 million** 

$750 

$750 

$750 

None 

None 

€750 
€750 
None 
None 

HK$200 million** 

None 

None 

$250,000 

None 

None 

None 

None 
None 
None 
None 

None 

S$3,000 
S$3,000 
S$ 37.5 million** 

S$1,000 
S$1,000 
None 

None 
S$350,000 
None 

Fiscally Transparent Share Classes [for Certain Eligible Investors with approval from the Management Company] 
Class SA GB 
Shares 

$25 million** 

Dollar 

None 

None 

Class S1A GB and 
S1B GB Shares 

Dollar 

$25 million** 

None 

None 

I-14 

0.05% 

0.05% 

0.05% 

0.05% 

0.01% 

0.05% 
0.05% 
0.05% 
0.01% 

0.01% 

0.05% 
0.05% 
0.01% 

0.01% 

0.01% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—Global Equity Blend Portfolio 

Hedged 
Currencies 

Minimum Initial 
Investment* 

Minimum Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

EUR Hedged Share Classes 
Class A EUR H 
Shares 

EUR 

€2,000 

€750 

None 

0.05% 

Does not apply to automatic investment plans, where offered. 
* 
**  May be waived by the Management Company in its sole discretion. 

***  Annual Luxembourg tax payable quarterly by each portfolio. 

I-15 

 
 
 
 
 
 
 
AB FCP I—Global Equity Blend Portfolio 

The Administrator fee, Depositary fee and Transfer Agent fee 
for the Portfolio are paid out of the assets of the Portfolio in 
accordance with the usual practice in Luxembourg and shall 
not exceed a fixed maximum specified under Section II of the 
prospectus under “Administrator, Depositary and Transfer 
Agent Fees”.  These fees are subject to the limitation on 
expenses discussed in note 1 to "Summary Information—
Share Class Fees and Charges" above and may decrease or 
increase depending on the assets of the Portfolio and 
transaction volume or for other reasons. 

Organizational Expenses 
The Portfolio has no unamortized organizational expenses. 

Historical Performance 
Information on the historical performance of the Portfolio may 
be found at www.alliancebernstein.com. 

History 
The Portfolio was established on 15 July 2002 as a portfolio 
within ACM Bernstein Blended Style Investments, a mutual 
investment fund managed by the Management Company and 
organized under the laws of the Grand Duchy of 
Luxembourg, under the name "Global Equity Portfolio".  On 1 
September 2003, ACM Bernstein Blended Style Investments 
was amalgamated into the Fund and the assets of Global 
Equity Portfolio were contributed into the Global Blend 
Portfolio, a new portfolio created within the Fund.  On 10 
November 2004, Global Blend Portfolio was renamed "Global 
Equity Blend Portfolio”.   

Other Portfolio Information 

Principal Investment Types 

For a chart summarizing the principal types of investments 
used by the Portfolio and a description of securities and other 
instruments in which the Portfolio may invest, investors 
should refer to "Investment Types" in Section II.  The ability of 
the Portfolio to invest in any securities or instruments is 
subject to the restrictions in the Portfolio's stated investment 
objective and policies and the limitations contained in 
"Investment Restrictions" in Appendix A to Section II. 

Risk Profile 
Investments of the Portfolio are subject to higher risks 
inherent in equity investments. In general, the value of equity 
investments may fluctuate, sometimes dramatically, in 
response to the activities and results of individual companies 
or because of general market, economic, political and natural 
conditions that are difficult to predict.  Such factors include 
the possibility of sudden or prolonged market declines and 
risks associated with individual companies.  Historically, 
equity securities have provided greater long-term returns and 
have entailed greater short-term risks than other investment 
choices. 

The Portfolio is subject to market, interest rate and currency 
fluctuations and to other risks inherent in investing in 
securities.  Therefore, no assurance can be given that the 
investment objective will be achieved, that invested capital 
will be preserved, or that capital appreciation will occur.  
Investment results may vary substantially on a monthly, 
quarterly or annual basis. An investment in the Portfolio does 
not represent a complete investment program. 

For a chart summarizing the principal risks of the Portfolio 
and a more detailed discussion of these and other risks 
applicable to the Portfolio, investors should refer to "Risk 
Factors" in Section II. 

Profile of the Typical Investor 
The Portfolio will suit higher risk-tolerant investors seeking 
the medium to long term rewards of equity investment.  
Investors are encouraged to consult their independent 
financial advisors regarding the suitability of Shares of the 
Portfolio for their investment needs. 

Distributions 
The Management Company currently does not intend to pay 
dividends with respect to the Shares. Therefore, any net 
income and net realized profits attributable to the Shares will 
be reflected in the respective Net Asset Value of the Shares. 

Management Company, Administrator, Depositary and 
Transfer Agent Fees 

For all Shares (and corresponding H shares) except class S 
and S1 shares, the Management Company is paid an annual 
fee out of the assets of the Portfolio on the aggregate Net 
Asset Value attributable to the Shares equal to 0.10% of 
average daily Net Asset Value.  The Management Company 
is paid an annual fee out of the assets of the Portfolio on the 
aggregate Net Asset Value attributable to the class S and S1 
shares equal to the lesser of $50,000 or 0.01% of average 
daily Net Asset Value.   

I-16 

 
 
 
AB FCP I—Emerging Markets Growth Portfolio 

Investment Objective and Policies 

Investment Objective 
The investment objective of the Portfolio is long-term growth of 
capital. 

Investment Policies 
The Portfolio seeks to achieve its investment objective by 
investing in a portfolio of equity securities of companies in 
emerging markets.  Emerging markets include but are not 
limited to those countries listed in the MSCI Emerging Markets 
Index. The Portfolio may also invest in frontier markets from 
time to time.  Frontier markets include but are not limited to 
those countries listed in the S&P Frontier Broad Market Index.  
In selecting securities for investment, the Investment Manager 
seeks to invest in high-quality issuers that it believes are well-
positioned to grow over the long term.   

The Investment Manager expects that, under normal market 
conditions, the Portfolio’s total assets will be predominantly 
invested in the equity securities of emerging market and 
frontier market companies.  The Portfolio will invest at least 
two-thirds of its assets in emerging markets issuers and at 
least 50% of its net assets in equity securities. Emerging 
market and frontier market companies include any company 
that (i) is domiciled or organized in; (ii) is established and 
conducting business in; (iii) conducts a significant part of its 
economic activities in; or (iv) has business activities that are 
meaningfully impacted by economic developments in, 
emerging markets or frontier markets. 

The Portfolio may invest in common stocks, including the stock 
of companies conducting an initial public offering,  and 
securities convertible into common stock, preferred stocks, the 
equity securities of real estate investments trusts ("REITs"), 
depositary receipts (including ADRs and GDRs), and 
exchange-traded funds (“ETFs”) qualified as UCITS or eligible 
UCI within the meaning of Article 41(1)e) of the Law of 2010, 
as well as financial derivative instruments. 

Currency Management.  The Portfolio may utilize currency 
management techniques to hedge currency exposure or 
provide exposure greater than that provided by the underlying 
equity positions. 

Financial Derivative Instruments/Efficient Portfolio 
Management Techniques.  The Investment Manager may use 
derivative products and strategies when implementing the 
Portfolio’s investment strategy.  Such financial derivative 
instruments (including OTC and exchange-traded financial 
derivative instruments) may include, but are not limited to, 
options, futures, forwards and swaps, including transactions on 
equity securities and currencies, as well as “local access 
products” (such as equity linked certificates, participation notes 
and warrants).  These financial derivative instruments and 
efficient portfolio management techniques will be 
predominantly employed (i) as an alternative to investing 
directly in the underlying investments,(ii) to hedge against 
equity markets risk, specific issuer risk and currency 
fluctuations and (iii) for efficient portfolio management 
purposes. 

I-17 

In accordance with the transparency requirements of the 
SFT Regulation the chart below reflects, where applicable, 
the expected and maximum level of the Portfolio’s net 
assets that will be subject to securities financing 
transactions (i.e. securities lending transactions as well as 
repurchase agreements and reverse repurchase 
agreements) (“SFTs”) and total return swaps and/or other 
financial derivative instruments with similar characteristics 
(“TRS”); being specified that in certain circumstances this 
proportion may be higher.   

Type of 
Transactions 

TRS 

Repurchase 
agreements and 
reverse repurchase 
agreements 

Securities lending 
transactions 

Expected Range  Maximum 

0%-10% 

N/A 

25% 

N/A 

0%-10% 

25% 

For further details concerning SFTs and TRS, please refer 
to “Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and 
Instruments and Collateral Management.” 

Risk Measurement. The methodology used in order to 
monitor the global exposure (market risk) resulting from the 
use of financial derivative instruments is the commitment 
approach in accordance with the CSSF Circular 11/512. 

Benchmark. The Portfolio’s benchmark is the MSCI 
Emerging Markets Index. The Portfolio uses the benchmark 
for performance comparison. The Portfolio is actively 
managed and the Investment Manager is not constrained 
by its benchmark when implementing the Portfolio’s 
investment strategy. Although the Portfolio may hold, in 
certain market conditions and subject to the Investment 
Manager’s full discretion, a significant part of the 
components of the benchmark, it will not hold every 
component of the benchmark and may also hold securities 
that are not part of it. 

Other Investment Policies 

Lack of Liquidity.   The Portfolio may invest up to 10% of 
its net assets in securities for which there is no ready 
market.  See paragraph (5) of “Investment Restrictions” in 
Appendix A to Section II.  The Portfolio may therefore not 
be readily able to sell such securities.  Moreover, there may 
be contractual restrictions on the resale of such securities. 

Defensive Position – Holding Cash or Cash 
Equivalents.  The Portfolio may hold cash or cash 
equivalents and short-term fixed-income securities, 
including money market instruments, as a temporary 

 
 
 
 
 
 
 
defensive measure or to provide for redemptions or in 
anticipation of investment in various international markets. 

Future Developments.  On an ancillary basis, the Portfolio 
may take advantage of other investment instruments and 
strategies including those that are not currently contemplated 
for use by the Portfolio to the extent such investment practices 
are consistent with the Portfolio’s investment objective and 
legally permissible.   

Currency Hedged Share Classes  
One or more of the Portfolio’s share classes offered in a 
particular currency (each, an “Offered Currency”) may be 
hedged to such Offered Currency.  Any such share class will 
constitute a “Currency Hedged Share Class.”   Currency 
Hedged Share Classes aim to provide investors a return more 
closely correlated to the Portfolio’s base currency return by 
reducing the effect of exchange rate fluctuations between the 
Portfolio’s base currency (i.e., Dollar) and the relevant Offered 
Currency, taking into account practical considerations such as 
transaction costs.  The hedging strategy employed is designed 
to reduce, but may not eliminate, currency exposure between 
the Portfolio’s base currency and the Offered Currency. 

AB FCP I—Emerging Markets Growth Portfolio 

Currency Hedged Share Classes do not affect the 
investment management of the Portfolio’s underlying assets 
since it is only the net asset value (NAV) of the Currency 
Hedged Share Classes, not the Portfolio’s underlying 
assets, which is hedged to the Offered Currency.  
Expenses incurred as a result of such hedging activity will 
be borne by the Currency Hedged Share Class in relation to 
which such expenses are incurred.   

Responsible investing. The Portfolio integrates ESG 
considerations. The Portfolio applies certain exclusions and 
details can be found at 
www.alliancebernstein.com/go/ABFCPIExclusionChart.  

The Portfolio is of the category that promotes environmental 
and social characteristics (SFDR Article 8; see “Appendix 
E: SFDR Pre-Contractual Disclosures” for more 
information).  

I-18 

 
 
 
 
  
 
 
 
AB FCP I—Emerging Markets Growth Portfolio 

Summary Information 

Portfolio Features 
Currency of the 
Portfolio 

USD 

  Order Cut-
Off Times 

Net Asset Value 
Calculation 

Net Asset Value 
Publication 

Each Business Day 

Available at www.alliancebernstein.com 

Distributions* 

For USD-Denominated Share Classes, EUR-
Denominated Share Classes, GBP-
Denominated Share Classes, HKD-
Denominated Share Classes and SGD-
Denominated Share Classes 
4:00 P.M. U.S. Eastern Time on each 
Business Day 

For  Currency Hedged Share Classes 
6:00 P.M. Central European Time on each 
Business Day 
For class A, B, C, I, N, S, S1,and W shares 
None.  

For class AD and ED shares 
To be declared and payable monthly 

See “Distributions” below. 

*Includes Hedged Share Classes 

Class Names 

H means Currency Hedged Share Classes.  
For additional information on share class 
hedging, see “How to Purchase Shares—
Currency Hedged Share Classes” and 
“Risk Factors – Currency Hedged Share 
Class Risk” in Section II. 

Share Class Fees and Charges1 

Initial Sales Charge3 

Management Fee4 

Distribution Fee5 

USD-Denominated Share Classes 
Class A Shares 
Class AD Shares 

Up to 5.00% 
Up to 5.00% 

Class B Shares2* 

Class C Shares 

Class ED Shares9 

Class I Shares8 
Class N Shares 
Class S Shares7 
Class S1 Shares 
Clas W Shares8 

None 

None 

None 

Up to 1.50% 
Up to 3.00% 
None 
None 
None 

EUR-Denominated Share Classes 
Class A Shares 

Up to 5.00% 

Class C Shares 

None 

Class I Shares8 
Class S1 Shares 

Up to 1.50% 
None 

GBP-Denominated Share Classes 

Class S1 Shares 

None 

1.70% 
1.70% 

1.70% 

2.15% 

1.70% 

0.90% 
2.15% 
None 
0.90% 
0.70% 

1.70% 

2.15% 

0.90% 
0.90% 

0.90% 

I-19 

None 
None 

1.00% 

None 

1.00% 

None 
None 
None 
None 
None 

None 

None 

None 
None 

None 

Contingent Deferred 
Sales Charge6 

None 
None 
0–1 year held=4.0% 
1–2 yrs=3.0% 
2–3 yrs=2.0% 
3–4 yrs=1.0% 
4+ yrs=0% 
0–1 year held=1.0% 
thereafter 0% 
0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 
None 
None 
None 
None 
None 

None 

0–1 year held=1.0% 
thereafter 0% 

None 
None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—Emerging Markets Growth Portfolio 

HKD-Denominated Share Classes 
Class A Shares 
SGD-Denominated Share Classes 
Class A Shares 

Up to 5.00% 

Up to 5.00% 

AUD Hedged Share Classes 
Class A AUD H Shares 
Class AD AUD H Shares 

Up to 5.00% 
Up to 5.00% 

Class C AUD H Shares 

None 

1.70% 

1.70% 

1.70% 
1.70% 

2.15% 

None 

None 

None 
None 

None 

Class ED AUD H 
Shares9 

None 

1.70% 

1.00% 

Class I AUD H Shares8 
SGD Hedged Share Classes 
Class A SGD H Shares 
CHF Hedged Share Classes 
Class A CHF H Shares 
Class I CHF H Shares8 

Up to 1.50% 

Up to 5.00% 

Up to 5.00% 
Up to 1.50% 

PLN Hedged Share Classes 
Class A PLN H Shares 
ZAR Hedged Share Classes 
Class AD ZAR H Shares 

Up to 5.00% 

Up to 5.00% 

Class ED ZAR H 
Shares9 

None 

0.90% 

1.70% 

1.70% 
0.90% 

1.70% 

1.70% 

1.70% 

None 

None 

None 
None 

None 

None 

1.00% 

None 

None 

None 
None 

0–1 year held=1.0% 
thereafter 0% 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 

None 

None 
None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

1   The Management Company, Administrator, Depositary and Transfer 

Agent are entitled to receive, out of the assets of the Portfolio, fees as 
described under "Other Portfolio Information—Management 
Company, Administrator, Depositary and Transfer Agent Fees" below.  
The Portfolio also bears all of its other expenses.  See "How to 
Purchase Shares" and "Additional Information—Fees and Expenses" 
in Section II.  The Management Company has voluntarily undertaken, 
until the Management Company on behalf of the Fund notifies 
Shareholders to the contrary, that if, in any fiscal year, the aggregate 
fees and expenses with respect to the following share classes of the 
Portfolio (including any management fee and all other fees and 
expenses set out in "Additional Information—Fees and Expenses" in 
Section II, including Luxembourg Taxe d'Abonnement but exclusive of 
certain other taxes, brokerage (if applicable) and  interest on 
borrowings) exceed the following percentages of the Portfolio's 
average Net Asset Value for the fiscal year attributable to the 
Portfolio's share classes as follows: S (0.30%), S1 (1.20%), and W 
(0.99%), the Fund may deduct from the payment to be made to the 
Management Company, or the Management Company will otherwise 
bear, such excess fees and expenses. 
After six years from the date of purchase, class B shares are eligible 
for conversion to class A shares without charge from either the Fund 
or the Management Company.  For further details on the conversion 
of shares, please refer to "How to Exchange or Convert Shares—
Conversion of CDSC Shares" in Section II of the Prospectus. 

2 

3   As a percentage of purchase price. 
4   As an annual percentage of average daily Net Asset Value. With 
respect to certain share classes, the management fee may also 
include a component that is paid to distributors or other financial 
intermediaries and service providers.  For further details on the 

management fee, please refer to "Additional Information—Fees 
and Expenses" in Section II.  

5   As an annual percentage of average daily Net Asset Value.  
6 

As a percentage of the lesser of the current Net Asset Value or 
original cost of the Shares being redeemed and based upon the 
duration that such Shares are held.  CDSC Shares may only be 
purchased through a dealer authorized by the Distributor to offer 
such shares.  Those investors considering an investment in 
CDSC Shares should speak with their financial advisor for details. 
With respect to class C shares (and corresponding H shares 
classes), a dealer may elect to waive the contingent deferred 
sales charge in certain circumstances. 

7  Class S shares are reserved for institutional investors that have 
entered into an agreement with the Management Company and 
are being charged an investment management fee separately. 
For further information on this share class, see “Additional Share 
Class Information” in Section II. 

8 

9   After three years from the date of purchase, class ED shares (and   
corresponding H shares) will be converted to class AD shares (and 
corresponding H shares) without charge from either the Fund or 
the Management Company.  For further details on the conversion 
of shares, please refer to “How to Exchange or Convert Shares—
Conversion of CDSC Shares” in Section II of the Prospectus. 

* 

Effective 15 December 2016, Class B shares will no longer be 
offered. However, Class B shares may be made available for 
exchange to shareholders holding Class B shares (or a variation 
thereof including hedged share classes) in another Portfolio or 
other AB fund. 

I-20 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Share Class Features 

Class A Shares 

Class AD Shares 

Class B Shares 

Class C Shares 

Class ED Shares 

Class I Shares 

Class N Shares 

Class S Shares 

Class S1 Shares 

Offered 
Currencies 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 
Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Class W Shares 
EUR-Denominated Share Classes 
Class A Shares 
Class C Shares 
Class I Shares8 
Class S1 Shares 

EUR 
EUR 
EUR 
EUR 

Minimum Initial 
Investment* 
$2,000 

Minimum 
Subsequent 
Investment* 
$750 

$2,000 
$2,000 

$2,000 

$2,000 
$1 million** 

$2,000 

$25 million** 

$25 million** 

$1 million** 

€ 2,000 
€ 2,000 
€1 million** 
€20 million** 

$750 
$750 

$750 

$750 

None 

$750 

None 

None 

None 

€ 750 
€ 750 
None 
None 

GBP-Denominated Share Classes 
Class S1 Shares 

GBP 

HKD-Denominated Share Classes 
Class A Shares 

HKD 

SGD-Denominated Share Classes 
Class A Shares 

SGD 

£15 million** 

None 

HK$15,000 

HK$5,000 

S$3,000 

S$1,000 

Hedged 
Currencies 

Minimum Initial 
Investment* 

AUD Hedged Share Classes 
Class A AUD H Shares 
Class AD AUD H Shares 
Class C AUD H Shares 
Class ED AUD H Shares 
Class I AUD H Shares 

AUD 
AUD 
AUD 
AUD 
AUD 

A$2,000 
A$2,000 
A$2,000 
A$2,000 
A$1 million** 

Minimum 
Subsequent 
Investment* 

A$750 
A$750 
A$750 
A$750 
None 

SGD Hedged Share Classes 
Class A SGD H Shares 

SGD 

CHF Hedged Share Classes 
Class A CHF H Shares 
Class I CHF H Shares 

CHF 
CHF 

PLN Hedged Share Classes  
Class A PLN H Shares 

PLN 

ZAR Hedged Share Classes 
Class AD ZAR H Shares 
Class ED ZAR H Shares 

ZAR 
ZAR 

S$3,000 

S$1,000 

CHF 2,000 
CHF 1,000,000** 

CHF 1,000 
None 

PLN 7,500 

PLN 3,000 

ZAR 20,000 
ZAR 20,000 

ZAR 7,000 
ZAR 7,000 

AB FCP I—Emerging Markets Growth Portfolio 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

None 

None 
$250,000 

None 

None 

None 

None 

None 

None 

None 

None 
None 
None 
None 

None 

None 

None 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.01% 

0.01% 

0.05% 

0.05% 
0.05% 
0.05% 
0.01% 

0.01% 

0.05% 

0.05% 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

None 
None 
None 
None 
None 

None 

None 
None 

None 

None 
None 

0.05% 
0.05% 
0.05% 
0.05% 
0.05% 

0.05% 

0.05% 
0.05% 

0.05% 

0.05% 
0.05% 

* 

Does not apply to automatic investment plans, where offered. 

discretion. 

**  May be waived by the Management Company in its sole 

***  Annual Luxembourg tax payable quarterly by each portfolio

I-21 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Portfolio Information 

Principal Investment Types 
For a chart summarizing the principal types of investments 
used by the Portfolio and a description of securities and other 
instruments in which the Portfolio may invest, investors should 
refer to "Investment Types" in Section II.  The ability of the 
Portfolio to invest in any securities or instruments is subject to 
the restrictions in the Portfolio's stated investment objective 
and policies and the limitations contained in "Investment 
Restrictions" in Appendix A to Section II. 

Risk Profile 
It is intended that this Portfolio will make use of financial 
derivative instruments. The investment restrictions (9) to (13) 
set forth in Appendix A to Section II will not apply.  

Investments of the Portfolio are subject to the higher risks 
inherent in equity investments. In general, the value of equity 
investments may fluctuate, sometimes dramatically, in 
response to the activities and results of individual companies or 
because of general market, economic, political and natural 
conditions that are difficult to predict. Such factors include the 
possibility of sudden or prolonged market declines and risks 
associated with individual companies. Historically, equity 
securities have provided greater long-term returns and have 
entailed greater short-term risks than other investment 
instruments.  

Fixed-income securities in which the Portfolio will invest are 
subject to the credit risk of the private and public institutions 
offering these securities and their market value is influenced by 
changes in interest rates. There can be no assurance that any 
distribution payments will occur and the Portfolio has no 
specific maturity. 

The Portfolio is subject to market, interest rate and currency 
fluctuations and to other risks inherent in investing in securities. 
Therefore, no assurance can be given that the investment 
objective will be achieved, that invested capital will be 
preserved or that capital appreciation will occur. Investment 
results may vary substantially on a monthly, quarterly or annual 
basis. An investment in the Portfolio does not represent a 
complete investment program. 

For a chart summarizing the principal risks of the Portfolio and 
a more detailed discussion of these and other risks applicable 
to the Portfolio, investors should refer to “Risk Factors” in 
Section II. 

Profile of the Typical Investor 
The Portfolio will suit higher risk-tolerant investors seeking the 
medium to long term rewards of equity investment.  Investors 
are encouraged to consult their independent financial advisors 
regarding the suitability of Shares of the Portfolio for their 
investment needs. 

Distributions 
For class A, B, C, I, N, S, S1 and W shares (and corresponding 
H Shares), the Management Company currently does not 
intend to pay dividends with respect to the Shares. Therefore, 

any net income and net realized profits attributable to the 
Shares will be reflected in the respective Net Asset Value of 
the Shares. 

For class AD and ED shares (and corresponding H shares), 
the Management Company intends to declare and pay 
monthly distributions. The Management Company intends 
to maintain a stable distribution rate per share for such 
share classes, and therefore distributions may come from 
gross income (before reduction for fees and expenses), 
realized and unrealized gains and capital attributable to the 
relevant class. Distributions in excess of net income (gross 
income less fees and expenses) may represent a return of 
the investor’s original investment amount and as such may 
result in a decrease in the NAV per share for the relevant 
class.   

The Management Company also may determine if and to 
what extent distributions paid include realized capital gains 
and/or are paid out of capital, attributable to the relevant 
class of Shares.  Distributions may be automatically 
reinvested at the election of the Shareholder.    

Management Company, Administrator, Depositary and 
Transfer Agent Fees 
For all Shares (and corresponding H shares) except class S 
and  S1 shares (and corresponding H shares), the 
Management Company is paid an annual fee out of the 
assets of the Portfolio on the aggregate Net Asset Value 
attributable to the Shares equal to 0.10% of average daily 
Net Asset Value.  The Management Company is paid an 
annual fee out of the assets of the Portfolio on the 
aggregate Net Asset Value attributable to the class S and 
S1 shares (and corresponding H shares) equal to the lesser 
of $50,000 or 0.01% of average daily Net Asset Value.   

The Administrator fee, Depositary fee and Transfer Agent 
fee for the Portfolio are paid out of the assets of the 
Portfolio in accordance with the usual practice in 
Luxembourg and shall not exceed a fixed maximum 
specified under Section II of the prospectus under 
“Administrator, Depositary and Transfer Agent Fees”.  
These fees may decrease or increase depending on the 
assets of the Portfolio and transaction volume or for other 
reasons. 

Organizational Expenses 
The Portfolio has no unamortized organizational expenses. 

Historical Performance 
Information on the historical performance of the Portfolio 
may be found at www.alliancebernstein.com. 

History 
The Portfolio was established as a portfolio of the Fund on 
30 October 1992 under the name "Developing Regional 
Markets Portfolio."  The Portfolio changed its name to 
"Emerging Markets Growth Portfolio" on 16 August 2004.  

 
 
AB FCP I—Asia Ex-Japan Equity Portfolio 

Investment Objective and Policies 

Investment Objective 
The investment objective of the Portfolio is long-term growth of 
capital and income. 

Investment Discipline and Processes 

The Portfolio seeks to achieve its investment objective by 
investing in a portfolio of equity securities of companies in the 
Asia ex-Japan region that are determined by the Investment 
Manager to be undervalued.  The Portfolio’s investment 
universe will consist of countries contained in the MSCI AC (All 
Country) Asia ex Japan Index and the MSCI Frontier Markets 
Index, although the Portfolio may invest in securities outside 
the MSCI AC (All Country) Asia ex Japan Index and the MSCI 
Frontier Markets Index. 

The Investment Manager believes that, over time, a company’s 
stock price will come to reflect its intrinsic economic value. The 
Investment Manager’s fundamental value approach to equity 
investing generally defines value by reference to the 
relationship between a security's current price and its intrinsic 
economic value as measured by long-term earnings prospects.   

This approach seeks to identify, in the first instance, a universe 
of Asia ex-Japan securities that are considered to be 
undervalued because they are attractively priced relative to 
their future earnings power. Accordingly, forecasting corporate 
earnings and cash generation is the heart of the fundamental 
value approach.  

Under normal market conditions the Portfolio will invest in a 
portfolio of approximately 60-100 companies. 

The Investment Manager’s value analysis depends heavily 
upon its large internal research staff and fundamental company 
and industry research.  The Investment Manager's analysts are 
organized into global industry teams rather than by geography 
or asset class, since companies around the world within an 
industry tend to share similar profit and market dynamics.  
Company and industry analysts research Asia ex-Japan 
companies, which are screened by a proprietary quantitative 
return model, to forecast earnings, cash flow, and balance 
sheet strength for the companies for each of the next five 
years.  If a company has many business lines, the analysts 
conduct this exercise for each in order to build a composite 
forecast for the company based in part on present and future 
determinants of demand for any company's products or 
services. These analysts also evaluate pricing strategies used 
by companies when competing for market share. Finally, an 
evaluation of the management and the financial ability of each 
company to implement its corporate strategy supplement the 
analysis.  

The Investment Manager seeks undervalued securities based 
on the disparity between a company’s intrinsic economic value 
and its stock price, with companies having the greatest 
disparities being considered the most undervalued. 

The Investment Manager considers aggregate portfolio 
characteristics when deciding how much of each security to 
purchase for the Portfolio.  The Investment Manager’s 
quantitative analysts build valuation and risk models to ensure 
that the portfolio is constructed to obtain an effective balance of 

I-23 

risk and return.  By evaluating overall sector concentration, 
degree of undervaluation and other subtle similarities 
among investments, the Investment Manager seeks to 
minimize overall Portfolio volatility by favoring those 
attractive securities that also tend to diversify the Portfolio’s 
risk. 

A disparity between a company’s current stock price and 
the assessment of intrinsic value can arise, at least in part, 
as a result of adverse, short-term market reactions to recent 
events or trends.  In order to reduce the risk that an 
undervalued security will be purchased before such an 
adverse market reaction has run its course, the Investment 
Manager also monitors analysts’ earnings estimate 
revisions and relative return trends (also called “price 
momentum”).  

Description of Currency Strategy 

The Investment Manager may employ a currency overlay 
strategy.  This strategy involves the adjustment of the 
Portfolio’s various currency exposures to take into account 
the risk and return outlook of both the Portfolio’s base 
currency and of other currencies.  Accordingly, at any time, 
the Investment Manager may adjust the Portfolio’s currency 
exposures depending on the expected return and risk 
characteristics which its research indicates those currencies 
are likely to offer.   

The Investment Manager’s currency overlay strategy may 
be implemented through transactions in certain currency-
related derivative instruments, such as forward foreign 
currency exchange contracts, currency futures, currency 
options, options on currency futures and currency swaps, 
intended to protect the Portfolio against adverse currency 
effects and/or to seek active investment opportunities 
based on the risk and return outlook of different currencies.  
For example, when the Investment Manager’s research 
indicates that a particular foreign currency offers a lower 
expected return than the base currency, the Investment 
Manager may enter into a forward foreign currency 
exchange contracts to sell an amount of the foreign 
currency expected to offer a lower return.  Such instruments 
may also be employed to increase the Portfolio's exposure 
to a particular currency such that the Portfolio's exposure to 
that currency exceeds the value of the Portfolio's securities 
denominated in that currency (including on occasion cases 
where the Portfolio’s investment portfolio includes no 
securities denominated in that currency) when the 
Investment Manager's research indicates that that currency 
is likely to offer an attractive return.  The Investment 
Manager utilizes its in-house models developed specifically 
for these purposes as well as its fundamental research-
based outlook.   

Within this currency overlay strategy framework, the 
Investment Manager will control the Portfolio’s currency 
exposures in order to ensure that stock selection remains 
the main driver of the Portfolio’s investment returns and in 
order to seek to ensure that the risk arising from those 
currency exposures is proportionate to the expected return 
opportunities they offer. 

 
 
Financial Derivative Instruments/Efficient Portfolio 
Management Techniques 

General.  The Investment Manager may employ financial 
derivative instruments and efficient portfolio management 
techniques for investment, efficient portfolio management and 
hedging purposes.  These financial derivative instruments may 
include, but are not limited to, "local access products" (such as 
equity linked certificates, participation notes, and warrants), 
and securities convertible into common stock, futures, and 
options on futures on stock indices. 

In accordance with the transparency requirements of the SFT 
Regulation the chart below reflects, where applicable, the 
expected and maximum level of the Portfolio’s net assets that 
will be subject to securities financing transactions (i.e. 
securities lending transactions as well as repurchase 
agreements and reverse repurchase agreements) (“SFTs”) and 
total return swaps and/or other financial derivative instruments 
with similar characteristics (“TRS”); being specified that in 
certain circumstances this proportion may be higher.   

Type of 
Transactions 

TRS 

Repurchase 
agreements and 
reverse repurchase 
agreements 

Securities lending 
transactions 

Expected Range  Maximum 

0%-10% 

N/A 

25% 

N/A 

0%-10% 

25% 

For further details concerning SFTs and TRS, please refer to 
“Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and Instruments 
and Collateral Management.” 

Risk Measurement. The methodology used in order to monitor 
the global exposure (market risk) resulting from the use of 
financial derivative instruments is the commitment approach in 
accordance with the CSSF Circular 11/512. 

Benchmark. The Portfolio’s benchmark is the MSCI All 
Country Asia ex-Japan Index. The Portfolio uses the 
benchmark for performance comparison. The Portfolio is 
actively managed and the Investment Manager is not 
constrained by its benchmark when implementing the 
Portfolio’s investment strategy. Although the Portfolio may 
hold, in certain market conditions and subject to the Investment 
Manager’s full discretion, a significant part of the components 
of the benchmark, it will not hold every component of the 
benchmark and may also hold securities that are not part of it. 

Other Investment Policies 
As a temporary defensive measure, or to provide for 
redemptions, the Portfolio may, without limit, hold cash, cash 
equivalents, or short-term fixed-income obligations, including 
money market instruments. 

The Portfolio may invest up to 10% of its net assets in 
securities for which there is no ready market.  See paragraph 
(5) of "Investment Restrictions" in Appendix A to Section II.  
The Portfolio may therefore not be readily able to sell such 

I-24 

AB FCP I—Asia Ex-Japan Equity Portfolio 

securities.  Moreover, there may be contractual restrictions 
on the resale of such securities. 

The Investment Manager expects that at any time at least 
80% of the Portfolio's total assets will be invested in equity 
securities of Asia ex-Japan companies, and in no case will 
the amount of the Portfolio's total assets invested in such 
securities be less than two-thirds of the Portfolio's total 
assets.   

Currency Hedged Share Classes  
One or more of the Portfolio’s share classes offered in a 
particular currency (each, an “Offered Currency”) may be 
hedged to such Offered Currency.  Any such share class 
will constitute a “Currency Hedged Share Class.”   Currency 
Hedged Share Classes aim to provide investors a return 
more closely correlated to the Portfolio’s base currency 
return by reducing the effect of exchange rate fluctuations 
between the Portfolio’s base currency (i.e., Dollar) and the 
relevant Offered Currency, taking into account practical 
considerations such as transaction costs.  The hedging 
strategy employed is designed to reduce, but may not 
eliminate, currency exposure between the Portfolio’s base 
currency and the Offered Currency. 

Currency Hedged Share Classes do not affect the 
investment management of the Portfolio’s underlying assets 
since it is only the net asset value (NAV) of the Currency 
Hedged Share Classes, not the Portfolio’s underlying 
assets, which is hedged to the Offered Currency.  
Expenses incurred as a result of such hedging activity will 
be borne by the Currency Hedged Share Class in relation to 
which such expenses are incurred.  

For additional information on share class hedging, see 
“How to Purchase Shares—Currency Hedged Share 
Classes” in Section II. 

Risk Factors linked to RMB Hedged Share Classes. 
Since 2005, the RMB exchange rate is no longer pegged to 
the U.S. dollar. RMB has now moved to a managed floating 
exchange rate based on market supply and demand with 
reference to a basket of foreign currencies. The daily 
trading price of the RMB against other major currencies in 
the inter-bank foreign exchange market is allowed to float 
within a narrow band around the central parity published by 
the People’s Bank of China.  RMB convertibility from 
offshore RMB (CNH) to onshore RMB (CNY) is a managed 
currency process subject to foreign exchange control 
policies of and repatriation restrictions imposed by the 
Chinese government in coordination with the Hong Kong 
Monetary Authority (HKMA).  The value of CNH could differ, 
perhaps significantly, from that of CNY due to a number of 
factors including without limitation those foreign exchange 
control policies and repatriation restrictions pursued by the 
Chinese government from time-to-time as well as other 
external market forces. 

Since 2005, foreign exchange control policies pursued by 
the Chinese government have resulted in the general 
appreciation of RMB (both CNH and CNY). This 
appreciation may or may not continue and there can be no 
assurance that RMB will not be subject to devaluation at 

 
 
 
some point. Any devaluation of RMB could adversely affect the 
value of investors’ investments in the RMB H shares. 

The RMB H shares participate in the offshore RMB (CNH) 
market, which allows investors to freely transact CNH outside 
of mainland China with approved banks in the Hong Kong 
market (HKMA approved banks). The RMB H shares will have 
no requirement to remit CNH to onshore RMB (CNY). 

AB FCP I—Asia Ex-Japan Equity Portfolio 

Responsible investing. The Portfolio integrates ESG 
considerations. The Portfolio applies certain exclusions and 
details can be found at 
www.alliancebernstein.com/go/ABFCPIExclusionChart.  

The Portfolio is of the category that promotes environmental 
and social characteristics (SFDR Article 8; see “Appendix 
E: SFDR Pre-Contractual Disclosures” for more 
information).  

I-25 

 
 
 
 
 
Summary Information 

Portfolio Features 
Currency of the 
Portfolio 

USD 

  Order Cut-Off 

Times 

Net Asset Value 
Calculation 

Net Asset Value 
Publication 

Class Names 

Each Business Day 

Available at www.alliancebernstein.com 

H means Currency Hedged Share Classes.  
For additional information on share class 
hedging, see “How to Purchase Shares—
Currency Hedged Share Classes” and 
“Risk Factors -- Currency Hedged Share 
Class Risk” in Section II. 

AB FCP I—Asia Ex-Japan Equity Portfolio 

For USD-Denominated Share Classes, JPY-
Denominated Share Classes, GBP-
Denominated Share Classes, EUR-
Denominated Share Classes, HKD-
Denominated Share Classes and Currency 
Hedged Share Classes (except RMB Hedged 
Share Classes) 
6:00 P.M. Central European Time on each 
Business Day 

For RMB Hedged Share Classes 
1:00 P.M. Central European Time on each 
Business Day 

  Distributions* 

For class A, C, I, S and S1 shares 
None  

For class AD, ED, ID and SD shares 
To be declared and payable monthly 

For class AY and BY shares 
To be declared and paid at the Management 
Company’s discretion 

See "Distributions" below. 

*Includes Hedged Share Classes 

Share Class Fees and Charges1 

USD-Denominated Share Classes 

Initial Sales Charge3 

Management 
Fee4 

Distribution 
Fee5 

Contingent Deferred Sales 
Charge6 

Class A and AD Shares 

Up to 5.00% 

1.70% 

None 

None 

Class C Shares 

None 

2.15% 

None 

Class ED Shares9  

None 

1.70% 

1.00% 

Class I and ID Shares8 
Class S Shares7 
Class S1 Shares 
Class SD Shares7 

JPY-Denominated Share Classes 

Up to 1.50% 
None 
None 
None 

0.90% 
None 
0.90% 
None 

None 
None 
None 
None 

Class AY Shares 

Up to 5.00% 

1.70% 

None 

Class BY Shares2 

None 

1.45% 

0.72% 

I-26 

0–1 year held=1.0% 
thereafter 0% 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 
None 
None 
None 

None 

0–1 year held=4.50% 
1–2 yrs=3.75% 
2–3 yrs=3.25% 
3–4 yrs=2.50% 
4-5 yrs=2.00% 
5-6 yrs=1.25% 
6-7 yrs=0.75% 
7+ yrs=0% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GBP-Denominated Share Classes 

Class I Shares8 

Up to 1.50% 

0.90% 

None 

None 

AB FCP I—Asia Ex-Japan Equity Portfolio 

EUR-Denominated Share Classes 

Class A and AD Shares 

Up to 5.00% 

Class C Shares 

Class I Shares8 
Class S1 Shares 

HKD-Denominated Share Classes 

Class A and AD Shares 

Class S Shares7 

AUD Hedged Share Classes 

Class  A AUD H and 
AD AUD H Shares 

None 

Up to 1.50% 
None 

Up to 5.00% 

None 

1.70% 

2.15% 

0.90% 
0.90% 

1.70% 

None 

None 

None 

None 
None 

None 

None 

None 

0–1 year held=1.0% 
thereafter 0% 

None 
None 

None 

None 

Up to 5.00% 

1.70% 

None 

None 

Class C AUD H Shares 

None 

2.15% 

None 

Class ED AUD H Shares9  

None 

1.70% 

1.00% 

0–1 year held=1.0% 
thereafter 0% 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

Class I AUD H and  
ID AUD H Shares8 

SGD Hedged Share Classes 

Class A SGD H and AD SGD H 
Shares 

CAD Hedged Share Classes 

Up to 1.50% 

0.90% 

None 

None 

Up to 5.00% 

1.70% 

None 

None 

Class AD CAD H Shares 

Up to 5.00% 

1.70% 

None 

None 

GBP Hedged Share Classes 

Class AD GBP H Shares 

Up to 5.00% 

1.70% 

None 

None 

RMB* Hedged Share Classes 
Class AD RMB H Shares 

EUR Hedged Share Classes 

Up to 5.00% 

1.70% 

None 

None 

Class AD EUR H Shares 

Up to 5.00% 

1.70% 

None 

None 

NZD Hedged Share Classes 

Class AD NZD H Shares 

Up to 5.00% 

1.70% 

None 

ZAR Hedged Share Classes 
Class AD ZAR H Shares 

Up to 5.00% 

1.70% 

None 

None 

None 

I-27 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class ED ZAR H Shares9 

None 

1.70% 

1.00% 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

AB FCP I—Asia Ex-Japan Equity Portfolio 

1   The Management Company, Administrator, Depositary and Transfer 

Agent are entitled to receive, out of the assets of the Portfolio, fees as 
described under "Other Portfolio Information—Management 
Company, Administrator, Depositary and Transfer Agent Fees" below.  
The Portfolio also bears all of its  
other expenses.  See "How to Purchase Shares" and "Additional 
Information—Fees and Expenses" in Section II.  The Management 
Company has voluntarily undertaken, until the Management Company 
on behalf of the Fund notifies Shareholders to the contrary, that if, in 
any fiscal year, the aggregate fees and expenses with respect to the 
following share classes of the Portfolio (including any management 
fee and all other fees and expenses set out in "Additional 
Information—Fees and Expenses" in Section II, including Luxembourg 
Taxe d'Abonnement but exclusive of certain other taxes, brokerage (if 
applicable) and  interest on borrowings) exceed the following 
percentages of the Portfolio's average Net Asset Value for the fiscal 
year attributable to the Portfolio's share classes (and corresponding H 
shares) as follows: A (2.05%), AD (2.05%), AY (2.05%),  BY (2.52%), 
C (2.50%), ED (3.05%), I (1.25%), ID (1.25%), S (0.30%) S1 (1.20%) 
and SD (0.30%), the Fund may deduct from the payment to be made 
to the Management Company, or the Management Company will 
otherwise bear, such excess fees and expenses. 

2   After seven years from the date of purchase, BY shares are eligible 

for conversion to class  AY shares,  without charge from either the 
Fund or the Management Company.  For further details on the 
conversion of shares, please refer to "How to Exchange or Convert 
Shares—Conversion of CDSC Shares" in Section II of the 
Prospectus. 

3   As a percentage of purchase price. 
4   As an annual percentage of average daily Net Asset Value. With 
respect to certain share classes, the management fee may also 
include a component that is paid to distributors or other financial 
intermediaries and service providers.  For further details on the 
management fee, please refer to "Additional Information—Fees and 
Expenses" in Section II.   

5   As an annual percentage of average daily Net Asset Value.   

Other Share Class Features 

6   For all relevant share classes except BY, as a percentage of the 
lesser of the current Net Asset Value or original cost of the 
Shares being redeemed and based upon the duration that such 
Shares are held. For class BY shares, as a percentage of the 
original cost of the shares being redeemed and based upon the 
duration that such shares are held. CDSC Shares may only be 
purchased through a dealer authorized by the Distributor to offer 
such shares.  Those investors considering an investment in 
CDSC Shares should speak with their financial advisor for details. 
With respect to class C shares (and corresponding H shares), a 
dealer may elect to waive the contingent deferred sales charge in 
certain circumstances. 

7  Class S and SD shares are reserved for institutional investors that 

8 

9 

have entered into an agreement with the Management Company 
and are being charged an investment management fee 
separately. 
For further information on this share class, see “Additional Share 
Class Information” in Section II. 

 After three years from the date of purchase, class ED shares 
(and   corresponding H shares) will be converted to class AD 
shares (and corresponding H shares) without charge from either 
the Fund or the Management Company.  For further details on 
the conversion of shares, please refer to “How to Exchange or 
Convert Shares—Conversion of CDSC Shares” in Section II of 
the Prospectus. 

* 

“RMB” refers to offshore RMB (“CNH”) and not onshore RMB 
known as CNY. 

**  Effective 15 December 2016, Class B shares will no longer be 
offered. However, Class B shares may be made available for 
exchange to shareholders holding Class B shares (or a variation 
thereof including hedged share classes) in another Portfolio or 
other AB fund. 

Offered 
Currencies 

Minimum Initial 
Investment* 

Minimum 
Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

USD-Denominated Share Classes 

Class A and AD Shares 

Class C Shares 

Class ED Shares 

Class I and ID Shares 

Class S Shares 

Class S1 Shares 

Class SD Shares 

Dollar 

Dollar 

Dollar 
Dollar 

Dollar 

Dollar 

Dollar 

JPY-Denominated Share Classes 
Class AY Shares 
Class BY Shares 
GBP-Denominated Share Classes 
Class I Shares 

JPY 
JPY 

GBP 

$750 

$750 

$750 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

¥80,000 
¥80,000 

None 

None 
¥20,000,000 

None 

0.05% 

0.05% 

0.05% 

0.05% 

0.01% 

0.01% 

0.01% 

0.05% 
0.05% 

0.05% 

$2,000** 

$2,000** 

$2,000 
$1 million** 

$25 million** 

$25 million** 

$25 million** 

¥200,000** 
¥200,000** 

£1,000,000 

I-28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—Asia Ex-Japan Equity Portfolio 

EUR-Denominated Share Classes 
Class A and AD Shares 
Class C Shares 
Class I Shares 
Class S1 Shares 

EUR 
EUR 
EUR 
EUR 

HKD-Denominated Share Classes 
Class A and AD Shares 
Class S Shares 

HKD 
HKD 

€ 2,000 
€ 2,000 
€1 million** 
€20 million** 

€ 750 
€ 750 
None 
None 

HK$15,000 
HK$200 million** 

HK$5,000 
None 

None 
None 
None 
None 

None 
None 

0.05% 
0.05% 
0.05% 
0.01% 

0.05% 
0.01% 

AUD Hedged Share Classes 
Class A AUD H and AD 
AUD H Shares 
Class C AUD H Shares 
Class ED AUD H Shares 
Class I AUD H and ID 
AUD H Shares 

SGD Hedged Share Classes 
Class A SGD H and AD 
SGD H Shares 

Hedged 
Currencies 

Minimum Initial 
Investment* 

AUD 

AUD 
AUD 

AUD 

A$2,000 

A$2,000 
A$2,000 

A$1 million** 

Minimum 
Subsequent 
Investment* 

A$750 

A$750 
A$750 

None 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

None 

None 
None 

None 

0.05% 

0.05% 
0.05% 

0.05% 

SGD 

S$3,000 

S$1,000 

None 

0.05% 

CAD Hedged Share Classes 
Class AD CAD H Shares 

GBP Hedged Share Classes 
Class AD GBP H Shares 

CAD 

GBP 

C$2,000 

C$750 

£2,000 

£750 

None 

None 

0.05% 

0.05% 

RMB 

RMB 10,000 

RMB 3,750 

None 

0.05% 

RMB Hedged Share Classes 
Class AD RMB H Shares 

EUR Hedged Share Classes 
Class AD EUR H Shares 

NZD Hedged Share Classes 
Class AD NZD H Shares 

EUR 

€2,000 

€750 

NZD 

NZ$3,000 

NZ$1,000 

ZAR Hedged Share Classes 
Class AD ZAR H Shares 
Class ED ZAR H Shares 

ZAR 
ZAR 

ZAR 20,000 
ZAR 20,000 

ZAR 7,000 
ZAR 7,000 

None 

None 

None 
None 

0.05% 

0.05% 

0.05% 
0.05% 

* 

Does not apply to automatic investment plans, where offered. 

**  May be waived by the Management Company in its sole 

discretion. 

***  Annual Luxembourg tax payable quarterly by each portfolio.

I-29 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Portfolio Information 

Principal Investment Types 
For a chart summarizing the principal types of investments 
used by the Portfolio and a description of securities and other 
instruments in which the Portfolio may invest, investors 
should refer to "Investment Types" in Section II.  The ability of 
the Portfolio to invest in any securities or instruments is 
subject to the restrictions in the Portfolio's stated investment 
objective and policies and the limitations contained in 
"Investment Restrictions" in Appendix A to Section II. 

Risk Profile 
It is intended that this Portfolio will make use of financial 
derivative instruments. The investment restrictions (9) to (13) 
set forth in Appendix A to Section II will not apply.  

Investments of the Portfolio are subject to higher risks 
inherent in equity investments. In general, the value of equity 
investments may fluctuate, sometimes dramatically, in 
response to the activities and results of individual companies 
or because of general market, economic, political and natural 
conditions that are difficult to predict.  Such factors include 
the possibility of sudden or prolonged market declines and 
risks associated with individual companies.  Historically, 
equity securities have provided greater long-term returns and 
have entailed greater short-term risks than other investment 
choices. 

Because the Portfolio will primarily invest in securities of 
issuers situated in the Asia ex-Japan region it will be directly 
affected by volatility in various securities markets in the 
region, which have experienced periods of dramatic 
expansion and contraction, and changes in economic and 
political climate in the region generally. 

The Portfolio is subject to market, interest rate and currency 
fluctuations and to other risks inherent in investing in 
securities.  Therefore, no assurance can be given that the 
investment objective will be achieved, that invested capital 
will be preserved, or that capital appreciation will occur.  
Investment results may vary substantially on a monthly, 
quarterly or annual basis. An investment in the Portfolio does 
not represent a complete investment program. 

For a chart summarizing the principal risks of the Portfolio 
and a more detailed discussion of these and other risks 
applicable to the Portfolio, investors should refer to "Risk 
Factors" in Section II. 

Profile of the Typical Investor 
The Portfolio will suit higher risk-tolerant investors seeking 
the medium to long term rewards of equity investment.  
Investors are encouraged to consult their independent 
financial advisors regarding the suitability of Shares of the 
Portfolio for their investment needs. 

Distributions 
For class A, C, I, S and S1 shares (and corresponding H 
shares), the Management Company currently does not intend 

AB FCP I—Asia Ex-Japan Equity Portfolio 

to pay distributions with respect to the Shares. Therefore, any 
net income and net realized profits attributable to the Shares 
will be reflected in the respective Net Asset Value of the 
Shares. 

For class AY and class BY shares, the Management 
Company has discretion to declare and pay distributions 
based on the Portfolio's net income attributable to each class 
of Shares. 

For class AD, ED, ID and SD shares (and corresponding H 
shares), the Management Company intends to declare and 
pay monthly distributions. The Management Company 
intends to maintain a stable distribution rate per share for 
such share classes, and therefore distributions may come 
from gross income (before reduction for fees and expenses), 
realized and unrealized gains and capital attributable to the 
relevant class. Distributions in excess of net income (gross 
income less fees and expenses) may represent a return of 
the investor’s original investment amount and as such may 
result in a decrease in the NAV per share for the relevant 
class.   

The Management Company also may determine if and to 
what extent distributions paid include realized capital gains 
and/or are paid out of capital attributable to the relevant class 
of Shares Distributions may be automatically reinvested at 
the election of the Shareholder.  

Management Company, Administrator, Depositary and 
Transfer Agent Fees 
For all Shares (and corresponding H shares)  except class S, 
S1 shares and SD, the Management Company is paid an 
annual fee out of the assets of the Portfolio on the aggregate 
Net Asset Value attributable to the Shares equal to 0.05% of 
average daily Net Asset Value.  The Management Company 
is paid an annual fee out of the assets of the Portfolio on the 
aggregate Net Asset Value attributable to the class S, S1 
shares and SD equal to the lesser of $50,000 or 0.01% of 
average daily Net Asset Value.   

The Administrator fee, Depositary fee and Transfer Agent fee 
for the Portfolio are paid out of the assets of the Portfolio in 
accordance with the usual practice in Luxembourg and shall 
not exceed a fixed maximum specified under Section II of the 
prospectus under “Administrator, Depositary and Transfer 
Agent Fees”.  These fees may decrease or increase 
depending on the assets of the Portfolio and transaction 
volume or for other reasons. 

Organizational Expenses 
The Portfolio has no unamortized organizational expenses. 

Historical Performance 
Information on the historical performance of the Portfolio, 
once available, may be found at www.alliancebernstein.com. 

History 
The Portfolio was established as a portfolio of the Fund on 30 
November 2009. 

I-30 

 
 
AB FCP I—Japan Strategic Value Portfolio 

Investment Objective and Policies 

Investment Objective 
The investment objective of the Portfolio is long-term capital 
growth by investing in a portfolio of equity securities of 
Japanese companies that are determined by the Investment 
Manager to be undervalued.  For these purposes, a "Japanese 
company" is a company that that (i) is domiciled or organized in 
Japan, or (ii) is established and conducting business in Japan 
or (iii) carries out the preponderant part of its economic 
activities in Japan. 

Description of Investment Discipline and Process 
The Investment Manager believes that, over time, a company’s 
stock price will come to reflect its intrinsic economic value. The 
Investment Manager’s fundamental value approach to equity 
investing generally defines value by reference to the 
relationship between a security's current price and its intrinsic 
economic value as measured by long-term earnings prospects.  
This approach seeks to identify, in the first instance, a universe 
of Japanese securities that are considered to be undervalued 
because they are attractively priced relative to their future 
earnings power. Accordingly, forecasting corporate earnings 
and dividend-paying capability is the heart of the fundamental 
value approach.  

Under normal market conditions the Portfolio will invest in a 
portfolio of approximately 30-50 companies. 

The Investment Manager’s value analysis depends heavily 
upon its large internal research staff and fundamental company 
and industry research.  The Investment Manager's analysts are 
organized into global industry teams rather than by geography 
or asset class, since companies around the world within an 
industry tend to share similar profit and market dynamics.  
Company and industry analysts research Japanese 
companies, which are screened by a proprietary quantitative 
return model, to forecast earnings, cash flow, and balance 
sheet strength for the companies for each of the next five 
years.  If a company has many business lines, the analysts 
conduct this exercise for each in order to build a composite 
forecast for the company based in part on present and future 
determinants of demand for any company's products or 
services. These analysts also evaluate pricing strategies used 
by companies when competing for market share. Finally, an 
evaluation of the management and the financial ability of each 
company to implement its corporate strategy supplement the 
analysis.  

The Investment Manager seeks undervalued securities based 
on the disparity between a company’s intrinsic economic value 
and its stock price, with companies having the greatest 
disparities being considered the most undervalued. 

The Investment Manager considers aggregate portfolio 
characteristics when deciding how much of each security to 
purchase for the Portfolio.  The Investment Manager’s 
quantitative analysts build valuation and risk models to ensure 
that the portfolio is constructed to obtain an effective balance of 
risk and return.  By evaluating overall sector concentration, 
degree of undervaluation and other subtle similarities among 
investments, the Investment Manager seeks to minimize 
overall Portfolio volatility by favoring those attractive securities 
that also tend to diversify the Portfolio’s risk. 

I-31 

A disparity between a company’s current stock price and 
the assessment of intrinsic value can arise, at least in part, 
as a result of adverse, short-term market reactions to recent 
events or trends.  In order to reduce the risk that an 
undervalued security will be purchased before such an 
adverse market reaction has run its course, the Investment 
Manager also monitors analysts’ earnings estimate 
revisions and relative return trends  (also called “price 
momentum”) so as to better time new purchases and sales 
of securities. 

Other Investment Policies 
As a temporary defensive measure, or to provide for 
redemptions, the Portfolio may, without limit, hold cash, 
cash equivalents, or short-term fixed-income obligations, 
including money market instruments. 

The Portfolio may invest up to 10% of its net assets in 
securities for which there is no ready market.  See 
paragraph (5) of "Investment Restrictions" in Appendix A to 
Section II.  The Portfolio may therefore not be readily able 
to sell such securities.  Moreover, there may be contractual 
restrictions on the resale of such securities. 

The Investment Manager expects that at any time at least 
80% of the Portfolio's total assets will be invested in equity 
securities of Japanese companies, and in no case will the 
amount of the Portfolio's total assets invested in such 
securities be less than two-thirds of the Portfolio's total 
assets.   

Efficient portfolio management and hedging techniques 
may include use of exchange-traded and OTC derivative 
instruments, including swaps, options, futures and currency 
transactions.  

In accordance with the transparency requirements of the 
SFT Regulation the chart below reflects, where applicable, 
the expected and maximum level of the Portfolio’s net 
assets that will be subject to securities financing 
transactions (i.e. securities lending transactions as well as 
repurchase agreements and reverse repurchase 
agreements) (“SFTs”) and total return swaps and/or other 
financial derivative instruments with similar characteristics 
(“TRS”); being specified that in certain circumstances this 
proportion may be higher.   

Type of 
Transactions 

TRS 

Repurchase 
agreements and 
reverse repurchase 
agreements 

Securities lending 
transactions 

Expected Range  Maximum 

0%-10% 

N/A 

25% 

N/A 

0%-10% 

25% 

 
 
AB FCP I—Japan Strategic Value Portfolio 

is not constrained by its benchmark when implementing the 
Portfolio’s investment strategy. Although the Portfolio may 
hold, in certain market conditions and subject to the 
Investment Manager’s full discretion, a significant part of 
the components of the benchmark, it will not hold every 
component of the benchmark and may also hold securities 
that are not part of it. 

Responsible investing. The Portfolio integrates ESG 
considerations. The Portfolio applies certain exclusions and 
details can be found at 
www.alliancebernstein.com/go/ABFCPIExclusionChart.  

The Portfolio is of the category that promotes environmental 
and social characteristics (SFDR Article 8; see “Appendix 
E: SFDR Pre-Contractual Disclosures” for more 
information).  

For further details concerning SFTs and TRS, please refer to 
“Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and Instruments 
and Collateral Management.” 

Currency Hedged Share Classes  

One or more of the Portfolio’s share classes offered in a 
particular currency (each, an “Offered Currency”) may be 
hedged to such Offered Currency.  Any such share class will 
constitute a “Currency Hedged Share Class.”  Currency 
Hedged Share Classes aim to provide investors a return more 
closely correlated to the Portfolio’s base currency return by 
reducing the effect of exchange rate fluctuations between the 
Portfolio’s base currency (i.e., Yen) and the relevant Offered 
Currency, taking into account practical considerations such as 
transaction costs.  The hedging strategy employed is designed 
to reduce, but may not eliminate, currency exposure between 
the Portfolio’s base currency and the Offered Currency. 

Currency Hedged Share Classes do not affect the investment 
management of the Portfolio’s underlying assets since it is only 
the net asset value (NAV) of the Currency Hedged Share 
Classes, not the Portfolio’s underlying assets, which is hedged 
to the Offered Currency.  Expenses incurred as a result of such 
hedging activity will be borne by the Currency Hedged Share 
Class in relation to which such expenses are incurred.  

For additional information on share class hedging, see “How to 
Purchase Shares—Currency Hedged Share Classes” in 
Section II.  

Risk Measurement. The methodology used in order to monitor 
the global exposure (market risk) resulting from the use of 
financial derivative instruments is the commitment approach in 
accordance with the CSSF Circular 11/512. 

Benchmark. The Portfolio’s benchmark is the TOPIX Index. 
The Portfolio uses the benchmark for performance comparison. 
The Portfolio is actively managed and the Investment Manager 

I-32 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary Information 

Portfolio Features 
Currency of the 
Portfolio 

Yen 

AB FCP I—Japan Strategic Value Portfolio 

  Distributions* 

For class A, C, I, S, S1 and 2 shares 
None   

Net Asset Value 
Calculation 

Each Business Day 

Net Asset Value 
Publication 

Investors should contact the Management 
Company for current Net Asset Value 

Class Name 

H means Currency Hedged Share Classes.  
For additional information on share class 
hedging, see “How to Purchase Shares—
Currency Hedged Share Classes” and “Risk 
Factors -- Currency Hedged Share Class 
Risk” in Section II. 

  Redemptions 

Order Cut-Off Time 

6:00 P.M. Central European Time on each 
Business Day 

Share Class Fees and Charges1 

For class AD and SD shares 
To be declared and payable monthly 

See "Distributions" below. 

*Includes Hedged Share Classes 

Payment of the redemption proceeds (the 
redemption price less any applicable 
contingent deferred sales charge) will be 
made by the Depositary or its agents 
usually within four Business Days.  For 
further details on redemptions, please refer 
to "How to Redeem Shares" in Section II. 

Initial Sales Charge2 

Management Fee3 

Distribution Fee4 

Contingent Deferred 
Sales Charge5 

JPY-Denominated Share Classes 

Class A Shares 

Up to 5.00% 

Class AD Shares 

Up to 5.00% 

Class C Shares 

Class I Shares7 
Class S Shares6 
Class SD Shares6 
Class 2 Shares 

None 

Up to 1.50% 

None 

None 
None 

EUR-Denominated Share Classes 

Class A Shares 

Up to 5.00% 

Class C Shares 

Class I Shares7 
Class S1 Shares 

None 

Up to 1.50% 
None 

PLN-Denominated Share Classes 

1.50% 

1.50% 

1.95% 

0.70% 

None 

None 
1.20% 

1.50% 

1.95% 

0.70% 
0.65% 

Class A Shares 

Up to 5.00% 

1.50% 

SGD-Denominated Share Classes 

Class A Shares 

Class I Shares7 

Up to 5.00% 

Up to 1.50% 

1.50% 

0.70% 

USD-Denominated Share Classes 

Class A Shares 

Up to 5.00% 

1.50% 

I-33 

None 

None 

None 

None 

None 

None 
None 

None 

None 

None 
None 

None 

None 

None 

None 

None 

None 

0—1 year held=1.0% 
thereafter 0% 

None 

None 

None 
None 

None 

0—1 year held=1.0% 
thereafter 0% 
None 
None 

None 

None 

None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class C Shares 

None 

Class I Shares7 
Class S1 Shares 

Up to 1.50% 
None 

EUR Hedged Share Classes 

Class A EUR H Shares 

Up to 5.00% 

Class C EUR H Shares 

None 

Class I EUR H Shares7 
Class S EUR H Shares6 
Class S1 EUR H Shares 

Up to 1.50% 

None 
None 

USD Hedged Share Classes 

Class A USD H Shares 

Up to 5.00% 

Class AD USD H Shares 

Up to 5.00% 

Class I USD H Shares7 
Class S USD H Shares6 
Class S1 USD H Shares 

Up to 1.50% 
None 
None 

AUD Hedged Share Classes 

Class A AUD H Shares 

Up to 5.00% 

Class AD AUD H Shares 

Up to 5.00% 

NZD Hedged Share Classes 

Class A NZD H Shares 

Up to 5.00% 

Class AD NZD H Shares 

Up to 5.00% 

SGD Hedged Share Classes 

Class A SGD H Shares 

Up to 5.00% 

Class AD SGD H Shares 

Up to 5.00% 

Class I SGD H Shares7 

Up to 1.50% 

ZAR Hedged Share Classes 

1.95% 

0.70% 
0.65% 

1.50% 

1.95% 

0.70% 

None 
0.65% 

1.50% 

1.50% 

0.70% 
None 
0.65% 

1.50% 

1.50% 

1.50% 

1.50% 

1.50% 

1.50% 

0.70% 

Class AD ZAR H Shares 

Up to 5.00% 

1.50% 

CZK Hedged Share Classes 

Class A CZK H Shares 

Up to 5.00% 

HKD Hedged Share Classes 
Class I HKD H Shares7 

Up to 1.50% 

1.50% 

0.70% 

I-34 

AB FCP I—Japan Strategic Value Portfolio 

None 

None 
None 

None 

None 

None 

None 
None 

None 

None 

None 
None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

0—1 year held=1.0% 
thereafter 0% 

None 
None 

None 

0—1 year held=1.0% 
thereafter 0% 

None 

None 
None 

None 

None 

None 
None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1   The Management Company, Administrator, Depositary and Transfer 

Agent are entitled to receive, out of the assets of the Portfolio, fees as 
described under "Other Portfolio Information—Management 
Company, Administrator, Depositary and Transfer Agent Fees" below.  
The Portfolio also bears all of its other expenses.  See "How to 
Purchase Shares" and "Additional Information—Fees and Expenses" 
in Section II.  The Management Company has voluntarily undertaken, 
until the Management Company on behalf of the Fund notifies 
Shareholders to the contrary, that if, in any fiscal year, the aggregate 
fees and expenses with respect to the following share classes of the 
Portfolio (including any management fee and all other fees and 
expenses set out in "Additional Information—Fees and Expenses" in 
Section II, including Luxembourg Taxe d'Abonnement but exclusive of 
certain other taxes, brokerage (if applicable) and  interest on 
borrowings) exceed the following percentages of the Portfolio's 
average Net Asset Value for the fiscal year attributable to the 
Portfolio's share classes (and corresponding H shares) as follows: A 
(1.70%), AD (1.70%),  C (2.60%), I (0.90%), S (0.15%), S1 (0.80%), 
SD (0.15%) and 2 (1.35%), the Fund may deduct from the payment to 
be made to the Management Company, or the Management 
Company will otherwise bear, such excess fees and expenses. 

2   As a percentage of purchase price. 
3   As an annual percentage of average daily Net Asset Value. With 
respect to certain share classes, the management fee may also 

Other Share Class Features 

Offered Currencies 

Minimum Initial 
Investment* 

JPY-Denominated Share Classes 
Class A Shares 

Class AD Shares 

Class C Shares 

Class I Shares 

Class S Shares 

Class SD Shares 
Class 2 Shares 

Yen 

Yen 

Yen 

Yen 

Yen 

Yen 
Yen 

EUR-Denominated Share Classes 
Class A Shares 
Class C Shares 
Class I Shares 
Class S1 Shares 

Euro 
Euro 
Euro 
Euro 

PLN-Denominated Share Classes 
Class A Shares 

PLN 

SGD-Denominated Share Classes 
Class A Shares 
Class I Shares 

SGD 
SGD 

USD-Denominated Share Classes 
Class A Shares 
Class C Shares 
Class I Shares 
Class S1 Shares 

Dollar 
Dollar 
Dollar 
Dollar 

include a component that is paid to distributors or other financial 
intermediaries and service providers.  For further details on the 
management fee, please refer to "Additional Information—Fees 
and Expenses" in Section II.   

4   As an annual percentage of average daily Net Asset Value.   
5   As a percentage of the lesser of the current Net Asset Value or 
original cost of the Shares being redeemed and based upon the 
duration that such Shares are held.  CDSC Shares may only be 
purchased through a dealer authorized by the Distributor to offer 
such shares.  Those investors considering an investment in 
CDSC Shares should speak with their financial advisor for details. 
With respect to class C shares (and corresponding H shares), a 
dealer may elect to waive the contingent deferred sales charge in 
certain circumstances. 

6  Class S and SD shares are reserved for institutional investors that 

have entered into an agreement with the Management Company 
and are being charged an investment management fee 
separately. 
For further information on this share class, see “Additional Share 
Class Information” in Section II. 

7 

Minimum 
Subsequent 
Investment* 

¥80,000 

¥80,000 

¥80,000 

None 

None 

None 
None 

€750 
€750 
None 
None 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

None 

None 

None 

None 

None 

None 
None 

None 
None 
None 
None 

0.05% 

0.05% 

0.05% 

0.05% 

0.01% 

0.01% 
0.05% 

0.05% 
0.05% 
0.05% 
0.01% 

¥200,000 

¥200,000 

¥200,000 

¥100 million** 

¥2.5 billion** 

¥2.5 billion** 
¥400 million** 

€2,000 
€2,000 
€1 million** 
€20 million** 

PLN 7,500 

PLN 3,000 

None 

0.05% 

S$3,000 
S$1.5 million** 

S$1,000 
None 

$2,000 
$2,000 
$1 million** 
$25 million** 

$750 
$750 
None 
None 

None 
None 

None 
None 
None 
None 

0.05% 
0.05% 

0.05% 
0.05% 
0.05% 
0.01% 

Hedged 
Currencies 

Minimum Initial 
Investment* 

EUR Hedged Share Classes 
Class A EUR H Shares 
Class C EUR H Shares 
Class I EUR H Shares 

Euro 
Euro 
Euro 

€2,000 
€2,000 
€1 million** 

Minimum 
Subsequent 
Investment* 

€750 
€750 
None 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

None 
None 
None 

0.05% 
0.05% 
0.05% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class S EUR H Shares 
Class S1 EUR H Shares 

USD Hedged Share Classes 
Class A USD H Shares 
Class AD USD H Shares 
Class I USD H Shares 
Class S USD H Shares 
Class S1 USD H Shares 

AUD Hedged Share Classes 
Class A AUD H Shares 
Class AD AUD H Shares 

NZD Hedged Share Classes 
Class A NZD H Shares 
Class AD NZD H Shares 
SGD Hedged Share Classes 
Class A SGD H Shares 
Class AD SGD H Shares 
Class I SGD H Shares 

ZAR Hedged Share Classes 
Class AD ZAR H Shares 

CZK Hedged Share Classes 
Class A CZK H Shares 

HKD Hedged Share Classes 
Class I HKD H Shares  

Euro 
Euro 

Dollar 
Dollar 
Dollar 
Dollar 
Dollar 

AUD 
AUD 

NZD 
NZD 

SGD 
SGD 
SGD 

ZAR 

CZK 

AB FCP I—Japan Strategic Value Portfolio 

€20 million** 
€20 million** 

$2,000 
$2,000 
$1 million** 
$25 million** 
$25 million** 

A$2,000 
A$2,000 

NZ$3,000 
NZ$3,000 

S$3,000 
S$3,000 
S$1.5 million** 

None 
None 

$750 
$750 
None 
None 
None 

A$750 
A$750 

NZ$1,000 
NZ$1,000 

S$1,000 
S$1,000 
None 

None 
None 

None 
None 
None 
None 
None 

None 
None 

None 
None 

None 
None 
None 

0.01% 
0.01% 

0.05% 
0.05% 
0.05% 
0.01% 
0.01% 

0.05% 
0.05% 

0.05% 
0.05% 

0.05% 
0.05% 
0.05% 

ZAR 20,000 

ZAR 7,000 

None 

0.05% 

CZK 50,000 

CZK 20,000 

None 

0.05% 

HKD 

HKD 8,000,000** 

None 

None 

0.05% 

Does not apply to automatic investment plans, where offered. 
* 
**  May be waived by the Management Company in its sole discretion. 

***  Annual Luxembourg tax payable quarterly by each portfolio. 

I-36 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Portfolio Information

Principal Investment Types 
For a chart summarizing the principal types of investments 
used by the Portfolio and a description of securities and other 
instruments in which the Portfolio may invest, investors 
should refer to "Investment Types" in Section II.  The ability of 
the Portfolio to invest in any securities or instruments is 
subject to the restrictions in the Portfolio's stated investment 
objective and policies and the limitations contained in 
"Investment Restrictions" in Appendix A to Section II. 

Risk Profile 
Investments of the Portfolio are subject to higher risks 
inherent in equity investments. In general, the value of equity 
investments may fluctuate, sometimes dramatically, in 
response to the activities and results of individual companies 
or because of general market, economic, political and natural 
conditions that are difficult to predict.  Such factors include 
the possibility of sudden or prolonged market declines and 
risks associated with individual companies.  Historically, 
equity securities have provided greater long-term returns and 
have entailed greater short-term risks than other investment 
choices. 

Because the Portfolio will primarily invest in securities of 
issuers situated in Japan it will be directly affected by 
volatility in Japanese securities markets, which have 
experienced periods of dramatic expansion and contraction, 
and changes in economic and political climate in Japan 
generally. 

The Portfolio is subject to market, interest rate and currency 
fluctuations and to other risks inherent in investing in 
securities.  Therefore, no assurance can be given that the 
investment objective will be achieved, that invested capital 
will be preserved, or that capital appreciation will occur.  
Investment results may vary substantially on a monthly, 
quarterly or annual basis. An investment in the Portfolio does 
not represent a complete investment program. 

For a chart summarizing the principal risks of the Portfolio 
and a more detailed discussion of these and other risks 
applicable to the Portfolio, investors should refer to "Risk 
Factors" in Section II. 

Profile of the Typical Investor 
The Portfolio will suit higher risk-tolerant investors seeking 
the medium to long term rewards of equity investment.  
Investors are encouraged to consult their independent 
financial advisors regarding the suitability of Shares of the 
Portfolio for their investment needs. 

Distributions 
For class A, C, I, S, S1 and 2 shares (and corresponding H 
shares), the Management Company currently does not intend 
to pay distributions with respect to the Shares. Therefore, any 

.

AB FCP I—Japan Strategic Value Portfolio 

net income and net realized profits attributable to the Shares 
will be reflected in the respective Net Asset Value of the 
Shares. 

For class AD and SD shares (and corresponding H shares), 
the Management Company intends to declare and pay 
monthly distributions.  The Management Company intends to 
maintain a stable distribution rate per share for such share 
classes, and therefore distributions may come from gross 
income (before reduction for fees and expenses), realized 
and unrealized gains and capital attributable to the relevant 
class. Distributions in excess of net income (gross income 
less fees and expenses) may represent a return of the 
investor’s original investment amount and as such may result 
in a decrease in the NAV per share for the relevant class. 

The Management Company in its discretion also may 
determine if and to what extent distributions paid include 
realized capital gains and/or are paid out of capital 
attributable to the relevant class of Shares. Distributions may 
be automatically reinvested at the election of the 
Shareholder. 

Management Company, Administrator, Depositary and 
Transfer Agent Fees 
For all Shares (and corresponding H shares) except class S, 
S1 shares and SD (and corresponding H shares), the 
Management Company is paid an annual fee out of the 
assets of the Portfolio on the aggregate Net Asset Value 
attributable to the Shares equal to 0.05% of average daily 
Net Asset Value.  The Management Company is paid an 
annual fee out of the assets of the Portfolio on the aggregate 
Net Asset Value attributable to the class S, S1 shares and 
SD (and corresponding H shares) equal to the lesser of 
$50,000 or 0.01% of average daily Net Asset Value.   

The Administrator fee, Depositary fee and Transfer Agent fee 
for the Portfolio are paid out of the assets of the Portfolio in 
accordance with the usual practice in Luxembourg and shall 
not exceed a fixed maximum specified under Section II of the 
prospectus under “Administrator, Depositary and Transfer 
Agent Fees”. These fees may decrease or increase 
depending on the assets of the Portfolio and transaction 
volume or for other reasons. 

Organizational Expenses 
The Portfolio has no unamortized organizational expenses.  
Historical Performance 
Information on the historical performance of the Portfolio, 
once available, may be found at www.alliancebernstein.com. 

History 
The Portfolio was established as a portfolio of the Fund on 15 
December 2005.

I-37 

 
 
AB FCP I—China Low Volatility Equity Portfolio  

Investment Objective and Policies 

Investment Objective 
The Portfolio's investment objective is to achieve long-term 
capital appreciation.  

Description of Investment Discipline and Process 
The Portfolio will seek to achieve its investment objective by 
investing at least 80% of its total assets in securities which 
provide exposure to Chinese companies that the Investment 
Manager believes have fundamentally lower volatility and less 
downside risks in the future.  The Investment Manager uses its 
proprietary risk and return models as well as its judgment and 
experience in managing investment portfolios to construct a 
portfolio with a balance of quality, stability and reasonable 
valuation.  The Investment Manager seeks to achieve the 
investment objective while limiting volatility to the MSCI China 
Index USD. 

Chinese companies include such companies which (i) are 
domiciled or organized in China; (ii) are established and 
conducting business in China; (iii) conduct a significant part of 
its economic activities in China; or (iv) have business activities 
that are meaningfully impacted by economic developments in 
China. 

The Portfolio may invest in any Chinese company, industry 
sector and type of security with the potential for capital 
appreciation.   

The Portfolio is not restricted in the portion of its assets that 
may be invested in securities denominated in a particular 
currency, and a substantial portion of the Portfolio’s assets are 
expected to be invested in non-Dollar denominated securities. 

The Portfolio may invest in China A-shares through one or 
more capital markets regimes providing access to China, 
including the Shanghai-Hong Kong Stock Connect Scheme 
(the “Shanghai Connect”), the Shenzhen-Hong Kong Stock 
Connect Scheme (the "Shenzhen Connect", collectively with 
the Shanghai Connect, the "China Connect Scheme"), and the 
QFI scheme. See “Country Risks - China” in “Risk Factors” in 
the General Information of the Fund for additional details on 
China’s capital markets.  

Other Investment Policies 
As a temporary defensive measure, or to provide for 
redemptions, the Portfolio may, without limit, hold cash, cash 
equivalents, or short-term fixed-income obligations, including 
money market instruments. 

The Portfolio may invest up to 10% of its net assets in 
securities for which there is no ready market.  See paragraph 
(5) of "Investment Restrictions" in Appendix A to Section II.  
The Portfolio may therefore not be readily able to sell such 
securities.  Moreover, there may be contractual restrictions on 
the resale of such securities. 

Financial Derivative Instruments/Efficient Portfolio 
Management Techniques. 

The Portfolio may use derivatives for hedging, efficient portfolio 
management, or other risk management purposes.  Such 
financial derivative instruments and efficient portfolio 
management techniques may include, but are not limited to, 

I-38 

exchange traded and OTC derivatives such as swaps, 
options, futures, index futures and currency transactions 
(including forward currency contracts). 

In accordance with the transparency requirements of the 
SFT Regulation the chart below reflects, where applicable, 
the expected and maximum level of the Portfolio’s net 
assets that will be subject to securities financing 
transactions (i.e. securities lending transactions as well as 
repurchase agreements and reverse repurchase 
agreements) (“SFTs”) and total return swaps and/or other 
financial derivative instruments with similar characteristics 
(“TRS”); being specified that in certain circumstances this 
proportion may be higher.   

Type of 
Transactions 

TRS 

Repurchase 
agreements and 
reverse repurchase 
agreements 

Securities lending 
transactions 

Expected Range  Maximum 

0%-10% 

N/A 

25% 

N/A 

0%-10% 

25% 

For further details concerning SFTs and TRS, please refer 
to “Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and 
Instruments and Collateral Management.” 

Risk Measurement  
The methodology used in order to monitor the global 
exposure (market risk) resulting from the use of financial 
derivative instruments is the commitment approach in 
accordance with the CSSF Circular 11/512. 

Benchmark. The Portfolio’s benchmark is the MSCI China 
Index USD. The Portfolio uses the benchmark for 
performance comparison and volatility measurement. The 
Portfolio is actively managed and the Investment Manager 
is not constrained by its benchmark when implementing the 
Portfolio’s investment strategy. Although the Portfolio may 
hold, in certain market conditions and subject to the 
Investment Manager’s full discretion, a significant part of 
the components of the benchmark, it will not hold every 
component of the benchmark and may also hold securities 
that are not part of it. 

Currency Hedged Share Classes  

One or more of the Portfolio’s share classes offered in a 
particular currency (each, an “Offered Currency”) may be 
hedged to such Offered Currency.  Any such share class 
will constitute a “Currency Hedged Share Class.”  Currency 
Hedged Share Classes aim to provide investors a return 
more closely correlated to the Portfolio’s base currency 
return by reducing the effect of exchange rate fluctuations 
between the Portfolio’s base currency (i.e., Dollar) and the 
relevant Offered Currency, taking into account practical 

 
 
 
 
considerations such as transaction costs.  The hedging 
strategy employed is designed to reduce, but may not 
eliminate, currency exposure between the Portfolio’s base 
currency and the Offered Currency. 

Currency Hedged Share Classes do not affect the investment 
management of the Portfolio’s underlying assets since it is only 
the net asset value (NAV) of the Currency Hedged Share 
Classes, not the Portfolio’s underlying assets, which is hedged 
to the Offered Currency.  Expenses incurred as a result of such 
hedging activity will be borne by the Currency Hedged Share 
Class in relation to which such expenses are incurred.  

For additional information on share class hedging, see “How to 
Purchase Shares—Currency Hedged Share Classes” in 
Section II. 

Risk Factors linked to RMB Hedged Share Classes. Since 
2005, the RMB exchange rate is no longer pegged to the U.S. 
dollar. RMB has now moved to a managed floating exchange 
rate based on market supply and demand with reference to a 
basket of foreign currencies. The daily trading price of the RMB 
against other major currencies in the inter-bank foreign 
exchange market is allowed to float within a narrow band 
around the central parity published by the People’s Bank of 
China.  RMB convertibility from offshore RMB (CNH) to 
onshore RMB (CNY) is a managed currency process subject to 
foreign exchange control policies of and repatriation restrictions 
imposed by the Chinese government in coordination with the 
Hong Kong Monetary Authority (HKMA).  The value of CNH 
could differ, perhaps significantly, from that of CNY due to a 
number of factors including without limitation those foreign 

AB FCP I—China Low Volatility Equity Portfolio 

exchange control policies and repatriation restrictions 
pursued by the Chinese government from time-to-time as 
well as other external market forces. 

Since 2005, foreign exchange control policies pursued by 
the Chinese government have resulted in the general 
appreciation of RMB (both CNH and CNY). This 
appreciation may or may not continue and there can be no 
assurance that RMB will not be subject to devaluation at 
some point. Any devaluation of RMB could adversely affect 
the value of investors’ investments in the RMB H shares. 

The RMB H shares participate in the offshore RMB (CNH) 
market, which allows investors to freely transact CNH 
outside of mainland China with approved banks in the Hong 
Kong market (HKMA approved banks). The RMB H shares 
will have no requirement to remit CNH to onshore RMB 
(CNY). 

Responsible investing. The Portfolio integrates ESG 
considerations. The Portfolio applies certain exclusions and 
details can be found at 
www.alliancebernstein.com/go/ABFCPIExclusionChart.  

The Portfolio is of the category that promotes environmental 
and social characteristics (SFDR Article 8; see “Appendix 
E: SFDR Pre-Contractual Disclosures” for more 
information).  

I-39 

 
 
 
 
 
 
 
Summary Information 

Portfolio Features 
Currency of the 
Portfolio 

USD 

Net Asset Value 
Calculation 

Net Asset Value 
Publication 

Class Names 

Each Business Day 

Available at www.alliancebernstein.com 

H means Currency Hedged Share Classes.  
For additional information on share class 
hedging, see “How to Purchase Shares—
Currency Hedged Share Classes” and “Risk 
Factors -- Currency Hedged Share Class 
Risk” in Section II. 

AB FCP I—China Low Volatility Equity Portfolio 

  Order Cut-Off 

Times 

For all Share Classes (except RMB 
Hedged Share Classes) 
6:00 P.M. Central European Time on each 
Business Day 

For RMB Hedged Share Classes 
1:00 P.M. Central European Time on each 
Business Day  

Distributions* 

For class A, B, C, I, S and S1 shares 
None. 

For class AD shares 
To be declared and payable monthly. 

See "Distributions" below. 

*Includes Hedged Share Classes 

Share Class Fees and Charges1 

USD-Denominated Share Classes 

Initial Sales Charge3 

Management Fee4 

Distribution Fee5 

Contingent Deferred 
Sales Charge6 

Class A and AD Shares 

Up to 5.00% 

1.70% 

None 

None 

Class B Shares2** 

Class C Shares 

Class I Shares8 

Class S Shares7 

Class S1 Shares 

None 

None 

Up to 1.50% 

None 

None 

EUR-Denominated Shares Classes 

1.70% 

2.15% 

0.90% 

None 

0.75% 

1.00% 

None 

None 

None 

None 

0-1 year held = 4.0% 
1-2 years = 3.0% 
2-3 years = 2.0% 
3-4 years = 1.0% 
4+ years = 0% 

0-1 year held=1.0% 
thereafter 0% 

None 

None 

None 

Class A Shares 

Up to 5.00% 

1.70% 

None 

None 

Class B Shares2** 

None 

1.70% 

1.00% 

Class C Shares 

None 

Class I Shares8 

Up to 1.50% 

Class S1 Shares 

None 

None 

None 

None 

2.15% 

0.90% 

0.75% 

I-40 

0-1 year held = 4.0% 
1-2 years = 3.0% 
2-3 years = 2.0% 
3-4 years = 1.0% 
4+ years = 0% 

0-1 year held=1.0% 
thereafter 0% 

None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HKD-Denominated Share Classes 

Class A and AD Shares 

Up to 5.00% 

1.70% 

None 

None 

AB FCP I—China Low Volatility Equity Portfolio 

EUR Hedged Share Classes 

Class AD EUR H Shares 

Up to 5.00% 

1.70% 

AUD Hedged Share Classes 

Class AD AUD H Shares 

Up to 5.00% 

1.70% 

CAD Hedged Share Classes 

Class AD CAD H Shares 

Up to 5.00% 

1.70% 

GBP Hedged Share Classes 

Class AD GBP H Shares 

Up to 5.00% 

1.70% 

SGD Hedged Share Classes 

Class AD SGD H Shares 

Up to 5.00% 

1.70% 

NZD Hedged Share Classes 

Class AD NZD H Shares 

Up to 5.00% 

1.70% 

RMB* Hedged Share Classes 

Class AD RMB H Shares 

Up to 5.00% 

1.70% 

ZAR Hedged Share Classes 

Class AD ZAR H Shares 

Up to 5.00% 

PLN Hedged Share Classes 
Class A PLN H Shares 

Up to 5.00% 

1.70% 

1.70% 

1   The Management Company, Administrator, Depositary and Transfer 

Agent are entitled to receive, out of the assets of the Portfolio, fees as 
described under "Other Portfolio Information—Management 
Company, Administrator, Depositary and Transfer Agent Fees" below.  
The Portfolio also bears all of its other expenses.  See "How to 
Purchase Shares" and "Additional Information—Fees and Expenses" 
in Section II.  The Management Company has voluntarily undertaken, 
until the Management Company on behalf of the Fund notifies 
Shareholders to the contrary, that if, in any fiscal year, the aggregate 
fees and expenses with respect to the following share classes of the 
Portfolio (including any management fee and all other fees and 
expenses set out in "Additional Information—Fees and Expenses" in 
Section II, including Luxembourg Taxe d'Abonnement but exclusive of 
certain other taxes, brokerage (if applicable) and  interest on 
borrowings) exceed the following percentages of the Portfolio's 
average Net Asset Value for the fiscal year attributable to the 
Portfolio's share classes (and corresponding H shares) as follows: A 
(1.99%), AD (1.99%), B (2.99%), C (2.44%), I (1.19%), S (0.16%) and 
S1 (0.91%), the Fund may deduct from the payment to be made to 
the Management Company, or the Management Company will 
otherwise bear, such excess fees and expenses. 

2   After six years from the date of purchase, class B shares are eligible 
for conversion to class A shares, without charge from either the Fund 
or the Management Company.  For further details on the conversion 
of shares, please refer to "How to Exchange or Convert Shares—
Conversion of CDSC Shares" in Section II of the Prospectus. 

3   As a percentage of purchase price. 
4   As an annual percentage of average daily Net Asset Value. With 
respect to certain share classes, the management fee may also 
include a component that is paid to distributors or other financial 

I-41 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

intermediaries and service providers.  For further details on the 
management fee, please refer to "Additional Information—Fees 
and Expenses" in Section II.  

5   As an annual percentage of average daily Net Asset Value.   
6   As a percentage of the lesser of the current Net Asset Value or 
original cost of the Shares being redeemed and based upon the 
duration that such Shares are held.  CDSC Shares may only be 
purchased through a dealer authorized by the Distributor to offer 
such shares.  Those investors considering an investment in 
CDSC Shares should speak with their financial advisor for details. 
With respect to class C shares, a dealer may elect to waive the 
contingent deferred sales charge in certain circumstances. 
7  Class S shares are reserved for institutional investors that have 
entered into an agreement with the Management Company and 
are being charged an investment management fee separately. 
For further information on this share class, see “Additional Share 
Class Information” in Section II. 

8 

* 

“RMB” refers to offshore RMB (“CNH”) and not onshore RMB 
known as CNY 

**  Effective 15 December 2016, Class B shares will no longer be 
offered. However, Class B shares may be made available for 
exchange to shareholders holding Class B shares (or a variation 
thereof including hedged share classes) in another Portfolio or 
other AB fund. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—China Low Volatility Portfolio 

Other Share Class Features 

Offered 
Currencies 

Minimum Initial 
Investment* 

Minimum 
Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

USD-Denominated Share Classes 

Class A and AD Shares 

Class B Shares 

Class C Shares 

Class I Shares 

Class S Shares 

Class S1 Shares 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

EUR-Denominated Shares Classes 
EUR 
Class A Shares 
EUR 
Class B Shares 
EUR 
Class C Shares 
EUR 
Class I Shares 
EUR 
Class S1 Shares 

HKD-Denominated Share Classes 
Class A and AD Shares 

HKD 

$2,000 

$2,000 

$2,000 

$1 million** 

$25 million** 

$25 million** 

€ 2,000 
€ 2,000 
€ 2,000 
€1 million** 
€20 million** 

$750 

$750 

$750 

None 

None 

None 

€ 750 
€ 750 
€ 750 
None 
None 

None 

$250,000 

None 

None 

None 

None 

None 
€250,000 
None 
None 
None 

0.05% 

0.05% 

0.05% 

0.05% 

0.01% 

0.01% 

0.05% 
0.05% 
0.05% 
0.05% 
0.01% 

HK$15,000 

HK$5,000 

None 

0.05% 

Hedged 
Currencies 

Minimum Initial 
Investment* 

Minimum 
Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

EUR Hedged Share Classes 
Class AD EUR H 
Shares 
AUD Hedged Share Classes 
Class AD AUD H 
Shares 

CAD Hedged Share Classes 
Class AD CAD H 
Shares 
GBP Hedged Share Classes 
Class AD GBP H 
Shares 
SGD Hedged Share Classes 
Class AD SGD H 
Shares 

Euro 

AUD 

CAD 

GBP 

€2,000 

€750 

A$2,000 

A$750 

C$2,000 

C$750 

£2,000 

£750 

SGD 

S$3,000 

S$1,000 

None 

None 

None 

None 

None 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

NZD Hedged Share Classes 
Class AD NZD H 
Shares 

NZD 

RMB Hedged Share Classes 
Class AD RMB H 
Shares 
ZAR Hedged Share Classes 
Class AD ZAR H 
Shares 
PLN Hedged Share Classes 
Class A PLN H 
Shares 

RMB 

ZAR 

PLN 

NZ$3,000 

NZ$1,000 

None 

0.05% 

RMB 10,000 

RMB 3,750 

None 

0.05% 

ZAR 20,000 

ZAR 7,000 

PLN 7,500 

PLN 3,000 

None 

None 

0.05% 

0.05% 

I-42 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
* 
**  

Does not apply to automatic investment plans, where offered. 
May  be  waived  by  the  Management  Company  in  its  sole 
discretion. 

AB FCP I—China Low Volatility Portfolio 

***  

Annual Luxembourg tax payable quarterly by each portfolio. 

I-43 

 
 
Other Portfolio Information 

Principal Investment Types 
For a chart summarizing the principal types of investments 
used by the Portfolio and a description of securities and 
other instruments in which the Portfolio may invest, investors 
should refer to "Investment Types" in Section II.  The ability 
of the Portfolio to invest in any securities or instruments is 
subject to the restrictions in the Portfolio's stated investment 
objective and policies and the limitations contained in 
"Investment Restrictions" in Appendix A to Section II. 

Risk Profile 
The Portfolio may make use of financial derivatives. The 
investment restrictions (9) to (13) set forth in Appendix A to 
Section II will not apply.  

Investing in equity securities in China involves particular risks 
and special considerations not typically associated with 
investment in more developed economies or markets, such 
as greater political, operational, tax, foreign exchange, 
liquidity and regulatory risks. For further information about 
the risks associated with investment in China, please see 
“Risk Factors—Country Risks – China” in the General 
Information of the Fund. 

The Portfolio is subject to market, interest rate and currency 
fluctuations and to other risks inherent in investing in 
securities. Therefore, no assurance can be given that the 
investment objective will be achieved, that invested capital 
will be preserved, or that capital appreciation will occur.  
Investment results may vary substantially on a monthly, 
quarterly or annual basis. An investment in the Portfolio does 
not represent a complete investment program. 

For a chart summarizing the principal risks of the Portfolio 
and a more detailed discussion of these and other risks 
applicable to the Portfolio, investors should refer to "Risk 
Factors" in Section II. 

Profile of the Typical Investor 
The Portfolio will suit higher risk-tolerant investors seeking 
the medium to long term rewards of equity investment.  
Investors are encouraged to consult their independent 
financial advisors regarding the suitability of Shares of the 
Portfolio for their investment needs. 

Distributions 
For class A, B, C, I, S and S1 shares, the Management 
Company currently does not intend to pay dividends with 
respect to the Shares. Therefore, any net income and net 
realized profits attributable to such Shares will be reflected in 
the respective Net Asset Value of such Shares.   

AB FCP I—China Low Volatility Equity Portfolio 

For class AD shares (and corresponding H shares), the 
Management Company intends to declare and pay monthly 
distributions. The Management Company intends to maintain 
a stable distribution rate per share for such share classes, 
and therefore distributions may come from gross income 
(before reduction for fees and expenses), realized and 
unrealized gains and capital attributable to the relevant class. 
Distributions in excess of net income (gross income less fees 
and expenses) may represent a return of the investor’s 
original investment amount and as such may result in a 
decrease in the NAV per share for the relevant class.  

The Management Company in its discretion also may 
determine if and to what extent distributions paid include 
realized capital gains and/or are paid out of capital 
attributable to the relevant class of Shares.  Distributions may 
be automatically reinvested at the election of the Shareholder. 

Management Company, Administrator, Depositary and 
Transfer Agent Fees 
For all Shares except class S and S1 shares, the 
Management Company is paid an annual fee out of the 
assets of the Portfolio on the aggregate Net Asset Value 
attributable to the Shares equal to 0.05% of average daily Net 
Asset Value.  The Management Company is paid an annual 
fee out of the assets of the Portfolio on the aggregate Net 
Asset Value attributable to the class S shares equal to the 
lesser of $50,000 or 0.01% of average daily Net Asset Value. 

The Administrator fee, Depositary fee and Transfer Agent fee 
for the Portfolio are paid monthly out of the assets of the 
Portfolio.  These fees shall not exceed a fixed maximum 
specified under Section II of the prospectus under 
“Administrator, Depositary and Transfer Agent Fees”.  These 
fees may decrease or increase depending on the assets of 
the Portfolio and transaction volume or for other reasons. 

Organizational Expenses 
The Portfolio has no unamortized organizational expenses. 

Historical Performance 
Information on the historical performance of the Portfolio may 
be found at www.alliancebernstein.com. 

History 

The Portfolio was established as a portfolio of ACM-New 
Alliance on 8 September 1997 and was subsequently 
amalgamated into the Fund under the name Greater China 
Portfolio with effect on 31 January 2007.  The Portfolio was 
renamed China Opportunity Portfolio on 31 January 2014. 
The Portfolio was renamed China Low Volatility Equity 
Portfolio on 29 May 2020. 

I-44 

 
 
 
Fixed-Income 

AB FCP I—Short Duration Bond Portfolio  

Investment Objective and Policies 

Investment Objective 
The Portfolio's investment objective is high total investment 
return through investments predominantly in Investment Grade 
fixed-income securities denominated in various currencies.  
The Portfolio's total investment return may consist generally of 
interest and dividend income, as well as discount accruals and 
capital changes, including changes in the value of portfolio 
securities and other assets and liabilities resulting from 
currency fluctuations.  Under normal market conditions, the 
Portfolio expects that no less than 70% of its total assets will 
be invested in securities denominated in the Currency of the 
Portfolio or securities hedged to the Currency of the Portfolio. 

Description of Investment Discipline and Process 
The Portfolio may purchase debt obligations issued by 
sovereign or other governmental or local authorities, including, 
but not limited to, governmental agencies and instrumentalities 
(collectively, "governmental entities"), as well as debt 
obligations issued or guaranteed by various organizations or 
entities established generally to promote global, regional or 
country-specific economic reconstruction or development 
(collectively, "supranational entities").  In addition, the Portfolio 
may purchase debt obligations of companies or other entities. 
The Investment Manager will invest at any time at least two-
thirds of the Portfolio’s total assets in straight bonds, i.e. non-
convertible bonds. 

Securities held by the Portfolio will possess upon initial 
purchase an Investment Grade credit rating or will be 
determined by the Investment Manager to be of comparable 
quality.  In the event a particular security is assigned a credit 
rating that is lower than Investment Grade or ceases to be 
rated, the Investment Manager promptly will reassess whether 
the Portfolio should continue to hold such security.  The 
Portfolio normally will dispose of any such non-Investment 
Grade or unrated security, unless (i) the Investment Manager 
determines that for the time being it is not in the best interest of 
the Portfolio to do so and (ii) aggregate non-Investment Grade 
securities do not exceed 5% of the Portfolio's net assets.  

The Portfolio may also utilise bond markets including Bond 
Connect  in  order  to  invest  in  China  securities.  For  more 
information, see “Country Risks – China, Bond Connect” in 
Section II.   

The Investment Manager seeks to reduce the risks inherent in 
the Portfolio's investment in fixed-income securities through 
diversification, in its discretion, and the Investment Manager's 
internal credit and economic analysis resources, as well as 
information obtained from other sources. 

With respect to sovereign or other governmental issuers of 
debt obligations in which the Portfolio invests, the Investment 
Manager considers the financial position of the issuer and 
political and economic conditions in the relevant country.  
Investment in debt obligations issued or guaranteed by 
supranational entities is subject to the additional risk that 
member governments may fail to make required or regular 
capital contributions and that a supranational entity thus may 
be unable to fulfill its obligations. 

I-45 

With respect to corporate issuers of debt obligations in 
which the Portfolio invests, the Investment Manager 
considers the financial condition of the issuer and market 
and economic conditions relevant to its operations.  The 
Investment Manager's analysis focuses on relative values 
based on such factors, for example, as interest coverage, 
asset coverage, earnings prospects and the experience and 
managerial strength of each such issuer. 

As a general matter, in evaluating investments, the 
Investment Manager will consider, among other factors, the 
relative levels of interest rates prevailing in various 
countries and the potential appreciation of such 
investments in their denominated currencies.  In seeking 
capital appreciation, the Portfolio may invest in relatively 
low-yielding securities in expectation of favorable currency 
fluctuations or interest rate movements, thereby potentially 
reducing the Portfolio's yield.  In seeking income, the 
Portfolio may invest in short-term securities with relatively 
high yields (as compared to other debt securities) meeting 
the Portfolio's investment criteria, thereby potentially 
reducing the Portfolio's capital appreciation. 

In addition, the Portfolio may invest in debt obligations 
denominated in the currency of one country although issued 
by a governmental entity, corporation or financial institution 
of another country.  For example, the Portfolio may invest in 
a Yen-denominated obligation issued by a German 
corporation.  Such investments involve credit risks 
associated with the issuer as well as currency risks 
associated with the currency in which the obligation is 
denominated. 

Duration. Under normal market conditions, the Portfolio’s 
weighted average duration will not exceed five years.  
Duration is a measure of the sensitivity of the price of a 
fixed-income investment to a change in interest rates.   

Financial Derivative Instruments/Efficient Portfolio 
Management techniques. The Investment Manager may 
utilize a wide array of derivative products and techniques 
when implementing the Portfolio’s investment strategy. The 
Portfolio may utilize derivatives (i) for investment purposes 
as an alternative to investing directly in the underlying 
investment, (ii) for hedging purposes and (iii) for efficient 
portfolio management purposes.  Such financial derivative 
instruments may include, but are not limited to futures, 
options, swaps (including interest rate swaps) and currency 
transactions. 

In accordance with the transparency requirements of the 
SFT Regulation the chart below reflects, where applicable, 
the expected and maximum level of the Portfolio’s net 
assets that will be subject to securities financing 
transactions (i.e. securities lending transactions as well as 
repurchase agreements and reverse repurchase 
agreements) (“SFTs”) and total return swaps and/or other 
financial derivative instruments with similar characteristics 
(“TRS”); being specified that in certain circumstances this 
proportion may be higher.   

 
 
Type of 
Transactions 

TRS 

Repurchase 
agreements and 
reverse repurchase 
agreements 

Securities lending 
transactions 

Expected Range  Maximum 

0%-5% 

0%-5% 

25% 

10% 

N/A 

N/A 

For further details concerning SFTs and TRS, please refer to 
“Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and Instruments 
and Collateral Management.” 

Other Investment Policies 
The Portfolio may invest in structured securities issued by a 
wide range of originators and sponsors.  Structured securities 
may include agency (i.e. issued or guaranteed by an Eligible 
State or Eligible State government sponsored entities) 
mortgage-backed securities and non-agency (i.e. privately 
issued) mortgage-backed securities (“MBS”).  MBS may 
include adjustable-rate mortgage securities (“ARMS”) and 
collateralized mortgage obligations (“CMOs”), as well as other 
asset-backed securities (“ABS”), commercial mortgage-backed 
securities (“CMBS”) and collateralized debt obligations 
(“CDOs”) and related financial derivative instruments and 
currencies. The Portfolio’s investments in structured securities 
will not exceed 20% of its net assets, provided that such limit 
will not apply to investments in such securities issued or 
guaranteed by the United States government or any other 
Eligible State or United States or other Eligible State 
government sponsored entities. 

Except to the extent provided herein (including Appendix A to 
Section II), the Portfolio is not subject to any limitation on the 
portion of its assets which may be invested in any one country.  

The Investment Manager will, based upon its currency 
research and outlook, adjust the Portfolio's currency exposures 
while taking into account both  (a) the Portfolio's overall non-
base currency exposure, as well as  (b) the expected risk and 
return of each of the particular currencies in the relevant 
Portfolio's portfolio.  The Investment Manager uses its in-house 
models developed specifically for this purpose.  Accordingly, 
the Investment Manager may hedge all, some or none of the 
currency exposures depending on whether its research 
indicates that the currency is poised to fall or rise against the 
Portfolio's base currency. 

As a temporary defensive measure or to provide for 
redemptions, the Portfolio may, without limit, hold cash, cash 
equivalents, or short-term fixed-income obligations, including 
money market instruments. 

The Portfolio may invest up to 10% of its net assets in 
securities for which there is no ready market.  See paragraph 
(5) of "Investment Restrictions" in Appendix A to Section II.  
The Portfolio may therefore not be readily able to sell such 
securities.  Moreover, there may be contractual restrictions on 
the resale of such securities. 

The Portfolio will invest no more than 25% of its total assets in 
convertible bonds, no more than 30% of its total assets in 

I-46 

AB FCP I—Short Duration Bond Portfolio 

money market instruments and no more than 10% of its 
total assets in equity securities.  

Currency Hedged Share Classes  

One or more of the Portfolio’s share classes offered in a 
particular currency (each, an “Offered Currency”) may be 
hedged to such Offered Currency.  Any such share class 
will constitute a “Currency Hedged Share Class.”   Currency 
Hedged Share Classes aim to provide investors a return 
more closely correlated to the Portfolio’s base currency 
return by reducing the effect of exchange rate fluctuations 
between the Portfolio’s base currency (i.e., Dollar) and the 
relevant Offered Currency, taking into account practical 
considerations such as transaction costs.  The hedging 
strategy employed is designed to reduce, but may not 
eliminate, currency exposure between the Portfolio’s base 
currency and the Offered Currency. 

Currency Hedged Share Classes do not affect the 
investment management of the Portfolio’s underlying assets 
since it is only the net asset value (NAV) of the Currency 
Hedged Share Classes, not the Portfolio’s underlying 
assets, which is hedged to the Offered Currency.  
Expenses incurred as a result of such hedging activity will 
be borne by the Currency Hedged Share Class in relation to 
which such expenses are incurred.  

For additional information on share class hedging, see 
“How to Purchase Shares—Currency Hedged Share 
Classes” in Section II. 

Leverage. The Investment Manager does not expect to 
utilize bank borrowing in implementing the Portfolio’s 
investment strategy.  The expected level of leverage of the 
Portfolio is estimated to be in the 0% to 150% range of its 
Net Asset Value. The expected level of leverage is 
calculated as the sum of the notionals of the financial 
derivative instruments held by the Portfolio. Pursuant to the 
CSSF Circular 11/512 dated 30 May 2011, this calculation 
methodology neither takes into account the fact that a 
particular financial derivative instrument increases or 
decreases the Portfolio’s investment risks nor permits to net 
financial derivative instruments with reverse positions. 
Shareholders should be aware that (i) a higher level of 
expected leverage does not automatically imply a higher 
level of investment risk and (ii) the expected level of 
leverage disclosed above is mainly generated by the use of 
derivatives for hedging purposes or for efficient portfolio 
management.  In addition, the actual leverage of the 
Portfolio may deviate from the above mentioned expected 
level of leverage. 

Risk Measurement. The Investment Manager will utilize a 
Value-at-Risk (“VaR”) methodology to monitor the global 
exposure (market risk) for the Portfolio. The global 
exposure of the Portfolio is measured by the absolute VaR 
methodology pursuant to which the VaR of the Portfolio 
may not exceed 20% of its Net Asset Value.  

Benchmark. The Portfolio’s benchmark is the Bloomberg 
Global 1-3 Year Treasury Index (USD Hedged). The 
Portfolio uses the benchmark for performance comparison. 
The Portfolio is actively managed and the Investment 
Manager is not constrained by its benchmark when 

 
 
 
implementing the Portfolio’s investment strategy. Although the 
Portfolio may hold, in certain market conditions and subject to 
the Investment Manager’s full discretion, a significant part of 
the components of the benchmark, it will not hold every 
component of the benchmark and may also hold securities that 
are not part of it. 

AB FCP I—Short Duration Bond Portfolio 

Responsible investing. The Portfolio integrates ESG 
considerations. The Portfolio applies certain exclusions and 
details can be found at 
www.alliancebernstein.com/go/ABFCPIExclusionChart.   

The Portfolio is of the category that promotes environmental 
and social characteristics (SFDR Article 8; see “Appendix 
E: SFDR Pre-Contractual Disclosures” for more 
information). 

I-47 

 
 
 
 
 
 
 
 
 
 
 
 
Summary Information 

Portfolio Features 
Currency of the 
Portfolio 

USD 

Each Business Day 

Net Asset Value 
Calculation 

Net Asset Value 
Publication 

Class Names 

Order Cut-Off 
Times 

Available at www.alliancebernstein.com 

H means Currency Hedged Share Classes.  
For additional information on share class 
hedging, see “How to Purchase Shares—
Currency Hedged Share Classes” and “Risk 
Factors -- Currency Hedged Share Class 
Risk” in Section II. 

For USD-Denominated Share Classes, 
EUR-Denominated Share Classes and 
HKD-Denominated Share Classes 
4:00 P.M. U.S. Eastern Time on each 
Business Day 

For Currency Hedged Share Classes 
6:00 P.M. Central European Time on each 
Business Day 

AB FCP I—Short Duration Bond Portfolio 

Distributions* 

For class A, AX, B, C, I, S and S1shares 
To be declared daily and payable monthly 

For class AJ, AT, CT, IT and NT shares 
To be declared and payable monthly 

For class AA and SA shares 
To be declared and payable monthly with a 
distribution rate to be derived from gross 
income (before deduction of fees and 
expenses) 

For class AR shares 
To be declared and payable annually with a 
distribution rate to be derived from gross 
income (before deduction of fees and 
expenses) 

For class A2, C2, I2, N2, S EUR H, S1 EUR H, 
S SGD H, S2 and S1 2 shares 
None.   

See “Distributions” below. 

*Includes Hedged Share Classes (unless 
noted otherwise) 

Share Class Fees and Charges1 

Initial Sales Charge3 

Management Fee4 

Distribution Fee5 

Contingent Deferred 
Sales Charge6 

USD-Denominated Share Classes 

Class A and A2 Shares 

Up to 5.00% 

Class AJ Shares 

Class AT Shares 

Up to 3.00% 

Up to 5.00% 

Class AA Shares 

Up to 5.00% 

Class AX Shares 

No longer offered 

0.85% 

0.65% 

0.85% 

0.85% 

0.65% 

None 

None 

None 

None 

None 

Class B2* 

None 

0.85% 

1.00% 

Class C and C2 Shares 

None 

Class CT Shares 

None 

Class I and I2 Shares8 
Class IT Shares8 
Class N2 and NT Shares 
Class S Shares7 
Class S1 Shares 
Class SA Shares 

Up to 1.50% 
Up to 1.50% 
Up to 3.00% 
None 
None 
None 

1.25% 

1.25% 

0.325% 
0.325% 
1.35% 
None 
0.25% 
None 
I-48 

None 

None 

None 
None 
None 
None 
None 
None 

None 

None 

None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

0–1 year held=1.0% 
thereafter 0% 

0–1 year held=1.0% 
thereafter 0% 

None 
None 
None 
None 
None 
None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class S2 Shares7 
Class S1 2 Shares 

None 
None 

None 
0.25% 

EUR-Denominated Share Classes  

Class A and A2 Shares 

Up to 5.00% 

0.85% 

Class AT Shares 

Class I and I2 Shares8 
Class S1 2 Shares 

Up to 5.00% 

Up to 1.50% 
None 

HKD-Denominated Share Classes  

Class A2 Shares 

Up to 5.00% 

Class AA Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

EUR Hedged Share Classes 

Class A2 EUR H Shares 

Up to 5.00% 

Class AT EUR H Shares 

Up to 5.00% 

Class AR EUR H Shares 

Up to 5.00% 

Class C2 EUR H Shares 

None 

Class I2 EUR H Shares8 
Class S EUR H Shares7 
Class S1 EUR H Shares 

Up to 1.50% 
None 
None 

AUD Hedged Share Classes 

0.85% 

0.325% 
0.25% 

0.85% 

0.85% 

0.85% 

0.85% 

0.85% 

0.85% 

1.25% 

0.325% 
None 
0.25% 

Class AT AUD H Shares 

Up to 5.00% 

0.85% 

Class AA AUD H Shares 

Up to 5.00% 

Class I2 AUD H Shares8 

Up to 1.50% 

Class IT AUD H Shares8 
CAD Hedged Share Classes 

Up to 1.50% 

Class AT CAD H Shares 

Up to 5.00% 

Class AA CAD H Shares 

Up to 5.00% 

GBP Hedged Share Classes 

Class AT GBP H Shares 

Up to 5.00% 

Class AA GBP H Shares 

Up to 5.00% 

0.85% 

0.325% 

0.325% 

0.85% 

0.85% 

0.85% 

0.85% 

I-49 

AB FCP I—Short Duration Bond Portfolio 

None 
None 

None 

None 

None 
None 

None 

None 

None 

None 

None 

None 

None 

None 
None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 
None 

None 

None 

None 
None 

None 

None 

None 

None 

None 

None 

0–1 year held=1.0% 
thereafter 0% 
None 
None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SGD Hedged Share Classes 

Class A2 SGD H Shares 

Up to 5.00% 

Class AT SGD H Shares 

Up to 5.00% 

Class AA SGD H Shares 

Up to 5.00% 

Class S SGD H Shares7 
NZD Hedged Share Classes 

None 

Class AT NZD H Shares 

Up to 5.00% 

Class AA NZD H Shares 

Up to 5.00% 

AB FCP I—Short Duration Bond Portfolio 

0.85% 

0.85% 

0.85% 

None 

0.85% 

0.85% 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

1   The Management Company, Administrator, Depositary and Transfer 

Agent are entitled to receive, out of the assets of the Portfolio, fees as 
described under "Other Portfolio Information—Management 
Company, Administrator, Depositary and Transfer Agent Fees" below.  
The Portfolio also bears all of its other expenses.  See "How to 
Purchase Shares" and "Additional Information—Fees and Expenses" 
in Section II.  The Management Company has voluntarily undertaken, 
until the Management Company on behalf of the Fund notifies 
Shareholders to the contrary, that if, in any fiscal year, the aggregate 
fees and expenses with respect to the following share classes of the 
Portfolio (including any management fee and all other fees and 
expenses set out in "Additional Information—Fees and Expenses" in 
Section II, including Luxembourg Taxe d'Abonnement but exclusive of 
certain other taxes, brokerage (if applicable) and  interest on 
borrowings) exceed the following percentages of the average Net 
Asset Value for the fiscal year attributable to the Portfolio's share 
classes (and corresponding H shares), as follows:  A (1.20%), A2 
(1.20%), AJ (1.00%), AR (1.20%), AT (1.20%), AA (1.20%), AX 
(1.00%), B (2.20%),   C (1.60%), C2 (1.60%), CT (1.60%),  I 
(0.575%), I2 (0.575%), IT (0.575%), N2 (1.70%), NT (1.70%), S 
(0.10%), S1 (0.35%), S2 (0.10%), SA (0.10%) and S12(0.35%), the 
Fund may deduct from the payment to be made to the Management 
Company, or the Management Company will otherwise bear, such 
excess fees and expenses. 

2   After four years from the date of purchase, class B  shares are eligible 
for conversion to class A shares (and corresponding H shares), 
without charge from either the Fund or the Management Company.  
For further details on the conversion of shares, please refer to "How 
to Exchange or Convert Shares—Conversion of CDSC Shares" in 
Section II of the Prospectus. 
3   As a percentage of purchase price. 
4   As an annual percentage of average daily Net Asset Value. With 
respect to certain share classes, the management fee may also 

Other Share Class Features 

include a component that is paid to distributors or other financial 
intermediaries and service providers.  For further details on the 
management fee, please refer to "Additional Information—Fees 
and Expenses" in Section II.   

5   As an annual percentage of average daily Net Asset Value.  
6   As a percentage of the lesser of the current Net Asset Value or 
original cost of the Shares being redeemed and based upon the 
duration that such Shares are held.  CDSC Shares may only be 
purchased through a dealer authorized by the Distributor to offer 
such shares.  Those investors considering an investment in 
CDSC Shares should speak with their financial advisor for details. 
With respect to class C, C2 and CT shares (and corresponding H 
shares), a dealer may elect to waive the contingent deferred sales 
charge in certain circumstances. 

7  Class S, SA and S2 shares are reserved for institutional investors 
that have entered into an agreement with the Management 
Company and are being charged an investment management fee 
separately. 
For further information on this share class, see “Additional Share 
Class Information” in Section II. 

8 

* 

Effective 15 December 2016, Class B shares will no longer be 
offered. However, Class B shares may be made available for 
exchange to shareholders holding Class B shares (or a variation 
thereof including hedged share classes) in another Portfolio or 
other AB fund. 

Offered 
Currencies 

Minimum 
Initial 
Investment* 

Minimum 
Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

USD-Denominated Share Classes 

Class A and A2 Shares 

Class AJ Shares 

Class AT Shares 

Class AX Shares 

Class AA Shares 

Class B Shares 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

$2,000 

$2,000 
$2,000 

No longer 
offered 
$2,000 

$2,000 

$750 

$750 
$750 

None 

None 

None 

No longer offered 

No longer offered 

$750 

$750 

None 

$250,000 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

I-50 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—Short Duration Bond Portfolio 

Class C and C2 Shares 

Class CT Shares 

Class I and I2 Shares 

Class IT Shares 

Class N2 and NT Shares 

Class S and S2 Shares 

Class S1 and S1 2 
Shares 
Class SA Shares 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 
Dollar 

EUR-Denominated Share Classes  
Class A and A2 Shares 
Class AT Shares 
Class I and I2 Shares 
Class S1 2 Shares 

Euro 
Euro 
Euro 
Euro 

HKD-Denominated Share Classes  
Class A2 Shares 
Class AA Shares 
Class AT Shares 

HKD 
HKD 
HKD 

EUR Hedged Share Classes 
Class A2 EUR H Shares 
Class AT EUR H Shares 
Class AR EUR H Shares 
Class C2 EUR H Shares 
Class I2 EUR H Shares 
Class S EUR H Shares 
Class S1 EUR H Shares 

AUD Hedged Share Classes 
Class AT AUD H Shares 
Class AA AUD H Shares 
Class I2 AUD H Shares 
Class IT AUD H Shares 

CAD Hedged Share Classes 
Class AT CAD H Shares 
Class AA CAD H Shares 
GBP Hedged Share Classes 
Class AT GBP H Shares 
Class AA GBP H Shares 
SGD Hedged Share Classes 
Class A2 SGD H Shares 
Class AT SGD H Shares 
Class AA SGD H Shares 
Class S SGD H Shares 

Euro 
Euro 
Euro 
Euro 
Euro 
Euro 
Euro 

AUD 
AUD 
AUD 
AUD 

CAD 
CAD 

GBP 
GBP 

SGD 
SGD 
SGD 
SGD 

$2,000 

$2,000 

$1 million** 

$1 million** 

$2,000 
$25 million** 

$25 million** 

$25 million** 

€2,000 
€2,000 
€1 million** 
€20 million** 

$750 

$750 

None 

None 

$750 

None 

None 

None 

€750 
€750 
None 
None 

HK$15,000 
HK$15,000 
HK$15,000 

HK$5,000 
HK$5,000 
HK$5,000 

€2,000 
€2,000 
€2,000 
€2,000 
€1 million** 
€20 million** 
€20 million** 

A$2,000 
A$2,000 
A$1 million** 
A$1 million** 

C$2,000 
C$2,000 

£2,000 
£2,000 

€750 
€750 
€750 
€750 
None 
None 
None 

A$750 
A$750 
None 
None 

C$750 
C$750 

£750 
£750 

S$3,000 
S$3,000 
S$3,000 
S$20 million** 

S$1,000 
S$1,000 
S$1,000 
None 

NZD Hedged Share Classes 
Class AT NZD H Shares 
Class AA NZD H Shares 

NZD 
NZD 

NZ$3,000 
NZ$3,000 

NZ$1,000 
NZ$1,000 

None 

None 

None 

None 

None 

None 

None 

None 

None 
None 
None 
None 

None 
None 
None 

None 
None 
None 
None 
None 
None 
None 

None 
None 
None 
None 

None 
None 

None 
None 

None 
None 
None 
None 

None 
None 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.01% 

0.01% 

0.01% 

0.05% 
0.05% 
0.05% 
0.01% 

0.05% 
0.05% 
0.05% 

0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.01% 
0.01% 

0.05% 
0.05% 
0.05% 
0.05% 

0.05% 
0.05% 

0.05% 
0.05% 

0.05% 
0.05% 
0.05% 
0.01% 

0.05% 
0.05% 

* 

Does not apply to automatic investment plans, where offered. 

discretion. 

**  May be waived by the Management Company in its sole 

***  Annual Luxembourg tax payable quarterly by each portfolio. 

I-51 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Portfolio Information

Principal Investment Types 

For a chart summarizing the principal types of investments 
used by the Portfolio and a description of securities and other 
instruments in which the Portfolio may invest, investors should 
refer to "Investment Types" in Section II.  The ability of the 
Portfolio to invest in any securities or instruments is subject to 
the restrictions in the Portfolio's stated investment objective 
and policies and the limitations contained in "Investment 
Restrictions" in Appendix A to Section II. 

Risk Profile 

The Portfolio may make use of financial derivative. The 
investment restrictions (9) to (13) set forth in Appendix A to 
Section II will not apply. This Portfolio shall employ instead the 
Value-at-Risk (VaR) approach. For further details concerning 
the VaR approach, please refer to “Appendix C: Additional 
Information relating to Financial Derivative Instruments, 
Financial Techniques and Instruments and Collateral 
Management”. 

Fixed-income securities in which the Portfolio will invest are 
subject to the credit risk of the private and public institutions 
offering these securities and their market value is influenced by 
changes in interest rates.  The Portfolio's fixed-income 
securities investments will generally be of Investment Grade or 
equivalent quality.  There can be no assurance that any 
distribution payments will occur and the Portfolio has no 
specific maturity. 

Investing in equity securities in China involves particular risks 
and special considerations not typically associated with 
investment in more developed economies or markets, such as 
greater political, operational, tax, foreign exchange, liquidity 
and regulatory risks. For further information about the risks 
associated with investment in China, please see “Risk 
Factors—Country Risks-China” in the General Information of 
the Fund. 

The Portfolio is subject to market, interest rate and currency 
fluctuations and to other risks inherent in investing in securities.  
Therefore, no assurance can be given that the investment 
objective will be achieved, that invested capital will be 
preserved, or that capital appreciation will occur.  Investment 
results may vary substantially on a monthly, quarterly or annual 
basis. An investment in the Portfolio does not represent a 
complete investment program. 

For a chart summarizing the principal risks of the Portfolio and 
a more detailed discussion of these and other risks applicable 
to the Portfolio, investors should refer to "Risk Factors" in 
Section II. 

Profile of the Typical Investor 

The Portfolio will suit medium risk-tolerant investors seeking 
the income potential of Investment Grade fixed-income 
investment.  Investors are encouraged to consult their 
independent financial advisors regarding the suitability of 
Shares of the Portfolio for their investment needs. 

Distributions 

For class A, AX, B, C, I, S and S1 shares (and corresponding 
H shares, unless noted otherwise), the Management Company 
intends to declare daily and pay monthly dividends equal to all 

I-52 

AB FCP I—Short Duration Bond Portfolio 

or substantially all of the Portfolio's net income attributable 
to each class of Shares.   

For class AJ, AT, CT, IT and NT shares (and corresponding 
H shares), the Management Company intends to declare 
and pay monthly dividends equal to all or substantially all of 
the Portfolio's net income attributable to each class of 
Shares.   

For class AA and SA shares (and corresponding H shares), 
the Management Company intends to declare and make 
monthly distributions. The Management Company intends 
to maintain a stable distribution rate per share for such 
share classes. For class AR shares (and corresponding H 
shares), the Management Company intends to declare and 
make annual distributions. The distribution rate is to be 
derived from gross income (before deduction of fees and 
expenses) and distributions may also include realized and 
unrealized gains and capital attributable to such classes of 
Shares. Since fees and expenses do not reduce the 
distribution rate, the NAV per Share of the relevant classes 
will be reduced by such fees and expenses. 

The Management Company also may determine if and to 
what extent dividends paid include realized capital gains 
and/or are paid out of capital, attributable to the relevant 
class of Shares.  To the extent the net income and net 
realized profits attributable to these Shares exceed the 
amount declared payable, the excess return will be 
reflected in the respective Net Asset Value of such Shares.  
Dividends may be automatically reinvested at the election 
of the Shareholder. 

For class A2, C2, I2, N2, S2 and S1 2 shares (and 
corresponding H shares) and S EUR H, S1 EUR H, S SGD 
H shares, the Management Company currently does not 
intend to pay dividends with respect to the Shares. 
Therefore, any net income and net realized profits 
attributable to the Shares will be reflected in the respective 
Net Asset Value of the Shares. 

Management Company, Administrator, Depositary and 
Transfer Agent Fees 

For all Shares (and corresponding H shares) except class 
S, S1, S2, SA and S1 2 (and corresponding H shares) 
shares, the Management Company is paid an annual fee 
out of the assets of the Portfolio on the aggregate Net Asset 
Value attributable to the Shares equal to 0.10% of average 
daily Net Asset Value.  The Management Company is paid 
an annual fee out of the assets of the Portfolio on the 
aggregate Net Asset Value attributable to the class S, S1, 
S2, SA and S1 2 shares (and corresponding H shares) 
equal to the lesser of $50,000 or 0.01% of average daily 
Net Asset Value.   

The Administrator fee, Depositary fee and Transfer Agent 
fee for the Portfolio are paid out of the assets of the 
Portfolio in accordance with the usual practice in 
Luxembourg and shall not exceed a fixed maximum 
specified under Section II of the prospectus under 
“Administrator, Depositary and Transfer Agent Fees”.  
These fees are subject to the limitation on expenses 
discussed in note 1 to "Summary Information—Share Class 
Fees and Charges" above and may decrease or increase 

 
depending on the assets of the Portfolio and transaction 
volume or for other reasons. 

Organizational Expenses 
The Portfolio has no unamortized organizational expenses.   

Historical Performance 
Information on the historical performance of the Portfolio may 
be found at www.alliancebernstein.com. 

AB FCP I—Short Duration Bond Portfolio 

History 
The Portfolio was established as a portfolio of the Fund on 
16 September 1996. Prior to this date, the Portfolio's assets 
were managed by the Management Company as the 
Alliance Worldwide Income Fund ("Worldwide"), a mutual 
investment fund organized under the laws of the Grand 
Duchy of Luxembourg. On 16 September 1996, all of 
Worldwide's assets were transferred to, and all of 
Worldwide's liabilities were assumed by, the Portfolio. It 
was renamed Short Duration Bond Portfolio on 1 July 2019. 

I-53 

 
 
 
 
AB FCP I—Global High Yield Portfolio 

Investment Objective and Policies 

Investment Objective 
The investment objective of the Portfolio is to produce high 
current income as well as overall total return.   

Description of Investment Discipline and Process 
In seeking to achieve this objective, the Portfolio will invest 
primarily, and at any time at least two-thirds of its assets in, a 
portfolio of high yielding debt securities of issuers located 
throughout the world, including U.S. issuers and issuers in 
emerging market countries.  In selecting its investments, the 
Portfolio intends to allocate its assets among three main types 
of investments: (i) high yielding non-Investment Grade debt 
securities of U.S. corporate issuers; (ii) non-Investment Grade 
debt securities of issuers located in emerging market countries; 
and (iii) sovereign debt obligations issued by emerging market 
countries.  However, the Portfolio is not prohibited from 
investing in other types of debt securities as the Investment 
Manager deems appropriate.  For example, the Portfolio may 
invest in debt securities having an Investment Grade rating if 
the Investment Manager determines that such debt securities 
possess desirable yield and/or total return characteristics.  In 
addition, the Portfolio may utilize financial derivative 
instruments in executing its investment strategy as set forth 
below under Financial Derivative Instruments. 

The Portfolio’s investments may be denominated in various 
currencies.  In addition to the restrictions provided in Appendix 
A to Section II, the Portfolio will not invest more than 20% of its 
total assets in one country; provided, however, that such 
limitation will not apply to investments by the Portfolio in U.S. 
issuers.  Investing on an international basis involves special 
considerations. 

The debt securities of U.S. and non-U.S. corporate issuers in 
which the Portfolio may invest include bonds, debentures, bills 
and notes.  These debt securities may have equity features, 
such as conversion rights or warrants, which may provide the 
Portfolio with opportunities to enhance its return on its 
investment.  See "Investment Types—Debt Securities Types—
Convertible Securities" in Section II.  There is no minimum 
rating requirement with respect to the Portfolio's investments in 
debt securities of corporate issuers. 

The Portfolio's investments in emerging market debt securities 
may consist of (i) debt securities or obligations issued or 
guaranteed by governments, governmental agencies or 
instrumentalities and political subdivisions located in emerging 
market countries, (ii) debt securities or obligations issued by 
government-owned, controlled or sponsored entities located in 
emerging market countries, (iii) obligations of issuers organized 
and operated for the purpose of restructuring the investment 
characteristics of securities issued by any of the entities 
described above and (iv) financial derivative instruments 
related to the instruments listed in (i)-(iii) above.  These debt 
securities are expected to be rated, at the time of investment, 
below Investment Grade or, if not rated, determined by the 
Investment Manager to be of comparable quality.  Emerging 
market debt securities in which the Portfolio may invest will be 
subject to higher risk, will not be required to meet a minimum 
rating standard and may not be rated for creditworthiness by 
any internationally recognized rating agency.   

I-54 

Emerging market countries are those not characterized as 
high income countries by the World Bank, based on per 
capita gross national income (to obtain the World Bank’s list 
of such countries, please go to:  
http://siteresources.worldbank.org/DATASTATISTICS/Reso
urces/CLASS.XLS) .  The Investment Manager's 
determination of which countries constitute emerging 
market countries may change from time to time. 

However, investing in many emerging market debt 
securities is not feasible or may involve unacceptable 
political, economic and social risks.  See "Risks Factors 
and Special Considerations—General Risks—Country 
Risk—Emerging Markets" in Section II.  As opportunities to 
invest in debt securities in other emerging market countries 
develop, the Portfolio expects to expand and diversify its 
portfolio investments.  Emerging market debt securities may 
take the form of bonds, debentures, bills, notes, convertible 
securities, warrants, mortgage or other asset-backed 
securities and interests in entities organized and operated 
for the purpose of restructuring the investment 
characteristics of emerging market debt securities.  The 
portfolio may also use a variety of financial derivative 
instruments or structured products to effectively and 
efficiently replicate exposure to emerging market bonds.  
For further information regarding certain of these 
investments, see "Investment Types" in Section II. 

In evaluating obligations, the Investment Manager will 
utilize its internal credit analysis resources as well as 
financial and economic information obtained from other 
sources.  With respect to foreign corporate issuers, the 
Investment Manager will consider the financial condition of 
the issuer and market and economic conditions relevant to 
its operations. In terms of foreign governmental obligations, 
the Investment Manager will review the financial position of 
the issuer and political and economic conditions in the 
country. Investment in securities of supranational entities is 
subject to the additional risk that member governments may 
fail to make required capital contributions and that a 
supranational entity may thus be unable to meet its 
obligations. 

The Fund's fully managed approach for the Portfolio 
enables the Portfolio to seek high current income plus 
overall total investment return by making investments in 
various currencies on the basis of the potential capital 
appreciation of such instruments in Dollars and the rates of 
income paid on such instruments. As a general matter, in 
evaluating investments, the Fund will consider, among 
other factors, the relative levels of interest rates prevailing 
in various countries, the potential appreciation of such 
investments in their denominated currencies and, for debt 
instruments not denominated in Dollars, the potential 
movement in the value of such currencies compared to the 
Dollar. In seeking capital appreciation for the Portfolio, the 
Fund may invest in relatively low yielding instruments in 
expectation of favorable currency fluctuations or interest 
rate movements, thereby potentially reducing the Portfolio's 
yield. In seeking income for the Portfolio, the Fund may 
invest in short term instruments with relatively high yields 

 
 
(as compared to other debt securities) notwithstanding that the 
Fund does not anticipate that such instruments will experience 
substantial capital appreciation. 

The average maturity of the securities of the Portfolio will vary 
based upon the Investment Manager's assessment of 
economic and market conditions. As with all debt securities, 
changes in interest rates will affect the Fund's asset value as 
the prices of portfolio securities generally increase when 
interest rates decline and decrease when interest rates rise. 
Prices of longer term securities generally fluctuate more in 
response to interest rate changes than do shorter term 
securities. The Fund does not expect the average maturity of 
the Portfolio to exceed 15 years. 

Financial Derivative Instruments/Efficient Portfolio 
Management Techniques. The Investment Manager may use 
derivative products and strategies when implementing the 
Portfolio’s investment strategy.  Such financial derivative 
instruments may include, but are not limited to, swaps 
(including interest rate swaps (“IRS”), total rate of return swaps 
(“TRS”) and credit default swaps (“CDS”)), credit linked notes, 
swaptions, options, futures and currency transactions 
(including forward currency contracts).  These financial 
derivative instruments (including OTC derivatives and 
exchange-traded financial derivative instruments) and efficient 
portfolio management techniques may be employed for the 
following purposes: (i) as an alternative to investing directly in 
the underlying instruments, (ii) to manage duration and 
volatility, (iii) to hedge against interest rate, credit and currency 
fluctuations, (iv) to obtain currency exposure and (v) for 
efficient portfolio management purposes . With respect to CDS, 
the Portfolio may both “sell” protection in order to gain 
exposure and “buy” protection to hedge credit exposure. 

In accordance with the transparency requirements of the SFT 
Regulation the chart below reflects, where applicable, the 
expected and maximum level of the Portfolio’s net assets that 
will be subject to securities financing transactions (i.e. 
securities lending transactions as well as repurchase 
agreements and reverse repurchase agreements) (“SFTs”) and 
total return swaps and/or other financial derivative instruments 
with similar characteristics (“TRS”); being specified that in 
certain circumstances this proportion may be higher.   

Type of 
Transactions 

TRS 

Repurchase 
agreements and 
reverse repurchase 
agreements 

Securities lending 
transactions 

Expected Range  Maximum 

0%-20% 

0%-5% 

50% 

10% 

N/A 

N/A 

For further details concerning SFTs and TRS, please refer to 
“Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and Instruments 
and Collateral Management.” 

Leverage. The Investment Manager does not expect to utilize 
bank borrowing in implementing the Portfolio’s investment 

I-55 

AB FCP I—Global High Yield Portfolio 

strategy.  The expected level of leverage of the Portfolio is 
estimated to be in the 0% to 100% range of its Net Asset 
Value. The expected level of leverage is calculated as the 
sum of the notionals of the financial derivative instruments 
held by the Portfolio. Pursuant to the CSSF Circular 11/512 
dated 30 May 2011, this calculation methodology neither 
takes into account the fact that a particular financial 
derivative instrument increases or decreases the Portfolio’s 
investment risks nor permits to net financial derivative 
instruments with reverse positions. Shareholders should be 
aware that (i) a higher level of expected leverage does not 
automatically imply a higher level of investment risk and (ii) 
the expected level of leverage disclosed above is mainly 
generated by the use of derivatives for hedging purposes or 
for efficient portfolio management.  In addition, the actual 
leverage of the Portfolio may deviate from the above 
mentioned expected level of leverage. 

Risk Measurement. The Investment Manager will utilize a 
Value-at-Risk  (“VaR”)  methodology  to  monitor  the  global 
exposure (market risk) for the Portfolio. The global exposure 
of 
the  absolute  VaR 
methodology pursuant to which the VaR of the Portfolio may 
not exceed 20% of its Net Asset Value. 

is  measured  by 

the  Portfolio 

Benchmark. The Portfolio’s benchmark is the Bloomberg 
Global High Yield Index (USD Hedged). The Portfolio uses 
the benchmark for performance comparison. The Portfolio 
is actively managed and the Investment Manager is not 
constrained by its benchmark when implementing the 
Portfolio’s investment strategy. Although the Portfolio may 
hold, in certain market conditions and subject to the 
Investment Manager’s full discretion, a significant part of 
the components of the benchmark, it will not hold every 
component of the benchmark and may also hold securities 
that are not part of it. 

Other Investment Policies 
The Portfolio anticipates that a substantial portion of its 
assets will be denominated in currencies other than the 
Dollar.  The Portfolio is not restricted in the portion of its 
assets that may be invested in securities denominated in a 
particular currency.  The portion of the Portfolio's assets 
invested in securities denominated in currencies other than 
the Dollar will vary depending on market conditions.  The 
analysis of currencies is made independently of the 
analysis of markets.  The Investment Manager analyzes 
current account and capital account performance and real 
interest rates to adjust for shorter-term currency flows.  See 
"Risk Factors—General Risks—Currency Risk" in Section 
II. 

The Portfolio may, as a temporary defensive measure or to 
provide for redemptions or in anticipation of investment in 
foreign markets, hold cash or cash equivalents (in Dollars 
or foreign currencies) and short-term securities, including 
money market securities. 

The Portfolio may invest up to 10% of its total net assets in 
securities for which there is no ready market.  See 
paragraph (5) of "Investment Restrictions" in Appendix A to 
Section II.  The Portfolio may therefore not be readily able 
to sell such securities.  Moreover, there may be contractual 

 
 
 
 
 
 
 
 
restrictions on the resale of such securities.  In addition, other 
types of securities are subject to this 10% restriction. 

Currency Hedged Share Classes   
One or more of the Portfolio’s share classes offered in a 
particular currency (each, an “Offered Currency”) may be 
hedged to such Offered Currency.  Any such share class will 
constitute a “Currency Hedged Share Class.”   Currency 
Hedged Share Classes aim to provide investors a return more 
closely correlated to the Portfolio’s base currency return by 
reducing the effect of exchange rate fluctuations between the 
Portfolio’s base currency (i.e., Dollar) and the relevant Offered 
Currency, taking into account practical considerations such as 
transaction costs.  The hedging strategy employed is designed 
to reduce, but may not eliminate, currency exposure between 
the Portfolio’s base currency and the Offered Currency. 

Currency Hedged Share Classes do not affect the investment 
management of the Portfolio’s underlying assets since it is only 
the net asset value (NAV) of the Currency Hedged Share 
Classes, not the Portfolio’s underlying assets, which is hedged 
to the Offered Currency.  Expenses incurred as a result of such 
hedging activity will be borne by the Currency Hedged Share 
Class in relation to which such expenses are incurred. 

Risk Factors linked to RMB Hedged Share Classes. Since 
2005, the RMB exchange rate is no longer pegged to the U.S. 
dollar. RMB has now moved to a managed floating exchange 
rate based on market supply and demand with reference to a 
basket of foreign currencies. The daily trading price of the RMB 
against other major currencies in the inter-bank foreign 
exchange market is allowed to float within a narrow band 
around the central parity published by the People’s Bank of 
China.  RMB convertibility from offshore RMB (CNH) to 

AB FCP I—Global High Yield Portfolio 

onshore RMB (CNY) is a managed currency process 
subject to foreign exchange control policies of and 
repatriation restrictions imposed by the Chinese 
government in coordination with the Hong Kong Monetary 
Authority (HKMA).  The value of CNH could differ, perhaps 
significantly, from that of CNY due to a number of factors 
including without limitation those foreign exchange control 
policies and repatriation restrictions pursued by the Chinese 
government from time-to-time as well as other external 
market forces. 

Since 2005, foreign exchange control policies pursued by 
the Chinese government have resulted in the general 
appreciation of RMB (both CNH and CNY). This 
appreciation may or may not continue and there can be no 
assurance that RMB will not be subject to devaluation at 
some point. Any devaluation of RMB could adversely affect 
the value of investors’ investments in the RMB H shares. 

The RMB H shares participate in the offshore RMB (CNH) 
market, which allows investors to freely transact CNH 
outside of mainland China with approved banks in the Hong 
Kong market (HKMA approved banks). The RMB H shares 
will have no requirement to remit CNH to onshore RMB 
(CNY). 

Responsible investing.  
The Portfolio integrates ESG considerations. The Portfolio 
applies certain exclusions and details can be found at 
www.alliancebernstein.com/go/ABFCPIExclusionChart.  

The Portfolio is of the category that promotes environmental 
and social characteristics (SFDR Article 8; see “Appendix 
E: SFDR Pre-Contractual Disclosures” for more 
information).  

I-56 

 
 
 
 
 
  
 
 
Summary Information 

Portfolio Features 
Currency of the 
Portfolio 

USD 

AB FCP I—Global High Yield Portfolio 

Distributions* 

For class A, B, C, I, JA, J and W shares  
To be declared daily and payable monthly 

Class Name 

Net Asset Value 
Calculation 

Net Asset Value 
Publication 

Order Cut-Off 
Times 

H means Currency Hedged Share 
Classes.  For additional information on 
share class hedging, see “How to 
Purchase Shares—Currency Hedged 
Share Classes” and “Risk Factors—
Currency Hedged Share Class Risk” in 
Section II. 

Each Business Day 

Available at www.alliancebernstein.com 

For USD-Denominated Share Classes, 
EUR-Denominated Share Classes, 
HKD-Denominated Share Classes and 
SGD-Denominated Share Classes 
4:00 P.M. U.S. Eastern Time on each 
Business Day 

For Currency Hedged Share Classes 
(except RMB Hedged Share Classes) 
6:00 P.M. Central European Time on 
each Business Day 
For RMB Hedged Share Classes 
1:00 P.M. Central European Time on 
each Business Day  

For class AT, BT, CT, IT, NT, S1D, S1D2 and WT 
shares 
To be declared and payable monthly 

For class AA, EA, IA and SA shares 
To be declared and payable monthly with a 
distribution rate to be derived from gross income 
(before deduction of fees and expenses) 

For class SHK shares 
To be declared daily and payable monthly with a 
distribution rate to be derived from gross income 
(before deduction of fees and expenses) 

For class AR shares 
To be declared and payable annually with a 
distribution rate to be derived from gross income 
(before deduction of fees and expenses) 

For class SK shares 
To be declared and payable at the Management 
Company’s discretion 

For class A2, B2, C2, I2, N2, S, S1 and W2 shares 
None.   

For class IQD and S1QD shares 
To be declared and payable quarterly 

For class AK and CK shares 
To be declared and payable bi-annually 

See “Distributions” below. 

* Includes hedged share classes. 

Share Class Fees and Charges1 

Initial Sales 
Charge3 

Management Fee4 

Distribution Fee5 

Contingent Deferred 
Sales Charge6 

USD-Denominated Share Classes 

Class A and A2 Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

Class AK Shares 

Up to 5.00% 

Class AA Shares 

Up to 5.00% 

Class B and B2 Shares2** 

None 

None 

None 

None 

None 

1.00% 

None 

None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

I-57 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class BT Shares2** 

None 

Class C and C2 Shares 

Class CT Shares 

Class CK Shares 

Class EA Shares11 

None 

None 

None 

None 

Class I and I2 Shares9 

Up to 1.50% 

Class IT Shares9 

Up to 1.50% 

Class IQD Shares9 

Up to 1.50% 

Class JA Shares 

Class J Shares2 

None 

None 

Class N2 and NT Shares 

Up to 3.00% 

Class S Shares7 
Class S1 Shares 
Class SA Shares7 
Class S1D Shares10 
Class S1D2 Shares 
Class S1QD Shares 
Class SK Shares8 
Class SHK Shares8 
Class W Shares9 
Class WT Shares9 
Class W2 Shares9 

None 
None 
None 
None 
None 
None 
None 
None 
None 
None 
None 

EUR-Denominated Share Classes 

Class A and A2 Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

Class AK Shares 

Up to 5.00% 

Class C and C2 Shares 

None 

Up to 1.45% 
Up to 1.25% 

Up to 1.95% 
Up to 1.75% 

Up to 1.95% 
Up to 1.75% 

Up to 1.95% 
Up to 1.75% 

Up to 1.45% 
Up to 1.25% 

Up to 0.95% 
Up to 0.75% 
Up to 0.95% 
Up to 0.75% 

Up to 0.95% 
Up to 0.75% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 2.00% 
Up to 1.85% 
None 
0.90% 
None 
0.90% 
0.90% 
0.90% 
0.65% 
None 
Up to 1.15% 
Up to 1.15% 
Up to 1.15% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 1.95% 
Up to 1.75% 

Class I and I2 Shares9 

Up to 1.50% 

Up to 0.95% 

I-58 

AB FCP I—Global High Yield Portfolio 

1.00% 

None 

None 

None 

0.50% 

None 

None 

None 

None 

1.00% 

None 

None 
None 
None 
None 
None 
None 
None 
None 
None 
None 
None 

None 

None 

None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

0–1 year held=1.0% 
thereafter 0% 

0–1 year held=1.0% 
thereafter 0% 

0–1 year held=1.0% 
thereafter 0% 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 

None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 

None 
None 
None 
None 
None 
None 
None 
None 
None 
None 
None 

None 

None 

None 

0–1 year held=1.0% 
thereafter 0% 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class S1 Shares 

Class W Shares9 

None 

None 

HKD-Denominated Share Classes 

Class A2 Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

Class AA Shares 

Up to 5.00% 

Class IT Shares9 

Up to 1.50% 

SGD-Denominated Share Classes 

Class A2 Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

Class I2 Shares9 

Up to 1.50% 

EUR Hedged Share Classes 
Class A2 EUR H Shares 
and Class AT EUR H 
Shares 

Up to 5.00% 

Class AK EUR H Shares 

Up to 5.00% 

Class AA EUR H Shares 

Up to 5.00% 

Class AR EUR H Shares 

Up to 5.00% 

Class C2 EUR H Shares 
and Class CT EUR H 
Shares 

Class CK EUR H Shares 

None 

None 

Class I2 EUR H Shares9 

Up to 1.50% 

Class IT EUR H Shares9 

Up to 1.50% 

Class S EUR H Shares7 
Class S1 EUR H Shares 

Class S1QD EUR H Shares 

Class WT EUR H Shares9 
Class W2 EUR H Shares9 

None 
None 

None 

None 
None 

AUD Hedged Share Classes 

Class AT AUD H Shares 

Up to 5.00% 

Class AA AUD H Shares 

Up to 5.00% 

Up to 0.75% 
0.90% 

Up to 1.15% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 0.95% 
Up to 0.75% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 0.95% 
Up to 0.75% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 1.95% 
Up to 1.75% 

Up to 1.95% 
Up to 1.75% 
Up to 0.95% 
Up to 0.75% 
Up to 0.95% 
Up to 0.75% 

None 
0.90% 

0.90% 

Up to 1.15% 
Up to 1.15% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

I-59 

AB FCP I—Global High Yield Portfolio 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 
None 

None 

None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

0–1 year held=1.0% 
thereafter 0% 

0–1 year held=1.0% 
thereafter 0% 

None 

None 

None 
None 

None 

None 
None 

None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—Global High Yield Portfolio 

1.00% 

0.50% 

None 

None 

None 

None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 

None 

None 

None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

Class BT AUD H Shares2** 

None 

Class EA AUD H Shares11 

None 

Class I2 AUD H Shares9 

Up to 1.50% 

Class IT AUD H Shares9 

Up to 1.50% 

Class IA AUD H Shares9 

Up to 1.50% 

Class S1 AUD H Shares 
Class WT AUD H Shares9 

None 
None 

SGD Hedged Share Classes 
Class A2 SGD H Shares 
and Class AT SGD H 
Shares 

Up to 5.00% 

Class AA SGD H Shares 

Up to 5.00% 

Class I2 SGD H Shares9 

Up to 1.50% 

Class IT SGD H Shares9 

Up to 1.50% 

CAD Hedged Share Classes 

Class AT CAD H Shares 

Up to 5.00% 

Class AA CAD H Shares 

Up to 5.00% 

Class IT CAD H Shares9 

Up to 1.50% 

Class WT CAD H Shares9 

None 

GBP Hedged Share Classes 

Class AT GBP H Shares 

Up to 5.00% 

Class AA GBP H Shares 

Up to 5.00% 

Class IT GBP H Shares9 

Up to 1.50% 

Class WT GBP H Shares9 

None 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 0,95% 
Up to 0.75% 
Up to 0.95% 
Up to 0.75% 
Up to 0.95% 
Up to 0.75% 
0.90% 
Up to 1.15% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 0.95% 
Up to 0.75% 
Up to 0.95% 
Up to 0.75% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 0.95% 
Up to 0.75% 
Up to 1.15% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 0.95% 
Up to 0.75% 
Up to 1.15% 

I-60 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RMB* Hedged Share Classes 

Class AT RMB H Shares 

Up to 5.00% 

Class AA RMB H Shares 

Up to 5.00% 

Class I2 RMB H Shares9 

Up to 1.50% 

Class IT RMB H Shares9 

Up to 1.50% 

Class WT RMB H Shares9 

None 

NZD Hedged Share Classes 

Class AT NZD H Shares 

Up to 5.00% 

Class AA NZD H Shares 

Up to 5.00% 

Class IT NZD H Shares9 

Up to 1.50% 

ZAR Hedged Share Classes 

Class AA ZAR H Shares 

Up to 5.00% 

Class EA ZAR H Shares11 

None 

CHF Hedged Share Classes 

Class A2 CHF H Shares 

Up to 5.00% 

Class  I2 CHF H Shares9 

Up to 1.50% 

Class W2 CHF H Shares9 

None 

PLN Hedged Share Classes 

Class A2 PLN H Shares 

Up to 5.00% 

Class I2 PLN H Shares9 

Up to 1.50% 

CZK Hedged Share Classes 

Class A2 CZK H Shares 

Up to 5.00% 

Class I2 CZK H Shares9 

Up to 1.50% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 0.95% 
Up to 0.75% 

Up to 0.95% 
Up to 0.75% 

Up to 1.15% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 0.95% 
Up to 0.75% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 1.45% 
Up to 1.25% 

Up to 0.95% 
Up to 0.75% 

Up to 1.15% 

Up to 1.45% 
Up to 1.25% 

Up to 0.95% 
Up to 0.75% 

Up to 1.45% 
Up to 1.25% 

Up to 0.95% 
Up to 0.75% 

AB FCP I—Global High Yield Portfolio 

None 

None 

None 

None 

None 

None 

None 

None 

None 

0.50% 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 

None 

None 

None 

None 

None 

None 

1 

The Management Company, Administrator, Depositary and 
Transfer Agent are entitled to receive, out of the assets of the 
Portfolio, fees as described under "Other Portfolio Information—
Management Company, Administrator, Depositary and Transfer 
Agent Fees" below.  The Portfolio also bears all of its other 
expenses.  See "How to Purchase Shares" and "Additional 
Information—Fees and Expenses" in Section II. The 
Management Company has voluntarily undertaken, until the 
Management Company on behalf of the Fund notifies 
Shareholders to the contrary, that if, in any fiscal year, the 
aggregate fees and expenses with respect to the following 

share classes of the Portfolio (including any management fee and 
all other fees and expenses set out in "Additional Information—Fees 
and Expenses" in Section II, including Luxembourg Taxe 
d'Abonnement but exclusive of certain other taxes, brokerage (if 
applicable) and  interest on borrowings) exceed the following 
percentages of the Portfolio's average Net Asset Value for the fiscal 
year attributable to the Portfolio's share classes (and corresponding 
H shares) as follows: S (0.10%), SK (0.75%), SHK (0.10%),  S1 
(1.00%),  S1D (1.00%), S1D2 (1.00%), S1QD (1.00%) and SA 
(0.10%), the Fund may deduct from the payment to be made to the 

I-61 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—Global High Yield Portfolio 

Management Company, or the Management Company will 
otherwise bear, such excess fees and expenses. 

2   After four years from the date of purchase, class B, B2, BT and 

3 
4 

5 
6 

J shares are eligible for conversion to class A, A2, AT and JA 
shares, respectively, without charge from either the Fund or the 
Management Company.  For further details on the conversion of 
shares, please refer to "How to Exchange or Convert Shares—
Conversion of CDSC Shares" in Section II of the Prospectus. 
As a percentage of purchase price. 
As an annual percentage of average daily Net Asset Value. 
With respect to certain share classes, the management fee may 
also include a component that is paid to distributors or other 
financial intermediaries and service providers.  For further 
details on the management fee, please refer to "Additional 
Information—Fees and Expenses" in Section II. For all Shares 
except class, S, S1,  S1D, S1D2, S1QD, W, W2, and WT 
shares, consecutive fee levels listed apply with respect to (1) 
the first $15,000,000,000 of the collective net assets of these  
Portfolio share classes and (2) the amount of the collective net 
assets of these Portfolio share classes over $15,000,000,000. 
As an annual percentage of average daily Net Asset Value.  
For class B, B2  and BT shares, as a percentage of the lesser 
of the current Net Asset Value or original cost of the Shares 
being redeemed and based upon the duration that such Shares 
are held.  For class J shares, as a percentage of the current Net 
Asset Value of the Shares being redeemed.  CDSC Shares may 
only be purchased through a dealer authorized by the 
Distributor to offer such shares.  Those investors considering an 
investment in CDSC Shares should speak with their financial 
advisor for details. With respect to class C, CT, CK and C2 
shares (and corresponding H shares), a dealer may elect to 
waive the contingent deferred sales charge in certain 
circumstances. 

7  Class S and SA shares are reserved for institutional investors 

that have entered into an agreement with the Management 
Company and are being charged an investment management 
fee separately. 

8  Class SKand SHK shares are reserved for investments by AB 

9 

funds. 
For further information on this share class, see “Additional 
Share Class Information” in Section II. 

10  Class S1D shares are open to new purchases from existing 

shareholders of this share class only. 

11  After three years from the date of purchase, class EA shares 
(and   corresponding H shares) will be converted to class AA 
shares (and corresponding H shares) without charge from 
either the Fund or the Management Company.  For further 
details on the conversion of shares, please refer to “How to 
Exchange or Convert Shares—Conversion of CDSC Shares” in 
Section II of the Prospectus. 

* 

“RMB” refers to offshore RMB (“CNH”) and not onshore RMB 
known as CNY. 

**  Effective 15 December 2016, Class B shares will no longer be 
offered. However, Class B shares may be made available for 
exchange to shareholders holding Class B shares (or a 
variation thereof including hedged share classes) in another 
Portfolio or other AB fund. 

I-62 

 
 
 
 
 
 
 
 
AB FCP I—Global High Yield Portfolio 

Other Share Class Features 

Offered 
Currencies* 

Minimum Initial 
Investment** 

Minimum 
Subsequent 
Investment** 

Maximum 
Investment*** 

Luxembourg Taxe 
d'Abonnement**** 

USD-Denominated Share Classes 

Class A and A2 Shares 

Class AT Shares 

Class AK Shares 

Class AA Shares 

Class B and B2 Shares 

Class BT Shares 

Class C and C2 Shares 

Class CK Shares 

Class CT Shares 

Class EA Shares 

Class I, I2 and IQD 
Shares 

Class IT Shares 

Class JA Shares 

Class J Shares 

Class N2 and NT 
Shares 

Class S Shares 

Class S1 Shares 

Class SA Shares 

Class S1D Shares 

Class S1D2 Shares 

Class S1QD Shares 

Class SK Shares 

Class SHK Shares 

Class W Shares 

Class WT Shares 

Class W2 Shares 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 
Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

EUR-Denominated Share Classes 
Class A and A2 Shares 

Euro 

$2,000 

$2,000 

$2,000 

$2,000 

$2,000 

$2,000 

$2,000 

$2,000 

$2,000 

$2,000 

$1 million*** 

$1 million*** 

300 shares 

300 shares 

$2,000 

$25 million*** 

$25 million*** 

$25 million*** 

No longer offered 
to new investors 

$25 million*** 

$25 million*** 

$25 million*** 

$25 million*** 

$1 million*** 

$1 million*** 

$1 million*** 

€2,000 

I-63 

$750 

$750 

$750 

$750 

$750 

$750 

$750 

$750 

$750 

$750 

None 

None 

$750 

$750 

$750 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

€750 

None 

None 

None 

None 

$250,000 

$250,000 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.01% 

0.01% 

0.01% 

0.01% 

0.01% 

0.01% 

0.01% 

0.01% 

0.05% 

0.05% 

0.05% 

0.05% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class AT Shares 
Class AK Shares 
Class C Shares  
Class C2 Shares  

Class I Shares 

Class I2 Shares 

Class S1 Shares  

Class W Shares 

Euro 
Euro 
Euro 
Euro 

Euro 

Euro 

Euro 

Euro 

HKD-Denominated Share Classes 
Class A2 Shares 
Class AT Shares 
Class AA Shares 
Class IT Shares 

HKD 
HKD 
HKD 
HKD 

SGD-Denominated Share Classes 
Class A2 Shares 
Class AT Shares 

SGD 
SGD 
SGD 

Class I2 Shares 

AB FCP I—Global High Yield Portfolio 

€2,000 
€2,000 
€2,000 
€2,000 

€1 million*** 

€1 million*** 

€20 million*** 

€1 million*** 

HK$15,000 
HK$15,000 
HK$15,000 
HK$8 million*** 

S$3,000 
S$3,000 
S$1,5 million*** 

€750 
€750 
€750 
€750 

None 

None 

None 

None 

HK$5,000 
HK$5,000 
HK$5,000 
None 

S$1,000 
S$1,000 

None 

None 
None 
None 
None 

None 

None 

None 

None 

None 
None 
None 
None 

None 
None 

None 

0.05% 
0.05% 
0.05% 
0.05% 

0.05% 

0.05% 

0.01% 

0.05% 

0.05% 
0.05% 
0.05% 
0.05% 

0.05% 
0.05% 

0.05% 

Hedged 
Currencies 

Minimum Initial 
Investment** 

Minimum 
Subsequent 
Investment** 

Maximum 
Investment*** 

Luxembourg Taxe 
d'Abonnement**** 

EUR Hedged Share Classes 
Class A2 EUR H Shares 
and Class AT EUR H 
Shares 

Class AK EUR H Shares 
Class AA EUR H Shares 
Class AR EUR H Shares 
Class C2 EUR H Shares 
and Class CT EUR H 
Shares 

Class CK EUR H Shares 

Class I2 EUR H Shares 

Class IT EUR H Shares 

Class S EUR H Shares 

Class S1 EUR H Shares 

Class S1QD EUR H Shares 

Class WT EUR H Shares 

Class W2 EUR H Shares 

AUD Hedged Share Classes 
Class AT AUD H Shares 
Class AA AUD H Shares 

Class BT AUD H Shares 

Class EA AUD H Shares 

Class I2 AUD H Shares 

Euro 

Euro 
Euro 
Euro 

Euro 

Euro 

Euro 

Euro 

Euro 

Euro 

Euro 

Euro 

Euro 

AUD 
AUD 

AUD 

AUD 

AUD 

€2,000 

€2,000 
€2,000 
€2,000 

€2,000 

€2,000 

€1 million*** 

€1 million*** 

€20 million*** 

€20 million*** 

€20 million*** 

€1 million*** 

€1 million*** 

A$2,000 
A$2,000 

A$2,000 

A$2,000 

A$1 million*** 

I-64 

€750 

€750 
€750 
€750 

€750 

€750 

None 

None 

None 

None 

None 

None 

None 

A$750 
A$750 

A$750 

A$750 

None 

None 

None 
None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 
None 

A$250,000 

None 

None 

0.05% 

0.05% 
0.05% 
0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.01% 

0.01% 

0.01% 

0.05% 

0.05% 

0.05% 
0.05% 

0.05% 

0.05% 

0.05% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—Global High Yield Portfolio 

Class IT AUD H Shares 
Class IA AUD H Shares 
Class S1 AUD H Shares 

Class WT AUD H Shares 

SGD Hedged Share Classes 
Class A2 SGD H Shares 
Class AT SGD H Shares 
Class AA SGD H Shares 
Class I2 SGD H Shares 
Class IT SGD H Shares 

CAD Hedged Share Classes 
Class AT CAD H Shares 
Class AA CAD H Shares 
Class IT CAD H Shares 

Class WT CAD H Shares 

GBP Hedged Share Classes 
Class AT GBP H Shares 
Class AA GBP H Shares 
Class IT GBP H Shares 

Class WT GBP H Shares 

RMB Hedged Share Classes 
Class AT RMB H Shares 
Class AA RMB H Shares 
Class I2 RMB H Shares 
Class IT RMB H Shares 

Class WT RMB H Shares 

NZD Hedged Share Classes 
Class AT NZD H Shares 
Class AA NZD H Shares 
Class IT NZD H Shares 

ZAR Hedged Share Classes 
Class AA ZAR H Shares 
Class EA ZAR H Shares 

CHF Hedged Share Classes 
Class A2 CHF H Shares 
Class I2 CHF H Shares 
Class W2 CHF H Shares 

PLN Hedged Share Classes 
Class A2 PLN H Shares 
Class I2 PLN H Shares 

CZK Hedged Share Classes 
Class A2 CZK H Shares 
Class I2 CZK H Shares 

AUD 
AUD 
AUD 

AUD 

SGD 
SGD 
SGD 
SGD 
SGD 

CAD 
CAD 
CAD 

CAD 

GBP 
GBP 
GBP 

GBP 

RMB 
RMB 
RMB 
RMB 

RMB 

NZD 
NZD 
NZD 

ZAR 
ZAR 

CHF 
CHF 
CHF 

PLN 
PLN 

CZK 
CZK 

A$1 million*** 
A$1 million*** 
A$25 million 

A$1 million*** 

S$3,000 
S$3,000 
S$3,000 
S$1.5 million*** 
S$1.5 million*** 

C$2,000 
C$2,000 
C$1 million*** 

C$1 million*** 

£2,000 
£2,000 
£500,000*** 

£500,000*** 

None 
None 
None 

None 

S$1,000 
S$1,000 
S$1,000 
None 
None 

C$750 
C$750 
None 

None 

£750 
£750 
None 

None 

RMB 10,000 
RMB 10,000 
RMB 5,000,000*** 
RMB 5,000,000*** 

RMB 3,750 
RMB 3,750 
None 
None 

RMB 5,000,000*** 

None 

NZ$3,000 
NZ$3,000 
NZD1.5 million*** 

NZ$1,000 
NZ$1,000 
None 

ZAR 20,000 
ZAR 20,000 

ZAR 7,000 
ZAR 7,000 

CHF 2,000 
CHF 1million*** 
CHF 1 million*** 

CHF 750 
None 
None 

PLN 7,500 
PLN 4,000,000*** 

PLN 3,000 
None 

CZK 50,000 
CZK 25,000,000*** 

CZK 20,000 
None 

None 
None 
None 

None 

None 
None 
None 
None 
None 

None 
None 
None 

None 

None 
None 
None 

None 

None 
None 
None 
None 

None 

None 
None 
None 

None 
None 

None 
None 
None 

None 
None 

None 
None 

0.05% 
0.05% 
0.01% 

0.05% 

0.05% 
0.05% 
0.05% 
0.05% 
0.05% 

0.05% 
0.05% 
0.05% 

0.05% 

0.05% 
0.05% 
0.05% 

0.05% 

0.05% 
0.05% 
0.05% 
0.05% 

0.05% 

0.05% 
0.05% 
0.05% 

0.05% 
0.05% 

0.05% 
0.05% 
0.05% 

0.05% 
0.05% 

0.05% 
0.05% 

* 

Does not denote that such Offered Currency is hedged at the 
Share Class level. 

**  Does not apply to automatic investment plans, where offered.  

***  May be waived by the Management Company in its sole 

discretion. 

****  Annual Luxembourg tax payable quarterly by each portfolio. 

I-65 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Portfolio Information 

Principal Investment Types 
For a chart summarizing the principal types of investments 
used by the Portfolio and a description of securities and other 
instruments in which the Portfolio may invest, investors should 
refer to "Investment Types" in Section II.  The ability of the 
Portfolio to invest in any securities or instruments is subject to 
the restrictions in the Portfolio's stated investment objective 
and policies and the limitations contained in "Investment 
Restrictions" in Appendix A to Section II. 

Risk Profile 
It is intended that this Portfolio will make use of financial 
derivative instruments. The investment restrictions (9) to (13) 
set forth in Appendix A to Section II will not apply. This Portfolio 
shall employ the Value-at-Risk (VaR) approach. For further 
details concerning the VaR approach, please refer to 
“Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and Instruments 
and Collateral Management”. 

Fixed-income securities in which the Portfolio will invest are 
subject to the credit risk of the private and public institutions 
offering these securities and their market value is influenced by 
changes in interest rates.  Because the Portfolio's fixed-income 
securities investments may be below Investment Grade quality, 
these risks are higher for this Portfolio than for a portfolio that 
invests solely in Investment Grade or equivalent quality fixed-
income securities.  Below Investment Grade securities are also 
subject to greater risk of loss of principal and interest and are 
generally less liquid and more volatile.  There can be no 
assurance that any distribution payments will occur and the 
Portfolio has no specific maturity. 

The Portfolio is subject to market, interest rate and currency 
fluctuations and to other risks inherent in investing in securities.  
Therefore, no assurance can be given that the investment 
objective will be achieved, that invested capital will be 
preserved, or that capital appreciation will occur.  Investment 
results may vary substantially on a monthly, quarterly or annual 
basis. An investment in the Portfolio does not represent a 
complete investment program. 

For a chart summarizing the principal risks of the Portfolio and 
a more detailed discussion of these and other risks applicable 
to the Portfolio, investors should refer to "Risk Factors" in 
Section II. 

Profile of the Typical Investor 
The Portfolio will suit higher risk-tolerant investors seeking the 
income potential of fixed-income investment.  Investors are 
encouraged to consult their independent financial advisors 
regarding the suitability of Shares of the Portfolio for their 
investment needs. 

Distributions 
For class A, B, C, I, JA, J and W shares (and corresponding H 
shares), the Management Company intends to declare daily 
and pay monthly dividends equal to all or substantially all of the 
Portfolio's net income attributable to each class of Shares.   

For class AT, BT, CT, IT, NT, S1D, S1D2 and WT shares (and 
corresponding H shares), the Management Company intends 
to declare and pay monthly dividends equal to all or 

I-66 

AB FCP I—Global High Yield Portfolio 

substantially all of the Portfolio's net income attributable to 
each class of Shares.  

For class IQD and S1QD shares, the Management 
Company intends to declare and pay quarterly dividends 
equal to all or substantially all of the Portfolio's net income 
attributable to the class of Shares.  For class SK shares, 
the Management Company may declare and pay dividends 
at its discretion. 

For class AK and CK shares (and corresponding H shares), 
the Management Company intends to declare and pay bi-
annually dividends equal to all or substantially all of the 
Portfolio's net income attributable to the relevant class of 
Shares.  

For class AA, EA, IA and SA shares (and corresponding H 
shares), the Management Company intends to declare and 
make monthly distributions. The Management Company 
intends to maintain a stable distribution rate per share for 
such share classes.  
For class AR shares (and corresponding H shares), the 
Management Company intends to declare and make annual 
distributions. For class SHK shares , the Management 
Company intends to declare daily and make monthly 
distributions. The distribution rate is to be derived from 
gross income (before deduction of fees and expenses) and 
distributions may also include realized and unrealized gains 
and capital attributable to such classes of Shares. Since 
fees and expenses do not reduce the distribution rate, the 
NAV per Share of the relevant classes will be reduced by 
such fees and expenses. 

The Management Company also may determine if and to 
what extent dividends paid include realized capital gains 
and/or are paid out of capital attributable to the relevant 
class of Shares.  To the extent the net income and net 
realized profits attributable to these Shares exceed the 
amount declared payable, the excess return will be 
reflected in the respective Net Asset Value of such Shares.  
Dividends may be automatically reinvested at the election 
of the Shareholder. 

For class A2, B2, C2, I2, N2, S, S1 and W2 shares (and 
corresponding H shares), the Management Company 
currently does not intend to pay dividends with respect to 
the Shares. Therefore, any net income and net realized 
profits attributable to the Shares will be reflected in the 
respective Net Asset Value of the Shares. 

Management Company, Administrator, Depositary and 
Transfer Agent Fees 
For all Shares (and corresponding H shares) except class 
S, SK, SHK, S1D, S1D2, S1QD, S1 and SA shares (and 
corresponding H shares), the Management Company is 
paid an annual fee out of the assets of the Portfolio on the 
aggregate Net Asset Value attributable to the Shares equal 
to 0.10% of average daily Net Asset Value.  The 
Management Company is paid an annual fee out of the 
assets of the Portfolio on the aggregate Net Asset Value 
attributable to the class S, SK, SHK, S1D, S1D2, S1QD, S1 
and SA shares (and corresponding H shares) equal to the 

 
 
 
lesser of $50,000 or 0.01% of average daily Net Asset Value. 

The Administrator fee, Depositary fee and Transfer Agent fee 
for the Portfolio are paid out of the assets of the Portfolio in 
accordance with the usual practice in Luxembourg and shall 
not exceed a fixed maximum specified under Section II of the 
prospectus under “Administrator, Depositary and Transfer 
Agent Fees”.  These fees may decrease or increase depending 
on the assets of the Portfolio and transaction volume or for 
other reasons. 

Organizational Expenses 
The Portfolio has no unamortized organizational expenses. 

AB FCP I—Global High Yield Portfolio 

Historical Performance 
Information on the historical performance of the Portfolio 
may be found at www.alliancebernstein.com. 

History 
The Portfolio was established as a portfolio of the Fund on 
22 September 1997.  

I-67 

 
 
 
 
 
 
 
AB FCP I—American Income Portfolio 

Investment Objective and Policies 

Investment Objective 
The primary investment objective of the Portfolio is to seek to 
provide a high level of current income consistent with 
preservation of capital. 

The Portfolio seeks to meet its investment objective by 
investing in a diversified portfolio of fixed-income securities.  

As a secondary objective, the Portfolio will seek to increase its 
capital through appreciation of its investments in order to 
preserve and, if possible, increase the purchasing power of 
each Shareholder's investment.   

Description of Investment Discipline and Process 
The Portfolio's investments may include all types of U.S. 
Government Securities, including those backed by the full faith 
and credit of the U.S. Government, those supported by the 
right to borrow from the U.S. Treasury and those backed by the 
credit of the issuing agency itself.  The Portfolio may also 
invest in fixed-income securities issued by U.S. corporations 
and by non-U.S. corporations and by governments other than 
that of the United States (including, but not limited to, states, 
provinces and municipalities) or their agencies and 
instrumentalities ("governmental entities") issuing securities 
denominated in Dollars and a variety of mortgage-backed 
securities and zero coupon securities. In addition, the Portfolio 
may utilize financial derivative instruments for hedging, risk 
management, efficient portfolio management and as an 
alternative to investing directly in the underlying investments.   

The Portfolio will maintain investment exposure of at least 65% 
of its total assets in U.S. issuers. The Investment Manager 
anticipates that the Portfolio will maintain investment exposure 
of at least 50% of its total assets in (i) U.S. Government 
Securities, as described below, and (ii) other fixed-income 
securities described herein that, at the time of investment, are 
considered Investment Grade, or if not so rated, are 
determined by the Investment Manager to be of equivalent 
quality.  Notwithstanding the foregoing, under certain market 
conditions the Investment Manager may obtain investment 
exposure in excess of 50% of the Portfolio's assets in 
securities that are rated below Investment Grade if the 
Investment Manager deems such investments appropriate in 
light of current market conditions and the Portfolio's investment 
objective.  The Portfolio will generally not invest in securities 
rated below B (including B1, B2 and B3) by Moody's or B 
(including B+ and B-) by S&P or, if unrated by an IRSO, 
considered by the Investment Manager to be of equivalent 
quality to such a rating.   

Securities rated below Investment Grade are commonly 
referred to as "junk bonds."  See "Risk Factors—Debt 
Securities Risks—Fixed-Income Securities Risks—Lower-
Rated and Unrated Instruments" in Section II.  The Portfolio 
expects that it will generally not retain a security which is 
downgraded below B (including B1, B2 and B3) by Moody's or 
B (including B+ and B-) by S&P or, if unrated by an IRSO, 
determined by the Investment Manager to have undergone 
similar credit quality deterioration subsequent to purchase. 

As used herein, "U.S. Government Securities" include, without 
limitation, the following: 

I-68 

1.  U.S. Treasury Bills.  Direct obligations of the U.S. 

Treasury which are issued in maturities of one year or 
less.  No interest is paid on U.S. Treasury Bills; instead, 
they are issued at a discount and repaid at full face 
value when they mature.  They are backed by the full 
faith and credit of the U.S. Government. 

2.  U.S. Treasury Notes.  Direct obligations of the U.S. 

Treasury issued in maturities which vary between one 
and ten years, with interest payable every six months.  
They are backed by the full faith and credit of the U.S. 
Government. 

3.  U.S. Treasury Bonds.  These direct obligations of the 

U.S. Treasury are issued in maturities of more than ten 
years from the date of issue, with interest payable 
every six months.  They are backed by the full faith and 
credit of the U.S. Government. 

4.  Guaranteed Mortgage Pass-Through Securities.  These 
are mortgage-related securities issued or guaranteed 
by the Government National Mortgage Association 
("Ginnie Mae" or "GNMA"), the Federal National 
Mortgage Association ("Fannie Mae" or "FNMA") or the 
Federal Home Loan Mortgage Corporation ("Freddie 
Mac" or "FHLMC").  Fannie Mae and Freddie Mac 
securities are not backed by the full faith and credit of 
the U.S. Government.  See "Types of Investments—
Debt Securities Types—Pass-Through Mortgage-
Related Securities" in Section II. 

5.  Governmental "CMOs."  These are securities issued by 
a U.S. Government instrumentality or agency which are 
backed by a portfolio of mortgages or mortgage-backed 
securities held under an indenture.  See "Investment 
Types Investments—Debt Securities Types—
Collateralized Mortgage Obligations and Multi-Class 
Pass-Through Securities" in Section II. 

Financial Derivative Instruments/Efficient Portfolio 
Management Techniques. The Investment Manager may 
use derivative products and strategies when implementing 
the Portfolio’s investment strategy.  Such financial 
derivative instruments may include, but are not limited to, 
swaps (including interest rate swaps (“IRS”), total rate of 
return swaps (“TRS”) and credit default swaps (“CDS”)), 
swaptions, options, futures and currency transactions 
(including forward currency contracts).  These financial 
derivative instruments (including OTC derivatives and 
exchange-traded financial derivative instruments) and 
efficient portfolio management techniques may be 
employed for the following purposes: (i) as an alternative to 
investing directly in the underlying investments, (ii) to 
manage duration, (iii) to hedge against interest rate, credit 
and currency fluctuations and (iv) for efficient portfolio 
management purposes. With respect to CDS, the Portfolio 
may both “sell” protection in order to gain exposure and 
“buy” protection to hedge credit exposure. 

In accordance with the transparency requirements of the 
SFT Regulation the chart below reflects, where applicable, 
the expected and maximum level of the Portfolio’s net 

 
 
assets that will be subject to securities financing transactions 
(i.e. securities lending transactions as well as repurchase 
agreements and reverse repurchase agreements) (“SFTs”) and 
total return swaps and/or other financial derivative instruments 
with similar characteristics (“TRS”); being specified that in 
certain circumstances this proportion may be higher.   

Type of 
Transactions 

TRS 

Repurchase 
agreements and 
reverse repurchase 
agreements 

Securities lending 
transactions 

Expected Range  Maximum 

0%-20% 

0%-5% 

50% 

10% 

N/A 

N/A 

For further details concerning SFTs and TRS, please refer to 
“Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and Instruments 
and Collateral Management.” 

Other Investment Policies 
The Portfolio will not invest more than 5% of its total assets in 
the securities of any one issuer, excepting obligations issued or 
guaranteed by the U.S. Government, its agencies or 
instrumentalities.  Further, the Portfolio will not own more than 
10% of the outstanding voting securities of any issuer.  The 
Portfolio has complete flexibility as to the types of securities 
and financial derivative instruments in which it will invest and 
the relative proportions thereof, and the Portfolio plans to vary 
the proportions of its holdings of long- and short-term fixed-
income securities (including debt securities, convertible debt 
securities, U.S. Government obligations) and of preferred 
stocks, in order to reflect its assessment of prospective cyclical 
changes even if such action may adversely affect current 
income.  However, substantially all of the Portfolio's 
investments will be income-producing.  The Portfolio may 
maintain investment exposure of up to 35% of its total assets in 
securities of non-U.S. issuers.  The purchase of securities of 
non-U.S. issuers entails certain political and economic risks, 
and accordingly the Portfolio has restricted its investments in 
securities in this category to issues of high quality.  Payment of 
interest and principal upon these obligations may also be 
affected by governmental action in the country of domicile 
(generally referred to as "sovereign risk").  In addition, 
evidences of ownership of portfolio securities may be held 
outside of the United States and the Portfolio may be subject to 
the risks associated with the holding of such property 
overseas.  Examples of governmental actions would be the 
imposition of currency controls, interest limitations, seizure of 
assets, or the declaration of a moratorium. 

The Portfolio may not invest in securities which are not quoted 
securities or which cannot be readily resold because of legal or 
contractual restrictions or which are not otherwise readily 
marketable or in debt instruments which are not treated, 
because of their characteristics, as equivalent to transferable 
securities and which are, inter alia, transferable, liquid and 
have a value that can be accurately determined at any 
Business Day, if, regarding all such securities, more than 10% 

I-69 

AB FCP I—American Income Portfolio 

of the total net assets of the Portfolio would be invested in 
such securities immediately after and as a result of such 
transaction.  See paragraph (5) in Appendix A to Section II.  
Investment by the Portfolio in certain of the securities 
described in Section II under "Investment Types" will be 
subject to the limitation described in the foregoing 
sentence.  In particular, private mortgage pass-through 
securities, privately issued collateralized mortgage 
obligations, privately issued multi-class pass-through 
securities, certain options relating to securities and certain 
zero coupon securities will be subject to the foregoing limits 
unless such securities are traded on a securities exchange 
or on another regulated market. In addition, other types of 
securities are subject to this 10% restriction. 

The Portfolio will maintain investment exposure of at least 
80% of its total assets in fixed-income securities, and in no 
case will the amount of the Portfolio's investment exposure 
in such securities be less than half of the Portfolio's total 
assets.  In no case will the amount of the Portfolio's 
investment exposure to securities issued by American 
issuers be less than two-thirds of the Portfolio's total assets.  
For these purposes, an "American issuer" is a government, 
governmental agency, company or other entity that (i) is 
domiciled or organized in, or (ii) is established and 
conducting business in, or (iii) carries out the preponderant 
part of its economic activities in North, South or Central 
America. 
Leverage. The Investment Manager does not expect to 
utilize bank borrowing in implementing the Portfolio’s 
investment strategy.  The expected level of leverage of the 
Portfolio is estimated to be in the 0% to 100% range of its 
Net Asset Value. The expected level of leverage is 
calculated as the sum of the notionals of the financial 
derivative instruments held by the Portfolio. Pursuant to the 
CSSF Circular 11/512 dated 30 May 2011, this calculation 
methodology neither takes into account the fact that a 
particular financial derivative instrument increases or 
decreases the Portfolio’s investment risks nor permits to net 
financial derivative instruments with reverse positions. 
Shareholders should be aware that (i) a higher level of 
expected leverage does not automatically imply a higher 
level of investment risk and (ii) the expected level of 
leverage disclosed above is mainly generated by the use of 
derivatives for hedging purposes or for efficient portfolio 
management.  In addition, the actual leverage of the 
Portfolio may deviate from the above mentioned expected 
level of leverage. 

Risk Measurement. The Investment Manager will utilize a 
Value-at-Risk (“VaR”) methodology to monitor the global 
exposure (market risk) for the Portfolio. The global 
exposure of the Portfolio is measured by the absolute VaR 
methodology pursuant to which the VaR of the Portfolio 
may not exceed 20% of its Net Asset Value. 

Benchmark. The Portfolio’s benchmark is the Bloomberg 
US Aggregate Index. The Portfolio uses the benchmark for 
performance comparison. The Portfolio is actively managed 
and the Investment Manager is not constrained by its 
benchmark when implementing the Portfolio’s investment 
strategy. Although the Portfolio may hold, in certain market 
conditions and subject to the Investment Manager’s full 

 
 
 
 
 
 
AB FCP I—American Income Portfolio 

against other major currencies in the inter-bank foreign 
exchange market is allowed to float within a narrow band 
around the central parity published by the People’s Bank of 
China.  RMB convertibility from offshore RMB (CNH) to 
onshore RMB (CNY) is a managed currency process 
subject to foreign exchange control policies of and 
repatriation restrictions imposed by the Chinese 
government in coordination with the Hong Kong Monetary 
Authority (HKMA).  The value of CNH could differ, perhaps 
significantly, from that of CNY due to a number of factors 
including without limitation those foreign exchange control 
policies and repatriation restrictions pursued by the Chinese 
government from time-to-time as well as other external 
market forces. 

Since 2005, foreign exchange control policies pursued by 
the Chinese government have resulted in the general 
appreciation of RMB (both CNH and CNY). This 
appreciation may or may not continue and there can be no 
assurance that RMB will not be subject to devaluation at 
some point. Any devaluation of RMB could adversely affect 
the value of investors’ investments in the RMB H shares. 

The RMB H shares participate in the offshore RMB (CNH) 
market, which allows investors to freely transact CNH 
outside of mainland China with approved banks in the Hong 
Kong market (HKMA approved banks). The RMB H shares 
will have no requirement to remit CNH to onshore RMB 
(CNY). 

Responsible investing.  
The Portfolio integrates ESG considerations. The Portfolio 
applies certain exclusions and details can be found at 
www.alliancebernstein.com/go/ABFCPIExclusionChart.  

The Portfolio is of the category that promotes environmental 
and social characteristics (SFDR Article 8; see “Appendix 
E: SFDR Pre-Contractual Disclosures” for more 
information).  

discretion, a significant part of the components of the 
benchmark, it will not hold every component of the benchmark 
and may also hold securities that are not part of it. 

Partial Duration Hedged Share Classes   
For classes designated with DUR PH, the Investment Manager 
intends to hedge a portion of the interest rate risk of the 
Portfolio through the use of financial derivative instruments. 
These share classes intend to provide investors a return that is 
less sensitive to interest rate fluctuations by partially hedging 
the duration of the overall Portfolio for shareholders in the 
Partial Duration Hedged Share Class. The partial duration 
hedging strategy is designed to reduce, though may not 
eliminate, the interest rate risk of the overall Portfolio in the 
Partial Duration Hedged Share Class. 
Managing the interest rate risk at the Partial Duration Hedged 
Share Classes level does not affect the investment 
management of the Portfolio’s underlying assets since the 
financial derivative instrument transactions used to hedge the 
interest rate risk will be performed at the net asset value (NAV) 
of the Partial Duration Hedged Share Classes.  Expenses 
incurred as a result of such hedging activity will be borne on a 
pro rata basis by all Partial Duration Hedged Share Classes 
issued within the Portfolio.   

Shareholders should be aware that Partial Duration Hedged 
Share Classes may still have significant sensitivity to changes 
in interest rates, which would impact the NAV of the Partial 
Duration Hedged Share Class.  

For additional information on share class hedging, see “How to 
Purchase Shares—Partial Duration Hedged Share Classes” 
and “Risk Factors—Partial Duration Hedged Share Classes” in 
Section II. 

Currency Hedged Share Classes  
One or more of the Portfolio’s share classes offered in a 
particular currency (each, an “Offered Currency”) may be 
hedged to such Offered Currency.  Any such share class will 
constitute a “Currency Hedged Share Class.”  Currency 
Hedged Share Classes aim to provide investors a return more 
closely correlated to the Portfolio’s base currency return by 
reducing the effect of exchange rate fluctuations between the 
Portfolio’s base currency (i.e., Dollar) and the relevant Offered 
Currency, taking into account practical considerations such as 
transaction costs.  The hedging strategy employed is designed 
to reduce, but may not eliminate, currency exposure between 
the Portfolio’s base currency and the Offered Currency. 

Currency Hedged Share Classes do not affect the investment 
management of the Portfolio’s underlying assets since it is only 
the net asset value (NAV) of the Currency Hedged Share 
Classes, not the Portfolio’s underlying assets, which is hedged 
to the Offered Currency.  Expenses incurred as a result of such 
hedging activity will be borne by the Currency Hedged Share 
Class in relation to which such expenses are incurred.  

Risk Factors linked to RMB Hedged Share Classes. Since 
2005, the RMB exchange rate is no longer pegged to the U.S. 
dollar. RMB has now moved to a managed floating exchange 
rate based on market supply and demand with reference to a 
basket of foreign currencies. The daily trading price of the RMB 

I-70 

 
 
 
 
 
 
 
 
 
 
 
AB FCP I—American Income Portfolio 

Summary Information 

Portfolio Features 
Currency of the 
Portfolio 

USD 

  Distribution* 

For class A, B, C, I, JA, J and W shares 
To be declared daily and payable monthly 

Net Asset Value 
Calculation 

Net Asset Value 
Publication 

Class Names 

Order Cut-Off Times 

Each Business Day 

Available at www.alliancebernstein.com 

H means Currency Hedged Share 
Classes.  For additional information on 
share class hedging, see “How to 
Purchase Shares—Currency Hedged 
Share Classes” and “Risk Factors -- 
Currency Hedged Share Class Risk” in 
Section II. 

DUR PH means Partial Duration Hedged 
Share Classes.  For additional information 
on share class hedging, see “How to 
Purchase Shares—Partial Duration 
Hedged Share Classes” and “Risk 
Factors -- Partial Duration Hedged Share 
Class Risk” in Section II. 

For USD-Denominated,EUR-
Denominated Share Classes, HKD 
Denominated Share Classes and SGD 
Denominated Share Classes 
4:00 P.M. U.S. Eastern Time on each 
Business Day 

For JPY-Denominated Share Classes,  
Currency Hedged Share Classes (except 
for RMB Hedged Share Classes) and 
Partial Duration Hedged Share Classes 
6:00 P.M. Central European Time on 
each Business Day 

For RMB Hedged Share Classes 
1:00 P.M. Central European Time on 
each Business Day 

For class AT, BT, CT, IT, LT, NT, S1D, S1D2,  
WT and ZT shares 
To be declared and payable monthly 

For class AA, BA, EA, IA and SA shares 
To be declared and payable monthly with a 
distribution rate to be derived from gross 
income (before deduction of fees and 
expenses) 

For class SHK shares 
To be declared daily and payable monthly with 
a distribution rate to be derived from gross 
income (before deduction of fees and 
expenses) 

For class AR shares 
To be declared and payable annually with a 
distribution rate to be derived from gross 
income (before deduction of fees and 
expenses) 

For class A2, B2, C2, I2, L2, N2, S, S1  and W2 
shares 
None.   

For class AK and CK shares 
To be declared and payable bi-annually 

For class S1QD shares 
To be declared and payable quarterly 

See “Distributions” below. 

*Includes Hedged and Partial Duration Hedged 
Share Classes 

Share Class Fees and Charges1 

Initial Sales 
Charge3 

Management Fee4 

Distribution Fee5 

Contingent Deferred 
Sales Charge6 

USD-Denominated Share Classes 

Class A and A2 Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

Class AK Shares 

Up to 5.00% 

Class AA Shares 

Up to 5.00% 

1.10% 

1.10% 

1.10% 

1.10% 

I-71 

None 

None 

None 

None 

None 

None 

None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—American Income Portfolio 

Class B and B2 Shares2** 

None 

1.10% 

0.70% 

Class BT Shares2** 

None 

1.10% 

0.70% 

Class C and C2 Shares 

Class CT Shares 

Class CK Shares 

None 

None 

None 

1.55% 

1.55% 

1.55% 

None 

None 

None 

Class EA Shares11  

None 

1.10% 

0.50% 

Class I and I2 Shares8 
Class IA Shares8 
Class IT Shares8 

Class JA Shares 

Up to 1.50% 
Up to 1.50% 
Up to 1.50% 

Up to 5.00% 

0.55% 
0.55% 
0.55% 

1.10% 

None 
None 
None 

None 

Class J Shares2 

None 

1.10% 

0.70% 

Class L2 Shares8 
Class LT Shares8 
Class N2 and NT Shares 
Class S Shares7 
Class SHK Shares9 
Class S1 Shares 
Class SA Shares7 
Class S1D Shares10 
Class S1D2 Shares 
Class W Shares8 
Class WT Shares8 
Class W2 Shares8 
Class ZT Shares9 

Up to 1.50% 
Up to 1.50% 
Up to 3.00% 
None 
None 
None 
None 
None 

None 
None 
None 
None 
None 

Partial Duration Hedged Share Classes 
Class AT DUR PH Shares† 
Class AA DUR PH Shares† 
Class A2 DUR PH Shares† 

No longer offered 
No longer offered 
No longer offered 

Class C2 DUR PH Shares† 

No longer offered 

Class I2 DUR PH Shares8† 

No longer offered 

0.90% 
0.90% 
1.65% 
None 
None 
0.50% 
None 
0.50% 

0.50% 
Up to 0.55% 
Up to 0.55% 
Up to 0.55% 
None 

1.10% 
1.10% 
1.10% 

1.55% 

0.55% 

JPY-Denominated Share Classes 
Class IT Shares8 

Up to 1.50% 

0.55% 

I-72 

None 
None 
None 
None 
None 
None 
None 
None 

None 
None  
None 
None 
None 

None 
None 
None 

None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

0–1 year held=1.0% 
thereafter 0% 

0–1 year held=1.0% 
thereafter 0% 

0–1 year held=1.0% 
thereafter 0% 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 
None 
None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 
None 
None 
None 
None 
None 
None 

None 

None 
None 
None 
None 
None 

None 
None 
None 

0–1 year held=1.0% 
thereafter 0% 

None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EUR-Denominated Share Classes 

Class AR Shares 

Up to 5.00% 

Class A and A2 Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

Class AK Shares 

Up to 5.00% 

Class C and C2 Shares 

None 

Class I and I2 Shares8 
Class S1 Shares 

Up to 1.50% 
None 

HKD-Denominated Share Classes 

Class A2 Shares 

Up to 5.00% 

Class AA Shares 

Up to 5.00% 

Class AT Shares 

Class I2 Shares8 
Class IT Shares8 
Class WT Shares8 

Up to 5.00% 

Up to 1.50% 
Up to 1.50% 
None 

SGD-Denominated Share Classes 

Class A2 Shares 

Up to 5.00% 

Class AT Shares 

Class I2 Shares8 
Class IT Shares8 

Up to 5.00% 

Up to 1.50% 
Up to 1.50% 

AUD Hedged Share Classes 
Class AT AUD H Shares 
Class AA AUD H Shares 

Up to 5.00% 
Up to 5.00% 

Class EA AUD H Shares11 

None 

1.10% 

1.10% 

1.10% 

1.10% 

1.55% 

0.55% 
0.50% 

1.10% 

1.10% 

1.10% 

0.55% 
0.55% 
Up to 0.55% 

1.10% 

1.10% 

0.55% 
0.55% 

1.10% 
1.10% 

1.10% 

Class I2 AUD H and 
IT AUD H Shares8 

Class IA AUD H Shares8 
Class L2 AUD H Shares8 
Class LT AUD H Shares8 
Class WT AUD H Shares8 

EUR Hedged Share Classes 

Class AT EUR H Shares 

Up to 1.50% 

0.55% 

Up to 1.50% 
Up to 1.50% 
Up to 1.50% 
None  

Up to 5.00% 

0.55% 
0.90% 
0.90% 
Up to 0.55% 

1.10% 

I-73 

AB FCP I—American Income Portfolio 

None 

None 

None 

None 

None 

None 
None 

None 

None 

None 

None 
None 
None 

None 

None 

None 
None 

None 
None 

0.50% 

None 

None 
None 
None 
None 

None 

None 

None 

None 

None 

0–1 year held=1.0% 
thereafter 0% 

None 
None 

None 

None 

None 

None 
None 
None 

None 

None 

None 
None 

None 
None 
0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 

None 
None 
None 
None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class A2 EUR H Shares 

Up to 5.00% 

Class AK EUR H Shares 

Up to 5.00% 

Class AA EUR H Shares 

Up to 5.00% 

Class AR EUR H Shares 

Up to 5.00% 

Class C2 EUR H Shares 

Class CK EUR H Shares 

Class I2 EUR H Shares8 
Class IT EUR H Shares8 
Class S1QD EUR H Shares 
Class W2 EUR H Shares8 
Class WT EUR H Shares8 

SGD Hedged Share Classes 

None 

None 

Up to 1.50% 
Up to 1.50% 
None 
None 
None 

Class AT SGD H Shares 

Up to 5.00% 

Class AA SGD H Shares 

Class A2 SGD H Shares 

Class IT SGD H Shares8 
Class I2 SGD H Shares8 

Class L2 SGD H Shares8 
Class LT SGD H Shares8 
Class WT SGD H Shares8 

CAD Hedged Share Classes 

Class AT CAD H Shares 

Class AA CAD H Shares 

Up to 5.00% 

Up to 5.00% 

Up to 1.50% 
Up to 1.50% 

Up to 1.50% 
Up to 1.50% 
None 

Up to 5.00% 

Up to 5.00% 

Class IT CAD H Shares8 

Up to 1.50% 

Class L2 CAD H Shares8 
Class LT CAD H Shares8 

Up to 1.50% 
Up to 1.50% 

GBP Hedged Share Classes 

Class AT GBP H Shares 

Up to 5.00% 

Class AA GBP H Shares 

Up to 5.00% 

Class IT GBP H Shares8 

Up to 1.50% 

1.10% 

1.10% 

1.10% 

1.10% 

1.55% 

1.55% 

0.55% 
0.55% 
0.50% 
Up to 0.55% 
Up to 0.55% 

1.10% 

1.10% 

1.10% 

0.55% 
0.55% 

0.90% 
0.90% 
Up to 0.55% 

1.10% 

1.10% 

0.55% 

0.90% 
0.90% 

1.10% 

1.10% 

0.55% 

Class WT GBP H Shares8 

None 

Up to 0.55% 

RMB* Hedged Share Classes 

Class AA RMB H Shares 

Up to 5.00% 

Class AT RMB H Shares 

Up to 5.00% 

1.10% 

1.10% 

I-74 

AB FCP I—American Income Portfolio 

None 

None 

None 

None 

None 

None 

None 
None 
None 
None 
None 

None 

None 

None 

None 
None 

None 
None 
None 

None 

None 

None 

None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

0–1 year held=1.0% 
thereafter 0% 
0–1 year held=1.0% 
thereafter 0% 
None 
None 
None 
None 
None 

None 

None 

None 

None 
None 

None 
None 
None 

None 

None 

None 

None 
None 

None 

None 

None 

None 

None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—American Income Portfolio 

Class IT RMB H Shares8 

Up to 1.50% 

0.55% 

NZD Hedged Share Classes 

Class AT NZD H Shares 

Up to 5.00% 

Class AA NZD H Shares 

Up to 5.00% 

Class IT NZD H Shares8 

Up to 1.50% 

CHF Hedged Share Classes 

Class A2 CHF H Shares 

Class I2 CHF H Shares8 

Up to 5.00% 

Up to 1.50% 

1.10% 

1.10% 

0.55% 

1.10% 

0.55% 

Class W2 CHF H Shares8 

None 

Up to 0.55% 

JPY Hedged Share Classes 
Class IT JPY H Shares8 

ZAR Hedged Share Classes 

Up to 1.50% 

0.55% 

Class AA ZAR H Shares 

Up to 5.00% 

1.10% 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

Class EA ZAR H Shares11 

None 

1.10% 

0.50% 

PLN Hedged Share Classes 

Class A2 PLN H Shares 

Up to 5.00% 

Class I2 PLN H Shares8 

Up to 1.50% 

CZK Hedged Share Classes 

Class A2 CZK H Shares 

Up to 5.00% 

Class I2 CZK H Shares8 

Up to 1.50% 

1.10% 

0.55% 

1.10% 

0.55% 

None 

None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 

None 

None 

None 

1   The Management Company, Administrator, Depositary and Transfer 

Agent are entitled to receive, out of the assets of the Portfolio, fees as 
described under “Other Portfolio Information—Management 
Company, Administrator, Depositary and Transfer Agent Fees” below.  
The Portfolio also bears all of its other expenses.  See “How to 
Purchase Shares” and “Additional Information—Fees and Expenses” 
in Section II.  The Management Company has voluntarily undertaken, 
until the Management Company on behalf of the Fund notifies 
Shareholders to the contrary, that if, in any fiscal year, the aggregate 
fees and expenses with respect to the following share classes of the 
Portfolio (including any management fee and all other fees and 
expenses set out in “Additional Information—Fees and Expenses” in 
Section II, including Luxembourg Taxe d’Abonnement but exclusive of 
certain other taxes, brokerage (if applicable) and  interest on 
borrowings) exceed the following percentages of the Portfolio’s 
average Net Asset Value for the fiscal year attributable to the 
Portfolio’s share classes (and corresponding H and DUR PH shares) 
as follows: A (1.50%), AT (1.50%), A2 (1.50%), AK (1.50%), AA 
(1.50%), AR (1.50%),B (2.20%), BT (2.20%), B2 (2.20%), C (1.95%), 
C2 (1.95%), CT (1.95%), CK (1.95%), EA (2.00%), I (0.95%), I2 
(0.95%), IT (0.95%), IA (0.95%), L2 (1.05%), LT (1.05%), NT (2.05%), 
N2 (2.05%), S (0.15%), SHK (0.15%), S1 (0.65%),  SA (0.15%), S1D 
(0.65%), S1D2 (0.65%), S1QD (0.65%), W (0.95%), WT (0.95%), W2 
(0.95%) and ZT (0.05%), the Fund may deduct from the payment to 
be made to the Management Company, or the Management 
Company will otherwise bear, such excess fees and expenses. 

I-75 

2   After six years from the date of purchase, class B, B2, BT and J 
shares are eligible for conversion to class A, A2, AT and JA 
shares, respectively, without charge from either the Fund or the 
Management Company.  For further details on the conversion of 
shares, please refer to “How to Exchange or Convert Shares—
Conversion of CDSC Shares” in Section II of the Prospectus. 

3   As a percentage of purchase price. 
4   As an annual percentage of average daily Net Asset Value. With 
respect to certain share classes, the management fee may also 
include a component that is paid to distributors or other financial 
intermediaries and service providers.  For further details on the 
management fee, please refer to “Additional Information—Fees 
and Expenses” in Section II.   

5   As an annual percentage of average daily Net Asset Value.   
6   For class B, B2 and BT shares, as a percentage of the lesser of 
the current Net Asset Value or original cost of the Shares being 
redeemed and based upon the duration that such Shares are 
held.  For class J shares, as a percentage of the current Net 
Asset Value of the Shares being redeemed.  CDSC Shares may 
only be purchased through a dealer authorized by the Distributor 
to offer such shares.  Those investors considering an investment 
in CDSC Shares should speak with their financial advisor for 
details. With respect to class C, C2, CK and CT shares (and 
corresponding H shares), a dealer may elect to waive the 
contingent deferred sales charge in certain circumstances. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7  Class S and SA shares are reserved for institutional investors that 

†  Class AT DUR PH, AA DUR PH, A2 DUR PH, C2 DUR PH and I2 

AB FCP I—American Income Portfolio 

have entered into an agreement with the Management Company and 
are being charged an investment management fee separately. 
For further information on this share class, see “Additional Share 
Class Information” in Section II. 

8 

9  Class SHK and ZT shares are reserved for investments by AB funds. 
10  Class S1D shares are open to new purchases from existing 

shareholders of this share class only. 

11  After three years from the date of purchase, class EA shares (and   
corresponding H shares) will be converted to class AA shares (and 
corresponding H shares) without charge from either the Fund or the 
Management Company.  For further details on the conversion of 
shares, please refer to “How to Exchange or Convert Shares—
Conversion of CDSC Shares” in Section II of the Prospectus. 

Other Share Class Features 

DUR PH have been retired and are no longer offered. 

* 

“RMB” refers to offshore RMB (“CNH”) and not onshore RMB 
known as CNY. 

**  Effective 15 December 2016, Class B shares will no longer be 
offered. However, Class B shares may be made available for 
exchange to shareholders holding Class B shares (or a variation 
thereof including hedged share classes) in another Portfolio or 
other AB fund. 

Offered Currencies 

Minimum Initial 
Investment* 

Minimum 
Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

USD-Denominated Share Classes 

Class A and A2 Shares 

Class AK Shares 

Class AT Shares 

Class AA Shares 

Class B and B2 Shares 

Class BT Shares 

Class C and C2 
Shares 

Class CT Shares 

Class CK Shares 

Class EA Shares 
Class I and I2 Shares 
Class IA Shares 

Class IT Shares 

Class JA Shares 
Class J Shares 
Class L2 Shares 
Class LT Shares 
Class N2 and NT 
Shares 
Class S Shares 

Class SHK Shares 
Class S1 Shares 

Class SA Shares 

Class S1D Shares 

Class S1D2 Shares 
Class W Shares 

Class WT Shares  

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 
Dollar 

Dollar 
Dollar 
Dollar 

Dollar 

Dollar 
Dollar 
Dollar 
Dollar 

Dollar 

Dollar 

Dollar 
Dollar 

Dollar 

Dollar 

Dollar 
Dollar 

Dollar 

$2,000 

$2,000 

$2,000 

$2,000 

$2,000 

$2,000 

$2,000 

$2,000 
$2,000 

$2,000 
$1 million** 
$1 million** 

$1 million** 

300 shares 
300 shares 
$500,000** 
$500,000** 

$2,000 

$25 million** 

$25 million** 
$25 million** 

$25 million** 

No longer offered to 
new investors 

$25 million** 
$1 million** 

$1 million** 

I-76 

$750 

$750 

$750 

$750 

$750 

$750 

$750 

$750 
$750 

$750 
None 
None 

None 

$750 
$750 
None  
None 

$750 

None 

None 
None 

None 

None 

None 
None 

None 

None 

None 

None 

None 

$250,000 

$250,000 

None 

None 

None 

None 
None 
None 

None 

None 
None 
None 
None 

None 

None 

None 
None 

None 

None 

None 
None 

None 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 
0.05% 
0.05% 

0.05% 

0.05% 
0.05% 
0.05% 
0.05% 

0.05% 

0.01% 

0.01% 
0.01% 

0.01% 

0.01% 

0.01% 
0.05% 

0.05% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class W2 Shares 

Class ZT Shares 

USD 

USD 

$1 million** 

$25 million** 

None 

None 

None 

None 

0.05% 

0.01% 

AB FCP I—American Income Portfolio 

Partial Duration Hedged Share Classes 
Dollar 
Class AT DUR PH Shares 
Dollar 
Class AA DUR PH Shares 
Dollar 
Class A2 DUR PH Shares 
Dollar 
Class C2 DUR PH Shares 
Dollar 
Class I2 DUR PH Shares 

No longer offered  
No longer offered 
No longer offered 
No longer offered 
No longer offered 

No longer offered 
No longer offered 
No longer offered 
No longer offered 
None 

JPY-Denominated Share Classes 
Class IT Shares 
EUR-Denominated Share Classes 
Class AR Shares 

Class A and A2 Shares 

Class AT Shares 

Class AK Shares 

Class C and C2 Shares 

Class I and I2 Shares 

Class S1 Shares 

JPY 

EUR 

EUR 

EUR 

EUR 

EUR 

EUR 

EUR 

HKD-Denominated Share Classes 
Class A2 Shares 
Class AA Shares 
Class AT Shares 
Class I2 Shares 
Class IT Shares 
Class WT Shares 

HKD 
HKD 
HKD 
HKD  
HKD  
HKD  

SGD-Denominated Share Classes 
Class A2 Shares 
Class AT Shares 
Class I2 Shares 
Class IT Shares 

SGD 
SGD 
SGD 
SGD 

AUD Hedged Share Classes 
Class AT AUD H Shares 
Class AA AUD H Shares 
Class EA AUD H Shares 
Class I2 AUD H and  
IT AUD H Shares 
Class IA AUD H Shares 
Class L2 AUD H Shares 
Class LT AUD H Shares 
Class WT AUD H Shares 

EUR Hedged Share Classes 
Class AT EUR H Shares 
Class A2 EUR H Shares 
Class AK EUR H Shares 
Class AA EUR H Shares 
Class AR EUR H Shares 
Class C2 EUR H Shares 
Class CK EUR H Shares 
Class I2 EUR H Shares 

AUD 
AUD 
AUD 

AUD 

AUD 
AUD 
AUD 
AUD 

EUR 
EUR 
EUR 
EUR 
EUR 
EUR 
EUR 
EUR 

¥100million** 

€2,000 

€2,000 

€2,000 

€2,000 

€2,000 

€1 million** 

€20 million** 

HK$15,000 
HK$15,000 
HK$15,000 
HK$8million** 
HK$8million** 
HK$8million** 

S$3,000 
S$3,000 
S$1.5 million** 
S$1.5 million** 

A$2,000 
A$2,000 
A$2,000 

A$1 million** 

A$1 million** 
A$500,000** 
A$500,000** 
A$1 million** 

€2,000 
€2,000 
€2,000 
€2,000 
€2,000 
€2,000 
€2,000 
€1 million** 

I-77 

None 

€750 

€750 

€750 

€750 

€750 

None 

None 

HK$5,000 
HK$5,000 
HK$5,000 
None 
None 
None 

S$1,000 
S$1,000 
None 
None 

A$750 
A$750 
A$750 

None 

None 
None 
None  
None 

€750 
€750 
€750 
€750 
€750 
€750 
€750 
None 

None 
None 
None 
None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 
None 
None 
None 
None 
None 

None 
None 
None 
None 

None 
None 
None 

None 

None 
None 
None 
None 

None 
None 
None 
None 
None 
None 
None 
None 

0.05% 
0.05% 
0.05% 
0.05% 
0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 
0.01% 

0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.05% 

0.05% 
0.05% 
0.05% 
0.05% 

0.05% 
0.05% 
0.05% 

0.05% 

0.05% 
0.05% 
0.05% 
0.05% 

0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.05% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—American Income Portfolio 

Class IT EUR H Shares 
Class W2 EUR H Shares 
Class WT EUR H Shares 

SGD Hedged Share Classes 
Class AT SGD H Shares 
Class AA SGD H Shares 
Class A2 SGD H Shares 
Class IT SGD H Shares 
Class I2 SGD H Shares 
Class L2 SGD H Shares 
Class LT SGD H Shares 

Class WT SGD H Shares 
CAD Hedged Share Classes 
Class AT CAD H Shares 
Class AA CAD H Shares 
Class IT CAD H Shares 

Class L2 CAD H Shares 

Class LT CAD H Shares 
GBP Hedged Share Classes 
Class AT GBP H Shares 
Class AA GBP H Shares 
Class IT GBP H Shares 
Class WT GBP H Shares 

RMB Hedged Share Classes 
Class AA RMB H Shares 
Class AT RMB H Shares 
Class IT RMB H Shares 

NZD Hedged Share Classes 
Class AT NZD H Shares 
Class AA NZD H Shares 
Class IT NZD H Shares 

CHF Hedged Share Classes 
Class A2 CHF H Shares 
Class I2 CHF H Shares 
Class W2 CHF H Shares 

JPY Hedged Share Classes 
Class IT JPY H Shares 

ZAR Hedged Share Classes 
Class AA ZAR H 
Shares 
Class EA ZAR H 
Shares 

PLN Hedged Share Classes 
Class A2 PLN H 
Shares 
Class I2 PLN H Shares 

CZK Hedged Share Classes 

Class A2 CZK H 
Shares 
Class I2 CZK H 
Shares 

EUR 
EUR 
EUR 

SGD 
SGD 
SGD 
SGD 
SGD 
SGD 
SGD 

SGD 

CAD 
CAD 
CAD 

CAD 

CAD 

GBP 
GBP 
GBP 
GBP 

RMB 
RMB 
RMB 

NZD 
NZD 
NZD 

CHF 
CHF 
CHF 

€1 million** 
€1 million** 
€1 million** 

S$3,000 
S$3,000 
S$3,000 
S$1.5 million** 
S$1.5 million** 
S$750,000 
S$750,000 

S$1.5 million** 

C$2,000 
C$2,000 
C$1 million** 

C$500,000** 

C$500,000** 

£2,000 
£2,000 
£500,000** 
£500,000** 

None 
None  
None 

S$1,000 
S$1,000 
S$1,000 
None 
None 
None 
None 
None 

C$750 
C$750 
None 

None 
None 

£750 
£750 
None 
None 

RMB 10,000 
RMB 10,000 
RMB 5,000,000** 

RMB 3,750 
RMB 3,750 
None 

NZ$3,000 
NZ$3,000 
NZ$1.5 million** 

CHF 2,000 
CHF 1 million** 
CHF 1 million** 

NZ$1,000 
NZ$1,000 
None 

CHF 750 
None 
None 

JPY 

¥100 million** 

None 

ZAR 

ZAR 

PLN 

PLN 

CZK 

CZK 

ZAR 20,000 

ZAR 7,000 

ZAR 20,000 

ZAR 7,000 

PLN 7,500 

PLN 3,000 

PLN 4,000,000** 

None 

CZK 50,000 

CZK 20,000 

CZK 25,000,000** 

None 

None 
None 
None 

None 
None 
None 
None 
None 
None 
None  
None 

None 
None 
None 

None 
None 

None 
None 
None 
None 

None 
None 
None 

None 
None 
None 

None 
None 
None 

None 

None 

None 

None 

None 

None 

None 

0.05% 
0.05% 
0.05% 

0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.05% 

0.05% 
0.05% 
0.05% 

0.05% 
0.05% 

0.05% 
0.05% 
0.05% 
0.05% 

0.05% 
0.05% 
0.05% 

0.05% 
0.05% 
0.05% 

0.05% 
0.05% 
0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

* 
Does not apply to automatic investment plans, where offered. 
**  May be waived by the Management Company in its sole discretion. 

***  Annual Luxembourg tax payable quarterly by each portfolio. 

I-78 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Portfolio Information 

Principal Investment Types 
For a chart summarizing the principal types of investments 
used by the Portfolio and a description of securities and other 
instruments in which the Portfolio may invest, investors 
should refer to "Investment Types" in Section II.  The ability of 
the Portfolio to invest in any securities or instruments is 
subject to the restrictions in the Portfolio's stated investment 
objective and policies and the limitations contained in 
"Investment Restrictions" in Appendix A to Section II. 

Risk Profile 
It is intended that this Portfolio will make use of financial 
derivative instruments. The investment restrictions (9) to (13) 
set forth in Appendix A to Section II will not apply. This 
Portfolio shall employ the Value-at-Risk (VaR) approach. For 
further details concerning the VaR approach, please refer to 
“Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and 
Instruments and Collateral Management”. 

Fixed-income securities in which the Portfolio will invest are 
subject to the credit risk of the private and public institutions 
offering these securities and their market value is influenced 
by changes in interest rates.  Because the Portfolio's fixed-
income securities investments may be below Investment 
Grade quality, these risks are higher for this Portfolio than for 
a portfolio that invests solely in Investment Grade or 
equivalent quality fixed-income securities. Below Investment 
Grade securities are also subject to greater risk of loss of 
principal and interest and are generally less liquid and more 
volatile.  There can be no assurance that any distribution 
payments will occur and the Portfolio has no specific 
maturity. 

The Portfolio is subject to market, interest rate and currency 
fluctuations and to other risks inherent in investing in 
securities.  Therefore, no assurance can be given that the 
investment objective will be achieved, that invested capital 
will be preserved, or that capital appreciation will occur.  
Investment results may vary substantially on a monthly, 
quarterly or annual basis. An investment in the Portfolio does 
not represent a complete investment program. 

For a chart summarizing the principal risks of the Portfolio 
and a more detailed discussion of these and other risks 
applicable to the Portfolio, investors should refer to "Risk 
Factors" in Section II. 

Profile of the Typical Investor 
The Portfolio will suit higher risk-tolerant investors seeking 
the income potential of fixed-income investment.  Investors 
are encouraged to consult their independent financial 
advisors regarding the suitability of Shares of the Portfolio for 
their investment needs. 

Distributions 
For class A, B, C, I, JA, J and W shares (and corresponding 
H shares), the Management Company intends to declare 
daily and pay monthly dividends equal to all or substantially 
all of the Portfolio's net income attributable to each class of 
Shares.   

AB FCP I—American Income Portfolio 

For class AT, BT, CT, IT, LT, NT, S1D, S1D2, WT and ZT 
shares (and corresponding H and DUR PH shares), the 
Management Company intends to declare and pay monthly 
dividends equal to all or substantially all of the Portfolio's net 
income attributable to each class of Shares.  

For class AK and CK shares (and corresponding H shares), 
the Management Company intends to declare and pay bi-
annually dividends equal to all or substantially all of the 
Portfolio's net income attributable to each class of Shares.  

For class AA, EA, IA and SA shares (and corresponding H 
and DUR PH shares), the Management Company intends to 
declare and make monthly distributions. For class SHK 
shares (and corresponding H shares), the Management 
Company intends to declare daily and make monthly 
distributions.  The Management Company intends to maintain 
a stable distribution rate per share for such share classes. 
For class AR shares (and corresponding H shares), the 
Management Company intends to declare and make annual 
distributions. The distribution rate is to be derived from gross 
income (before deduction of fees and expenses) and 
distributions may also include realized and unrealized gains 
and capital attributable to such classes of Shares. Since fees 
and expenses do not reduce the distribution rate, the NAV 
per Share of the relevant classes will be reduced by such 
fees and expenses. 

For class S1QD shares (and corresponding H shares), the 
Management Company intends to declare and pay quarterly 
dividends equal to all or substantially all of the Portfolio's net 
income attributable to the class of Shares.  

The Management Company also may determine if and to 
what extent dividends paid include realized capital gains 
and/or are paid out of capital attributable to the relevant class 
of Shares.  To the extent the net income and net realized 
profits attributable to these Shares exceed the amount 
declared payable, the excess return will be reflected in the 
respective Net Asset Value of such Shares.  Dividends may 
be automatically reinvested at the election of the 
Shareholder.   

For class A2, B2, C2, I2, L2, N2, S, S1 and W2 shares (and 
corresponding H and DUR PH shares), the Management 
Company currently does not intend to pay dividends with 
respect to the Shares. Therefore, any net income and net 
realized profits attributable to the Shares will be reflected in 
the respective Net Asset Value of the Shares. 

Management Company, Administrator, Depositary and 
Transfer Agent Fees 
For all Shares (and corresponding H and DUR PH shares) 
except class S, SHK, S1D, S1D2, S1QD, S1 and SA shares 
(and corresponding H  shares), the Management Company is 
paid an annual fee out of the assets of the Portfolio on the 
aggregate Net Asset Value attributable to the Shares equal to 
0.10% of average daily Net Asset Value.  The Management 
Company is paid an annual fee out of the assets of the 
Portfolio on the aggregate Net Asset Value attributable to the 
class S, SHK, S1D, S1D2, S1QD, S1 and SA shares (and 
corresponding H shares) equal to the lesser of $50,000 or 
0.01% of average daily Net Asset Value. The Management 
Company fee is waived with respect to class ZT shares to 
avoid duplication of fees as the Management Company fee is 

I-79 

 
 
 
 
 
 
 
AB FCP I—American Income Portfolio 

paid at the level of the AB fund that invests in class ZT 
shares. 

The Administrator fee, Depositary fee and Transfer Agent fee 
for the Portfolio are paid out of the assets of the Portfolio in 
accordance with the usual practice in Luxembourg and shall 
not exceed a fixed maximum specified under Section II of the 
prospectus under “Administrator, Depositary and Transfer 
Agent Fees”.  These fees may decrease or increase 
depending on the assets of the Portfolio and transaction 
volume or for other reasons. 

Organizational Expenses 
The Portfolio has no unamortized organizational expenses. 

Historical Performance 
Information on the historical performance of the Portfolio may 
be found at www.alliancebernstein.com. 

History 
The Portfolio was established as a portfolio of the Fund on 1 
July 1993. 

I-80 

 
 
 
 
 
 
 
AB FCP I—European Income Portfolio 

Investment Objective and Policies 

Investment Objective 

The investment objective of the Portfolio is to maximize current 
income while seeking preservation of capital. The Investment 
Manager intends to manage the Portfolio to maximize current 
income by taking advantage of market developments, yield 
disparities and variations in the creditworthiness of issuers.   

Description of Investment Discipline and Process 
The Portfolio will pursue this objective through investment 
primarily in fixed-income securities of European companies 
and governments.  The Investment Manager will invest at any 
time at least two-thirds (2/3) of the Portfolio's total assets in 
such securities, and may invest up to one-third (1/3) of total 
assets in Euro- or European currency-denominated fixed-
income securities of non-European issuers.  

Also, the Investment Manager expects that approximately 65% 
of the Portfolio's total assets will be invested in Investment 
Grade fixed-income securities, with approximately 35% of the 
Portfolio's total assets invested in securities that are rated 
below Investment Grade. However, the Portfolio will be 
authorized to invest up to 50% of its total assets in below 
Investment Grade fixed-income securities if the Investment 
Manager deems such investments appropriate in light of 
prevailing market conditions. 

When implementing the investment strategy, the Portfolio 
seeks preservation of capital but may benefit from capital 
appreciation. 

In addition, the Investment Manager expects that 100% of the 
Portfolio's total assets will be invested in securities 
denominated in European currencies, with at least 65% of such 
securities denominated in Euros.  A "European company" is a 
company that has its registered office in Europe or that carries 
out a preponderant part of its economic activities in Europe.  
European countries comprise Western, Central and Eastern 
Europe (both EU and non-EU members), as well as Turkey.  

Investments will be made in securities listed on regulated 
markets, which are generally recognized, operational and open 
to the public in Western, Central and Eastern Europe (including 
both EU and non-EU members), as well as Turkey. 

The Portfolio has no limitation as to the amount of its total 
assets that may be invested in a single country or a single 
industry.  The Portfolio may invest up to 25% of its total assets 
in newly developing markets that are not Investment Grade 
rated. The Portfolio also may invest up to 10% of its total 
assets in securities not quoted or in the process of being 
quoted.   

The Investment Manager believes that the continued pace of 
economic integration and political change in Europe creates 
the potential for many attractive investment opportunities for 
the Fund. As protectionism is reduced coincident with the entry 
of various European countries into the EU, many companies 
will seek to raise capital in the international capital markets in 
the form of debt issuance, particularly in Euro-denominated 
debt.  

The Portfolio seeks to take advantage of the Investment 
Manager's fixed income research capabilities. The Investment 

Manager's team of fixed income research analysts has 
broad-based, multi-sector experience. Their efforts are 
supplemented by the extensive industry expertise of the 
Investment Manager's equity and international research 
analysts.  

In evaluating fixed income obligations, the Investment 
Manager will utilize its internal credit analysis resources as 
well as financial and economic information obtained from 
other sources. With respect to corporate issuers, the 
Investment Manager will consider the financial condition of 
the issuer and market and economic conditions relevant to 
its operations. In terms of governmental obligations, the 
Investment Manager will review the financial position of the 
issuer and political and economic conditions in the relevant 
country. Investment in securities of supranational entities is 
subject to the additional risk that member governments may 
fail to make required capital contributions and that a 
supranational entity may thus be unable to meet its 
obligations. 

The Investment Manager will attempt to reduce the risk 
inherent in the Portfolio's investment approach through 
credit analysis, diversification and attention to current 
developments and trends in interest rates and economic 
and political situations in European countries.  

Other Investment Policies 
The Portfolio may seek to hedge against securities market 
and currency fluctuations through the use of listed futures 
and options, and OTC derivative instruments, including 
swaps, options and currency transactions. Investing in the 
fixed-income securities of European companies and 
sovereigns and the other securities in which the Portfolio 
may invest involve special considerations and risks.  

In accordance with the transparency requirements of the 
SFT Regulation the chart below reflects, where applicable, 
the expected and maximum level of the Portfolio’s net 
assets that will be subject to securities financing 
transactions (i.e. securities lending transactions as well as 
repurchase agreements and reverse repurchase 
agreements) (“SFTs”) and total return swaps and/or other 
financial derivative instruments with similar characteristics 
(“TRS”); being specified that in certain circumstances this 
proportion may be higher.   

Type of 
Transactions 

TRS 

Repurchase 
agreements and 
reverse repurchase 
agreements 

Securities lending 
transactions 

Expected Range  Maximum 

0%-10% 

0%-5% 

25% 

10% 

N/A 

N/A 

For further details concerning SFTs and TRS, please refer 
to “Appendix C: Additional Information relating to Financial 

I-81 

 
 
 
AB FCP I—European Income Portfolio 

of mainland China with approved banks in the Hong Kong 
market (HKMA approved banks). The RMB H shares will 
have no requirement to remit CNH to onshore RMB (CNY). 

Leverage. The Investment Manager does not expect to 
utilize bank borrowing in implementing the Portfolio’s 
investment strategy.  The expected level of leverage of the 
Portfolio is estimated to be in the 0% to 100% range of its 
Net Asset Value. The expected level of leverage is 
calculated as the sum of the notionals of the financial 
derivative instruments held by the Portfolio. Pursuant to the 
CSSF Circular 11/512 dated 30 May 2011, this calculation 
methodology neither takes into account the fact that a 
particular financial derivative instrument increases or 
decreases the Portfolio’s investment risks nor permits to net 
financial derivative instruments with reverse positions. 
Shareholders should be aware that (i) a higher level of 
expected leverage does not automatically imply a higher 
level of investment risk and (ii) the expected level of 
leverage disclosed above is mainly generated by the use of 
derivatives for hedging purposes or for efficient portfolio 
management.  In addition, the actual leverage of the 
Portfolio may deviate from the above mentioned expected 
level of leverage. 

Risk Measurement. The Investment Manager will utilize a 
Value-at-Risk (“VaR”) methodology to monitor the global 
exposure (market risk) for the Portfolio. The global 
exposure of the Portfolio is measured by the absolute VaR 
methodology pursuant to which the VaR of the Portfolio 
may not exceed 20% of its Net Asset Value. 

Benchmark. The Portfolio’s benchmark is the Bloomberg 
Euro Aggregate Index. The Portfolio uses the benchmark 
for performance comparison. The Portfolio is actively 
managed and the Investment Manager is not constrained 
by its benchmark when implementing the Portfolio’s 
investment strategy. Although the Portfolio may hold, in 
certain market conditions and subject to the Investment 
Manager’s full discretion, a significant part of the 
components of the benchmark, it will not hold every 
component of the benchmark and may also hold securities 
that are not part of it. 

Responsible investing. The Portfolio integrates ESG 
considerations. The Portfolio applies certain exclusions and 
details can be found at 
www.alliancebernstein.com/go/ABFCPIExclusionChart.  

The Portfolio is of the category that promotes environmental 
and social characteristics (SFDR Article 8; see “Appendix 
E: SFDR Pre-Contractual Disclosures” for more 
information).  

Derivative Instruments, Financial Techniques and Instruments 
and Collateral Management.” 

Currency Hedged Share Classes  
One or more of the Portfolio’s share classes offered in a 
particular currency (each, an “Offered Currency”) may be 
hedged to such Offered Currency.  Any such share class will 
constitute a “Currency Hedged Share Class.”  Currency 
Hedged Share Classes aim to provide investors a return more 
closely correlated to the Portfolio’s base currency return by 
reducing the effect of exchange rate fluctuations between the 
Portfolio’s base currency (i.e., Euro) and the relevant Offered 
Currency, taking into account practical considerations such as 
transaction costs.  The hedging strategy employed is designed 
to reduce, but may not eliminate, currency exposure between 
the Portfolio’s base currency and the Offered Currency. 

Currency Hedged Share Classes do not affect the investment 
management of the Portfolio’s underlying assets since it is only 
the net asset value (NAV) of the Currency Hedged Share 
Classes, not the Portfolio’s underlying assets, which is hedged 
to the Offered Currency.  Expenses incurred as a result of such 
hedging activity will be borne by the Currency Hedged Share 
Class in relation to which such expenses are incurred.  

For additional information on share class hedging, see “How to 
Purchase Shares—Currency Hedged Share Classes” in 
Section II. 

Risk Factors linked to RMB Hedged Share Classes. Since 
2005, the RMB exchange rate is no longer pegged to the U.S. 
dollar. RMB has now moved to a managed floating exchange 
rate based on market supply and demand with reference to a 
basket of foreign currencies. The daily trading price of the RMB 
against other major currencies in the inter-bank foreign 
exchange market is allowed to float within a narrow band 
around the central parity published by the People’s Bank of 
China.  RMB convertibility from offshore RMB (CNH) to 
onshore RMB (CNY) is a managed currency process subject to 
foreign exchange control policies of and repatriation restrictions 
imposed by the Chinese government in coordination with the 
Hong Kong Monetary Authority (HKMA).  The value of CNH 
could differ, perhaps significantly, from that of CNY due to a 
number of factors including without limitation those foreign 
exchange control policies and repatriation restrictions pursued 
by the Chinese government from time-to-time as well as other 
external market forces.  

Since 2005, foreign exchange control policies pursued by the 
Chinese government have resulted in the general appreciation 
of RMB (both CNH and CNY). This appreciation may or may 
not continue and there can be no assurance that RMB will not 
be subject to devaluation at some point. Any devaluation of 
RMB could adversely affect the value of investors’ investments 
in the RMB H shares. 

The RMB H shares participate in the offshore RMB (CNH) 
market, which allows investors to freely transact CNH outside 

I-82 

 
 
 
 
 
 
 
 
Summary Information  

Portfolio Features 
Currency of the 
Portfolio 

Euro 

Net Asset Value 
Calculation 

Net Asset Value 
Publication 

Class Names 

Order Cut-Off Times 

Each Business Day 

Available at www.alliancebernstein.com 

H means Currency Hedged Share Classes.  
For additional information on share class 
hedging, see “How to Purchase Shares—
Currency Hedged Share Classes” and “Risk 
Factors -- Currency Hedged Share Class Risk” 
in Section II. 

For Euro-Denominated Share Classes and 
USD-Denominated Share Classes 
4:00 P.M. U.S. Eastern Time on each 
Business Day 

For Currency Hedged Share Classes (except 
RMB Hedged Share Classes) 
6:00 P.M. Central European Time on each 
Business Day 

For RMB Hedged Share Classes 
1:00 P.M. Central European Time on each 
Business Day 

AB FCP I—European Income Portfolio 

Distributions*  For class A, B, C, and I shares 

To be declared daily and payable monthly 

For class AT, CT, IT, NT, S1D and WT 
shares 
To be declared and payable monthly 

For class AA, IA, SA and WA shares 
To be declared and payable monthly with 
a distribution rate to be derived from gross 
income (before deduction of fees and 
expenses) 

For class SHK shares 
To be declared daily and payable monthly 
with a distribution rate to be derived from 
gross income (before deduction of fees 
and expenses) 

For class A2, B2, C2, I2, S, S1 and W2 
shares  
None.   

For class AK and CK shares 
To be declared and payable bi-annually 

For class AR shares 
To be declared and payable annually with 
a distribution rate to be derived from gross 
income (before deduction of fees and 
expenses) 

See "Distributions" below. 

*Includes Hedged Share Classes 

Share Class Fees and Charges1 

Initial Sales Charge3 

Management Fee4 

Distribution Fee5 

Euro-Denominated Share Classes 

Class A and A2 Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

Class AK Shares 

Up to 5.00% 

Class AA Shares 

Class AR Shares 

Up to 5.00% 

Up to 5.00% 

1.10% 

1.10% 

1.10% 

1.10% 

1.10% 

None 

None 

None 

None 

None 

Class B2 Shares2** 

None 

1.10% 

0.70% 

Contingent 
Deferred Sales 
Charge6 

None 

None 

None 

None 

None 

0–1 year 
held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

I-83 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—European Income Portfolio 

Class C and C2 Shares 

None 

1.55% 

Class CT Shares 

None 

1.55% 

Class CK Shares 

None 

Class I and I2 Shares8 
Class IT Shares8 
Class IA Shares8 
Class S Shares7 
Class SHK Shares9 
Class S1 Shares 
Class S1D Shares 

Class W2 Shares8 
Class WA Shares8 
Class WT Shares8 

Up to 1.50% 
Up to 1.50% 
Up to 1.50% 
None 
None 
None 
None 

None 
None 
None 

USD-Denominated Share Classes 

Class A and A2 Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

1.55% 

0.55% 
0.55% 
0.55% 
None 
None 
0.50% 
0.50% 

Up to 0.55% 
Up to 0.55% 
Up to 0.55% 

1.10% 

1.10% 

None 

None 

None 

None 
None 
None 
None 
None 
None 
None 

None 
None 
None 

None 

None 

Class B and B2 Shares2** 

None 

1.10% 

0.70% 

Class C and C2 Shares 

None 

Class I and I2 Shares8 

Up to 1.50% 

Class S1 Shares 

None 

USD Hedged Share Classes 

Class A2 USD H Shares 

Up to 5.00% 

Class AT USD H Shares 

Up to 5.00% 

Class AA USD H Shares 

Up to 5.00% 

Class C2 USD H Shares 

None 

Class CT USD H Shares 

None 

Class I2 USD H Shares8 
Class IT USD H Shares8 
Class IA USD H Shares8 
Class NT USD H Shares 

Up to 1.50% 
Up to 1.50% 
Up to 1.50% 
Up to 3.00% 

1.55% 

0.55% 

0.50% 

1.10% 

1.10% 

1.10% 

1.55% 

1.55% 

0.55% 
0.55% 
0.55% 
1.65% 
I-84 

None 

None 

None 

None 

None 

None 

None 

None 

None 
None 
None 
None 

0–1 year 
held=1.0% 
thereafter 0% 

0–1 year 
held=1.0% 
thereafter 0% 

0–1 year 
held=1.0% 
thereafter 0% 

None 
None 
None 
None 
None 
None 
None 

None 
None 
None 

None 

None 

0–1 year 
held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

0–1 year 
held=1.0% 
thereafter 0% 

None 

None 

None 

None 

None 

0–1 year 
held=1.0% 
thereafter 0% 

0–1 year 
held=1.0% 
thereafter 0% 

None 
None 
None 
None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class S1 USD H Shares 
Class SA USD H Shares7 
Class W2 USD H Shares8 
Class WA USD H Shares8 
Class WT USD H Shares8 

AUD Hedged Share Classes 

None 
None 
None 
None 
None 

Class AT AUD H Shares 

Up to 5.00% 

Class AA AUD H Shares 

Up to 5.00% 

Class I2 AUD H Shares8 
Class IT AUD H Shares8 

SGD Hedged Share Classes 

Up to 1.50% 

Up to 1.50% 

Class A2 SGD H Shares 

Up to 5.00% 

Class AT SGD H Shares 

Up to 5.00% 

Class AA SGD H Shares 

Up to 5.00% 

Class IT SGD H Shares8 
Class IA SGD H Shares8 
Class WT SGD H Shares8 

Up to 1.50% 

Up to 1.50% 

None 

HKD Hedged Share Classes 

Class AA HKD H Shares 

Up to 5.00% 

Class IA HKD H Shares8 
Class WA HKD H Shares8 

Up to 1.50% 

None 

RMB* Hedged Share Classes 

0.50% 
None 
Up to 0.55% 
Up to 0.55% 
Up to 0.55% 

1.10% 

1.10% 

0.55% 

0.55% 

1.10% 

1.10% 

1.10% 

0.55% 

0.55% 

Up to 0.55% 

1.10% 

0.55% 

Up to 0.55% 

AB FCP I—European Income Portfolio 

None 
None 
None 
None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 
None 
None 
None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

Class AA RMB H Shares 

Up to 5.00% 

1.10% 

None 

None 

CHF Hedged Share Classes 

Class A2 CHF H Shares 

Up to 5.00% 

Class I2 CHF H Shares8 
Class W2 CHF H Shares8 

PLN Hedged Share Classes 

Up to 1.50% 

None 

Class A2 PLN H Shares 

Up to 5.00% 

Class I2 PLN H Shares8 

Up to 1.50% 

CZK Hedged Share Classes 

Class A2 CZK H Shares 
Class I2 CZK H Shares8 

Up to 5.00% 
Up to 1.50% 

GBP Hedged Share Classes 

Class AT GBP H Shares 

Up to 5.00% 

1.10% 

0.55% 

Up to 0.55% 

1.10% 

0.55% 

1.10% 

0.55% 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

1.10% 

None 

None 

I-85 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—European Income Portfolio 

1   The Management Company, Administrator, Depositary and Transfer 

4.  As an annual percentage of average daily Net Asset Value.  

Agent are entitled to receive, out of the assets of the Portfolio, fees 
as described under "Other Portfolio Information—Management 
Company, Administrator, Depositary and Transfer Agent Fees" 
below.  The Portfolio also bears all of its other expenses.  See "How 
to Purchase Shares" and "Additional Information—Fees and 
Expenses" in Section II.  The Management Company has voluntarily 
undertaken, until the Management Company on behalf of the Fund 
notifies Shareholders to the contrary, that if, in any fiscal year, the 
aggregate fees and expenses with respect to the following share 
classes of the Portfolio (including any management fee and all other 
fees and expenses set out in "Additional Information—Fees and 
Expenses" in Section II, including Luxembourg Taxe d'Abonnement 
but exclusive of certain other taxes, brokerage (if applicable) and  
interest on borrowings) exceed the following percentages of the 
Portfolio's average Net Asset Value for the fiscal year attributable to 
the Portfolio's share classes (and corresponding H shares) as 
follows: A (1.41%), AT (1.41%), A2 (1.41%), AK (1.41%), AA 
(1.41%), AR (1.41%), B (2.11%), B2 (2.11%), C (1.86%), C2 
(1.86%), CT (1.86%), CK (1.86%), I (0.86%), I2 (0.86%), IT 
(0.86%), IA (0.86%), NT (1.96%), S (0.15%), SHK (0.15%), S1 
(0.65%), S1D (0.65%), SA (0.15%),W2 (0.86%), WA (0.86%) and 
WT (0.86%), the Fund may deduct from the payment to be made to 
the Management Company, or the Management Company will 
otherwise bear, such excess fees and expenses.  

2   After six years from the date of purchase, class B and B2  shares 
are eligible for conversion to class A and A2 shares, respectively, 
without charge from either the Fund or the Management Company.  
For further details on the conversion of shares, please refer to "How 
to Exchange or Convert Shares—Conversion of CDSC Shares" in 
Section II of the Prospectus. 
3   As a percentage of purchase price.

With respect to certain share classes, the management fee may 
also include a component that is paid to distributors or other 
financial intermediaries and service providers.  For further details on 
the management fee, please refer to "Additional Information—Fees 
and Expenses" in Section II.  

5   As an annual percentage of average daily Net Asset Value.   
6   As a percentage of the lesser of the current Net Asset Value or 
original cost of the Shares being redeemed and based upon the 
duration that such Shares are held.  CDSC Shares may only be 
purchased through a dealer authorized by the Distributor to offer 
such shares.  Those investors considering an investment in CDSC 
Shares should speak with their financial advisor for details. With 
respect to class C, C2, CK and CT shares (and corresponding H 
shares), a dealer may elect to waive the contingent deferred sales 
charge in certain circumstances. 

7  Class S and SA USD H shares are reserved for institutional 
investors that have entered into an agreement with the 
Management Company and are being charged an investment 
management fee separately. 
For further information on this share class, see “Additional Share 
Class Information” in Section II. 

8 

9  Class SHK shares are reserved for investments by AB funds. 

* 

“RMB” refers to offshore RMB (“CNH”) and not onshore RMB 
known as CNY. 

**  Effective 15 December 2016, Class B shares will no longer be 
offered. However, Class B shares may be made available for 
exchange to shareholders holding Class B shares (or a variation 
thereof including hedged share classes) in another Portfolio or other 
AB fund. 

Other Share Class Features 

Offered 
Currencies 

Minimum Initial 
Investment* 

Minimum 
Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg Taxe 
d’Abonnement*** 

Euro-Denominated Share Classes 
Euro 
Class A and A2 
Shares 

Class AT Shares 

Class AK Shares 
Class AA Shares 
Class AR Shares 

Class B2 Shares 

Class C and C2 
Shares 

Class CT Shares 

Class CK Shares 
Class I and I2 Shares 
Class IT Shares 
Class IA Shares 

Class S Shares 

Class SHK Shares 

Class S1 Shares 

Euro 

Euro 
Euro 
Euro 
Euro 

Euro 

Euro 

Euro 
Euro  
Euro 
Euro 

Euro 

Euro 

Euro 

€2,000 

€2,000 

€2,000 
€2,000 
€2,000 
€2,000 

€2,000 

€2,000 

€2,000 
€1 million** 
€1 million** 
€1 million** 

€20 million** 

€20 million** 

€20 million** 

€750 

€750 

€750 
€750 
€750 
€750 

€750 

€750 

€750 
None 
None 
None 

None 

None 

None 

I-86 

None 

None 

None 
None 
None 
€250,000 

None 

None 

None 
None 
None 
None 

None 

None 

None 

0.05% 

0.05% 

0.05% 
0.05% 
0.05% 

0.05% 

0.05% 

0.05% 

0.05% 
0.05% 
0.05% 
0.05% 

0.01% 

0.01% 

0.01% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class S1D Shares 
Class W2 Shares 
Class WA Shares 
Class WT Shares 

Euro 
Euro 
Euro 
Euro 

Dollar 

USD-Denominated Share Classes 
Class A and A2 
Shares 
Class AT Shares 
Class B and B2 
Shares 
Class C and C2 
Shares 
Class I and I2 Shares 
Class S1 Shares 

Dollar 
Dollar 

Dollar 

Dollar 

Dollar 

AB FCP I—European Income Portfolio  

€20 million** 
€1 million** 
€1 million** 
€1 million** 

$2,000 

$2,000 

$2,000 

$2,000 

$1 million** 
$25 million** 

None 
None 
None 
None 

$750 

$750 

$750 

$750 

None 
None 

None 
None 
None 
None 

None 

None 

$250,000 

None 

None 
None 

0.01% 
0.05% 
0.05% 
0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 
0.01% 

Hedged 
Currencies 

Minimum Initial 
Investment* 

Minimum 
Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg Taxe 
d'Abonnement*** 

AUD Hedged Share Classes 
Class AT AUD H Shares 
Class AA AUD H Shares 
Class I2 AUD H Shares 
Class IT AUD H Shares 

AUD 
AUD 
AUD 
AUD 

USD Hedged Share Classes 
Class A2 USD H Shares 
Class AT USD H Shares 
Class AA USD H Shares 
Class C2 USD H Shares 
Class CT USD H Shares 
Class I2 USD H Shares 
Class IT USD H Shares 
Class IA USD H Shares 
Class NT USD H Shares 
Class S1 USD H Shares 
Class SA USD H Shares 

Class W2 USD H Shares 
Class WA USD H Shares 
Class WT USD H Shares 
SGD Hedged Share Classes 
Class A2 SGD H Shares 
Class AT SGD H Shares 
Class AA SGD H Shares 
Class IT SGD H Shares 
Class IA SGD H Shares 

Class WT SGD H Shares 

HKD Hedged Share Classes 
Class AA HKD H Shares 
Class IA HKD H Shares 
Class WA HKD H Shares 

RMB Hedged Share Classes 
Class AA RMB H Shares 

Dollar 
Dollar 
Dollar 
Dollar 
Dollar 
Dollar 
Dollar 
Dollar 
Dollar 
Dollar 
Dollar 

Dollar 
Dollar 
Dollar 

SGD 
SGD 
SGD 
SGD 
SGD 

SGD 

HKD 
HKD 
HKD 

A$2,000 
A$2,000 
A$1 million** 
A$1 million** 

$2,000 
$2,000 
$2,000 
$2,000 
$2,000 
$1 million** 
$1 million** 
$1 million** 
$2,000 
$25 million** 
$25 million** 

$1 million** 
$1 million** 
$1 million** 

A$750 
A$750 
None 
None 

$750 
$750 
$750 
$750 
$750 
None 
None 
None 
$750 
None 
None 

None 
None 
None 

S$3,000 
S$3,000 
S$3,000 
S$1.5 million** 
S$1.5 million** 

S$1,000 
S$1,000 
S$1,000 
None 
None 

S$1.5 million** 

None 

HK$15,000 
HK$8 million** 
HK$8 million** 

HK$5,000 
None 
None 

None 
None 
None 
None 

None 
None 
None 
None 
None 
None 
None 
None 
None 
None 
None 

None 
None 
None 

None 
None 
None 
None 
None 

None 

None 
None 
None 

0.05% 
0.05% 
0.05% 
0.05% 

0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.01% 
0.01% 

0.05% 
0.05% 
0.05% 

0.05% 
0.05% 
0.05% 
0.05% 
0.05% 

0.05% 

0.05% 
0.05% 
0.05% 

RMB 

RMB 10,000 

RMB 3,750 

None 

0.05% 

CHF Hedged Share Classes 
Class A2 CHF H Shares 
Class I2 CHF H Shares 
Class W2 CHF H Shares 

CHF 
CHF 
CHF 

CHF 2,000 
CHF 1 million** 
CHF 1 million** 

CHF 750 
None 
None 

None 
None 
None 

0.05% 
0.05% 
0.05% 

I-87 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—European Income Portfolio  

GBP Hedged Share Classes 
Class AT GBP H Shares 

GBP 

£2,000 

£750 

PLN Hedged Share Classe  
Class A2 PLN H Shares 
Class I2 PLN H Shares 

CZK Hedged Share Classes 
Class A2 CZK H Shares 
Class I2 CZK H Shares 

PLN 
PLN 

CZK 
CZK 

PLN 7,500 
PLN 4,000,000** 

PLN 3,000 
None 

CZK 50,000 
CZK 25,000,000** 

CZK 20,000 
None 

None 

None 
None 

None 
None 

0.05% 

0.05% 
0.05% 

0.05% 
0.05% 

* 
Does not apply to automatic investment plans, where offered. 
**  May be waived by the Management Company in its sole discretion. 
***  Annual Luxembourg tax payable quarterly by each portfolio. 

I-88 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Portfolio Information

Principal Investment Types 
For a chart summarizing the principal types of investments 
used by the Portfolio and a description of securities and other 
instruments in which the Portfolio may invest, investors 
should refer to "Investment Types" in Section II.  The ability of 
the Portfolio to invest in any securities or instruments is 
subject to the restrictions in the Portfolio's stated investment 
objective and policies and the limitations contained in 
"Investment Restrictions" in Appendix A to Section II. 

Risk Profile 
Fixed-income securities in which the Portfolio will invest are 
subject to the credit risk of the private and public institutions 
offering these securities and their market value is influenced 
by changes in interest rates.  Because the Portfolio's fixed-
income securities investments may be below Investment 
Grade quality, these risks are higher for this Portfolio than for 
a portfolio that invests solely in Investment Grade or 
equivalent quality fixed-income securities.  Below Investment 
Grade securities are also subject to greater risk of loss of 
principal and interest and are generally less liquid and more 
volatile.  There can be no assurance that any distribution 
payments will occur and the Portfolio has no specific 
maturity. 

The Portfolio is subject to market, interest rate and currency 
fluctuations and to other risks inherent in investing in 
securities.  Therefore, no assurance can be given that the 
investment objective will be achieved, that invested capital 
will be preserved, or that capital appreciation will occur.  
Investment results may vary substantially on a monthly, 
quarterly or annual basis. An investment in the Portfolio does 
not represent a complete investment program. 

For a chart summarizing the principal risks of the Portfolio 
and a more detailed discussion of these and other risks 
applicable to the Portfolio, investors should refer to "Risk 
Factors" in Section II. 

Profile of the Typical Investor 
The Portfolio will suit higher risk-tolerant investors seeking 
the income potential of fixed-income investment.  Investors 
are encouraged to consult their independent financial 
advisors regarding the suitability of Shares of the Portfolio for 
their investment needs. 

Distributions 
For class A, B, C and I shares, the Management Company 
intends to declare daily and pay monthly dividends equal to 
all or substantially all of the Portfolio's net income attributable 
to each class of Shares.  For class AT, CT, IT, NT, S1D and 
WT shares (and corresponding H shares), the Management 
Company intends to declare and pay monthly dividends 
equal to all or substantially all of the Portfolio's net income 
attributable to each class of Shares.  

For class AK and CK shares, the Management Company 
intends to declare and pay bi-annually dividends equal to all 
or substantially all of the Portfolio's net income attributable to 
each class of Shares.  

For class AA, IA, SA and WA shares (and corresponding H 
shares), the Management Company intends to declare and 
make monthly distributions. For class SHK shares (and 

I-89 

AB FCP I—European Income Portfolio 

corresponding H shares), the Management Company intends 
to declare daily and make monthly distributions.  The 
Management Company intends to maintain a stable 
distribution rate per share for such share classes. For class 
AR shares (and corresponding H shares), the Management 
Company intends to declare and make annual distributions. 
The distribution rate is to be derived from gross income 
(before deduction of fees and expenses) and distributions 
may also include realized and unrealized gains and capital 
attributable to such classes of Shares. Since fees and 
expenses do not reduce the distribution rate, the NAV per 
Share of the relevant classes will be reduced by such fees 
and expenses. 

The Management Company also may determine if and to 
what extent dividends paid include realized capital gains 
and/or are paid out of capital attributable to the relevant class 
of Shares.  To the extent the net income and net realized 
profits attributable to these Shares exceed the amount 
declared payable, the excess return will be reflected in the 
respective Net Asset Value of such Shares.  Dividends may 
be automatically reinvested at the election of the 
Shareholder. 

For class A2, B2, C2, I2, S, S1 and W2 shares (and 
corresponding H shares), the Management Company 
currently does not intend to pay dividends with respect to the 
Shares. Therefore, any net income and net realized profits 
attributable to the Shares will be reflected in the respective 
Net Asset Value of the Shares. 

Management Company, Administrator, Depositary and 
Transfer Agent Fees 
For all Shares (and corresponding H shares) except class S, 
SHK, S1, S1D and SA shares (and corresponding H shares), 
the Management Company is paid an annual fee out of the 
assets of the Portfolio on the aggregate Net Asset Value 
attributable to the Shares equal to 0.10% of average daily 
Net Asset Value. The Management Company is paid an 
annual fee out of the assets of the Portfolio on the aggregate 
Net Asset Value attributable to the class S, SHK, S1, S1D 
and SA shares (and corresponding H shares) equal to the 
lesser of $50,000 or 0.01% of average daily Net Asset Value.  

The Administrator fee, Depositary fee and Transfer Agent fee 
for the Portfolio are paid out of the assets of the Portfolio in 
accordance with the usual practice in Luxembourg and shall 
not exceed a fixed maximum specified under Section II of the 
prospectus under “Administrator, Depositary and Transfer 
Agent Fees”.  These fees may decrease or increase 
depending on the assets of the Portfolio and transaction 
volume or for other reasons. 

Organizational Expenses 
The Portfolio has no unamortized organizational expenses. 

Historical Performance 
Information on the historical performance of the Portfolio may 
be found at www.alliancebernstein.com. 

History 
The Portfolio was established as a portfolio of the Fund on 26 
February 1999. 

 
 
AB FCP I—Emerging Markets Debt Portfolio 

Investment Objective and Policies

Investment Objective 
The Portfolio's investment objective is to maximize total returns 
from price appreciation and income. 

Investment Discipline and Processes 
General.  The Investment Manager believes inefficiencies in 
the global debt markets arise from investor emotion, market 
complexity and conflicting investment agendas.  The 
Investment Manager combines quantitative forecasts with 
fundamental credit and economic research in seeking to exploit 
these inefficiencies.  

Investment Strategy. AB’s Emerging Market Debt Strategy 
seeks to generate returns in excess of the benchmark through 
a combination of country selection, currency allocation, sector 
analysis and security selection.   

The Portfolio’s investments in sovereign debt obligations and 
non-U.S. corporate fixed-income securities emphasize 
countries that are included in the J.P. Morgan Emerging 
Markets Bond Index Global or are considered at the time of 
purchase to be emerging markets or developing countries.  
The Portfolio invests at least two-thirds of its total assets in 
sovereign and quasi-sovereign (i.e. debt issued by 
supranational organizations and other government-related 
entities) debt obligations. 

The Portfolio is non-diversified, meaning it may invest more of 
its assets in a fewer number of issuers. 

Investment Policies 
The Investment Manager expects that at any time at least 80% 
of the Portfolio's total assets will be invested in emerging 
market debt securities, and in no case will the amount of the 
Portfolio's total assets invested in such securities be less than 
two-thirds of the Portfolio's total assets.  Emerging market 
countries are those not characterized as high income countries 
by the World Bank, based on per capita gross national income 
(to obtain the World Bank’s list of such countries, please go to:  
http://siteresources.worldbank.org/DATASTATISTICS/Resourc
es/CLASS.XLS).  Furthermore, the Portfolio will invest no more 
than 25% of its total assets in convertible bonds, no more than 
30% of its total assets in money market instruments and no 
more than 10% of its total assets in equity securities.  Fixed-
income securities and other assets, including cash, which the 
Portfolio may hold, may be denominated in various currencies.  
The Portfolio may invest in structured securities (both 
Investment Grade and non-Investment Grade) originated by a 
wide range of originators and sponsors. 

Financial Derivative Instruments/Efficient Portfolio 
Management Techniques. The Investment Manager may use 
a wide array of derivative products and strategies when 
implementing the Portfolio’s investment strategy.  Such 
financial derivative instruments may include, but are not limited 
to, swaps (including interest rate swaps (“IRS”), total rate of 
return swaps (“TRS”) and credit default swaps (“CDS”)), 
swaptions, options, futures and currency transactions 
(including forward currency contracts).  These financial 
derivative instruments (including OTC derivatives and 
exchange-traded financial derivative instruments) and efficient 
portfolio management techniques may be employed for the 

I-90 

following purposes: (i) as an alternative to investing directly 
in the underlying investments, (ii) to manage duration, (iii) to 
hedge against interest rate, credit and currency fluctuations, 
and (iii) for efficient portfolio management purposes. With 
respect to CDS, the Portfolio may both “sell” protection in 
order to gain exposure and “buy” protection to hedge credit 
exposure.  

In accordance with the transparency requirements of the 
SFT Regulation the chart below reflects, where applicable, 
the expected and maximum level of the Portfolio’s net 
assets that will be subject to securities financing 
transactions (i.e. securities lending transactions as well as 
repurchase agreements and reverse repurchase 
agreements) (“SFTs”) and total return swaps and/or other 
financial derivative instruments with similar characteristics 
(“TRS”); being specified that in certain circumstances this 
proportion may be higher.   

Type of 
Transactions 

TRS 

Repurchase 
agreements and 
reverse repurchase 
agreements 

Securities lending 
transactions 

Expected Range  Maximum 

0%-10% 

0%-5% 

25% 

10% 

N/A 

N/A 

For further details concerning SFTs and TRS, please refer 
to “Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and 
Instruments and Collateral Management.” 

Leverage. The Investment Manager does not expect to 
utilize bank borrowing in implementing the Portfolio’s 
investment strategy.  The expected level of leverage of the 
Portfolio is estimated to be in the 0% to 100% range of its 
Net Asset Value. The expected level of leverage is 
calculated as the sum of the notionals of the financial 
derivative instruments held by the Portfolio. Pursuant to the 
CSSF Circular 11/512 dated 30 May 2011, this calculation 
methodology neither takes into account the fact that a 
particular financial derivative instrument increases or 
decreases the Portfolio’s investment risks nor permits to net 
financial derivative instruments with reverse positions. 
Shareholders should be aware that (i) a higher level of 
expected leverage does not automatically imply a higher 
level of investment risk and (ii) the expected level of 
leverage disclosed above is mainly generated by the use of 
derivatives for hedging purposes or for efficient portfolio 
management.  In addition, the actual leverage of the 
Portfolio may deviate from the above mentioned expected 
level of leverage. 

Risk Measurement. The Investment Manager will utilize a 
Value-at-Risk (“VaR”) methodology to monitor the global 
exposure (market risk) for the Portfolio. The global 

 
 
 
exposure of the Portfolio is measured by the absolute VaR 
methodology pursuant to which the VaR of the Portfolio may 
not exceed 20% of its Net Asset Value. 

VaR approach takes into account the current value of the 
underlying assets, the counterparty risk, foreseeable market 
movements and the time available to liquidate the positions in 
the Portfolio to give an estimate of the level of potential loss on 
a portfolio.   

Benchmark. The Portfolio’s benchmark is the JPMorgan EMBI 
Global Diversified Index. The Portfolio uses the benchmark for 
performance comparison. The Portfolio is actively managed 
and the Investment Manager is not constrained by its 
benchmark when implementing the Portfolio’s investment 
strategy. Although the Portfolio may hold, in certain market 
conditions and subject to the Investment Manager’s full 
discretion, a significant part of the components of the 
benchmark, it will not hold every component of the benchmark 
and may also hold securities that are not part of it. 

Structured Investments.  The Portfolio may invest in 
structured securities (both Investment Grade and non-
Investment Grade) originated by a wide range of originators 
and sponsors.  Structured securities may include non-agency 
(i.e. privately issued) mortgage-backed securities (“MBS”) and 
adjustable-rate mortgage securities ("ARMS") and 
collateralized mortgage obligations ("CMOs"), as well as other 
asset-backed securities (“ABS”), commercial mortgage-backed 
securities (“CMBS”) and collateralized debt obligations 
("CDOs") and related financial derivative instruments and 
currencies.   

Credit Quality.  The Portfolio’s assets may be invested both in 
Investment Grade and below investment grade securities, 
which may include securities having the lowest rating for non-
subordinated debt instruments and unrated securities of 
equivalent investment quality.  The Investment Manager 
currently expects that a significant portion of the Portfolio, 
which may at any time exceed 50% of total assets, may be 
invested in non-Investment Grade securities. 

Maturity and Duration.  The Investment Manager expects that 
the weighted average maturity of the Portfolio’s investments 
will normally range between nine and 30 years. 

Country Concentration.  The Portfolio may invest up to 30% 
of its net assets in a single country.   

Currency Management.  The Portfolio generally invests in 
Dollar-denominated sovereign debt obligations and U.S. and 
non-U.S. corporate fixed-income securities.  The Investment 
Manager may adjust the Portfolio’s currency exposures and/or 
invest in any currency based on the anticipated risk/return 
profile of such currencies as indicated by the Investment 
Manager's research.  The Portfolio may invest in non-U.S. 
Dollar-denominated fixed-income securities; however, the 
Investment Manager intends to limit the Portfolio's currency 
exposure to (i) 5% in any single non-U.S. Dollar currency and 
(ii) 20% in aggregate non-US Dollar currency.   

Pooled Vehicles.  The Portfolio may also invest up to 10% of 
its net assets in pooled vehicles sponsored by the Investment 
Manager to both more efficiently manage its assets and to gain 
exposure to certain asset classes. 

I-91 

AB FCP I—Emerging Markets Debt Portfolio  

Other Investment Policies 

Lack of Liquidity.  The Portfolio may invest up to 10% of 
its net assets in securities which have a lack of liquidity.  
See paragraph (5) of "Investment Restrictions" in Appendix 
A to Section II.  The Portfolio may not be readily able to sell 
such securities.  Moreover, there may be contractual 
restrictions on resale of securities.  In addition, other types 
of securities are subject to this 10% restriction. 

Defensive Position – Holding Cash or Cash 
Equivalents.  The Portfolio may, as a temporary defensive 
measure or to provide for redemptions or in anticipation of 
investment in various international markets, hold cash or 
cash equivalents (in Dollars or other currencies) and short-
term fixed-income securities, including money market 
securities. 

Fixed-income securities and other assets, including cash, 
which the Portfolio may hold, may be denominated in 
various currencies.   

Currency Hedged Share Classes  
One or more of the Portfolio’s share classes offered in a 
particular currency (each, an “Offered Currency”) may be 
hedged to such Offered Currency.  Any such share class 
will constitute a “Currency Hedged Share Class.”  Currency 
Hedged Share Classes aim to provide investors a return 
more closely correlated to the Portfolio’s base currency 
return by reducing the effect of exchange rate fluctuations 
between the Portfolio’s base currency (i.e., Dollar) and the 
relevant Offered Currency, taking into account practical 
considerations such as transaction costs.  The hedging 
strategy employed is designed to reduce, but may not 
eliminate, currency exposure between the Portfolio’s base 
currency and the Offered Currency. 

Currency Hedged Share Classes do not affect the 
investment management of the Portfolio’s underlying assets 
since it is only the net asset value (NAV) of the Currency 
Hedged Share Classes, not the Portfolio’s underlying 
assets, which is hedged to the Offered Currency.  
Expenses incurred as a result of such hedging activity will 
be borne by the Currency Hedged Share Class in relation to 
which such expenses are incurred.  

Risk Factors linked to RMB Hedged Share Classes. 
Since 2005, the RMB exchange rate is no longer pegged to 
the U.S. dollar. RMB has now moved to a managed floating 
exchange rate based on market supply and demand with 
reference to a basket of foreign currencies. The daily 
trading price of the RMB against other major currencies in 
the inter-bank foreign exchange market is allowed to float 
within a narrow band around the central parity published by 
the People’s Bank of China.  RMB convertibility from 
offshore RMB (CNH) to onshore RMB (CNY) is a managed 
currency process subject to foreign exchange control 
policies of and repatriation restrictions imposed by the 
Chinese government in coordination with the Hong Kong 
Monetary Authority (HKMA).  The value of CNH could differ, 
perhaps significantly, from that of CNY due to a number of 
factors including without limitation those foreign exchange 
control policies and repatriation restrictions pursued by the 

 
 
Chinese government from time-to-time as well as other 
external market forces. 

Since 2005, foreign exchange control policies pursued by the 
Chinese government have resulted in the general appreciation 
of RMB (both CNH and CNY). This appreciation may or may 
not continue and there can be no assurance that RMB will not 
be subject to devaluation at some point. Any devaluation of 
RMB could adversely affect the value of investors’ investments 
in the RMB H shares. 

The RMB H shares participate in the offshore RMB (CNH) 
market, which allows investors to freely transact CNH outside 

AB FCP I—Emerging Markets Debt Portfolio  

of mainland China with approved banks in the Hong Kong 
market (HKMA approved banks). The RMB H shares will 
have no requirement to remit CNH to onshore RMB (CNY). 

Responsible investing. The Portfolio integrates ESG 
considerations. The Portfolio applies certain exclusions and 
details can be found at 
http://www.alliancebernstein.com/go/ABFCPIExclusionChar
t.  
The Portfolio integrates sustainability risks into its 
investment decisions (see “SFDR Pre-Contractual 
Disclosures” for more information). 

I-92 

 
 
 
Summary Information 

Portfolio Features 
Currency of the 
Portfolio 

USD 

Net Asset Value 
Calculation 

Net Asset Value 
Publication 

Class Names 

Each Business Day 

Available at www.alliancebernstein.com 

H means Currency Hedged Share 
Classes.  For additional information on 
share class hedging, see “How to 
Purchase Shares—Currency Hedged 
Share Classes”, and “Risk Factors - 
Currency Hedged Share Class Risk” in 
Section II. 

Order Cut-Off Times 

For USD-Denominated, EUR-
Denominated Share Classes, HKD-
Denominated Share Classes and PLN-
Denominated Share Classes 
4:00 P.M. U.S. Eastern Time on each 
Business Day 

For Currency Hedged Share Classes 
(except RMB Hedged Share Classes) 
6:00 P.M. Central European Time on 
each Business Day 
For RMB Hedged Share Classes 
1:00 P.M. Central European Time on 
each Business Day 

AB FCP I—Emerging Markets Debt Portfolio 

  Distributions* 

For class A, C and I shares 
To be declared daily and payable monthly 

For class AT, BT, CT, IT,  NT and ZT shares  
To be declared and payable monthly 

For class AA,  EA and SA shares 
To be declared and payable monthly with a 
distribution rate to be derived from gross income 
(before deduction of fees and expenses) 

For class AI and EI shares 
To be declared and payable monthly with a 
distribution rate to be derived from gross income 
(before deduction of fees and expenses) and 
from capital (potentially to a significant extent) 

For class S1QD shares 
To be declared and payable quarterly 

For class AR shares 
To be declared and payable annually with a 
distribution rate to be derived from gross income 
(before deduction of fees and expenses) 

For class A2, C2, I2, N2, S, S1 and S1 2 shares 
None.   

See "Distributions" below. 

*Includes Hedged Share Classes 

Share Class Fees and Charges1 

Initial Sales Charge3 

Management Fee4 

Distribution Fee5 

USD-Denominated Share Classes 

Class A and A2 Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

Class AA Shares 

Up to 5.00% 

Class AI Shares 

Up to 5.00% 

Class BT Shares2** 

Class C and C2 Shares 

Class CT Shares 

None 

None 

None 

1.10% 

1.10% 

1.10% 

1.10% 

1.10% 

1.55% 

1.55% 

I-93 

None 

None 

None 

None 

1.00% 

None 

None 

Contingent 
Deferred Sales 
Charge6 

None 

None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

0-1 year held=1.0% 
thereafter 0% 

0-1 year held=1.0% 
thereafter 0% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—Emerging Markets Debt Portfolio 

Class EA Shares9 

None 

1.10% 

0.50% 

Class EI Shares9 

None 

Class I and I2 Shares8 
Class N2 and NT Shares 
Class S Shares7 
Class S1 2 Shares 
Class SA Shares7 
Class ZT Shares10 

Up to 1.50% 
Up to 3.00% 
None 
None 
None 
None 

EUR-Denominated Share Classes 

Class AR Shares 

Up to 5.00% 

Class A and A2 Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

Class C and C2 Shares 

None 

Class I2 Shares8 
Class S1 2 Shares 

Up to 1.50% 
None 

HKD-Denominated Share Classes  

Class A2 and AA Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

PLN-Denominated Share Classes  

1.10% 

0.55% 
1.65% 
None 
0.55% 
None 
None 

1.10% 

1.10% 

1.10% 

1.55% 

0.55% 
0.55% 

1.10% 

1.10% 

0.50% 

None 
None 
None 
None 
None 
None 

None 

None 

None 

None 

None 
None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 
None 
None 
None 
None 
None 

None 

None 

None 

0-1 year held=1.0% 
thereafter 0% 

None 
None 

None 

None 

Class A2 Shares 

Up to 5.00% 

1.10% 

None 

None 

EUR Hedged Share Classes 

Class A2 EUR H Shares 

Class AT EUR H Shares 

Up to 5.00% 

Up to 5.00% 

Class AA EUR H Shares 

Up to 5.00% 

Class C2 EUR H Shares 

None 

Class I2 EUR H Shares8 
Class IT EUR H Shares8 
Class S EUR H Shares7 
Class S1 EUR H Shares 

Class S1QD EUR H 
Shares 

Up to 1.50% 
Up to 1.50% 
None 
None 

None 

1.10% 

1.10% 

1.10% 

1.55% 

0.55% 
0.55% 
None 
0.55% 

0.55% 

I-94 

None 

None 

None 

None 

None 
None 
None 
None 

None 

None 

None 

None 

0-1 year held=1.0% 
thereafter 0% 

None 
None 
None 

None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—Emerging Markets Debt Portfolio 

GBP Hedged Share Classes 

Class AT GBP H Shares 

Up to 5.00% 

Class AA GBP H Shares 

Up to 5.00% 

Class S GBP H Shares7 
Class S1 GBP H Shares 

None 
None 

AUD Hedged Share Classes 

Class AT AUD H Shares 

Up to 5.00% 

Class AA AUD H Shares 

Class AI AUD H Shares 

Up to 5.00% 

Up to 5.00% 

Class EA AUD H Shares9 

None 

1.10% 

1.10% 

None 
0.55% 

1.10% 

1.10% 

1.10% 

1.10% 

None 

None 

None 
None 

None 

None 

None 

0.50% 

Class EI AUD H Shares9 

None 

1.10% 

0.50% 

None 

None 

None 

None 

None 

None 

None 
0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

Class I2 AUD H and 
IT AUD H Shares8 

SGD Hedged Share Classes 

Up to 1.50% 

0.55% 

Class A2 SGD H Shares 

Up to 5.00% 

Class AT SGD H Shares 

Up to 5.00% 

Class AA SGD H Shares 

Up to 5.00% 

Class IT SGD H Shares8 

Up to 1.50% 

RMB* Hedged Share Classes 
Class AA RMB H Shares 

Class AT RMB H Shares 

CHF Hedged Share Classes 

Up to 5.00% 

Up to 5.00% 

Class A2 CHF H Shares 

Up to 5.00% 

Class I2 CHF H Shares8 

Up to 1.50% 

NZD Hedged Share Classes 

Class AT NZD H Shares 

Up to 5.00% 

Class AA NZD H Shares 

Up to 5.00% 

CAD Hedged Share Classes 

Class AT CAD H Shares 

Up to 5.00% 

Class AA CAD H Shares 

Up to 5.00% 

ZAR Hedged Share Classes 

1.10% 

1.10% 

1.10% 

0.55% 

1.10% 

1.10% 

1.10% 

0.55% 

1.10% 

1.10% 

1.10% 

1.10% 

I-95 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—Emerging Markets Debt Portfolio 

Class AA ZAR H Shares 

Up to 5.00% 

1.10% 

None 

None 

Class EA ZAR H Shares9 

None 

1.10% 

0.50% 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

CZK Hedged Share Classes 
Class A2 CZK H Shares 

Up to 5.00% 

PLN Hedged Share Classes 
Class A2 PLN H Shares 

Up to 5.00% 

1   The Management Company, Administrator, Depositary and 

Transfer Agent are entitled to receive, out of the assets of the 
Portfolio, fees as described under "Other Portfolio Information—
Management Company, Administrator, Depositary and Transfer 
Agent Fees" below.  The Portfolio also bears all of its other 
expenses.  See "How to Purchase Shares" and "Additional 
Information—Fees and Expenses" in Section II.  The 
Management Company has voluntarily undertaken, until the 
Management Company on behalf of the Fund notifies 
Shareholders to the contrary, that if, in any fiscal year, the 
aggregate fees and expenses with respect to the following share 
classes of the Portfolio (including any management fee and all 
other fees and expenses set out in "Additional Information—Fees 
and Expenses" in Section II, including Luxembourg Taxe 
d'Abonnement but exclusive of certain other taxes, brokerage (if 
applicable) and  interest on borrowings) exceed the following 
percentages of the Portfolio's average Net Asset Value for the 
fiscal year attributable to the Portfolio's share classes (and 
corresponding H shares) as follows: A (1.50%), A2 (1.50%), AT 
(1.50%), AA (1.50%), AI (1.50%), AR (1.50%), BT (2.50%), C 
(1.95%), C2 (1.95%), CT (1.95%), EA (2.00%), EI (2.00%), I 
(0.95%), I2 (0.95%), IT (0.95%), N2 (2.05%), NT (2.05%), S 
(0.15%), S1 (0.70%),  S1 2 (0.70%), S1QD (0.70%), SA (0.15%) 
and ZT (0.05%), the Fund may deduct from the payment to be 
made to the Management Company, or the Management 
Company will otherwise bear, such excess fees and expenses. 
2   After four years from the date of purchase, class BT shares are 
eligible for conversion to class AT shares,  without charge from 
either the Fund or the Management Company.  For further details 
on the conversion of shares, please refer to “How to Exchange or 
Convert Shares—Conversion of CDSC Shares” in Section II of 
the Prospectus. 

3   As a percentage of purchase price. 
4   As an annual percentage of average daily Net Asset Value. With 
respect to certain share classes, the management fee may also 
include a component that is paid to distributors or other financial 
intermediaries and service providers.  For further details on the 

1.10% 

1.10% 

None 

None 

None 

None 

management fee, please refer to “Additional Information—Fees 
and Expenses” in Section II.   

5   As an annual percentage of average daily Net Asset Value.   
6   As a percentage of the lesser of the current Net Asset Value or 
original cost of the Shares being redeemed and based upon the 
duration that such Shares are held.  CDSC Shares may only be 
purchased through a dealer authorized by the Distributor to offer 
such shares.  Those investors considering an investment in 
CDSC Shares should speak with their financial advisor for details. 
With respect to class C, C2 and CT shares (and corresponding H 
shares), a dealer may elect to waive the contingent deferred sales 
charge in certain circumstances. 

7  Class S and SA shares are reserved for institutional investors that 

have entered into an agreement with the Management Company 
and are being charged an investment management fee 
separately. 
For further information on this share class, see “Additional Share 
Class Information” in Section II. 

8 

9   After three years from the date of purchase, class EA and EI 

shares (and   corresponding H shares) will be converted to class 
AA and AI shares (and corresponding H shares) without charge 
from either the Fund or the Management Company.  For further 
details on the conversion of shares, please refer to “How to 
Exchange or Convert Shares—Conversion of CDSC Shares” in 
Section II of the Prospectus. 

10  Class ZT shares are reserved for investments by AB funds.  

* 

“RMB” refers to offshore RMB (“CNH”) and not onshore RMB 
known as CNY. 

**  Effective 15 December 2016, Class B shares will no longer be 
offered. However, Class B shares may be made available for 
exchange to shareholders holding Class B shares (or a variation 
thereof including hedged share classes) in another Portfolio or 
other AB fund. 

Other Share Class Features 

Offered 
Currencies 

Minimum Initial 
Investment* 

Minimum 
Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg Taxe 
d’Abonnement*** 

USD-Denominated Share Classes 

Class A and A2 Shares 

Class AT Shares 

Class AA Shares 

Class AI Shares 

Dollar 

Dollar 

Dollar 

Dollar 

$2,000 

$2,000 

$2,000 

$2,000 

None 

None 

None 

None 

0.05% 

0.05% 

0.05% 

0.05% 

$750 

$750 

$750 

$750 

I-96 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—Emerging Markets Debt Portfolio 

$2,000 

$750 

$250,000 

Class BT Shares 

Class C and C2 Shares 

Class CT Shares 

Class EA Shares 
Class EI Shares 

Class I and I2 Shares 

Class N2 and NT 
Shares 
Class S Shares 
Class S1 2 Shares 

Class SA Shares 

Class ZT Shares 

Dollar 

Dollar 

Dollar 

Dollar 
Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

EUR-Denominated Share Classes 
Class AR Shares 
Class A and A2 Shares 
Class AT Shares 
Class C and C2 Shares 
Class I2 Shares 
Class S1 2 Shares 

Euro 
Euro 
Euro 
Euro 
Euro 
Euro 

HKD-Denominated Share Classes 
Class A2 and AA 
Shares 

HKD 

$2,000 

$2,000 

$2,000 
$2,000 
$1 million** 

$2,000 

$25 million** 
$25 million** 
$25 million** 

$50 million** 

€2,000 
€2,000 
€2,000 
€2,000 
€1 million** 
€20 million** 

$750 

$750 

$750 
$750 

None 

$750 

None 
None 
None 

None 

€750 
€750 
€750 
€750 
None 
None 

HK$15,000 

HK$5,000 

0.05% 

0.05% 

0.05% 

0.05% 
0.05% 

0.05% 

0.05% 

0.01% 
0.01% 
0.01% 

0.01% 

0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.01% 

0.05% 

0.05% 

None 

None 

None 
None 

None 

None 

None 
None 
None 

None 

None 
None 
None 
None 
None 
None 

None 

None 

Class AT Shares 

HKD 

HK$15,000 

HK$5,000 

PLN-Denominated Share Classes 
Class A2 Shares 

PLN 

PLN 7,500 

PLN 3,000 

None 

0.05% 

Hedged 
Currencies 

Minimum Initial 
Investment* 

Minimum 
Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg Taxe 
d’Abonnement*** 

EUR Hedged Share Classes 
Class A2 EUR H Shares 
Class AT EUR H Shares 
Class AA EUR H Shares 
Class C2 EUR H Shares 
Class I2 EUR H Shares 
Class IT EUR H Shares 
Class S EUR H Shares 
Class S1 EUR H Shares 

Class S1QD EUR H 
Shares 

GBP Hedged Share Classes 
Class AT GBP H Shares 
Class AA GBP H Shares 
Class S GBP H Shares 
Class S1 GBP H Shares 

AUD Hedged Share Classes 

Euro 
Euro 
Euro 
Euro 
Euro 
Euro 
Euro 
Euro 

Euro 

GBP 
GBP 
GBP 
GBP 

€2,000 
€2,000 
€2,000 
€2,000 
€1 million** 
€1 million** 
€20 million** 
€20 million** 

€25 million** 

£2,000 
£2,000 
£15 million** 
£15 million** 

€750 
€750 
€750 
€750 
None 
None 
None 
None 

None 

£750 
£750 
None 
None 

None 
None 
None 
None 
None 
None 
None 
None 

None 

None 
None 
None 
None 

0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.01% 
0.01% 

0.01% 

0.05% 
0.05% 
0.01% 
0.01% 

I-97 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I—Emerging Markets Debt Portfolio 

Class AT AUD H Shares 
Class AA AUD H Shares 
Class AI AUD H Shares 
Class EA AUD H Shares 
Class EI AUD H Shares 
Class I2 AUD H and 
IT AUD H Shares 

SGD Hedged Share Classes 
Class A2 SGD H Shares 
Class AT SGD H Shares 
Class AA SGD H Shares 
Class IT SGD H Shares 

RMB Hedged Share Classes 
Class AA RMB H Shares 
Class AT RMB H Shares 
CHF Hedged Share Classes 
Class A2 CHF H Shares 
Class I2 CHF H Shares 

NZD Hedged Share Classes 
Class AT NZD H Shares 
Class AA NZD H Shares 
CAD Hedged Share Classes 
Class AT CAD H Shares 
Class AA CAD H Shares 
ZAR Hedged Share Classes 
Class AA ZAR H Shares 
Class EA ZAR H Shares 

CZK Hedged Share Classes 
Class A2 CZK H Shares 

PLN Hedged Share Classes 
Class A2 PLN H Shares 

AUD 
AUD 
AUD 
AUD 
AUD 

AUD 

SGD 
SGD 
SGD 
SGD 

RMB 
RMB 

CHF 
CHF 

NZD 
NZD 

CAD 
CAD 

ZAR 
ZAR 

A$2,000 
A$2,000 
A$2,000 
A$2,000 
A$2,000 

A$1 million** 

S$3,000 
S$3,000 
S$3,000 
S$1.5 million** 

A$750 
A$750 
A$750 
A$750 
A$750 

None 

S$1,000 
S$1,000 
S$1,000 
None 

RMB 10,000 
RMB 10,000 

RMB 3,750 
RMB 3,750 

CHF 2,000 
CHF 1 million** 

CHF 750 
None 

NZ$3,000 
NZ$3,000 

C$2,000 
C$2,000 

ZAR 20,000 
ZAR 20,000 

NZ$1,000 
NZ$1,000 

C$750 
C$750 

ZAR 7,000 
ZAR 7,000 

None 
None 
None 
None 
None 

None 

None 
None 
None 
None 

None 
None 

None 
None 

None 
None 

None 
None 

None 
None 

0.05% 
0.05% 
0.05% 
0.05% 
0.05% 

0.05% 

0.05% 
0.05% 
0.05% 
0.05% 

0.05% 
0.05% 

0.05% 
0.05% 

0.05% 
0.05% 

0.05% 
0.05% 

0.05% 
0.05% 

CZK 

CZK 50,000 

CZK 20,000 

None 

0.05% 

PLN 

PLN 7,500 

PLN 3,000 

None 

0.05% 

* 
Does not apply to automatic investment plans, where offered. 
**  May be waived by the Management Company in its sole discretion. 

***  Annual Luxembourg tax payable quarterly by each portfolio. 

I-98 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Portfolio Information 

Principal Investment Type

For a chart summarizing the principal types of investments 
used by the Portfolio and a description of securities and other 
instruments in which the Portfolio may invest, investors should 
refer to "Investment Types" in Section II.  The ability of the 
Portfolio to invest in any securities or instruments is subject to 
the restrictions in the Portfolio's stated investment objective 
and policies and the limitations contained in "Investment 
Restrictions" in Appendix A to Section II. 

Risk Profile 

It is intended that this Portfolio will make use of financial 
derivative instruments. The investment restrictions (9) to (13) 
set forth in Appendix A to Section II will not apply. This Portfolio 
shall employ instead the Value-at-Risk (VaR) approach. For 
further details concerning the VaR approach, please refer to 
“Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and Instruments 
and Collateral Management”. 

Fixed-income securities in which the Portfolio will invest are 
subject to the credit risk of the private and public institutions 
offering these securities and their market value is influenced by 
changes in interest rates.  Because the Portfolio's fixed-income 
securities investments may be below Investment Grade quality, 
these risks are higher for this Portfolio than for a portfolio that 
invests solely in Investment Grade or equivalent quality fixed-
income securities. Below Investment Grade securities are also 
subject to greater risk of loss of principal and interest and are 
generally less liquid and more volatile.  There can be no 
assurance that any distribution payments will occur and the 
Portfolio has no specific maturity. 

The Portfolio will invest in securities of issuers situated in 
emerging markets and it may consequently experience greater 
price volatility and significantly lesser liquidity than a portfolio 
invested solely in equity securities or issuers located in more 
developed countries.  Such securities are also subject to higher 
risks of political or economic instability; fluctuations in 
exchange rates, differing legal and accounting systems, 
national policies limiting investment opportunities, and higher 
investment costs. 

The Portfolio is subject to market, interest rate and currency 
fluctuations and to other risks inherent in investing in securities.  
Therefore, no assurance can be given that the investment 
objective will be achieved, that invested capital will be 
preserved, or that capital appreciation will occur.  Investment 
results may vary substantially on a monthly, quarterly or annual 
basis. An investment in the Portfolio does not represent a 
complete investment program. 

For a chart summarizing the principal risks of the Portfolio and 
a more detailed discussion of these and other risks applicable 
to the Portfolio, investors should refer to "Risk Factors" in 
Section II. 

Profile of the Typical Investor 

The Portfolio will suit higher risk-tolerant investors seeking the 
income potential of fixed-income investment.  Investors are 
encouraged to consult their independent financial advisors 
regarding the suitability of Shares of the Portfolio for their 
investment needs. 

I-99 

AB FCP I—Emerging Markets Debt Portfolio 

Distributions 

For class A, C and I shares (and corresponding H shares), 
the Management Company intends to declare daily and pay 
monthly dividends equal to all or substantially all of the 
Portfolio's net income attributable to each class of Shares.   

For class AT, BT, CT, IT, NT and ZT shares (and 
corresponding H shares), the Management Company 
intends to declare and pay monthly dividends equal to all or 
substantially all of the Portfolio's net income attributable to 
each class of Shares.   

For class AA, EA and SA shares (and corresponding H 
shares), the Management Company intends to declare and 
make monthly distributions. The Management Company 
intends to maintain a stable distribution rate per share for 
such share classes. For class AR shares, the Management 
Company intends to declare and make annual distributions. 
The distribution rate is to be derived from gross income 
(before deduction of fees and expenses) and distributions 
may also include realized and unrealized gains and capital 
attributable to such classes of Shares. Since fees and 
expenses do not reduce the distribution rate, the NAV per 
Share of the relevant classes will be reduced by such fees 
and expenses. 

The Management Company also may determine if and to 
what extent dividends paid include realized capital gains 
and/or are paid out of capital, attributable to the relevant 
class of Shares. To the extent the net income and net 
realized profits attributable to these Shares exceed the 
amount declared payable, the excess return will be 
reflected in the respective Net Asset Value of such Shares.  
Dividends may be automatically reinvested at the election 
of the Shareholder. 

For class AI and EI shares (and corresponding H shares), 
the Management Company intends to declare and make 
monthly distributions. The Management Company intends 
to maintain a stable distribution rate per share for such 
share classes. Distributions may come from gross income 
(before reduction for fees and expenses), realized and 
unrealized gains and, potentially to a significant extent from 
capital attributable to the relevant class. Distributions in 
excess of net income (gross income less fees and 
expenses) may represent a return of the investor’s original 
investment amount and as such, may result in a decrease 
in the Net Asset Value per share for the relevant class. If 
the Net Asset Value per share falls below, respectively USD 
1 and AUD 1, the Management Company will contemplate 
at its full discretion, either (i) the restructuring of the Share 
Class including through the merger with a Share Class with 
similar features or (ii) the liquidation of the Share Class. 
Distributions may be automatically reinvested at the 
election of the Shareholder.  

For class A2, C2, I2, N2, S, S1 and S1 2 shares (and 
corresponding H shares), the Management Company 
currently does not intend to pay dividends with respect to 
the Shares. Therefore, any net income and net realized 

 
 
 
AB FCP I—Emerging Markets Debt Portfolio 

Organizational Expenses 
The Portfolio has no unamortized organizational expenses. 

Historical Performance 
Information on the historical performance of the Portfolio, 
once available, may be found at 
www.alliancebernstein.com. 

History 
The Portfolio was established as a portfolio of the Fund on 
22 March 2006.

profits attributable to the Shares will be reflected in the 
respective Net Asset Value of the Shares. 

For class S1QD shares (and corresponding H shares), the 
Board intends to declare and pay quarterly dividends equal to 
all or substantially all of the Portfolio's net income attributable 
to the class of Shares.   

Management Company, Administrator, Depositary and 
Transfer Agent Fees 

For all Shares (and corresponding H shares) except class S, 
S1,  SA, S1 2 and S1QD shares (and corresponding H shares), 
the Management Company is paid an annual fee out of the 
assets of the Portfolio on the aggregate Net Asset Value 
attributable to the Shares equal to 0.05% of average daily Net 
Asset Value.  The Management Company is paid an annual 
fee out of the assets of the Portfolio on the aggregate Net 
Asset Value attributable to the class S, S1,  SA, S1 2 and 
S1QD shares (and corresponding H shares) equal to the lesser 
of $50,000 or 0.01% of average daily Net Asset Value. The 
Management Company fee is waived with respect to class ZT 
shares to avoid duplication of fees as the Management 
Company fee is paid at the level of the AB fund that invests in 
class ZT shares. 

The Administrator fee, Depositary fee and Transfer Agent fee 
for the Portfolio are paid out of the assets of the Portfolio in 
accordance with the usual practice in Luxembourg and shall 
not exceed a fixed maximum specified under Section II of the 
prospectus under “Administrator, Depositary and Transfer 
Agent Fees”. These fees may decrease or increase depending 
on the assets of the Portfolio and transaction volume or for 
other reasons. 

I-100 

 
 
AB FCP I—Mortgage Income Portfolio  

Investment Objective and Policies 

Investment Objective 

The investment objective of the Portfolio is to achieve a high 
risk-adjusted total return. 

Investment Policies 

The Portfolio seeks to achieve its objective by investing in 
mortgage-related securities and other asset-backed securities.  
The Portfolio may invest in securities of both Investment Grade 
and non-Investment Grade quality originated by a wide array of 
originators and sponsors.  The Portfolio's investments may 
include fixed and floating rate securities, including agency 
mortgage-backed securities and non-agency (i.e., privately 
issued) mortgage-backed securities (“MBS”) as well as other 
asset-backed securities (“ABS”), commercial mortgage-backed 
securities (“CMBS”), and collateralized debt obligations 
(“CDOs”) and related financial derivative instruments and 
currencies.  The Portfolio will have at least two-thirds of its total 
assets invested in mortgage-related securities.   

Credit Quality. The Portfolio’s assets may be invested in 
Investment Grade, below-Investment Grade securities and 
unrated securities of investment quality determined by the 
Investment Manager.  However, it is anticipated that under 
normal market conditions no more than 50% of the Portfolio’s 
net assets will be invested in below-Investment Grade 
securities at time of purchase.  “Investment Grade” means 
fixed-income securities rated Baa (including Baa1, Baa2 and 
Baa3) or higher by Moody's or BBB (including BBB+ and BBB-) 
or higher by S&P.  

If a security is unrated, the Investment Manager will apply, in 
its discretion, a credit rating it deems appropriate.  For split 
credit ratings, the lower rating shall apply.  
Duration. In managing the Portfolio's investments, under 
normal market conditions, the Investment Manager seeks to 
construct an investment portfolio with a weighted average 
effective duration of no more than eight years. 

Currency Management.  The Investment Manager expects, 
under normal circumstances, to hedge non-USD investments 
and other exposures, including derivatives exposures, such 
that the Portfolio’s net non-USD currency exposure will not 
exceed 5% of its net assets. 

Financial Derivative Instruments/Efficient Portfolio 
Management Techniques.  The Investment Manager may use 
a wide array of derivative products and strategies when 
implementing the Portfolio’s investment strategy.  Such 
financial derivative instruments may include, but are not limited 
to, stripped mortgage-related securities ("SMRS"), swaps 
(including interest rate swaps (“IRS”), total rate of return swaps 
(“TRS”) and credit default swaps (“CDS”)), swaptions, options, 
futures and currency transactions (including forward currency 
contracts).  These financial derivative instruments (including 
OTC derivatives and exchange-traded financial derivative 
instruments) and efficient portfolio management techniques 

I-101 

may be employed for the following purposes: (i) as an 
alternative to investing directly in the underlying 
investments, (ii) to manage duration; (iii) to hedge against 
interest rate, credit and currency fluctuations and (iv) for 
efficient portfolio management purposes. With respect to 
CDS, the Portfolio may both “sell” protection in order to gain 
exposure and “buy” protection to hedge credit exposure.   

In accordance with the transparency requirements of the 
SFT Regulation the chart below reflects, where applicable, 
the expected and maximum level of the Portfolio’s net 
assets that will be subject to securities financing 
transactions (i.e. securities lending transactions as well as 
repurchase agreements and reverse repurchase 
agreements) (“SFTs”) and total return swaps and/or other 
financial derivative instruments with similar characteristics 
(“TRS”); being specified that in certain circumstances this 
proportion may be higher.   

Type of 
Transactions 

TRS 

Repurchase 
agreements and 
reverse repurchase 
agreements 

Securities lending 
transactions 

Expected Range  Maximum 

0%-10% 

0%-5% 

25% 

10% 

N/A 

N/A 

For further details concerning SFTs and TRS, please refer 
to “Appendix C: Additional Information relating to Financial 
Derivative Instruments, Financial Techniques and 
Instruments and Collateral Management.” 

Leverage.  The Investment Manager does not expect to 
utilize bank borrowing in implementing the Portfolio’s 
investment strategy.  The expected level of leverage of the 
Portfolio is estimated to be in the 0% to 100% range of its 
Net Asset Value.  The expected level of leverage is 
calculated as the sum of the notionals of the financial 
derivative instruments held by the Portfolio.  Pursuant to the 
CSSF Circular 11/512 dated 30 May 2011, this calculation 
methodology neither takes into account the fact that a 
particular financial derivative instrument increases or 
decreases the Portfolio’s investment risks nor permits to net 
financial derivative instruments with reverse positions.  
Shareholders should be aware that (i) a higher level of 
expected leverage does not automatically imply a higher 
level of investment risk and (ii) the expected level of 
leverage disclosed above is mainly generated by the use of 
derivatives for hedging purposes or for efficient portfolio 
management.  In addition, the actual leverage of the 
Portfolio may deviate from the above mentioned expected 
level of leverage. 

 
 
 
 
 
 
 
 
AB FCP I—Mortgage Income Portfolio 

rate based on market supply and demand with reference to 
a basket of foreign currencies. The daily trading price of the 
RMB against other major currencies in the inter-bank 
foreign exchange market is allowed to float within a narrow 
band around the central parity published by the People’s 
Bank of China.  RMB convertibility from offshore RMB 
(CNH) to onshore RMB (CNY) is a managed currency 
process subject to foreign exchange control policies of and 
repatriation restrictions imposed by the Chinese 
government in coordination with the Hong Kong Monetary 
Authority (HKMA).  The value of CNH could differ, perhaps 
significantly, from that of CNY due to a number of factors 
including without limitation those foreign exchange control 
policies and repatriation restrictions pursued by the Chinese 
government from time-to-time as well as other external 
market forces. 

Since 2005, foreign exchange control policies pursued by 
the Chinese government have resulted in the general 
appreciation of RMB (both CNH and CNY). This 
appreciation may or may not continue and there can be no 
assurance that RMB will not be subject to devaluation at 
some point. Any devaluation of RMB could adversely affect 
the value of investors’ investments in the RMB H shares. 

The RMB H shares participate in the offshore RMB (CNH) 
market, which allows investors to freely transact CNH 
outside of mainland China with approved banks in the Hong 
Kong market (HKMA approved banks). The RMB H shares 
will have no requirement to remit CNH to onshore RMB 
(CNY). 

Responsible investing. The Portfolio integrates ESG 
considerations. The Portfolio applies certain exclusions and 
details can be found at 
www.alliancebernstein.com/go/ABFCPIExclusionChart.  

The Portfolio is of the category that promotes environmental 
and social characteristics (SFDR Article 8; see “Appendix 
E: SFDR Pre-Contractual Disclosures” for more 
information).  

Risk measurement.  The Investment Manager will utilize a 
Value-at-Risk (“VaR”) methodology to monitor the global 
exposure (market risk) for the Portfolio.  The global exposure of 
the Portfolio is measured by the absolute VaR methodology 
pursuant to which the VaR of the Portfolio may not exceed 
20% of its Net Asset Value. 

Benchmark. The Portfolio’s benchmark is the Secured 
Overnight Financing Rate (SOFR). The Portfolio uses the 
benchmark for performance comparison. The Portfolio is 
actively managed and the Investment Manager is not 
constrained by its benchmark when implementing the 
Portfolio’s investment strategy. Although the Portfolio may 
hold, in certain market conditions and subject to the Investment 
Manager’s full discretion, a significant part of the components 
of the benchmark, it will not hold every component of the 
benchmark and may also hold securities that are not part of it. 

Other Investment Policies 

Lack of Liquidity.  The Portfolio may invest up to 10% of its 
net assets in securities which have a lack of liquidity.  See 
paragraph (5) of "Investment Restrictions" in Appendix A to 
Section II.  The Portfolio may not be readily able to sell such 
securities.  Moreover, there may be contractual restrictions on 
resale of securities.  In addition, other types of securities are 
subject to this 10% restriction. 

Defensive Position – Holding Cash or Cash Equivalents.  
The Portfolio may, as a temporary defensive measure or to 
provide for redemptions or in anticipation of investment in 
various international markets, hold cash or cash equivalents 
and short term fixed-income securities, including money market 
instruments. 

Currency Hedged Share Classes  
One or more of the Portfolio’s share classes offered in a 
particular currency (each, an “Offered Currency”) may be 
hedged to such Offered Currency.  Any such share class will 
constitute a “Currency Hedged Share Class.”  Currency 
Hedged Share Classes aim to provide investors a return more 
closely correlated to the Portfolio’s base currency return by 
reducing the effect of exchange rate fluctuations between the 
Portfolio’s base currency (i.e., Dollar) and the relevant Offered 
Currency, taking into account practical considerations such as 
transaction costs.  The hedging strategy employed is designed 
to reduce, but may not eliminate, currency exposure between 
the Portfolio’s base currency and the Offered Currency. 

Currency Hedged Share Classes do not affect the investment 
management of the Portfolio’s underlying assets since it is only 
the net asset value (NAV) of the Currency Hedged Share 
Classes, not the Portfolio’s underlying assets, which is hedged 
to the Offered Currency.  Expenses incurred as a result of such 
hedging activity will be borne by the Currency Hedged Share 
Class in relation to which such expenses are incurred.  

Risk Factors linked to RMB Hedged Share Classes. Since 
2005, the RMB exchange rate is no longer pegged to the U.S. 
dollar. RMB has now moved to a managed floating exchange 

I-102 

 
 
 
 
 
 
 
 
 
 
 
 
 
Summary Information 

Portfolio Features 
Currency of the 
Portfolio 

USD 

Net Asset Value 
Calculation 

Net Asset Value 
Publication 

Class Names 

Order Cut-Off Times 

Each Business Day 

Available at www.alliancebernstein.com  

H means Currency Hedged Share Classes.  For 
additional information on share class hedging, 
see “How to Purchase Shares—Currency 
Hedged Share Classes”, and “Risk Factors -- 
Currency Hedged Share Class Risk” in Section 
II. 

For USD-Denominated Share Classes, EUR-
Denominated Share Classes, HKD-
Denominated Share Classes and SGD-
Denominated Share Classes 
4:00 P.M. U.S. Eastern Time on each Business 
Day 

For Currency Hedged Share Classes and JPY 
Denominated Share Classes  
6:00 P.M. Central European Time on each 
Business Day 

For RMB Hedged Share Classes 
1.00 P.M. Central European Time on each 
Business Day 

AB FCP I—Mortgage Income Portfolio 

  Distributions*  For class A, AX, BX, C, CX, I, IX, S and S1X 

shares 
To be declared daily and payable monthly 

For class AT, ATX, IT, NT and ZT shares 
To be declared and payable monthly 

For class AA, EA and SA shares 
To be declared and payable monthly with a 
distribution rate to be derived from gross 
income (before deduction of fees and 
expenses) 

For class AR shares 
To be declared and payable annually with a 
distribution rate to be derived from gross 
income (before deduction of fees and 
expenses) 

For class A2, A2X, C2, C2X, I2, I2X N2, S1 
and S2 shares 
None.   

See "Distributions" below. 

*Includes Hedged Share Classes 

Share Class Fees and Charges1 

Initial Sales Charge3 

Management Fee4 

Distribution Fee5 

Contingent Deferred 
Sales Charge6 

USD-Denominated Share Classes 
Class A and A2 Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

Class AA Shares 

Up to 5.00% 

Class C and C2 Shares 

None 

1.10% 

1.10% 

1.10% 

1.55% 

None 

None 

None 

None 

Class EA Shares10 

None 

1.10% 

0.50% 

Class I and I2 Shares8 

Up to 1.50% 

Class N2 Shares 
Class NT Shares 
Class S Shares7 

Class S1 Shares 

Class SA Shares7 

Up to 3.00% 
Up to 3.00% 
None 

None 

None 

0.55% 

1.65% 
1.65% 
None 

0.50% 

None 

I-103 

None 

None 
None 
None 

None 

None 

None 

None 

None 

0-1 year held=1.0% 
thereafter 0% 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 

None 
None 
None 

None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class AX and A2X 
Shares† 

Up to 5.00% 

Class ATX Shares† 

Up to 5.00% 

Class BX Shares2† 

No longer offered 

Class CX and C2X 
Shares† 

None 

Class IX and I2X 
Shares8† 

Class S1X Shares† 

Class ZT Shares9 

Up to 1.50% 

None 

None 

EUR-Denominated Share Classes 
Class A2 Shares 

Up to 5.00% 

Class AX and A2X 
Shares† 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

Class BX Shares2† 

No longer offered 

Class C2 Shares 

None 

Class I and I2 Shares8 

Up to 1.50% 

Class S1 Shares 

None 

HKD-Denominated Share Classes 
Class A2 Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

Class AA Shares 

Up to 5.00% 

SGD-Denominated Share Classes 
Class A2 Shares 

Up to 5.00% 

Class AT Shares 

Up to 5.00% 

JPY Denominated Share Classes 
Class S1 Shares 

None 

1.05% 
1.00% 
0.95% 
1.05% 
1.00% 
0.95% 

1.05% 
1.00% 
0.95% 

1.50% 
1.45% 
1.40% 

0.50% 
0.45% 
0.40% 

0.40% 

None 

1.10% 

1.05% 
1.00% 
0.95% 

1.10% 

1.05% 
1.00% 
0.95% 

1.55% 

0.55% 

0.50% 

1.10% 

1.10% 

1.10% 

1.10% 

1.10% 

0.50% 

I-104 

AB FCP I—Mortgage Income Portfolio 

None 

None 

0.45% 

None 

None 

None 

None 

None 

None 

None 

0.45% 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

0-1 year held=1.0% 
thereafter 0% 

None 

None 

None 

None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

0-1 year held=1.0% 
thereafter 0% 

None 

None 

None 

None 

None 

None 

None 

None 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AUD Hedged Share Classes 

Class AT AUD H Shares 

Up to 5.00% 

Class AA AUD H Shares 

Up to 5.00% 

Class EA AUD H 
Shares10 

None 

Class S1 AUD H Shares 

None 

SGD Hedged Share Classes 

Class AT SGD H Shares 

Up to 5.00% 

Class AA SGD H Shares 

Up to 5.00% 

ZAR Hedged Share Classes 

Class AA ZAR H Shares 

Up to 5.00% 

Class EA ZAR H 
Shares10 

RMB* Hedged Share Classes 

Class AA RMB H Shares 

EUR Hedged Share Classes 
Class A2 EUR H Shares 
Class AR EUR H Shares 
Class AT EUR H Shares 
Class AA EUR H Shares 
Class I2 EUR H Shares8 
Class IT EUR H Shares8 
Class S1 EUR H Shares 

None 

Up to 5.00% 

Up to 5.00% 
Up to 5.00% 
Up to 5.00% 
Up to 5.00% 
Up to 1.50% 
Up to 1.50%  
None 

CHF Hedged Share Classes 
Class A2 CHF H Shares 
Class I2 CHF H Shares8 

Up to 5.00% 
Up to 1.50% 

NZD Hedged Share Classes 
Class AT NZD H Shares 
Class AA NZD H Shares 
CAD Hedged Share Classes 
Class AT CAD H Shares 
Class AA CAD H Shares 
Class S2 CAD H Shares7 

Up to 5.00% 
Up to 5.00% 

Up to 5.00% 
Up to 5.00% 
None 

GBP Hedged Share Classes 
Class AT GBP H Shares 
Class AA GBP H Shares 

Up to 5.00% 
Up to 5.00% 

1   The Management Company, Administrator, Depositary and 

Transfer Agent are entitled to receive, out of the assets of the 
Portfolio, fees as described under "Other Portfolio Information—
Management Company, Administrator, Depositary and Transfer 
Agent Fees" below.  The Portfolio also bears all of its other 
expenses.  See "How to Purchase Shares" and "Additional 
Information—Fees and Expenses" in Section II.  The 
Management Company has voluntarily undertaken, until the 
Management Company on behalf of the Fund notifies 

1.10% 

1.10% 

1.10% 

0.50% 

1.10% 

1.10% 

1.10% 

1.10% 

1.10% 

1.10% 
1.10% 
1.10% 
1.10% 
0.55% 
0.55%  
0.50% 

1.10% 
0.55% 

1.10% 
1.10% 

1.10% 
1.10% 
None 

1.10% 
1.10% 

I-105 

AB FCP I—Mortgage Income Portfolio 

None 

None 

0.50% 

None 

None 

None 

None 

0.50% 

None 

None 
None 
None 
None 
None 
None 
None 

None 
None 

None 
None 

None 
None 
None 

None 
None 

None 

None 

0–1 year held=3.0%6 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 

None 

None 

None 

0–1 year held=3.0% 
1–2 yrs=2.0% 
2–3 yrs=1.0% 
3+ yrs=0% 

None 

None 
None 
None 
None 
None 
None 
None 

None 
None 

None 
None 

None 
None 
None 

None 
None 

Shareholders to the contrary, that if, in any fiscal year, the 
aggregate fees and expenses with respect to the following share 
classes of the Portfolio (including any management fee and all 
other fees and expenses set out in "Additional Information—Fees 
and Expenses" in Section II, including Luxembourg Taxe 
d'Abonnement but exclusive of certain other taxes, brokerage (if 
applicable) and  interest on borrowings) exceed the following 
percentages of the Portfolio's average Net Asset Value for the 
fiscal year attributable to the Portfolio's share classes (and 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
corresponding H shares) as follows:  A (1.50%),  AX (1.25%), A2 
(1.50%), A2X (1.25%), AT (1.50%), ATX (1.25%), AA (1.50%), AR 
(1.50%),  BX (1.70%),  C (1.95%), CX (1.70%), C2 (1.95%),  C2X 
(1.70%), EA (2.00%), I (0.95%), IT (0.95%), IX (0.70%), I2 
(0.95%),  I2X (0.70%), N2 (2.05%), NT (2.05%), S (0.15%), S1 
(0.65%),  S2 (0.15%), SA (0.15%), S1X (0.55%) and ZT (0.05%), 
the Fund may deduct from the payment to be made to the 
Management Company, or the Management Company will 
otherwise bear, such excess fees and expenses. 

2   After six years from the date of purchase, class BX shares are 
eligible for conversion to class AX shares,  without charge from 
either the Fund or the Management Company.  For further details 
on the conversion of shares, please refer to "How to Exchange or 
Convert Shares—Conversion of CDSC Shares" in Section II of 
the Prospectus. 

3   As a percentage of purchase price. 
4   As an annual percentage of average daily Net Asset Value. With 
respect to certain share classes, the management fee may also 
include a component that is paid to distributors or other financial 
intermediaries and service providers.  For further details on the 
management fee, please refer to "Additional Information—Fees 
and Expenses" in Section II.  For class AX, A2X, ATX, BX, CX, 
C2X, IX and I2X shares, consecutive fee levels listed apply with 
respect to (1) the first $100,000,000 of the net assets of the 
Portfolio, (2) the next $100,000,000 of the net assets of the 
Portfolio and (3) the amount of the net assets of the Portfolio over 
$200,000,000.  

5   As an annual percentage of average daily Net Asset Value.   
6   As a percentage of the lesser of the current Net Asset Value or 
original cost of the Shares being redeemed and based upon the 

AB FCP I—Mortgage Income Portfolio 

duration that such Shares are held.  CDSC Shares may only be 
purchased through a dealer authorized by the Distributor to offer 
such shares.  Those investors considering an investment in 
CDSC Shares should speak with their financial advisor for details. 
With respect to class C, CX, C2 and C2X shares, a dealer may 
elect to waive the contingent deferred sales charge in certain 
circumstances. 

7  Class S, S2 and SA shares (and corresponding Hedged Share 

Classes) are reserved for institutional investors that have entered 
into an agreement with the Management Company and are being 
charged an investment management fee separately. 
For further information on this share class, see “Additional Share 
Class Information” in Section II. 

8 

9  Class ZT shares are reserved for investment by AB funds. 
10  After three years from the date of purchase, class EA shares (and   
corresponding H shares) will be converted to class AA shares 
(and corresponding H shares) without charge from either the 
Fund or the Management Company.  For further details on the 
conversion of shares, please refer to “How to Exchange or 
Convert Shares—Conversion of CDSC Shares” in Section II of 
the Prospectus. 

* 

“RMB” refers to offshore RMB (“CNH”) and not onshore RMB 
known as CNY. 

†      Class AX, A2X, ATX, BX, CX, C2X, IX, I2X and S1X shares have 

been retired and are no longer open to new purchases, except 
from existing shareholders of these share classes. 

I-106 

 
 
 
 
 
 
Other Share Class Features 

USD-Denominated Share Classes 

Offered Currencies 

Minimum Initial 
Investment* 

AB FCP I—Mortgage Income Portfolio 

Minimum 
Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg 
Taxe 
d'Abonneme
nt*** 

None 

0.05% 

Class A and A2 Shares 

Class AT Shares 

Class AA Shares 

Class C and C2 Shares 

Class EA Shares 

Class I and I2 Shares 

Class N2 Shares 
Class NT Shares 
Class S Shares 
Class S1 Shares 
Class SA Shares 
Class AX and A2X 
Shares 

Class ATX Shares 

Class BX Shares 

Class CX and C2X 
Shares 

Class IX and I2X Shares 

Class S1X Shares 

Class ZT Shares 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 
Dollar 
Dollar 

Dollar 
Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

Dollar 

EUR-Denominated Share Classes 

Class A2 Shares 

Class AX and A2X 
Shares 
Class AT Shares 

Class BX Shares 

Class C2 Shares 
Class I and I2 Shares 
Class S1 Shares 

EUR 

EUR 

EUR 

EUR 

EUR 
EUR 
EUR 

HKD-Denominated Share Classes 
Class A2 Shares 
Class AT Shares 
Class AA Shares 

HKD 
HKD 
HKD 

SGD-Denominated Share Classes 
Class A2 Shares 
Class AT Shares 

SGD 
SGD 

No longer 
offered  

No longer offered  

$2,000 

$2,000 

$2,000 

$2,000 

$2,000 

$1 million**  

$2,000 
$2,000 
$25 million** 
$25 million** 
$25 million** 
No longer offered  
to new investors 
No longer offered  
to new investors 

No longer offered  

No longer offered  
to new investors 
No longer offered  
to new investors 
No longer offered  
to new investors 
$25 million** 

$750 

$750 

$750 

$750 

$750 

None 

$750 
$750 
None 
None 
None 
$750 

$750 

$750 

None 

None 

None 

€ 2,000 

€ 750 

€ 750 

€ 750 
No longer 
offered 
€ 750 
None 
None 

HK$5,000 
HK$5,000 
HK$5,000 

S$1,000 
S$1,000 

No longer offered  
to new investors 
€ 2,000 

No longer offered 

€ 2,000 
€ 1 million** 
€ 25 million** 

HK$15,000 
HK$15,000 
HK$15,000 

S$3,000 
S$3,000 

 I-107 

None 

None 

None 

None 

None 

None 
None 
None 
None 
None 

None 

None 

None 

None 

None 

None 

None 

None 

None 

No longer offered 

None 
None 
None 

None 
None 
None 

None 
None 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 
0.05% 
0.01% 
0.01% 
0.01% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 

0.01% 

0.01% 

0.05% 

0.05% 

0.05% 

0.05% 

0.05% 
0.05% 
0.01% 

0.05% 
0.05% 
0.05% 

0.05% 
0.05% 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
JPY Denominated Share Classes 
Class S1 Shares 

Yen 

¥2,5 billion**  

None 

None 

0.01% 

AB FCP I—Mortgage Income Portfolio 

Hedged 
Currencies 

Minimum Initial 
Investment* 

Minimum 
Subsequent 
Investment* 

Maximum 
Investment** 

Luxembourg 
Taxe 
d'Abonneme
nt*** 

AUD Hedged Share Classes 
Class AT AUD H Shares 
Class AA AUD H Shares 
Class EA AUD H Shares 
Class S1 AUD H Shares 
SGD Hedged Share Classes 
Class AT SGD H Shares 
Class AA SGD H Shares 

ZAR Hedged Share Classes 
Class AA ZAR H Shares 
Class EA ZAR H Shares 
RMB Hedged Share Classes 
Class AA RMB H Shares 
EUR Hedged Share Classes 
Class A2 EUR H Shares 
Class AR EUR H Shares 
Class AT EUR H Shares 
Class AA EUR H Shares 
Class I2 EUR H Shares 
Class IT EUR H Shares 
Class S1 EUR H Shares 
CHF Hedged Share Classes 
Class A2 CHF H Shares 
Class I2 CHF H Shares 

NZD Hedged Share Classes 
Class AT NZD H Shares 
Class AA NZD H Shares 

CAD Hedged Share Classes 
Class AT CAD H Shares 
Class AA CAD H Shares 

Class S2 CAD H Shares 

GBP Hedged Share Classes 
Class AT GBP H Shares 
Class AA GBP H Shares 

AUD 
AUD 
AUD 
AUD 

SGD 
SGD 

ZAR 
ZAR 

RMB 

EUR 
EUR 
EUR 
EUR 
EUR 
EUR 
EUR 

CHF 
CHF 

NZD 
NZD 

CAD 
CAD 

CAD 

GBP 
GBP 

A$2,000 
A$2,000 
A$2,000 
A$25 million** 

S$3,000 
S$3,000 

A$750 
A$750 
A$750 
None 

S$1,000 
S$1,000 

ZAR 20,000 
ZAR 20,000 

ZAR 7,000 
ZAR 7,000 

RMB 10,000 

RMB 3,750 

            € 2,000 
            € 2,000 
            € 2,000 
            € 2,000 
            € 1 million** 
€ 1 million** 
€ 25 million** 

€ 750 
€ 750 
€ 750 
€ 750 
None 
None 
None 

CHF 2,000 
CHF 1 million** 

CHF 750 
None 

NZ$3,000 
NZ$3,000 

NZ$1,000 
NZ$1,000 

C$2,000 
C$2,000 

C$25 million** 

£2,000 
£2,000 

C$750 
C$750 

None 

£750 
£750 

None 
None 
None 
None 

None 
None 

None 
None 

None 

None 
None 
None 
None 
None 
None 
None 

None 
None 

None 
None 

None 
None 

None 

None 
None 

0.05% 
0.05% 
0.05% 
0.01% 

0.05% 
0.05% 

0.05% 
0.05% 

0.05% 

0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.05% 
0.01% 

0.05% 
0.05% 

0.05% 
0.05% 

0.05% 
0.05% 

0.01% 

0.05% 
0.05% 

* 
Does not apply to automatic investment plans, where offered. 
**  May be waived by the Management Company in its sole discretion. 

***  Annual Luxembourg tax payable quarterly by each portfolio. 

I-108 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Portfolio Information 

Principal Investment Types 

For a chart summarizing the principal types of investments 
used by the Portfolio and a description of securities and other 
instruments in which the Portfolio may invest, investors 
should refer to "Investment Types" in Section II.  The ability of 
the Portfolio to invest in any securities or instruments is 
subject to the restrictions in the Portfolio's stated investment 
objective and policies and the limitations contained in 
"Investment Restrictions" in Appendix A to Section II. 

Risk Profile 
The Portfolio may make use of financial derivatives. The 
investment restrictions (9) to (13) set forth in Appendix A to 
Section II will not apply. This Portfolio shall employ instead 
the Value-at-Risk (VaR) approach. For further details 
concerning the VaR approach, please refer to “Appendix C: 
Additional Information relating to Financial Derivative 
Instruments, Financial Techniques and Instruments and 
Collateral Management”. 

Fixed-income securities in which the Portfolio will invest are 
subject to the credit risk of the private and public institutions 
offering these securities and their market value is influenced 
by changes in interest rates.  The Portfolio's fixed-income 
securities investments will generally be of Investment Grade 
or equivalent quality.  There can be no assurance that any 
distribution payments will occur and the Portfolio has no 
specific maturity. 

The Portfolio is subject to market, interest rate and currency 
fluctuations and to other risks inherent in investing in 
securities.  Therefore, no assurance can be given that the 
investment objective will be achieved, that invested capital 
will be preserved, or that capital appreciation will occur.  
Investment results may vary substantially on a monthly, 
quarterly or annual basis. An investment in the Portfolio does 
not represent a complete investment program. 

For a chart summarizing the principal risks of the Portfolio 
and a more detailed discussion of these and other risks 
applicable to the Portfolio, investors should refer to "Risk 
Factors" in Section II. 

Profile of the Typical Investor 
The Portfolio will suit higher risk-tolerant investors seeking 
the income potential of mortgage-related fixed-income 
investment.  Investors are encouraged to consult their 
independent financial advisors regarding the suitability of 
Shares of the Portfolio for their investment needs. 

Distributions 
For class A, AX, BX, C, CX, I, IX, S and S1X shares, the 
Management Company intends to declare daily and pay 
monthly dividends equal to all or substantially all of the 
Portfolio's net income attributable to each class of Shares. .   

For class AT, ATX, IT, NT and ZT shares, the Management 
Company intends to declare and pay monthly dividends 
equal to all or substantially all of the Portfolio's net income 
attributable to each class of Shares. 

AB FCP I—Mortgage Income Portfolio 

For class AA, EA and SA shares (and corresponding H 
shares), the Management Company intends to declare and 
make monthly distributions. The Management Company 
intends to maintain a stable distribution rate per share for 
such share classes. For class AR shares (and corresponding 
H shares), the Management Company intends to declare and 
make annual distributions. The distribution rate is to be 
derived from gross income (before deduction of fees and 
expenses) and distributions may also include realized and 
unrealized gains and capital attributable to such classes of 
Shares. Since fees and expenses do not reduce the 
distribution rate, the NAV per Share of the relevant classes 
will be reduced by such fees and expenses. 

The Management Company also may determine if and to 
what extent dividends paid include realized capital gains 
and/or are paid out of capital, attributable to the relevant 
class of Shares. To the extent the net income and net 
realized profits attributable to these Shares exceed the 
amount declared payable, the excess return will be reflected 
in the respective Net Asset Value of such Shares. Dividends 
may be automatically reinvested at the election of the 
Shareholder. 

For class A2, A2X, C2, C2X, I2, I2X, N2, S1 and S2  shares 
(and corresponding H shares), the Management Company 
currently does not intend to pay dividends with respect to the 
Shares. Therefore, any net income and net realized profits 
attributable to the Shares will be reflected in the respective 
Net Asset Value of the Shares. 

Management Company, Administrator, Depositary and 
Transfer Agent Fees 
For all Shares except class S, S1, S2,  SA and S1X shares 
(and corresponding H shares), the Management Company is 
paid an annual fee out of the assets of the Portfolio on the 
aggregate Net Asset Value attributable to the Shares equal to 
0.05% of average daily Net Asset Value.  The Management 
Company is paid an annual fee out of the assets of the 
Portfolio on the aggregate Net Asset Value attributable to the 
class S, S1, S2,  SA and S1X shares (and corresponding H 
shares) equal to the lesser of $50,000 or 0.01% of average 
daily Net Asset Value. The Management Company fee is 
waived with respect to class ZT shares to avoid duplication of 
fees as the Management Company fee is paid at the level of 
the AB fund that invests in class ZT shares. 

The Administrator fee, Depositary fee and Transfer Agent fee 
for the Portfolio are paid out of the assets of the Portfolio in 
accordance with the usual practice in Luxembourg and shall 
not exceed a fixed maximum specified under Section II of the 
prospectus under “Administrator, Depositary and Transfer 
Agent Fees”.  These fees may decrease or increase 
depending on the assets of the Portfolio and transaction 
volume or for other reasons.  

Organizational Expenses 
The Portfolio has no unamortized organizational expenses. 

Historical Performance 
Information on the historical performance of the Portfolio may 
be found at www.alliancebernstein.com. 

I-109 

 
 
History 
The Portfolio was established as a portfolio of the Fund under 
the name Short Maturity Dollar Portfolio on 27 September 

1994. It was renamed Mortgage Income Portfolio on 20 
February 2014. 

AB FCP I—Mortgage Income Portfolio 

I-110 

 
 
Section II:  Core Information 

The Fund 

AB FCP I is a mutual investment fund (fonds commun de 
placement) organized under the laws of the Grand Duchy of 
Luxembourg as an unincorporated co-proprietorship of its 
securities and is registered under Part I of the Law of 2010. 
The Fund is registered under number K 217 at the Registre de 
Commerce et des Sociétés of Luxembourg. The Fund qualifies 
as a UCITS within the meaning of Article 1 (2) of the UCITS 
Directive.  The Fund is managed in the interest of its 
Shareholders by the Management Company in accordance 
with the Fund's Management Regulations, as amended from 
time to time.  See "Additional Information—Management 
Regulations."  The assets of the Fund, including the assets of 
each portfolio, are separate from those of the Management 
Company.  All actions referred to herein as being performed by 
the Fund or a portfolio will be performed by the Management 
Company or its agents on behalf of the Fund or such portfolio. 

The Fund is structured as an "umbrella fund" comprising 
separate pools of assets (each a "portfolio").  Each portfolio is 
answerable only for its own obligations and expenses, and not 
for the liabilities of any other portfolio.  The Fund offers various 

AB FCP I 

classes of Shares of each of its portfolios.  In the future, the 
Fund may issue Shares of other classes of one or more 
portfolios or Shares of other classes related to newly 
established portfolios.  All Shares of the same class have 
the same rights as to dividends and redemptions. 

Responsible Investing 

The Board of Managers of the Management Company 
believes that it must serve shareholders’ interests by 
providing investment solutions that deliver long-term 
competitive performance. AB Group’s strong commitment to 
responsible investing is an integral part of this duty. 
Responsible investing entails making better-informed 
investment decisions, addressing ESG issues and 
dilemmas, including associated risks, and influencing 
companies in Portfolios to contribute to a positive outcome.  

For more information on how a Portfolio has a sustainable 
investment objective or promotes environmental and/or 
social characteristics, if applicable, please see “Appendix E: 
SFDR Pre-Contractual Disclosures” for more information.  

II-1 

 
How to Purchase Shares 

General 

The Fund is offering through this document the classes of 
Shares indicated under "Summary Information" with respect to 
each portfolio in Section I.  "Summary Information" indicates 
the Offered Currency or Offered Currencies in which such 
Shares are offered for subscription and redemption.  The 
Shares being offered hereby may be subject to different sales 
charges and ongoing distribution and other fees.  These 
alternative sale arrangements permit an investor to choose the 
method of purchasing shares that is most beneficial given the 
amount of the purchase, the length of time the investor expects 
to hold the shares and other circumstances.   
The minimum initial investment, minimum subsequent 
investment and maximum investment, if any, are indicated 
under "Summary Information" in Section I.  For certain classes 
of Shares and certain categories of investors the minimum 
initial and subsequent investment may be reduced and any 
maximum investment amount may be waived by the 
Management Company in its sole discretion.  In addition, the 
Management Company, in its sole discretion, may allow 
distributors or dealers to establish different minimums for initial 
and subsequent investments with respect to any class of 
Shares. 
The Fund does not currently accept payment in any currency 
other than an Offered Currency.  The offering price of each 
class of Shares will be available for inspection at the registered 
office of the Management Company.  The Management 
Company on behalf of the Fund may refuse any order to 
purchase Shares for any reason.  In this regard, the Fund 
reserves the right to restrict purchases of Shares (including 
through exchanges) when they appear to evidence a pattern of 
frequent purchases and redemptions made in response to 
short-term considerations.  See " Excessive and Short-Term 
Trading Policy and Procedures" in Appendix B.   
The Management Company may, at any time at its discretion, 
temporarily discontinue, cease indefinitely or limit the issue of 
Shares to investors resident or established in certain countries 
or territories.  The Management Company may also prohibit 
certain investors from acquiring Shares if necessary for the 
protection of the Shareholders as a whole and the Fund. 

Anti-Money Laundering Compliance 

Pursuant to (i) international rules comprising, but not limited to, 
applicable Financial Action Task Force (FATF) anti-money 
laundering/counter terrorism financing (“AML/CTF”) standards, 
(ii) Executive Orders administered by the U.S. Department of 
Treasury’s Office of Foreign Assets Control (“OFAC”), and (iii) 
Luxembourg laws and regulations comprising, but not limited 
to, the law of 12 November 2004 on the fight against money 
laundering and financing of terrorism (the “Lux AML Law”), the 
Grand Ducal Regulation dated 1 February 2010 and the CSSF 
Regulation 12-02 of 14 December 2012, and any respective 
amendments or replacements, obligations have been imposed 
on all professionals of the financial sector to prevent the use of 
undertakings for collective investment for money laundering 
and financing of terrorism purposes.  

As a result of such provisions, the Management Company, or 
any delegate thereof, must amongst other obligations, 
ascertain the identity of the legal owner and of the beneficial 

II-2 

AB FCP I 

owners of the Shares of the Fund. The documents and 
information required to make this verification will be 
communicated along the application form. The 
Management Company may require Shareholders to 
provide additional documents or information in case the 
gathered information is not satisfactory to the Management 
Company. In any case, the Management Company may 
require, at any time, additional documentation to comply 
with applicable legal and regulatory requirements. 

Information provided to the Management Company is 
collected and processed for anti-money laundering and 
counter-terrorist financing compliance purposes only 
(please refer to the Data Protection section. 

In case of delay or failure by a Shareholder to provide the 
documents required, no Shares will be issued to it or, if 
applicable, no distribution will be made to it. Neither the 
Management Company nor any of its appointed agents will 
have any liability for delays or failure to process issue or 
redemption of Shares as a result of the applicant providing 
no or incomplete documentation. 

To the extent required by and subject to the conditions of 
the law of 13 January 2019 establishing a register of 
beneficial owners, the Shareholders shall provide the 
Management Company, or any delegate thereof, with any 
information necessary to identify beneficial owner(s) of the 
Fund within the meaning of Article 1(7) of the Lux AML Law. 
Such information may be reported and made available to 
general public through the Luxembourg beneficial owner 
register (the “RBO”). By executing an application form with 
respect to the Fund, each Shareholder acknowledges that 
failure by a Shareholder, or, as applicable, beneficial 
owner(s) thereof, to provide the Management Company, or 
any delegate thereof, with any relevant information and 
supporting documentation necessary for the Management 
Company to comply with the obligation to provide 
information and documentation to the RBO is subject to 
criminal fines in Luxembourg. 

The Management Company shall ensure due diligence 
measures on the Fund’s investments are applied on a 
risk-based approach in accordance with Luxembourg 
applicable laws and regulations. 

Purchases of Shares 

Shares will be available for purchase in the Offered 
Currencies at their respective Net Asset Values (plus any 
applicable sales charge) on any Business Day.  The Net 
Asset Value will be calculated in the Currency of the 
Portfolio and additionally a Net Asset Value in another 
Offered Currency will be determined based upon the 
applicable conversion rate(s) on such Business Day. The 
Net Asset Value is determined for each Trade Date as of its 
Valuation Point, which is 4:00 p.m. U.S. Eastern time on 
such Trade Date, unless otherwise provided for in the 
relevant part of Section I relating to a specific portfolio. 
Orders from investors will be accepted only upon receipt of 
cleared funds by the Depositary unless, in a particular case, 
an investor has provided a written undertaking acceptable 
to the Management Company or the Distributor obligating 
such investor to effect payment in full for shares within a 

 
customary period of time.  Any such arrangement may be 
accepted by the Management Company or the Distributor in its 
or their sole discretion. Each order should specify the Offered 
Currency in which the payment will be made. In cases where 
the Management Company consents to payments in a 
currency other than in an Offered Currency, the order will be 
accepted only upon conversion in the Currency of the Portfolio 
of the amount received and the reconciliation thereof with the 
relevant application.  
Purchase orders for a given Trade Date may be accepted up to 
the Order Cut-off Time (4:00 p.m. U.S. Eastern time, or 
otherwise as defined in the relevant part of Section I relating to 
a specific portfolio) for such Trade Date. Valid and complete 
orders received and accepted by the Management Company or 
its agents within this time frame are processed as of such 
Trade Date, in the relevant Offered Currency, at the Net Asset 
Value per Share of the appropriate class determined as of the 
Valuation Point for such Trade Date.  Orders received and 
accepted after the Order Cut-off Time (4:00 p.m. U.S. Eastern 
time, or otherwise as defined in the relevant part of Section I 
relating to a specific portfolio) are processed on the next 
Business Day at the appropriate Net Asset Value determined 
as of the Valuation Point on such Business Day, in which case 
the Trade Date in respect of such purchase, redemption or 
exchange request will be such Business Day. At the discretion 
of the Management Company, Trade Dates, Valuation Points 
or the foregoing Order Cut-off Times may be changed, and 
additional Trade Dates, Valuation Points and Order Cut-off 
Times may be designated. The Management Company will 
notify Shareholders of any such changes.  In the event the 
Management Company has suspended or postponed the 
determination of Net Asset Values as set out in "Suspension of 
Issue, Redemption and Exchange of Shares and Calculation of 
Net Asset Value", the Net Asset Value determined at the next 
Valuation Point will be utilized. 
Orders generally will be forwarded to the Management 
Company by the Distributor or selling dealer on the date 
received, provided the order is received by the Distributor or 
dealer prior to such deadline as may from time to time be 
established by the office in which the order is placed.  Neither 
the Distributor nor any dealer is permitted to withhold placing 
orders to benefit themselves by a price change. 

Share Classes 

The maximum sales charge, if any, with respect to the Shares 
offered is indicated under "Summary Information" in Section I.  
The Distributor may fully reallow the amount of the sales 
charge to dealers with whom it has agreements.  If in any 
country in which shares are offered, local law or practice 
requires or permits a lower sales charge than that indicated 
under "Summary Information" for any individual purchase 
order, the Distributor may sell shares and may authorize or 
require dealers to sell shares within such country with a lower 
sales charge.  The Distributor also receives, for certain classes 
of shares, a distribution fee, accrued daily and paid monthly in 
arrears, at the annual rates indicated under "Summary 
Information" on the Portfolio's aggregate average daily Net 
Asset Value attributable to the appropriate class of shares. 
With respect to certain classes of shares (such as class B 
shares), the proceeds of these Shares redeemed by an 
investor within a certain number of years of the date such 
Shares were issued will be assessed a contingent deferred 
sales charge  Unless otherwise provided for in the relevant part 

II-3 

AB FCP I 

of Section I relating to a specific portfolio, the charge will be 
calculated in the Currency of the Portfolio on the amount 
which is the lesser of the current Net Asset Value or original 
cost of the Shares being redeemed, and if applicable, 
thereafter, expressed in the Offered Currency at the 
applicable conversion rate on each Valuation Point.  In 
addition, no charge will be assessed on Shares derived 
from reinvestment of dividends or capital gains distributions.  
In determining whether a contingent deferred sales charge 
is applicable to the proceeds of a redemption, the 
calculation will be determined in the manner that results in 
the lowest possible rate being charged, while taking into 
account that a request by an investor to redeem such class 
of Shares will be deemed to have been given for the Shares 
which have been held for the longest period by such 
investor. 
Proceeds from the contingent deferred sales charge are 
paid to the Distributor and are used in whole or in part by 
the Distributor to defray its expenses in providing 
distribution-related services to the Fund with a contingent 
deferred sales charge and the furnishing of services to 
Shareholders by sales and marketing personnel of the 
Distributor.  The combination of the contingent deferred 
sales charge and the distribution fee is designed to finance 
the distribution of such Shares through the Distributor and 
dealers without a sales charge being assessed at the time 
of purchase.  The Management Company and the 
Distributor reserve the right to modify the contingent 
deferred sales charge schedule applicable in certain 
jurisdictions.  Shares subject to a contingent deferred sales 
charge may not be held within omnibus account 
arrangements unless the Management Company and 
Distributor consent. 
All Shares of a class convey, upon issue, the same rights 
as to redemption and distributions.  The Net Asset Value 
per Share of the various classes of Shares in respect of a 
particular portfolio may differ as a result of the different fees 
assessed on each class of Shares. 
The Fund currently offers, and in the future may offer in 
respect of each portfolio, various classes of Shares with 
differing fee structures and subscription requirements to 
meet the needs of certain classes of investors or to conform 
to market practice or requirements in certain jurisdictions.  
The Fund retains the right to offer only one or more class of 
Shares for purchase by investors in any particular 
jurisdiction.  In addition, the Fund or the Distributor may 
adopt standards applicable to classes of investors or 
transactions which permit, or limit investment to, the 
purchase of a particular class of Shares.  Prospective 
investors should consult their financial adviser to determine 
which classes of Shares may be available in their particular 
jurisdiction and best suit their investment needs. 
The attention of Shareholders is drawn to the fact that the 
Fund is authorized, from time to time, to create and offer 
Share Classes in addition to those currently described 
within the present Prospectus to the extent the same type 
of shares already exists in the same Portfolio. Such newly 
created Share Classes will be reflected in the next update 
of the Prospectus.  

A complete list of available Share Classes may be obtained 
from www.alliancebernstein.com or the registered office of 
the Management Company. 

 
 
 
Additional Share Class Information 

CLASS E SHARES  

AB FCP I 

CLASS A SHARES 

Class A Shares are offered to selected dealers or distribution 
agents appointed by the Management Company purchasing 
Shares on behalf of their clients.  

A portion of the fee charged for Class A Shares may be paid to 
dealers, distribution agents and/or platforms for certain 
maintenance and/or administration type fees (where legally 
permissible).   

Class A Shares are available for distribution in the EU except 
to (i) MiFID distributors providing independent advice (e.g., 
independent financial investment advisors) or portfolio 
management services (e.g. discretionary investment 
managers) or (ii) any client on whose behalf a foregoing MiFID 
distributors is acting.1 

CLASS C SHARES 

Class C Shares are offered to selected dealers or distribution 
agents appointed by the Management Company purchasing 
Shares on behalf of their clients.  

A portion of the fee charged for Class C Shares may be paid to 
dealers, distribution agents and/or platforms for certain 
maintenance and/or administration type fees (where legally 
permissible).   

Class C Shares are available for distribution in the EU except 
to (i) entities providing independent advice (e.g., independent 
financial investment advisors) or portfolio management 
services (e.g. discretionary investment managers) or (ii) any 
client on whose behalf a foregoing entity is acting2. 

CLASS F SHARES 

Class F Shares are offered to institutional investors.  

With respect to distribution within the EU, no portion of the fees 
charged for Class F Shares is paid to third parties such as 
dealers or distribution agents, except maintenance and/or 
administration type fees (where legally permissible) including 
payments to platforms.  Accordingly, within the EU, Class F 
Shares are available to entities providing portfolio management 
services (e.g. discretionary investment managers) or any client 
on whose behalf a foregoing entity is acting. 

Class F Shares are not subject to an initial sales charge or 
CDSC.  

Class E Shares are offered to selected dealers or 
distribution agents appointed by the Management Company 
purchasing Shares on behalf of their clients.  

A portion of the fee charged for Class E Shares may be 
paid to dealers, distribution agents and/or platforms for 
certain maintenance and/or administration type fees (where 
legally permissible).   

Class E Shares are not subject to an initial sales charge.  

Class E Shares are not available for distribution in the EU.  

CLASS I SHARES 

Class I Shares are offered to (i) retail and institutional 
investors purchasing Shares through dealers or distribution 
agents who have separate fee arrangements with such 
investors, (ii) product structures that purchase Shares 
directly, or on behalf of an end investor and assess such 
investor a fee at the product level; and (iii) other investors at 
the Management Company's discretion where such offering 
and/or sale takes place outside the EU.  

With respect to distribution within the EU, no portion of fees 
charged by the Management Company involving Class I 
Shares is paid to dealers and/or distribution agents, except 
maintenance and/or administration type fees (where legally 
permissible) including payments to platforms.  Accordingly, 
within the EU, Class I Shares are available for purchase by 
(or on behalf of) customers of: (i) dealers and/or distribution 
agents providing independent advice (e.g., independent 
financial investment advisors) or portfolio management 
services (e.g., discretionary investment managers); and (ii) 
dealers and/or distribution agents purchasing Class I 
Shares on behalf of their clients where either an 
arrangement with their client or applicable law prohibits 
such dealers and/or distribution agents from retaining any 
payment from a third-party. 

CLASS L SHARES 

Class L Shares are offered to selected dealers or 
distribution agents appointed by the Management Company 
purchasing Shares on behalf of their clients.  

A portion of the fee charged for Class L Shares may be 
paid to dealers, distribution agents and/or platforms for 
certain maintenance and/or administration type fees (where 
legally permissible).   

1  Notwithstanding the foregoing, the only circumstance where such class of 
Shares  are  available  for  distribution  in  the  EU  to  entities  providing 
independent  advice  or  portfolio  management  services  is  where  the 
relevant  entity  has  provided  the  Management  Company  a  written 
undertaking that any amount(s) received by it in respect of Class of Shares 
will be credited, in full, to such entity’s client(s) and that no amount(s) in 
respect thereof will be retained by such entity, in each case in accordance 
with applicable law. 

2  Notwithstanding  the  foregoing,  the  only  circumstance  where  such 
Class  of  Shares  are  available  for  distribution  in  the  EU  to  entities 
providing  independent  advice  or  portfolio  management  services  is 
where the relevant entity has provided the Management Company a 
written  undertaking  that  any  amount(s)  received  by  it  in  respect  of 
Class of Shares will be credited, in full, to such entity’s client(s) and 
that no amount(s) in respect thereof will be retained by such entity, in 
each case in accordance with applicable law. 

II-4 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Class L Shares are available for distribution in the EU except to 
(i) MiFID distributors providing independent advice (e.g., 
independent financial investment advisors) or portfolio 
management services (e.g. discretionary investment 
managers) or (ii) any client on whose behalf a foregoing MiFID 
distributors is acting2. 

dealers or distribution agents, except maintenance and/or 
administration type fees (where legally permissible) 
including payments to platforms.  Accordingly, within the 
EU, Class W Shares are available to entities providing 
portfolio management services (e.g. discretionary 
investment managers) or any client on whose behalf a 
foregoing entity is acting. 

CLASS N SHARES 

CLASS Z SHARES 

AB FCP I 

Class N Shares are offered to selected dealers or distribution 
agents appointed by the Management Company purchasing 
Shares on behalf of their clients. 

A portion of the fee charged for Class N Shares may be paid to 
dealers, distribution agents and/or platforms for certain 
maintenance and/or administration type fees (where legally 
permissible).  

Class N Shares are available for distribution in the EU except 
to (i) entities providing independent advice (e.g., independent 
financial investment advisors) or portfolio management 
services (e.g. discretionary investment managers) or (ii) any 
client on whose behalf a foregoing entity is acting2. 

CLASS S SHARES 

Class S shares are offered to institutional investors have 
entered into an agreement with the Management Company 
and are being charged an investment management fee 
separately. 

With respect to distribution within the EU, no portion of the fees 
charged for Class S Shares is paid to third parties such as 
dealers or distribution agents, except maintenance and/or 
administration type fees (where legally permissible) including 
payments to platforms.  Accordingly, within the EU, Class S 
Shares are available to entities providing portfolio management 
services (e.g. discretionary investment managers) or any client 
on whose behalf a foregoing entity is acting. 

CLASS S1 SHARES 

Class S1 shares are offered to institutional investors.  

With respect to distribution within the EU, no portion of the fees 
charged for Class S1 Shares is paid to third parties such as 
dealers or distribution agents, except maintenance and/or 
administration type fees (where legally permissible) including 
payments to platforms.  Accordingly, within the EU, Class S1 
Shares are available to entities providing portfolio management 
services (e.g. discretionary investment managers) or any client 
on whose behalf a foregoing entity is acting. 

CLASS W SHARES 

Class W Shares are available through (i) Distributors (a) who 
have separate fee arrangements with their investors and (b) 
whose investors' aggregated holdings in the Portfolio exceed 
$500 million; (ii) and through other dealers or distribution 
agents at the Management Company's discretion. 

With respect to distribution within the EU, no portion of the fees 
charged for Class W Shares is paid to third parties such as 

II-5 

Class Z Shares are reserved for investment by AB funds. 

Currency Hedged Share Classes.  One or more of a 
portfolio’s share classes offered in a particular currency 
(each, an “Offered Currency”) may be hedged to such 
Offered Currency.  Any such share class will constitute a 
“Currency Hedged Share Class.”   Currency Hedged Share 
Classes aim to provide investors a return more closely 
correlated to the Portfolio’s base currency return by 
reducing the effect of exchange rate fluctuations between 
the portfolio’s base currency (e.g., US Dollars) and the 
relevant Offered Currency, taking into account practical 
considerations such as transaction costs.  The hedging 
strategy employed is designed to reduce, but may not 
eliminate, currency exposure between the portfolio’s base 
currency and the Offered Currency. 

The precise hedging strategy applied to a particular Hedged 
Share Class may vary from one portfolio offering Currency 
Hedged Share Class(es) to another.  But, in general, the 
amount of net subscriptions of a particular Currency 
Hedged Share Class will be converted into the portfolio’s 
base currency at the applicable spot rate.  At the same 
time, the Investment Manager will enter into a forward 
currency exchange contract for the same amount.  
Thereafter the hedge will be monitored and adjusted from 
time-to-time to take account of net 
subscriptions/redemptions attributable to investor flows as 
well as the net asset value of the relevant Currency Hedged 
Share Class. The degree of effectiveness provided by a 
particular hedge will depend, among other things, on the 
Investment Manager’s ability to enter into corresponding 
forward currency exchange contracts in order to match the 
most recently available value of the portfolio’s assets 
attributable to the Currency Hedged Share Class with 
corresponding forward currency exchange contracts.  
During the life of each foreign currency exchange contract, 
any gains or losses on the forward position is incorporated 
into the daily net asset value of the Currency Hedged Share 
Class and is realized on the settlement of the forward 
currency exchange contract in-question.  These forward 
positions are then rolled from one forward currency 
exchange contract to another thereby continuing the hedge.  
The returns of Currency Hedged Share Classes 
denominated in the Offered Currencies are intended to 
correlate significantly with the returns of share classes 
denominated in a portfolio’s base currency.  However, 
these returns will not correlate perfectly due to various 
factors, including short-term interest rate differentials,  
unrealized gains/losses on currency forward positions’ not 
being invested until the gains/losses are realized, the target 
hedge ratio and deviation range employed by the 
Investment Manager (the deviation range is designed to 
avoid higher transaction costs associated with excessive 
minor hedge adjustments but  results in minor over/under 

 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
hedges), the timing of the market value hedge adjustments 
relative to the portfolio’s Valuation Point, and transaction costs 
attributable to hedging activity.  
These hedging transactions for the Currency Hedged Share 
Classes are intended to be entered into continuously whether 
the Offered Currency in which the Currency Hedged Share 
Class is denominated is declining or increasing in value relative 
to other currencies.  Therefore such hedging will tend to protect 
investors in the relevant Currency Hedged Share Classes to 
the extent the value of the Currency Hedged Share Class's 
Offered Currency rises relative to the portfolio's base currency.  
Conversely, such hedging will tend to prevent investors from 
benefiting if the value of a Currency Hedged Share Class's 
Offered Currency decreases relative to the portfolio's base 
currency.  
Currency Hedged Share Classes do not affect the investment 
management of the portfolio’s underlying assets since it is only 
the net asset value of the Currency Hedged Share Classes 
which is hedged, not the portfolio’s underlying assets.  
In contrast to the rationale underlying Currency Hedged Share 
Classes, a particular portfolio’s investment strategy may seek 
to fully or partially hedge currency exposures arising from 
some or all of the portfolio’s underlying assets to the portfolio’s 
base currency to the extent indicated in the description of a 
particular portfolio’s investment strategy set out in Section I.  
This type of hedging activity (i.e., hedging the currency 
exposures of a portfolio’s investments against the portfolio’s 
base currency) is separate from – and unrelated to – the 
hedging activity discussed under this heading relating solely to 
Currency Hedged Share Classes.    
To the extent a particular portfolio offers Currency Hedged 
Share Classes and seeks also to fully or partially hedge 
currency exposures relating to some or all of the portfolio’s 
underlying assets to the portfolio’s base currency, certain costs 
and inefficiencies could result. 
Finally, shareholders should be aware that the level of leverage 
of Currency Hedged Share Classes will automatically be higher 
than the expected level of leverage disclosed for a specific 
portfolio. Indeed, such expected level of leverage does not take 
into account the hedging transactions used for the Currency 
Hedged Share Classes. 
The attention of Shareholders is drawn to the fact that the Fund 
is authorized, from time to time, to create and offer Currency 
Hedged Share Classes in addition to those currently described 
within the present Prospectus. Such newly created Currency 
Hedged Share Classes will be reflected in the next update of 
the Prospectus.  

BRL Hedged Share Classes. Class BRL H Shares are 
reserved for investors domiciled in Brazil and will adopt a 
different hedging model than used for our other hedged share 
classes due to the currency controls in Brazil. As BRL is a 
restricted currency, Class BRL H Shares cannot be 
denominated in BRL but instead will be denominated in the 
base currency of the relevant Portfolio. BRL currency hedging 
will be obtained by converting the NAV of the Class BRL H 
Shares into BRL using financial derivative instruments (e.g. a 
non-deliverable currency forward). It is expected that the NAV 
of Class BRL H Shares will fluctuate in line with changes in the 
exchange rate between the BRL and base currency of the 
relevant Portfolio and performance may therefore differ, 
including significantly, from that of other Share Classes in the 

II-6 

AB FCP I 

same Portfolio. Any profit or loss as well as costs and 
expense resulting from these transactions will be reflected 
exclusively in the NAV of Class BRL H Shares. 

A complete list of available Share Classes may be obtained 
from www.alliancebernstein.com or the registered office of 
the Management Company. 

Partial Duration Hedged Share Classes 

For some fixed-income portfolios, the Management 
Company may offer Partial Duration Hedged Share 
Classes. Partial Duration Hedged Share Classes intend to 
provide investors a return that is less sensitive to interest 
rate fluctuations by partially hedging the duration of the 
overall Portfolio for shareholders in the Partial Duration 
Hedged Share Class. Changes in interest rates will 
influence the total return of such fixed-income portfolios.  
The partial duration hedging strategy is designed to reduce, 
however it may not eliminate, the interest rate risk of the 
overall portfolio in the Partial Duration Hedged Share Class. 
Managing the interest rate risk at the Partial Duration 
Hedged Share Classes level does not affect the investment 
management of the portfolio’s underlying assets since the 
financial derivative instrument transactions used to hedge 
the interest rate risk will be performed at the net asset value 
(NAV) of the Partial Duration Hedged Share Classes.  
Shareholders should be aware that Partial Duration Hedged 
Share Classes may still have significant sensitivity to 
changes in interest rates, which would impact the NAV of 
the Partial Duration Hedged Share Class. 
Such partial duration hedging strategy will be achieved 
through the use of financial derivative instruments, such as 
interest rate futures. Expenses incurred as a result of such 
hedging activity will be borne on a pro rata basis by all 
Partial Duration Hedged Share Classes issued within the 
same portfolio. 
Finally, shareholders should be aware that the level of 
leverage of Partial Duration Hedged Share Classes will 
automatically be higher than the expected level of leverage 
disclosed for a specific portfolio. Indeed, such expected 
level of leverage does not take into account the hedging 
transactions used for the Partial Duration Hedged Share 
Classes. 

Issuance and Settlement 
Payments for Shares subscribed for should accompany the 
investor's Application Form, since the application will be 
accepted only upon identification of the payment made in 
respect of the Shares to be purchased, or, if Shares are 
subscribed for and purchased from or through an 
authorized selling dealer or the Distributor, payment should 
be made within three Business Days of the relevant Trade 
Date, unless otherwise stated in the portfolio details of a 
Portfolio in Part I, and in accordance with such procedures 
as may be adopted by such dealer and approved by the 
Distributor and the Fund.  Different settlement periods may 
apply in certain jurisdictions where the Shares are sold.  
Payment for Shares purchased directly from the Fund are 
payable to the account of the Fund as indicated in the 
Application Form.  Upon receipt of payment by the Fund, 
the Management Company will issue whole and fractional 
Shares and certificates, if requested.  Confirmations will be 

 
 
 
 
delivered to the investor.  Payment for shares and the 
applicable sales charge, if any, must be made in an Offered 
Currency. 

Confirmation Notes and Certificates 
A confirmation note will be sent to the investor on the Business 
Day following the issue of the Shares, providing full details of 
the transaction.  All Shares are issued in registered form, and 
the Fund's Shareholder register in respect of the relevant 
portfolio maintained by the Transfer Agent is evidence of 
ownership.  The Management Company treats the registered 
owner of a Share as the absolute and beneficial owner thereof.  
Shares are issued in uncertificated form unless a certificate is 
specifically requested at the time of application.  The 
uncertificated form enables the Fund to effect redemption 
instructions without undue delay and consequently the Fund 
recommends that investors maintain their Shares in 
uncertificated form.  If an investor requests Shares to be issued 
in certificated form, a Share certificate is sent either to the 
investor or that person's nominated agent (at the investor risk) 
normally within 28 days of completion of the registration 
process or transfer, as the case may be, of the Shares. 

AB Funds Accounts and Account Numbers 
Upon acceptance of an investor's Application Form in 
connection with the investor's first investment in an AB fund, 
the Transfer Agent will establish an account in its Shareholder 
processing system in which the investor's AB fund Shares will 
be recorded.  This account reflects an investor's share position 
in the relevant AB fund.  An AB funds account will be 
denominated in the Offered Currency in which the investor's 
first AB fund subscription is made.  An AB funds account can 
only be denominated in one currency and thus will only record 

AB FCP I 

holdings of Shares denominated in the same currency.  
Investors desiring to hold Shares in multiple Offered 
Currencies will therefore have more than one AB funds 
account and will receive separate statements with respect 
to each such account.  Investors will be given an AB funds 
account number with respect to each AB funds account 
they establish, and this number, together with the investor's 
pertinent details, constitutes proof of identity.  This AB 
funds account number should be used for all future dealings 
by the investor in respect of any AB fund Shares of such 
accounts.  Any change to an investor's personal details, 
loss of AB funds account number(s) or loss of Share 
certificates must be notified immediately to the Transfer 
Agent in writing.  The Fund reserves the right to require an 
indemnity or verification of identity countersigned by a bank, 
stockholder or other party acceptable to it before accepting 
such instructions. 

Subscriptions in Kind 
The Management Company may accept securities as 
payment for Shares at its discretion provided that the 
contribution of such securities are consistent with policies 
pursued by the Investment Manager and will not result in a 
breach of the relevant portfolio's investment objective and 
policies or the Fund's investment restrictions.  In such case, 
an auditor's report will be necessary to value the 
contribution in kind.  Expenses in connection with the 
establishment of such report and any other expenses in 
connection with the subscription in kind will be borne by the 
subscriber that has chosen this method of payment, or by 
the Fund when the quantifiable benefits to the Fund exceed 
the cost of such auditor’s report. 

II-7 

 
 
 
How to Redeem Shares 

Shareholders may redeem their Shares on any Business Day 
through the Distributor or any authorized dealer, or by 
transmitting an irrevocable redemption order by facsimile or 
mail to the Management Company or its authorized agent.  The 
redemption order must clearly state the name of the Fund and 
portfolio, the Share class, the number of Shares to be 
redeemed or the total value (in the Offered Currency in which 
the Shareholder has elected to purchase the Shares) of Shares 
to be redeemed, together with the Shareholder's name and AB 
funds account number (for that Offered Currency) as registered 
with the Fund.  Payments of redemption proceeds will be made 
in the Offered Currency in which the Shareholder's AB funds 
account is denominated. 

If, as a result of any redemption request, a Shareholder's AB 
funds account falls below $1,000 (or the equivalent amount in 
another Offered Currency depending on the currency in which 
the Shareholder's AB funds account is denominated), such 
redemption request may be deemed to apply to the 
Shareholder's entire AB funds account. 

The redemption price will be equal to the Net Asset Value per 
Share in the relevant Offered Currency of the relevant share 
class determined for the appropriate Trade Date as of the 
Valuation Point, which is 4:00 p.m. U.S. Eastern time on such 
Trade Date, unless otherwise provided for in the relevant part 
of Section I relating to a specific portfolio.  Redemption 
requests for a given Trade Date may be accepted up to the 
Order Cut-off Time (4:00 p.m. U.S. Eastern time, or otherwise 
as defined in the relevant part of Section I relating to a specific 
portfolio) for such Trade Date.  Valid and complete redemption 
requests received within this time frame are normally 
processed as of such Trade Date at the redemption price as 
stated above.  Redemption requests received after such Order 
Cut-off Time (4:00 p.m. U.S. Eastern time, or otherwise as 
defined in the relevant part of Section I relating to a specific 
portfolio) will be processed on the next Business Day at the 
appropriate Net Asset Value determined as of the Valuation 
Point on such Business Day, in which case the Trade Date in 
respect of such redemption request will be such Business Day.  
Depending on the Net Asset Value calculated with respect to a 
given Trade Date, the redemption price of Shares may be 
higher or lower than the price paid for such Shares at the time 
of subscription. 

Unless otherwise provided for in the relevant part of Section I 
relating to a specific portfolio, payment of the redemption 
proceeds (the redemption price less any applicable contingent 
deferred sales charge) will be made by the Depositary or its 
agents in the relevant Offered Currency, usually within three 
Business Days after the relevant Trade Date to the account of 
the registered Shareholder, provided that (i) a redemption 
order has been received by the Management Company, or its 
authorized agent, in the appropriate form and (ii) the 
certificates (if issued) for the Shares to be redeemed have 
been received by the Management Company, or its authorized 
agent, prior to the Valuation Point with respect to such Trade 
Date. Notwithstanding the foregoing, if in exceptional 
circumstances the liquidity of the Fund is not sufficient to 
enable payment or redemption to be made within this period, 
such payment will be made as soon as reasonably practicable 
thereafter, but without interest. Payments can be made only to 

II-8 

AB FCP I 

the registered owner of the Shares; third party payments 
cannot be made.  Payments will be made by wire transfer.  
Please note that payment of redemption proceeds may be 
delayed if the Management Company, or its authorized 
agent, has not received all required original documentation 
from Shareholders or their financial advisers, as 
appropriate, via mail.  Wire transfer instructions should be 
included in an investor's original Application Form, 
otherwise wire transfer instructions must be received (and 
verified) by the Management Company, or its authorized 
agent, via mail or facsimile transmission before wire 
transfers of redemption proceeds may be sent.   

The Management Company will endeavor to ensure, for 
any Trade Date, that an appropriate level of liquidity is 
maintained in respect of each portfolio so that redemption 
of Shares may, under normal circumstances, be made 
promptly on such date to Shareholders requesting 
redemption.  However, the Management Company may 
limit the redemption of Shares in the event the Fund 
receives as of any Trade Date requests to redeem more 
than 10% of the Shares of the relevant portfolio or class 
outstanding as of such date (or such lower percentage as 
may be stated in the description of such portfolio in Section 
I), in which case Shares of the portfolio or class may be 
redeemed on a pro rata basis.  Any part of a redemption 
request to which effect is not given by reason of the 
exercise of this power by or on behalf of the Management 
Company will be treated as if a request has been made in 
respect of the next Trade Date and all following Trade 
Dates (in relation to which the Management Company has 
the same power) until the original request has been 
satisfied in full.  Any such limitation will be notified to those 
Shareholders who have applied for redemption.  In addition, 
under certain circumstances, the Management Company 
may suspend the right of Shareholders to redeem Shares.  
See "Additional Information—Suspension of Issue, 
Redemption and Exchange of Shares and Calculation of 
Net Asset Value." 

Transfers 
Except as set out below and under "Additional 
Information—Restrictions on Ownership," the Shares which 
are listed are freely transferable. The Shares may not be 
transferred to U.S. Persons without the consent of the 
Management Company. 

Redemptions in Kind 
If requested by the Shareholder, redemptions may be made 
in kind at the discretion of the Management Company.  
Expenses in connection with the redemption in kind (mainly 
costs relating to the drawing up of an auditor's report) will 
be borne by the Shareholder that has chosen this method 
of redemption or by the Fund when the quantifiable benefits 
to the Fund exceed the cost of such auditor’s report.  To the 
extent reasonably possible, such redemption in kind will 
normally be made on a pro rata basis of all investments 
held by the Fund (having always due regard to and/or 
protecting the interests of the Fund).  

 
 
 
How to Exchange or Convert Shares 

Exchange for Shares of Other Portfolios within the Fund 
and Certain Other AB Funds 
Shareholders have the option to exchange Shares for Shares 
of the same class of any other portfolio of the Fund or Shares 
of the same class of certain other AB funds.  Any such 
exchange will be subject to the minimum investment 
requirements and any other applicable terms set out in the 
Prospectus relating to the Shares of the portfolio of the Fund or 
other AB fund to be acquired upon exchange.  The 
Management Company reserves the right, in its discretion, to 
waive any applicable minimum subscription amounts.  

The applicable Order Cut-off Time for an exchange will be the 
earlier of the Order Cut-off Times of the two AB funds or share 
classes that are associated with the exchange.  If the earlier 
Order Cut-off Time is not met, the exchange will not be 
considered for acceptance until the next common Business 
Day of the two AB funds. Following receipt and acceptance by 
the Management Company, or its agent, of a valid and 
complete exchange order, exchanges will be effected, in each 
case, at the Net Asset Value as next determined in accordance 
with the terms set out in "Additional Information—
Determination of the Net Asset Value of the Shares" below.  
Exchanges involving other AB funds will be effected by means 
of a redemption of the original Shares and a subscription for 
and purchase of the Shares to be acquired upon exchange. 
Each side of an exchange transaction will be effected on the 
same trade date. 

The Management Company, on behalf of the Fund and the 
Distributor, reserves the right (i) to reject any order to acquire 
shares through exchange at any time or (ii) otherwise modify, 
restrict or terminate the exchange privilege generally at any 
time on 60 days' notice to Shareholders. 

In respect of any exchange order involving a class of Shares 
possessing a contingent deferred sales charge, the holding 
period for purposes of calculating the contingent deferred sales 
charge due upon redemption, if applicable, relating to Shares 
acquired in an exchange, will be based on the date of purchase 
of the original Shares.  The contingent deferred sales charge 
on Shares acquired in an exchange will be calculated based on 
the contingent deferred sales charge schedule associated to 
the original Shares at the time of purchase.  Such restrictions 
may be waived under certain circumstances in the sole 
discretion of the Management Company, on behalf of the Fund. 

Exchanges will be effected in a manner such that upon 
redemption of the Shares acquired in the exchange, the 
redemption price will be paid in the Offered Currency in which 
the Shareholder's AB funds account is denominated.  In the 
event a Shareholder exchanges original Shares into Shares 
that are not available in the Offered Currency in which the 
Shareholder's AB funds account is denominated, a second AB 
funds account denominated in the second Offered Currency 
will be opened in order for such Shares to be recorded therein.  
Shareholders will be issued a second AB funds account 
number and receive separate account statements with respect 
to any such second account.  

II-9 

AB FCP I 

Transaction costs, if any, incurred in respect of an 
exchange of Shares of the same class but involving 
different currencies will be reflected in the amount of 
Shares realized by the investor upon exchange. 

Investors interested in exchanging Shares should contact 
their financial adviser or the Distributor for more information 
about the exchange option.  Neither the Fund nor the 
Management Company currently charges any 
administrative or other fees in connection with exchanges.  
However, investors who hold their Shares through accounts 
with a dealer should contact such dealer to determine if any 
such fees apply in connection with exchanges. 

Conversion of CDSC Shares 

Conversion of B CDSC Shares 

Conversion at Shareholder’s Option 
Shareholders of B CDSC Shares for which a conversion 
right has been provided in Section I (“Eligible B CDSC 
Shares”) will have the right to convert such Eligible B CDSC 
Shares to such other share classes of the same Portfolio as 
stipulated in Section I after such Eligible B CDSC Shares 
have been held for the number of years specified in Section 
I without charge from either the Fund or the Management 
Company.  Except as otherwise described below, 
conversions will be effected only at the election of the 
registered holder of such Eligible B CDSC Shares (i.e., the 
owner of such Eligible B CDSC Shares as reflected in the 
Fund's shareholder register).  Accordingly, investors who 
hold their Eligible B CDSC Shares through accounts with a 
financial intermediary should contact such financial 
intermediary for more information about converting their 
Eligible B CDSC Shares.   

Automatic Conversion 
Effective January 2021, Eligible B CDSC Shares held in the 
name of a single investor (and not in an omnibus account) 
will be converted automatically into such other share 
classes of the same Portfolio as specified in Section I after 
such Eligible B CDSC Shares have been held for the 
number of years specified in Section I. Shares held through 
a financial intermediary in an omnibus account for which the 
recordkeeping on the underlying investors is managed by 
the financial intermediary will continue to be converted 
based on the instructions of the registered owner of the 
omnibus account. 

Notwithstanding the above, as of the Effective Date (as 
defined below), Eligible B CDSC Shares held by 
Shareholders residing in Taiwan will be converted 
automatically into such other share classes of the same 
Portfolio as specified in Section I after such Eligible B 
CDSC Shares have been held for the number of years 
specified in Section I. The Effective Date for these purposes 
shall be 30 April 2016 or such later date as is required by 
an account holder/financial intermediary to implement the 
relevant enhancements necessary to process the automatic 
conversion. 

 
 
 
 
Conversion of E CDSC Shares 

Automatic Conversion  
E CDSC Shares, if held directly, will be converted automatically 
into such other share classes of the same Portfolio as specified 
in Section I after such E CDSC Shares have been held for the 
number of years specified in Section I.  

E CDSC Shares, if held through a financial intermediary in an 
omnibus account for which the recordkeeping on the 
underlying investors is maintained by the financial 
intermediary, will be converted based on the instructions of the 
registered owner of the omnibus account after such E CDSC 
Shares have been held for the number of years specfiied in 
Section I.  

AB FCP I 

Shareholders should consult their financial intermediary for 
additional information on conversions.  

Taxation 
The conversion of Eligible B CDSC Shares and E CDSC 
Shares may give rise to a tax liability for Shareholders in 
certain jurisdictions. Shareholders should consult their tax 
advisor as to the tax implications of such conversion under 
the laws of their home jurisdiction. 

II-10 

 
 
 
 
 
 
 
 
 
 
Determination of Net Asset Value 

The Net Asset Value per Share of each class of Shares, 
expressed in the Currency of the Portfolio and any other 
Offered Currency, will be determined by the Management 
Company as of 4:00 p.m. U.S. Eastern time on each 
Business Day.  To the extent feasible, investment income, 
interest payable, fees and other liabilities (including 
management fees) will be accrued daily. 

In all cases, the Net Asset Value per Share of each class of 
Shares is determined by dividing the value of the total assets 
of each portfolio properly allocable to such class of Shares 
less the liabilities of such portfolio properly allocable to such 
class of Shares by the total number of Shares of such class 
outstanding on each Business Day.  The Net Asset Value per 
Share of each class of Shares of a portfolio may differ as a 
result of the different fees assessed on each class of Shares 
of such portfolio. 

With respect to securities for which market quotations are 
readily available, the market value of a security held by a 
portfolio will be determined as follows: 

(a)  securities listed on an exchange are valued at the last 

sale price reflected on the consolidated tape at the close 
of the exchange on the Business Day as of which such 
value is being determined. If there has been no sale on 
such day, the securities are valued at the mean of the 
closing bid and asked prices on such day. If no bid or 
asked prices are quoted on such day, then the security is 
valued in good faith at fair value by, or in accordance 
with procedures established by, the Management 
Company; 

(b)  securities traded on more than one exchange are valued 
in accordance with paragraph (a) above by reference to 
the principal exchange on which the securities are 
traded; 

(c)  securities traded in the over-the-counter market, 

including securities listed on an exchange whose primary 
market is believed to be over-the-counter (but excluding 
securities traded on The Nasdaq Stock Market, Inc. 
("NASDAQ")) are valued at the mean of the current bid 
and asked prices; 

(d)  securities traded on NASDAQ are valued in accordance 

with the NASDAQ Official Closing Price; 

(e)  listed put or call options purchased by a portfolio are 

valued at the last sale price. If there has been no sale on 
that day, such securities will be valued at the closing bid 
prices on that day; 

(f)  open futures contracts and options thereon will be 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 valuations, the 
last available closing settlement price will be used; 

(g)  U.S. Government securities and 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 pertains to short term securities that 
have an original maturity of 60 days or less, as well as 

II-11 

AB FCP I 

short term securities that had an original term to maturity 
that exceeded 60 days. In instances where amortized 
cost is utilized, the Management Company must 
reasonably conclude that the utilization of amortized cost 
is approximatively the same as the fair value of the 
security. Such factors the Management Company will 
consider include, but are not limited to, an impairment of 
the creditworthiness of the issuer or material changes in 
interest rate 

 (h)  fixed income securities are valued at the most recent bid 

price provided by the principal market makers; 

 (i)  mortgage-backed and asset-backed securities may be 

valued at prices that reflect the market value of such 
securities and that are obtained from a bond pricing 
service or at a price that reflects the market value of such 
securities and that is obtained from one or more of the 
major broker-dealers in such securities when such prices 
are believed to reflect the fair market value of such 
securities. In cases where broker-dealer quotes are 
obtained, the Investment Manager may establish 
procedures whereby changes in market yields or spreads 
are used to adjust, on a daily basis, a recently obtained 
quoted bid price on a security;  

(j)  OTC and other derivatives are valued on the basis of a 

quoted bid price or spread from a major broker-dealer in 
such security; and 

(k)  all other securities will be valued in accordance with 
readily available market quotations as determined in 
accordance with procedures established by the 
Management Company.  In the event that extraordinary 
circumstances render such a valuation impracticable or 
inadequate, the Management Company is authorized to 
follow other rules prudently and in good faith in order to 
achieve a fair valuation of the assets of the Fund.  

The Fund values its securities at their current market value 
determined on the basis of market quotations or, if market 
quotations are not readily available or are unreliable, at "fair 
value" as determined in accordance with procedures 
established by and under the general supervision of the 
Management Company. In determining whether to apply fair 
value pricing, the Fund considers a number of factors, such 
as the Order Cut-off Time for a particular Portfolio, the close 
of the securities markets in which such Portfolio trades and 
the existence of extraordinary events. When the Fund uses 
fair value pricing, it may take into account any factors it 
deems appropriate. The Fund may determine fair value 
based upon developments related to a specific security or 
current valuations of market indices. The prices of securities 
used by the Fund to calculate its Net Asset Value may differ 
from quoted or published prices for the same securities.  

Accordingly, as may also be the case with a previously 
reported stock exchange price, the price of any portfolio 
security determined utilizing fair value pricing procedures 
may be materially different from the price to be realized upon 
the sale of such security.    

For purposes of determining the Fund's Net Asset Value per 
Share, all assets and liabilities initially expressed in a 
currency other than the Currency of the Portfolio will be 
converted into such currency at the mean of the current bid 

 
 
 
and asked prices of such currency against the Currency of 
the Portfolio last quoted by a major bank that is a regular 
participant in the relevant exchange market or on the basis of 
a pricing service that takes into account the quotes provided 
by a number of such major banks. If such quotations are not 
available as of the close of the Exchange, the rate of 
exchange will be determined in good faith by, or under the 
direction of, the Board of Managers of the Management 
Company. 

In the event that extraordinary circumstances render such a 
valuation impracticable or inadequate, the Management 
Company is authorized to follow other rules prudently and in 
good faith in order to achieve a fair valuation of the assets of 
the Fund. 

Brown Brothers Harriman (Luxembourg) S.C.A. has been 
appointed by the Management Company to make the daily 
determination of the Net Asset Value per Share of each class 
of Shares of each portfolio. The Net Asset Value in respect of 
a particular Valuation Point will be available at or around 6:00 
p.m. U.S. Eastern time on such Business Day. For purposes 
of issues and redemptions, the Net Asset Value may be 
converted in other currencies as specified in this Prospectus. 

Swing Pricing Adjustment  

In order to counter the effects of dilution on a Portfolio’s Net 
Asset Value brought about by large purchases or 
redemptions of the Portfolio’s Shares, the Board has 
implemented a swing pricing policy.  

Dilution involves a reduction in the Net Asset Value brought 
about by investors purchasing, selling and/or exchanging in 
and out of a Portfolio of the Fund at a price that does not 
reflect the dealing costs associated with the Portfolio’s trade 
activity undertaken to accommodate the corresponding cash 
inflows or outflows. Dilution occurs when the actual cost of 
purchasing or selling the underlying assets of a Portfolio 
deviates from the valuation of these assets in the Portfolio 
due to dealing charges, taxes and any spread between the 
buying and selling prices of the underlying assets. Dilution 
may have an adverse effect on the value of a Portfolio and 
therefore impact Shareholders. 

Under the Fund’s swing pricing policy, if on any Business 
Day, the aggregate net investor inflows or outflows in Shares 
of a Portfolio exceed a pre-determined threshold, as 
determined from time to time by the Board, the Net Asset 
Value of the Portfolio may be adjusted upwards or 
downwards to reflect the costs attributable to such net inflows 
or net outflows. The threshold is set by the Board taking into 
account factors such as the prevailing market conditions, the 
estimated dilution costs and the size of a Portfolio. The level 
of swing pricing adjustment will be reviewed and may be 
adjusted on a periodic basis to reflect an approximation of 
dealing costs as determined by the Board. The application of 
swing pricing will be triggered automatically on a daily basis 
upon crossing the relevant threshold. The swing pricing 
adjustment will be applicable to all Shares of a Portfolio (and 
all transactions) on that Business Day. When reviewing and 
implementing the Fund’s swing pricing policy, the Board may 
receive input and expertise from various business units within 
AB Group including inter alia the risk management, legal and 
compliance, trading, and product development units. 

II-12 

AB FCP I 

The swing pricing adjustment may vary by Portfolio and is 
dependent upon the particular assets in which a Portfolio is 
invested. The swing pricing adjustment will generally not 
exceed 2% of the original Net Asset Value of a Portfolio 
under normal market conditions. However, in extraordinary 
circumstances typically when there is heightened volatility 
and price discovery is challenged, the transaction costs may 
increase dramatically and the Board may decide, in order to 
protect existing shareholders of a Portfolio, to increase the 
swing pricing adjustment beyond 2%. The Board will publish 
such decision on the Fund’s website as soon as practicable 
thereafter. 
Investors are advised that the application of swing pricing 
may result in increased volatility in a Portfolio’s valuation and 
performance, and a Portfolio’s Net Asset Value may deviate 
from the underlying investments’ performance on a particular 
Business Day as a result of the application of swing pricing. 
Typically, such adjustment will increase the Net Asset Value 
per Share on a given Business Day when there are net 
inflows into a Portfolio and decrease the Net Asset Value per 
Share when there are net outflows. For any Portfolio that has 
an incentive or performance fee for a particular Share Class, 
the incentive or performance fee will be calculated on the 
basis of the applicable NAV without taking into account the 
effects of the swing pricing mechanism. 

For a list of portfolios of the Fund that do not apply any swing 
pricing adjustment, please refer to: 
www.alliancebernstein.com/go/Swing-Pricing-Exclusion-List 

Suspension of Issue, Redemption and Exchange of 
Shares and Calculation of Net Asset Value 

The Management Company may temporarily suspend the 
determination of Net Asset Value of a portfolio, and 
consequently the issue, redemption and exchange of Shares 
of such portfolio, in any of the following events: 

•  When one or more stock exchanges or markets that 

provide the basis for valuing a substantial portion of the 
assets of a portfolio, or when one or more foreign 
exchange markets in the currency in which a substantial 
portion of the assets of the portfolio are denominated, is 
closed otherwise than for ordinary holidays or if dealings 
therein are restricted or suspended. 

•  When, as a result of political, economic, military or 
monetary events or any circumstances outside the 
responsibility and the control of the Management 
Company, disposal of the assets of a portfolio is not 
reasonably or normally practicable without being 
seriously detrimental to the interests of the Shareholders. 

• 

• 

In the case of a breakdown in the normal means of 
communication used for the valuation of any investment 
of a portfolio or if, for any reason, the value of any asset 
of a portfolio may not be determined as rapidly and 
accurately as required. 

If, as a result of exchange restrictions or other 
restrictions affecting the transfer of funds, transactions 
on behalf of a portfolio are rendered impracticable or if 
purchases and sales of the portfolio's assets cannot be 
effected at normal rates of exchange. 

 
 
 
The decision to suspend temporarily the determination of the 
Net Asset Value of Shares of a portfolio does not necessarily 
entail the same decision for the classes of Shares of another 
portfolio, if the assets within such other portfolio are not 
affected to the same extent by the same circumstances.  
Suspensions of the calculation of the Net Asset Value will be 

AB FCP I 

published in the manner prescribed for notices to 
Shareholders under the heading "Meetings and Reports to 
Shareholders" in this Section II if such suspension is likely to 
exceed ten days. 

II-13 

 
 
 
AB FCP I 

Future Developments.  On an ancillary basis, each 
portfolio may take advantage of other investment practices 
that are not currently contemplated for use by the portfolio 
to the extent such investment practices are consistent with 
the portfolio's investment objective and legally permissible.  
Such investment practices, if they arise, may involve risks 
that exceed those involved in the practices described 
herein. 

Lack of Liquidity of Certain Securities.  Certain securities 
in which the Fund may invest may become subject to legal 
or other restrictions on transfer and there may be no liquid 
market for such securities. Each portfolio will maintain no 
more than 10% of its total net assets in securities which 
have a lack of liquidity.  For this purpose, such securities 
include, among others (a) direct placements or other 
securities which are subject to legal or contractual 
restrictions on resale or for which there is no readily 
available market (e.g., trading in the security is suspended 
or, in the case of unlisted securities, market makers do not 
exist or will not entertain bids or offers), including many 
currency swaps and any assets used to cover currency 
swaps, (b) OTC options and assets used to cover written 
OTC options, and (c) repurchase agreements not 
terminable within seven days.  Securities that have legal or 
contractual restrictions on resale but have a readily 
available market are not deemed illiquid.  The Investment 
Manager will monitor the liquidity of the portfolio securities 
of each portfolio.  If a portfolio invests in securities having a 
lack of liquidity, it may not be able to sell such securities 
and may not be able to realize their full value upon sale. 

See paragraph (5) of "Investment Restrictions" in Appendix 
A for a discussion of securities having a lack of liquidity in 
which a portfolio may invest. 

Investment Types 

The following chart displays the principal investment types in 
which each Portfolio may invest, but does not purport to 
provide a complete explanation of all investment types in which 
each portfolio of the Fund may invest.  This chart of investment 
types is merely illustrative and should not be construed as 
limiting a Portfolio's ability to invest in other types of securities. 
Investment types not indicated for a particular Portfolio may still 
be used to some extent by that Portfolio at various times 
subject to the restrictions in such Portfolio's stated investment 
objective and policies and the limitations contained in 
"Investment Restrictions" in Appendix A.  Each of these 
investment types is described in detail on the following pages. 

Investors should further note that the Investment Manager may 
vary a Portfolio’s holdings due to changing market conditions, 
as further described below. 

Temporary Defensive Position.  Under extraordinary 
circumstances and for a limited period, the Investment 
Manager may take temporary defensive measures, varying the 
investment policy of any portfolio during periods in which 
conditions in securities markets or other economic or political 
conditions warrant.  The Fund may reduce a portfolio's position 
in equity securities or long-term debt securities, as appropriate, 
and increase its position in other debt securities, which may 
include short-term fixed-income securities issued or 
guaranteed by the U.S. Government or by a governmental 
entity of any member state of the OECD, or by European, U.S. 
or multinational companies or supranational organizations 
rated AA or better by S&P or Aa or better by Moody's, or the 
equivalent thereof by at least one IRSO, or if not so rated, 
determined by the Investment Manager to be of equivalent 
investment quality.  Such securities may be denominated in a 
portfolio's base currency or in a non-base currency.  A portfolio 
may also hold ancillary liquid assets comprised of cash and 
money market instruments issued or guaranteed by such 
highly rated institutions provided their maturity is less than 120 
days.  A portfolio may also at any time temporarily invest funds 
awaiting reinvestment or held as reserves for dividends and 
other distributions to Shareholders in money market 
instruments referred to above.  While a portfolio invests for 
temporary defensive purposes, it may not meet its investment 
objective.   

II-14 

 
 
 
 
 
 
 
 
 
Multi-Asset/Asset Allocation 

o

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AB FCP I 

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Equity Securities Types 
Equity Securities 

REITs 

Debt Securities Types 
Fixed-Income Securities 
Residential Mortgage-Backed Securities (RMBS)  
Commercial Mortgage-Backed Securities (CMBS)  
Other Asset-Backed Securities 
Structured Securities and Basket Securities 
Other Investments Types 
Options, Rights and Warrants 

Futures Contracts  

Forward Commitments 

Repurchase Agreements/Reverse Repurchase Agreements 

Currency Transactions 

Swaps, Caps, Floors 

Synthetic Equity Securities 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

 Unless otherwise provided for in the specific information relating to a particular portfolio contained in part I of this Prospectus, investments in 
Asset and Mortgage Backed Securities and Structured Securities are limited to 20% of the net assets of any portfolio 

II-15 

 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I 

o

i
l

Equity 

Equity Securities Types 
Equity Securities 

REITs 

Debt Securities Types 
Fixed-Income Securities 
Residential Mortgage-
Backed Securities (RMBS)  
Commercial Mortgage-
Backed Securities (CMBS)  
Other Asset-Backed 
Securities 
Structured Securities and 
Basket Securities 
Other Investments Types 
Options, Rights and 
Warrants 
Futures Contracts  

Forward Commitments 
Repurchase 
Agreements/Reverse 
Repurchase Agreements 
Swaps, Caps, Floors 

Synthetic Equity Securities 

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II-16 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed-Income 

AB FCP I 

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Equity Securities Types 
Equity Securities 

REITs 

Debt Securities Types 
Fixed-Income Securities 

Residential Mortgage-Backed Securities 
(RMBS)  
Commercial Mortgage-Backed Securities 
(CMBS)  
Other Asset-Backed Securities 
Structured Securities and Basket 
Securities 
Other  Investments Types 
Options, Rights and Warrants 

Futures Contracts  

Forward Commitments 

Repurchase Agreements/Reverse 
Repurchase Agreements 
Currency Transactions 

Swaps, Caps, Floors 

Synthetic Equity Securities 

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 Unless otherwise provided for in the specific information relating to a particular portfolio contained in part I of this Prospectus, investments in 
Asset and Mortgage Backed Securities and Structured Securities are limited to 20% of the net assets of any portfolio 

II-17 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Portfolios of the Fund may invest in any of the following types 
of investments subject to the restrictions in the Portfolio's 
stated investment objective and policies and the limitations 
contained in "Investment Restrictions" in Appendix A.   

In the Investment Manager's sole discretion, a portfolio may, 
for the purpose of efficient portfolio management and to hedge 
against market risks or provide exposure towards certain 
markets without direct purchase of the underlying assets, 
engage in various derivative strategies subject to the 
restrictions set out in the Fund's "Investment Restrictions" in 
Appendix A.  Such transactions in which such portfolio may 
engage include derivative instruments such as swaps, 
including interest rate swaps, total rate of return swaps and 
credit default swaps, transactions in financial futures and 
options.  A portfolio may also engage in transactions in options 
on portfolio securities.  A portfolio may seek to hedge its 
investments against currency fluctuations which are adverse to 
the Currency of the Portfolio by utilizing currency options, 
futures contracts and forward currency contracts.  The use of 
these derivative transactions involves certain risks and there 
can be no assurance that the objective sought to be obtained 
from the use of such instruments will be achieved.  See "Risk 
Factors" below. 

Equity Securities Types 

Equity Securities.  The equity securities in which a portfolio 
may invest include common stock, preferred stock, securities 
convertible into common stock or preferred stock and equity 
interests in partnerships, trusts or other types of equity 
securities that qualify as transferable securities. 

In addition to directly purchasing securities of corporate issuers 
in various securities markets, a portfolio may invest in ADRs, 
EDRs, GDRs or other securities representing securities of 
companies based in countries other than the United States.  
Depositary receipts may not necessarily be denominated in the 
same currency as the underlying securities for which they may 
be exchanged.  In addition, the issuers of the stock of 
unsponsored depositary receipts are not obligated to disclose 
material information in the United States and, therefore, there 
may not be a correlation between such information and the 
market value of the depositary receipts.  ADRs are depositary 
receipts typically issued by a U.S. bank or trust company that 
evidence ownership of underlying securities issued by a non-
U.S. corporation.  EDRs, GDRs and other types of depositary 
receipts are typically issued by non-U.S. banks or trust 
companies and evidence ownership of underlying securities 
issued by either a non-U.S. or an U.S. company.  Generally, 
ADRs, in registered form, are designed for use in the U.S. 
securities markets, and EDRs, in bearer form, are designed for 
use in non-U.S. securities markets.  For purposes of 
determining the country of issuance, investments in depositary 
receipts of either type are deemed to be investments in the 
underlying securities. 

REITs.  A portfolio may invest in global real estate investment 
trusts ("REITs") and other global real estate industry 
companies which do not qualify as open-ended investment 
companies within the meaning of Luxembourg law and which 
are listed and publicly traded on stock exchanges in the United 
States or elsewhere.  A "real estate industry company" is a 
company that derives at least 50% of its gross revenues or net 
profits from the ownership, development, construction, 

II-18 

AB FCP I 

financing, management or sale of commercial, industrial or 
residential real estate or interests therein or from ownership 
and servicing of real estate related loans or interests.  The 
equity securities in which a portfolio will invest for this 
purpose consist of common stock, Shares of beneficial 
interest of REITs and securities with common stock 
characteristics, such as preferred stock or convertible 
securities.  REITs are pooled investment vehicles which 
invest primarily in income producing real estate or real 
estate related loans or interests.  REITs are generally 
classified as equity REITs, mortgage REITs that invest in 
commercial mortgages or residential mortgages, or a 
combination of equity and mortgage REITs.  Equity REITs 
invest the majority of their assets directly in real property 
and derive income primarily from the collection of rents.  
Equity REITs can also realize capital gains by selling 
properties that have appreciated in value.  

Debt Securities Types 

Fixed-Income Securities.  The fixed-income obligations in 
which a portfolio will invest include fixed-income securities 
issued by governmental entities, supranational entities, 
companies and other entities. 

Convertible Securities.  Convertible securities 

include bonds, debentures, corporate notes and preferred 
stocks that are convertible at a stated exchange rate into 
common stock.  Prior to conversion, convertible securities 
have the same general characteristics as nonconvertible 
debt securities, which provide a stable stream of income 
with generally higher yields than those of equity securities 
of the same or similar issuers.  The price of a convertible 
security will normally vary with changes in the price of the 
underlying stock, although the higher yield tends to make 
the convertible security less volatile than the underlying 
common stock.  As with debt securities, the market value of 
convertible securities tends to decline as interest rates 
increase and increase as interest rates decline.  While 
convertible securities generally offer lower interest or 
dividend yields than nonconvertible debt securities of 
similar quality, they enable investors to benefit from 
increases in the market price of the underlying common 
stock. 

"Zero Coupon" Treasury Securities.  A portfolio 

may invest in "zero coupon" Treasury securities, which are 
U.S. Treasury bills issued without interest coupons, U.S. 
Treasury notes and bonds which have been stripped of 
their unmatured interest coupons, and receipts or 
certificates representing interests in such stripped debt 
obligations and coupons. A zero coupon security pays no 
interest to its holder during its life. Its value to an investor 
consists of the difference between its face value at the time 
of maturity and the price for which it was acquired, which is 
generally an amount significantly less than its face value 
(sometimes referred to as a "deep discount" price). Such 
securities usually trade at a deep discount from their face or 
par value and will be subject to greater fluctuations of 
market value in response to changing interest rates than 
debt obligations of comparable maturities which make 
current distributions of interest. On the other hand, because 
there are no periodic interest payments to be reinvested 
prior to maturity, zero coupon securities eliminate 
reinvestment risk and lock in a rate of return to maturity. 

 
 
Currently the only U.S. Treasury security issued without 
coupons is the Treasury bill. Although the U.S. Treasury does 
not itself issue Treasury notes and bonds without coupons, 
under the U.S. Treasury Separate Trading of Registered 
Interest and Principal of Securities, or STRIPS, program 
interest and principal payments on certain long-term Treasury 
securities may be maintained separately in the Federal 
Reserve book entry system and may be separately traded and 
owned. In addition, in the last few years a number of banks and 
brokerage firms have separated ("stripped") the principal 
portions ("corpus") from the coupon portions of U.S. Treasury 
bonds and notes and sold them separately in the form of 
receipts or certificates representing interests in these 
instruments (which instruments are generally held by a bank in 
a custodial or trust account). 

Variable, Floating and Inverse Floating Rate 
Securities.  Fixed-income securities may have fixed, variable or 
floating rates of interest.  Variable and floating rate securities 
pay interest at rates that are adjusted periodically, according to 
a specified formula.  A "variable" interest rate adjusts at 
predetermined intervals (e.g., daily, weekly or monthly), while a 
"floating" interest rate adjusts whenever a specified benchmark 
rate (such as the bank prime lending rate) changes. 

A portfolio may invest in fixed-income securities that pay 
interest at a coupon rate equal to a base rate, plus additional 
interest for a certain period of time if short-term interest rates 
rise above a predetermined level or "cap."  The amount of such 
an additional interest payment typically is calculated under a 
formula based on a short-term interest rate index multiple by a 
designated factor. 

Leveraged inverse floating rate fixed-income securities are 
sometimes known as inverse floaters.  The interest rate on an 
inverse floater resets in the opposite direction from the market 
rate of interest to which the inverse floater is indexed.  An 
inverse floater may be considered to be leveraged to the extent 
that its interest rate varies by a magnitude that exceeds the 
magnitude of the change in the index rate of interest.  The 
higher degree of leverage inherent in inverse floaters is 
associated with greater volatility in market value, such that, 
during periods of rising interest rates, the market values of 
inverse floaters will tend to decrease more rapidly than those of 
fixed rate securities. 

Inflation-Protected Securities.  A portfolio may invest in 

certain types of government-issued inflation-protected 
securities, including U.S. Treasury Inflation Protected 
Securities ("U.S. TIPS") and inflation-protected securities 
issued by the governments of other nations.  U.S. TIPS are 
fixed-income securities issued by the U.S. Department of the 
Treasury, the principal amounts of which are adjusted daily 
based upon changes in the rate of inflation (currently 
represented by the non-seasonally adjusted Consumer Price 
Index for All Urban Consumers, calculated with a three-month 
lag).  The U.S. Treasury currently issues U.S. TIPS in only ten-
year maturities, although it is possible that U.S. TIPS with other 
maturities will be issued in the future.  U.S. TIPS have 
previously been issued with maturities of five, ten or thirty 
years.  U.S. TIPS pay interest on a semi-annual basis, equal to 
a fixed percentage of the inflation-adjusted principal amount. 
The interest rate on these bonds is fixed at issuance, but over 
the life of the bond, this interest may be paid on an increasing 
or decreasing principal value that has been adjusted for 

II-19 

AB FCP I 

inflation.  Repayment of the original bond principal upon 
maturity (as adjusted for inflation) is guaranteed even 
during a period of deflation.  However, if a portfolio 
purchases U.S. TIPS in the secondary market whose 
principal values have been adjusted upward due to inflation 
since issuance, the portfolio may experience a loss if there 
is a subsequent period of deflation.  In addition, the current 
market value of the bonds is not guaranteed, and will 
fluctuate.  If inflation is lower than expected during the 
period a portfolio holds a U.S. TIPS, the portfolio may earn 
less on this type of security than on a conventional bond.  
Inflation-protected securities of other governments may be 
subject to additional or different issues and risks depending 
on their structure and local markets. 

Residential Mortgage-Backed Securities (“RMBS”).  
Holders of residential mortgage-backed securities ("RMBS") 
bear various risks, including credit, market, interest rate, 
structural and legal risks.  RMBS represent interests in 
pools of residential mortgage loans secured by one to four 
family residential mortgage loans.  Such loans may be 
prepaid at any time.  Residential mortgage loans are 
obligations of the borrowers thereunder only and are not 
typically insured or guaranteed by any other person or 
entity, although such loans may be securitized by 
government agencies and the securities issued guaranteed.  
The rate of defaults and losses on residential mortgage 
loans will be affected by a number of factors, including 
general economic conditions and those in the geographic 
area where the mortgaged property is located, the terms of 
the mortgage loan, the borrower's "equity" in the mortgaged 
property and the financial circumstances of the borrower.  

Pass-Through Mortgage-Related Securities.  The 
mortgage-related securities in which a portfolio may invest 
provide funds for mortgage loans made to U.S. residential 
home buyers. These include securities which represent 
interests in pools of mortgage loans made by lenders such 
as savings and loan institutions, mortgage bankers and 
commercial banks. Pools of mortgage loans are assembled 
for sale to investors (such as a portfolio) by various U.S. 
governmental, government-related and private 
organizations.  

Interests in pools of mortgage-related securities differ from 
other forms of traditional debt securities, which normally 
provide for periodic payment of interest in fixed amounts 
with principal payments at maturity or specified call dates. 
Instead, mortgage-related securities provide a monthly 
payment which consists of both interest and principal. In 
effect, these payments are a "pass-through" of the monthly 
interest and principal payments made by the individual 
borrowers on their residential mortgage loans, net of any 
fees paid to the issuer, servicer or guarantor of such 
securities. Additional payments result from repayments of 
principal resulting from the sale of the underlying residential 
property, refinancing or foreclosure, net of fees or costs 
which may be incurred. Some mortgage-related securities, 
such as securities issued by the Government National 
Mortgage Association ("GNMA"), are described as 
"modified pass-through." These securities entitle the holder 
to receive all interest and principal payments owed on the 
mortgage pool, net of certain fees, regardless of whether or 

 
 
 
 
 
 
not the mortgagors actually make mortgage payments when 
due. 

The investment characteristics of pass-through mortgage-
related securities differ from those of traditional fixed-income 
securities. The major differences include the payment of 
interest and principal on the mortgage-related securities on a 
more frequent schedule, as described above, and the 
possibility that principal may be prepaid at any time due to 
prepayments on the underlying mortgage loans or other 
assets. 

The occurrence of mortgage prepayments is affected by 
factors including the level of interest rates, general economic 
conditions, the location and age of the mortgage and other 
social and demographic conditions. Generally, prepayments on 
pass-through mortgage-related securities increase during 
periods of falling mortgage interest rates and decrease during 
periods of rising mortgage interest rates. Reinvestment of 
prepayments may occur at higher or lower interest rates than 
the original investment, thus affecting the yield of the portfolios. 

The principal U.S. governmental (i.e., backed by the full faith 
and credit of the U.S. Government) guarantor of mortgage-
related securities is GNMA. GNMA is a wholly-owned U.S. 
Government corporation within the Department of Housing and 
Urban Development. GNMA is authorized to guarantee, with 
the full faith and credit of the U.S. Government, the timely 
payment of principal and interest on securities issued by 
institutions approved by GNMA (such as savings and loan 
institutions, commercial banks and mortgage bankers) and 
backed by pools of Federal Housing Administration-insured or 
Veterans Administration-guaranteed mortgages. 

U.S. Government-related (i.e., not backed by the full faith and 
credit of the U.S. Government) guarantors include the Federal 
National Mortgage Association ("FNMA") and the Federal 
Home Loan Mortgage Corporation ("FHLMC"). FNMA is a 
government-sponsored corporation owned entirely by private 
stockholders. Pass-through securities issued by FNMA are 
guaranteed as to timely payment of principal and interest by 
FNMA but are not backed by the full faith and credit of the U.S. 
Government. FHLMC is a corporate instrumentality of the U.S. 
Government. Participation certificates issued by FHLMC are 
guaranteed as to the timely payment of interest and ultimate 
(or, in some cases, timely) collection of principal but are not 
backed by the full faith and credit of the U.S. Government. 

Commercial banks, savings and loan institutions, private 
mortgage insurance companies, mortgage bankers and other 
secondary market issuers also create pass-through pools of 
conventional residential mortgage loans. Such issuers may 
also be the originators of the underlying mortgage loans as well 
as the guarantors of the mortgage-related securities. Pools 
created by such non-governmental issuers generally offer a 
higher rate of interest than government and government-
related pools because there are no direct or indirect 
government guarantees of payments in the former pools. 
However, timely payment of interest and principal of these 
pools is generally supported by various forms of insurance or 
guarantees, including individual loan, title, pool and hazard 
insurance. The insurance and guarantees are issued by 
government entities, private insurers and the mortgage 
poolers. Such insurance and guarantees and the 
creditworthiness of the issuers thereof will be considered in 
determining whether a mortgage-related security meets a 

II-20 

AB FCP I 

portfolio's investment quality standards. There can be no 
assurance that the private insurers can meet their 
obligations under the policies. A portfolio may buy 
mortgage-related securities without insurance or 
guarantees if through an examination of the loan 
experience and practices of the poolers the Investment 
Manager determines that the securities meet the portfolio's 
quality standards. Although the market for such securities is 
becoming increasingly liquid, securities issued by certain 
private organizations may not be readily marketable. 

Collateralized Mortgage Obligations and Multi-

Class Pass-Through Securities.  Mortgage-related 
securities in which a portfolio may invest may also include 
collateralized mortgage obligations ("CMOs") and multi-
class pass-through securities.  CMOs are debt obligations 
issued by special purpose entities that are secured by 
mortgage-backed certificates, including, in many cases, 
certificates issued by governmental or government-related 
guarantors, including GNMA, FNMA and FHLMC, together 
with certain funds and other collateral. Multi-class pass-
through securities are equity interests in a trust composed 
of mortgage loans or other mortgage-related securities. 
Payments of principal and interest on underlying collateral 
provide the funds to pay debt service on the CMO or make 
scheduled distributions on the multi-class pass-through 
security. CMOs and multi-class pass-through securities 
(collectively CMOs unless the context indicates otherwise) 
may be issued by agencies or instrumentalities of the U.S. 
Government or by private organizations. The issuer of a 
CMO may elect to be treated as a Real Estate Mortgage 
Investment Conduit ("REMIC"). 

In a CMO, a series of bonds or certificates is issued in 
multiple classes. Each class of CMOs, often referred to as a 
"tranche," is issued at a specific coupon rate and has a 
stated maturity or final distribution date. Principal 
prepayments on collateral underlying a CMO may cause it 
to be retired substantially earlier than the stated maturities 
or final distribution dates. The principal and interest on the 
underlying mortgages may be allocated among the several 
classes of a series of a CMO in many ways. In a common 
structure, payments of principal, including any principal 
prepayments, on the underlying mortgages are applied to 
the classes of the series of a CMO in a specified order, so 
that no payment of principal will be made on certain classes 
of a CMO until certain other classes have been paid in full. 

One or more tranches of a CMO may have coupon rates 
which reset periodically at a specified increment over an 
index such as SOFR (as defined below). These adjustable 
rate tranches known as "floating rate CMOs" will be 
considered as ARMS (as defined below) by a portfolio. 
Floating rate CMOs are typically issued with lifetime caps 
on the coupon rate thereon. These caps, similar to the caps 
on adjustable rate mortgages described in "Adjustable Rate 
Mortgage Securities" below represent a ceiling beyond 
which the coupon rate on a floating rate CMO may not be 
increased regardless of increases in the interest rate index 
to which the floating rate CMO is tied. 

Adjustable Rate Mortgage Securities.  Adjustable 
rate mortgage securities ("ARMS") in which a portfolio may 
invest include (i) pass-through securities backed by 
adjustable rate mortgages and issued by GNMA, FNMA, 

 
 
 
 
FHLMC and by private organizations and (ii) floating rate 
CMOs. The coupon rates on ARMS are reset at periodic 
intervals to an increment over some predetermined interest 
rate index. There are three main categories of indices: (i) those 
based on U.S. Treasury securities, (ii) those derived from a 
calculated measure such as a cost of funds index or a moving 
average of mortgage rates and (iii) those based on short-term 
rates such as the Secured Overnight Financing Rate (“SOFR”), 
Certificates of Deposit ("CDs") or the prime rate. Many issuers 
have selected as indices the yields of one-, three- and five-year 
U.S. Treasury notes, the discount rate of six-month U.S. 
Treasury bills as reported in two Federal Reserve statistical 
releases, the monthly G.13 (415) and the weekly H.15 (519), 
the CD composite, the prime rate, SOFR and other indices. 
Additional indices may be developed in the future. In selecting 
a type of ARMS for investment, the Investment Manager will 
also consider the liquidity of the market for such ARMS. 

The underlying adjustable rate mortgages which back ARMS in 
which a portfolio may invest will frequently have caps and 
floors which limit the maximum amount by which the loan rate 
to the residential borrower may change up or down (i) per reset 
or adjustment interval and (ii) over the life of the loan. Some 
residential adjustable rate mortgage loans limit periodic 
adjustments by limiting changes in the borrower's monthly 
principal and interest payments rather than limiting interest rate 
changes. These payment caps may result in negative 
amortization (i.e., an increase in the balance of the mortgage 
loan). ARMS in which a portfolio may invest may also be 
backed by fixed-rate mortgages. Such ARMS, known as 
floating rate CMOs (as described above), generally have 
lifetime caps on the coupon rate thereon. 

The ARMS in which a portfolio may invest include pass-
through mortgage-related securities backed by adjustable rate 
mortgages and floating rate CMOs. As described above, 
adjustable rate mortgages typically have caps, which limit the 
maximum amount by which the coupon rate may be increased 
or decreased at periodic intervals or over the life of the loan. 
Floating rate CMOs have similar lifetime caps. To the extent 
that interest rates rise faster than the allowable caps on ARMS, 
such ARMS will behave more like securities backed by fixed-
rate mortgages than by adjustable rate mortgage loans. 
Consequently, interest rate increases in excess of caps can be 
expected to cause ARMS to behave more like traditional debt 
securities than adjustable rate securities and, accordingly, to 
decline in value to a greater extent than would be the case in 
the absence of such caps. 

As noted above, because the coupon rates on ARMS are 
adjusted in response to changing interest rates, fluctuations in 
prices of ARMS due to changes in interest rates will be less 
than in the case of traditional debt securities. The adjustable 
rate feature of ARMS will not, however, eliminate such price 
fluctuations, particularly during periods of extreme fluctuations 
in interest rates. Also, since many adjustable rate mortgages 
only reset on an annual basis, it can be expected that the 
prices of ARMS will fluctuate to the extent that changes in 
prevailing interest rates are not immediately reflected in the 
coupon rates payable on the underlying adjustable rate 
mortgages. 

Stripped Mortgage-Related Securities.  Stripped 
mortgage-related securities ("SMRS") are derivative multi-class 
mortgage-related securities. SMRS may be issued by the U.S. 

II-21 

AB FCP I 

Government, its agencies or instrumentalities, or by private 
originators of, or investors in, mortgage loans, including 
savings and loan associations, mortgage banks, 
commercial banks, investment banks and special purpose 
subsidiaries of the foregoing. 

SMRS are usually structured with two classes that receive 
different proportions of the interest and principal 
distributions on a pool of GNMA, FNMA or FHLMC 
certificates, whole loans or private pass-through mortgage-
related securities ("Mortgage Assets"). A common type of 
SMRS will have one class receiving some of the interest 
and most of the principal from the Mortgage Assets, while 
the other class will receive most of the interest and the 
remainder of the principal. In the most extreme case, one 
class will receive all of the interest (the interest-only or "IO" 
class), while the other class will receive all of the principal 
(the principal-only or "PO" class). The yield to maturity on 
an IO class is extremely sensitive to the rate of principal 
payments (including prepayments) on the related 
underlying Mortgage Assets, and a rapid rate of principal 
prepayments may have a material adverse effect on the 
yield to maturity of the IO class. The rate of principal 
prepayment will change as the general level of interest 
rates fluctuates. If the underlying Mortgage Assets 
experience greater than anticipated principal prepayments, 
the portfolio may fail to fully recoup its initial investment in 
these securities, even if the securities are rated AAA by 
S&P or Aaa by Moody's or the equivalent thereof by 
another NRSRO. Due to their structure and underlying cash 
flows, SMRS may be more volatile than mortgage-related 
securities that are not stripped. 

Types of Credit Support.  To lessen the effect of 

failures by obligors on underlying assets to make payments, 
non-GNMA, -FNMA or -FHLMC mortgage-related securities 
are likely to contain cash flow support.  Such cash flow 
support falls into two categories:  (i) liquidity protection and 
(ii) credit protection against losses resulting from ultimate 
default by an obligor on underlying assets.  Liquidity 
protection refers to the provision of advances to cover 
delinquent (e.g., 30-60 days late) payments, generally by 
the entity administering the pool of assets, to ensure that 
the pass-through of payments due on the underlying pool 
occurs in a timely fashion.  Credit protection against losses 
resulting from ultimate default enhances the likelihood of 
ultimate payment of the obligations on at least a portion of 
the assets in the pool.  These protections may be provided 
through guarantees, insurance policies or letters of credit 
obtained by the issuer or sponsor from third parties, through 
various means of structuring the transaction, as described 
below, or through a combination of these approaches. 

The ratings of securities for which third-party credit 
enhancement provides liquidity protection or protection 
against losses from default are generally dependent upon 
the continued creditworthiness of the enhancement 
provider.  The ratings of such securities could be subject to 
reduction in the event of deterioration in the 
creditworthiness of the enhancement provider even in 
cases where the delinquency and loss experience on the 
underlying pool of assets is better than expected. 

Examples of credit support arising out of the structure of the 
transaction include "senior-subordinated securities" 

 
 
 
 
(multiple class securities with one or more classes subordinate 
to other classes as to the payment of principal thereof and 
interest thereon, with the result that defaults on the underlying 
assets are borne first by the holders of the subordinated class), 
creation of "reserve funds" (where cash or investments, 
sometimes funded from a portion of the payments on the 
underlying assets, are held in reserve against future losses) 
and "over collateralization" (where the scheduled payments on, 
or the principal amount of, the underlying assets exceed those 
expected to be required to make payment on the securities and 
pay any servicing or other fees).  The degree of credit support 
provided for each issue is generally based on historical 
information with respect to the level of credit risk associated 
with the underlying assets.  Other information which may be 
considered includes demographic factors, loan underwriting 
practices and general market and economic conditions.  
Delinquency or loss in excess of that which is anticipated could 
adversely affect the return on an investment in such a security. 

Commercial Mortgage-Backed Securities (“CMBS”). 
Commercial mortgage-backed securities are securities that 
represent an interest in, or are secured by, mortgage loans 
secured by multifamily or commercial properties, such as 
industrial and warehouse properties, office buildings, retail 
space and shopping malls, and cooperative apartments, hotels 
and motels, nursing homes, hospitals and senior living centers.  
Commercial mortgage-backed securities have been issued in 
public and private transactions by a variety of public and 
private issuers using a variety of structures, some of which 
were developed in the residential mortgage context, including 
multi-class structures featuring senior and subordinated 
classes.  Commercial mortgage-backed securities may pay 
fixed or floating-rates of interest.  The commercial mortgage 
loans that underlie commercial mortgage-backed securities 
have certain distinct risk characteristics.  Commercial mortgage 
loans generally lack standardized terms, which may complicate 
their structure, tend to have shorter maturities than residential 
mortgage loans and may not be fully amortizing.  Commercial 
properties themselves tend to be unique and are more difficult 
to value than single-family residential properties.  In addition, 
commercial properties, particularly industrial and warehouse 
properties, are subject to environmental risks and the burdens 
and costs of compliance with environmental laws and 
regulations. 

Commercial mortgage-backed securities, like all fixed-income 
securities, generally decline in value as interest rates rise.  
Moreover, although generally the value of fixed-income 
securities increases during periods of falling interest rates, this 
inverse relationship may not be as marked in the case of 
single-family residential mortgage-backed securities due to the 
increased likelihood of prepayments during periods of falling 
interest rates in the case of commercial mortgage-backed 
securities.  The process used to rate commercial mortgage-
backed securities may focus on, among other factors, the 
structure of the security, the quality and adequacy of collateral 
and insurance, and the creditworthiness of the originators, 
servicing companies and providers of credit support.   

Other Asset-Backed Securities.  A portfolio may invest in 
certain high quality asset-backed securities. Through the use of 
trusts, special purpose corporations and other vehicles, various 
types of assets, including automobile and credit card 
receivables, home equity loans and equipment leases, may be 

II-22 

AB FCP I 

securitized in pass-through structures similar to the 
mortgage pass-through structures described above or in a 
pay-through structure similar to the CMO structure. The 
collateral behind asset-backed securities tends to have a 
controlled or limited prepayment rate. In addition, the short-
term nature of asset-backed loans reduces the impact of 
any change in prepayment level. Due to amortization, the 
average life for asset-backed securities is also the 
conventional proxy for maturity. 

Because of the possibility that prepayments (on mortgage 
loans, automobile loans or other collateral) will alter the 
cash flow on asset-backed securities, it is not possible to 
determine in advance the actual final maturity date or 
average life. Faster prepayment will shorten the average life 
and slower prepayments will lengthen it. However, it is 
possible to determine what the range of the movement 
could be and to calculate the effect that it will have on the 
price of the security. 

Structured Securities and Basket Securities.  A portfolio 
may invest in various types of structured securities and 
basket securities.  Structured securities in which a portfolio 
invests may represent, for example, interests in entities 
organized and operated solely for the purpose of 
restructuring the investment characteristics of particular 
fixed-income obligations.  This type of restructuring involves 
the deposit with or purchase by an entity, such as a 
corporation or trust, of specified instruments and the 
issuance by that entity of one or more classes of structured 
securities backed by, or representing interests in, the 
underlying instruments.  The cash flow on the underlying 
instruments may be apportioned among the newly issued 
structured securities to create securities with different 
investment characteristics such as varying maturities, 
payment priorities and interest rate provisions, and the 
extent of the payments made with respect to structured 
securities is dependent on the extent of the cash flow on 
the underlying instruments.  Structured securities of a given 
class may be either subordinated or unsubordinated to the 
right of payment of another class.  Subordinated structured 
securities typically have higher yields and present greater 
risks than unsubordinated structured securities. 

Basket securities in which a portfolio invests may consist of 
entities organized and operated for the purpose of holding a 
basket of fixed-income obligations of various issuers or a 
basket of other transferable securities.  Baskets involving 
fixed-income obligations may be designed to represent the 
characteristics of some portion of the fixed-income 
securities market or the entire fixed-income securities 
market. 

Subject to the Fund's Investment Restrictions set out in 
Appendix A, a portfolio may invest in structured securities 
and basket securities. 

Collateralized Debt Obligations.  Collateralized Debt 
Obligations ("CDOs") are instruments representing 
interests, generally divided into tranches, in pools, the 
underlying asset classes of which may include certain fixed 
income securities, such as asset-backed securities, 
corporate leveraged loans, other CDOs, credit default 
swaps and other derivatives.  There are a variety of 
different types of CDOs, including CDOs collateralized by 

 
 
trust preferred securities and asset-backed securities and 
CDOs collateralized by corporate loans and debt securities 
called collateralized loan obligations ("CLOs").  CDOs may 
issue several types of securities or tranches, including, without 
limitation, CDO and CLO equity, multi-sector CDO equity, trust 
preferred CDO equity and CLO debt.  CDO equity tranches 
may be unrated or non-investment grade.  CDOs are subject to 
credit, liquidity and interest rate risks, which are each 
discussed in greater detail below. 

Other Investments Types 

Options, Rights and Warrants.  An option gives the 
purchaser of the option, upon payment of a premium, the right 
to deliver to (in the case of a put) or receive from (in the case 
of a call) the writer of such option a specified amount of a 
security (or, in the case of an option on an index, cash) on or 
before a fixed date at a predetermined price.  A call option 
written by a portfolio is "covered" if the portfolio owns the 
underlying security, has an absolute and immediate right to 
acquire that security upon conversion or exchange of another 
security it holds, or holds a call option on the underlying 
security with an exercise price equal to or less than that of the 
call option it has written.  A put option written by a portfolio is 
covered if the portfolio holds a put option on the underlying 
securities with an exercise price equal to or greater than that of 
the put option it has written. 

A call option is for cross-hedging purposes if a portfolio does 
not own the underlying security but seeks to provide a hedge 
against a decline in value of another security that the portfolio 
owns or has the right to acquire.  A portfolio would write a call 
option for cross-hedging purposes, instead of writing a covered 
call option, when the premium to be received from the cross-
hedge transaction would exceed that which would be received 
from writing a covered call option, while at the same time 
achieving the desired hedge. 

Rights and warrants entitle the holder to buy equity securities 
at a specific price for a specific period of time.  A portfolio may 
invest in rights or warrants only if the underlying equity 
securities themselves are deemed appropriate by the 
Investment Manager for inclusion in the relevant portfolio.  
Rights are generally issued to existing Shareholders of an 
issuer and in some countries are referred to as "preferential 
subscription rights."  Rights are similar to warrants except that 
they have a substantially shorter duration.  Rights and warrants 
may be considered more speculative than certain other types 
of investments in that they do not entitle a holder to dividends 
or voting rights with respect to the underlying securities nor do 
they represent any rights in the assets of the issuing company.  
The value of a right or warrant does not necessarily change 
with the value of the underlying security, although the value of 
a right or warrant may decline because of a decrease in the 
value of the underlying security, the passage of time or a 
change in perception as to the potential of the underlying 
security, or any combination of these factors.  If the market 
price of the underlying security is below the exercise price set 
out in the warrant on the expiration date, the warrant will expire 
worthless.  Moreover, a right or warrant ceases to have value if 
it is not exercised prior to the expiration date. 

Futures Contracts.  A "sale" of a futures contract means the 
acquisition of a contractual obligation to deliver the securities 
or foreign currencies or commodity indices called for by the 

II-23 

AB FCP I 

contract at a specified price on a specified date.  A 
"purchase" of a futures contract means the incurring of an 
obligation to acquire the securities, foreign currencies or 
commodity indices called for by the contract at a specified 
price on a specified date.  The purchaser of a futures 
contract on an index agrees to take or make delivery of an 
amount of cash equal to the differences between a 
specified multiple of the value of the index on the expiration 
date of the contract ("current contract value") and the price 
at which the contract was originally struck.  No physical 
delivery of the securities underlying the index is made.  A 
Portfolio may also invest in options on futures contracts, 
which are options that call for the delivery of futures 
contracts upon exercise.  Options on futures contracts 
written or purchased by a portfolio will be traded on an 
exchange or OTC and will be used only for efficient 
management of its securities portfolio. 

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

When forward commitment transactions are negotiated, the 
price is fixed at the time the commitment is made, but 
delivery and payment for the securities take place at a later 
date.  Normally, the settlement date occurs within two 
months after the transaction, but settlements beyond two 
months may be negotiated.  Securities purchased or sold 
under a forward commitment are subject to market 
fluctuations, and no interest or dividends accrue to the 
purchaser prior to the settlement date. 

The use of forward commitments enables a portfolio to 
protect against anticipated changes in interest rates and 
prices.  For instance, in periods of rising interest rates and 
falling bond prices, a portfolio might sell securities held by it 
on a forward commitment basis to limit its exposure to 
falling prices.  In periods of falling interest rates and rising 
bond prices, a portfolio might sell a security held by it and 
purchase the same or a similar security on a when-issued 
or forward commitment basis, thereby obtaining the benefit 
of currently higher cash yields.  However, if the Investment 
Manager were to forecast incorrectly the direction of 
interest rate movements, the portfolio concerned might be 
required to complete such when-issued or forward 
transactions at a price inferior to the then current market 
values.  When-issued securities and forward commitments 
may be sold prior to the settlement date, but a portfolio will 
enter into when-issued and forward commitments only with 
the intention of actually receiving securities or delivering 
them, as the case may be.  If a portfolio chooses to dispose 
of the right to acquire a when-issued security prior to its 
acquisition or dispose of its right to deliver or receive 
against a forward commitment, it may incur a gain or loss.  
Any significant commitment of a portfolio's assets to the 
purchase of securities on a "when, as and if issued" basis 
may increase the volatility of such portfolio's Net Asset 
Value.  In the event the other party to a forward 
commitment transaction were to default, the portfolio might 

 
 
lose the opportunity to invest money at favorable rates or to 
dispose of securities at favorable prices. 

Efficient Portfolio Management Techniques 

Subject to the conditions and within the limits laid down in the 
Law of 2010 as well as any circulars issued by the CSSF from 
time to time, and in particular the CSSF Circular 14/592 
transposing the ESMA/2014/937 Guidelines for competent 
authorities and UCITS management companies - Guidelines 
on ETFs and other UCITS issues (the “ESMA Guidelines”), a 
portfolio may employ techniques and instruments relating to 
transferable securities and money market instruments, such as 
securities lending and repurchase agreement transactions, 
provided that such techniques and instruments are used for the 
purpose of efficient portfolio management.  For further 
information about efficient portfolio management techniques 
employed by the Fund, see “Appendix C: Additional 
Information relating to Financial Derivative Instruments, 
Financial Techniques and Instruments and Collateral 
Management.” 

Repurchase and Reverse Repurchase Agreements.  A 
reverse repurchase agreement arises when the Fund "buys" a 
security from a counterparty and simultaneously agrees to sell 
it back to the counterparty at an agreed-upon future date and 
price. In a repurchase transaction, the Fund "sells" a security to 
a counterparty and simultaneously agrees to repurchase it 
back from the counterparty at an agreed-upon future date and 
price. The repurchase price is the sum of repurchase 
agreement principal plus an agreed interest rate for the period 
the buyer's money is invested in the security.  Such 
agreements provide the Investment Manager with additional 
flexibility to pursue the portfolio’s investment objective.  

Currency Transactions. Transactions in currencies may 
include options, forwards, futures and swaps and are subject to 
a number of risks, in particular, the risk posed by fluctuations in 
the market price of currency contracts. 

Options on Currencies.  As in the case of other kinds 

of options, the writing of an option on a currency constitutes 
only a partial hedge, up to the amount of the premium 
received, and the portfolio concerned could be required to 
purchase or sell currencies at disadvantageous exchange 
rates, thereby incurring losses.  The purchase of an option on a 
currency may constitute an effective hedge against fluctuations 
in exchange rates although, in the event of rate movements 
adverse to the portfolio's position, it may forfeit the entire 
amount of the premium plus related transaction costs. 

Forward Foreign Currency Exchange Contracts.  A 

portfolio may purchase or sell forward foreign currency 
exchange contracts to reduce or obtain exposure to the 
Currency of the Portfolio, the currency of an underlying 
investment and/or other currencies.  A forward foreign currency 
exchange contract is an obligation to purchase or sell a specific 
currency for an agreed price at a future date, and is individually 
negotiated and privately traded. 

A portfolio may enter into a forward foreign currency exchange 
contract, for example, when it enters into a contract for the 
purchase or sale of a security denominated in a foreign 
currency in order to "lock in" the price, in the Currency of the 
Portfolio, of the security ("transaction hedge").  A portfolio may 
engage in transaction hedges with respect to the currency of a 

II-24 

AB FCP I 

particular country to an amount equal to the aggregate 
amount of the portfolio's transactions in that currency, or 
such greater or lesser amount as may be required to 
accommodate for unrealized gains or losses in a portfolio or 
to adjust for subscription and redemption activity giving rise 
to the purchase or sale of underlying portfolio securities.  
Such outstanding currency positions opened for the 
purpose of a transaction hedge are not required to be 
adjusted unless any excess of the amount of such a 
transaction hedge over the aggregate market value from 
time-to-time of portfolio securities denominated or quoted in 
such currency exceeds 0.50% of the portfolio’s net assets.  
When a portfolio believes that a currency in which its 
investments are denominated may suffer a substantial 
decline against the Currency of the Portfolio, it may enter 
into a forward sale contract to sell an amount of that other 
currency approximating the value of some or all of its 
investments denominated in such foreign currency, or when 
a portfolio believes that the Currency of the Portfolio may 
suffer a substantial decline against another currency it may 
enter into a forward purchase contract to buy that other 
currency for a fixed amount in the Currency of the Portfolio 
("position hedge").  A portfolio generally may position hedge 
with respect to a particular currency to an amount equal to 
the aggregate market value (at the time of making such 
sale) of the securities held in its portfolio denominated or 
quoted in that currency, or such greater or lesser amount as 
may be required to accommodate for unrealized gains or 
losses in a portfolio or to adjust for subscription and 
redemption activity giving rise to the purchase or sale of 
underlying portfolio securities.  Such outstanding currency 
positions opened for the purpose of a position hedge are 
not required to be adjusted unless any excess of the 
amount of such a position hedge over the aggregate market 
value from time-to-time of portfolio securities denominated 
or quoted in such currency exceeds 0.50% of the portfolio’s 
net assets.  As an alternative to a position hedge, a portfolio 
may enter into a forward contract to sell a different foreign 
currency for a fixed amount, in the Currency of the Portfolio, 
where such portfolio believes that the value in the Currency 
of the Portfolio of the currency to be sold pursuant to the 
forward contract will fall whenever there is a decline in the 
value, in the Currency of the Portfolio, of the currency in 
which portfolio securities of such portfolio are denominated 
("cross-hedge").  Unanticipated changes in currency prices 
may result in poorer overall performance for a portfolio than 
if had not entered into such forward foreign currency 
exchange contracts.  Hedging against a decline in the value 
of a currency does not eliminate fluctuations in the prices of 
portfolio securities or prevent losses if the prices of such 
securities decline.  Such transactions also preclude the 
opportunity for gain if the value of the hedged currency 
should rise.  Moreover, it may not be possible for a portfolio 
to hedge against a devaluation that is so generally 
anticipated that the portfolio is not able to contract to sell 
the currency at a price above the devaluation level it 
anticipates. 

Swaps, Caps, Floors.  A portfolio may enter into swaps 
(including interest rate swaps), may purchase and sell 
interest rate caps, may purchase or sell floors and may buy 
and sell options on all the aforementioned transactions.  
Portfolios expect to enter into these transactions to 

 
 
 
preserve a return or spread on a particular investment or 
portion of a portfolio or for other hedging purposes.  A portfolio 
may also enter into these transactions to protect against any 
increase in the price of securities the portfolio anticipates 
purchasing at a later date or to manage the duration of a 
portfolio.  Interest rate swaps involve the exchange by a 
portfolio with another party of their respective commitments to 
pay or receive interest (e.g., an exchange of floating-rate 
payments for fixed-rate payments). The purchase of an interest 
rate cap would entitle a portfolio, to the extent that a specified 
index exceeds a predetermined interest rate, to receive 
payments of interest on a contractually based notional amount 
from the party selling the interest rate cap.  The purchase of an 
interest rate floor would entitle a portfolio to the extent that a 
specified index falls below a predetermined interest rate, to 
receive payments of interest on a contractually based notional 
amount from the party selling the interest rate floor.  The sale 
of an interest rate cap would require that portfolio, to the extent 
that a specified index rises above a predetermined interest 
rate, to make payments of interest on a contractually based 
notional amount to the party purchasing the cap in exchange 
for receipt of a premium by the portfolio.  The sale of an 
interest rate floor would require that a portfolio, to the extent 
that a specified index falls below a predetermined interest rate, 
to make payments of interest on a contractually based notional 
amount to the party purchasing the interest rate floor. 

A portfolio may enter into swaps, caps and floors on either an 
asset-based or liability-based basis, depending on whether it is 
hedging its assets or its liabilities, and will usually enter into 
swaps on a net basis (i.e., the two payment streams are netted 
out, with the portfolio receiving or paying, as the case may be, 
only the net amount of the two payments).  The net amount of 
the excess, if any, of the relevant portfolio's obligations over its 
entitlements with respect to each swap will be accrued on a 
daily basis.  If a portfolio enters into a swap on other than a net 
basis, the portfolio will maintain a segregated account in the full 
amount accrued on a daily basis of the portfolio's obligations 
with respect to the swap. The Investment Manager will monitor 
the creditworthiness of counterparties to its swap, cap and floor 
transactions on an ongoing basis. 

The use of swaps (including caps and floors) involves 
investment techniques and risks different from those 
associated with ordinary portfolio securities transactions.  If the 
Investment Manager is incorrect in its forecasts of the market 
values, interest rates and other applicable factors, the 
investment performance of the portfolio would diminish 
compared with what it would have been if these investment 
techniques were not used.  Moreover, even if the Investment 
Manager is correct in its forecasts, there is a risk that the swap 
position may correlate imperfectly with the price of the asset or 
liability being hedged. 

Currency Swaps.  Currency swaps involve the 

individually negotiated exchange by a portfolio with another 
party of a series of payments in specified currencies.  A 
currency swap may involve the delivery at the end of the 
exchange period of a substantial amount of one designated 
currency in exchange for the other designated currency.  
Therefore the entire principal of a currency swap is subject to 
the risk that the other party to the swap will default on its 
contractual delivery obligations.  The net amount of the excess, 
if any, of the portfolio's obligations over its entitlements with 
respect to each currency swap will be accrued on a daily basis.  

II-25 

AB FCP I 

If there is a default by the other party to such a transaction, 
the portfolio will have contractual remedies pursuant to the 
agreements related to the transactions. 

Credit Default Swaps.  A portfolio may enter into a 

credit default swap, or CDS, with institutions subject to 
prudential supervision, and belonging to the categories 
approved by the CSSF referencing any of the 
aforementioned eligible investments for hedging purposes 
or speculation.  When used for hedging purposes, the 
portfolio will be the buyer of a CDS contract.  In this case, a 
portfolio will pay to the counterparty a periodic stream of 
payments over the term of the CDS, in return for a right to 
exchange the debt obligation or cash settlement in lieu 
thereof for par value (or other agreed-upon value) upon the 
occurrence of a "credit event" on the issuer of the specified 
debt obligation.  If a credit event does not occur, a portfolio 
will have spent the stream of payments received on the 
CDS without having received any benefit.  Conversely, 
when a portfolio is the seller of a CDS, it receives the 
stream of payments and is obligated to pay to the 
counterparty par value (or other agreed-upon value) of the 
referenced debt obligation in exchange for the debt 
obligation or cash settlement in lieu thereof upon the 
occurrence of such a credit event.  As the seller, a portfolio 
will be subject to the credit risk of the issuer since it will 
have to look to the issuer in order to be made whole.  A 
portfolio may invest in single name, index, tranche, basket 
or bespoke CDS transaction. 

Total Return Swaps and Other Financial Derivative 

Instruments with Similar Characteristics.  In case where a 
portfolio enters into a total return swap or invests in other 
financial derivative instruments with similar characteristics, 
the assets held by the portfolio must comply with the 
diversification limits set out in Articles 43, 44, 45, 46 and 48 
of the Law of 2010. At the same time, pursuant to Article 
42(3) of the Law of 2010 and Article 48(5) of CSSF 
Regulation 10-4, the Management Company must ensure 
that the underlying exposures of the total return swap or of 
the other financial derivative instruments with similar 
characteristics are taken into account to calculate the 
portfolio investment limits laid down in accordance with 
Article 43 of the Law of 2010. 

In addition, where a portfolio enters into a total return swap 
or invests in other financial derivative instruments with 
similar characteristics, the underlying exposure gained 
directly or via a recognized index, must be in line with the 
relevant portfolio’s investment objective and policy set out 
in Section I of this prospectus. 

The counterparties to such type of transactions must be 
highly rated financial institutions specialized in this type of 
transaction and are selected from a list of authorized 
counterparties established by the Investment Manager. 

Unless otherwise provided for in the relevant part of Section 
I relating to a specific portfolio, the counterparty has no 
discretion over the composition or management of the 
portfolio’s investments or of the underlying assets or 
reference index of the financial derivative instrument. If, for 
a specific portfolio, the counterparty has any discretion over 
the composition or management of the portfolio’s 
investments or of the underlying assets of the financial 
derivative instruments, the agreement between the portfolio 

 
 
and the counterparty should be considered as an investment 
management delegation arrangement and should comply with 
the UCITS requirements on delegation. In such case, the part 
of Section I relating to the relevant portfolio will describe the 
details of the agreement. 

A portfolio that enters into a total return swap or invests in 
other financial derivative instruments with similar 
characteristics is subject to the risk of counterparty default 
which may affect the return of the shareholders of this portfolio. 
For more information on this risk and other risks applicable to 
such type of transactions, investors should refer to "Risk 
Factors" below and more specifically to the “Derivatives Risk” 
provisions thereof.  

Synthetic Equity Securities.  The portfolios may invest in 
synthetic equity securities, referred to as "local access 
products" or "participation notes" or "low exercise price 
warrants".  These instruments are typically issued by banks or 
other financial institutions, and may or may not be traded on an 
exchange.  These instruments are a form of derivative security 
that may give holders the right to buy or sell an underlying 
security or a basket of securities representing an index, in 
accordance with Article 41 (1) of the Law of 2010, from or to 
the issuer for a particular price or may entitle holders to receive 
a cash payment relating to the value of the underlying security 
or index.  These instruments are similar to options in that they 
are exercisable by the holder for an underlying security or the 
value of that security, but are generally exercisable over a 
longer term than typical options.  These instruments typically 
have an exercise price, which is fixed at the time of issuance. 

These instruments entitle the holder to purchase from the 
issuer common stock of a company or receive a cash payment.  
The cash payment is calculated according to a predetermined 
formula.  The instruments typically have an exercise price that 
is very low relative to the market price of the underlying 
instrument at the time of issue (e.g., one U.S. cent).  The buyer 
of a low exercise price warrant effectively pays the full value of 

AB FCP I 

the underlying common stock at the outset.  In the case of 
any exercise of warrants, there may be a time delay 
between the time a holder of warrants gives instructions to 
exercise and the time the price of the related common stock 
relating to exercise or settlement date is determined, during 
which time the price of the underlying security could change 
significantly.  In addition, the exercise or settlement date of 
the warrants may be affected by certain market disruption 
events, such as the imposition of capital controls by a local 
jurisdiction or changes in the laws relating to investors in 
other jurisdictions.  These events could lead to a change in 
the exercise date or settlement currency of the warrants, or 
postponement of the settlement date.  In some cases, if the 
market disruption events continue for a certain period of 
time, the warrants may become worthless resulting in a 
total loss of the purchase price of the warrants.    

The portfolios will acquire such instruments issued by 
entities deemed to be creditworthy by the Investment 
Manager, who will monitor the creditworthiness of the 
issuers on an on-going basis.   Investments in these 
instruments involve the risk that the issuer of the instrument 
may default on its obligation to deliver the underlying 
security or cash in lieu thereof.  These instruments may 
also be subject to liquidity risk because there may be a 
limited secondary market for trading the warrants. 

The portfolios may also invest in long-term options of, or 
relating to, certain issuers.  Long-term options are call 
options created by an issuer, typically a financial institution, 
entitling the holder to purchase from the issuer outstanding 
securities of another issuer.  Long-term options have an 
initial period of one year or more, but generally have terms 
between three and five years.  Long-term options do not 
settle through a clearing corporation that guarantees the 
performance of the counterparty.  Instead, they are traded 
on an exchange and are subject to the exchange's trading 
regulations. 

II-26 

 
 
Risk Factors  

General Risks 

Each  portfolio  is  involved  in  the  business  of  investing  in 
securities,  which  entails  certain  risks.  The  following  general 
risk factors apply to all Portfolios of the Fund. 

Country Risks—General.  A portfolio may invest in 
securities of issuers located in various countries and 
geographic regions.  The economies of individual countries 
may differ favorably or unfavorably from each other in such 
respects as growth of gross domestic product or gross 
national product, rate of inflation, capital reinvestment, 
resource self-sufficiency and balance of payments position. 
Issuers in general are subject to varying degrees of 
regulation with respect to such matters as insider trading 
rules, restrictions on market manipulation, shareholder proxy 
requirements and timely disclosure of information. The 
reporting, accounting and auditing standards of issuers may 
differ, in some cases significantly, from country to country in 
important respects and less information from country to 
country may be available to investors in securities or other 
assets.  

Nationalization, expropriation or confiscatory taxation, 
currency blockage, political changes, government regulation, 
political or social instability or diplomatic developments could 
affect adversely the economy of a country or a portfolio's 
investments in such country.  In the event of expropriation, 
nationalization or other confiscation, a portfolio could lose its 
entire investment in the country involved.  In addition, laws in 
countries governing business organizations, bankruptcy and 
insolvency may provide limited protection to security holders 
such as a portfolio. 

Portfolios which invest essentially in securities whose issuers 
are domiciled in only one country will have greater exposure 
to market, political and economic risks of that country than 
portfolios that have more geographically diversified 
investments.  Portfolios which invest in securities whose 
issuers are domiciled in multiple countries will have less 
exposure to the risks of any one country, but will be exposed 
to a larger number of countries. 

A portfolio may trade its securities in a variety of markets with 
many different brokers and dealers. The failure of a broker or 
dealer may result in the complete loss of a portfolio's assets 
on deposit with such broker or dealer depending on the 
regulatory rules governing such broker or dealer. In addition, 
brokerage commissions in certain countries may be higher 
than in others, and securities markets in certain countries 
may be less liquid, more volatile and less subject to 
governmental supervision than in others. 

The securities markets of many countries are also relatively 
small, with the majority of market capitalization and trading 
volume concentrated in a limited number of companies 
representing a small number of industries.  Consequently, a 
portfolio invested in equity securities of companies in such 
countries may experience greater price volatility and 
significantly lower liquidity than a portfolio invested solely in 
equity securities of companies in countries with relatively 
larger securities markets.  These smaller markets may be 
subject to greater influence by adverse events generally 
affecting the market, and by large investors trading significant 
blocks of securities.  Securities settlements may in some 
instances be subject to delays and related administrative 
uncertainties. 

II-27 

AB FCP I 

Certain countries require governmental approval prior to 
investments by foreign persons or limit investment by foreign 
persons to only a specified percentage of an issuer's 
outstanding securities or a specific class of securities that 
may have less advantageous terms (including price) than 
securities of the company available for purchase by 
nationals.  These restrictions or controls may at times limit or 
preclude investment in certain securities and may increase 
the costs and expenses of a portfolio.  In addition, the 
repatriation of investment income, capital, or the proceeds of 
sales of securities from certain countries is controlled under 
regulations, including in some cases the need for certain 
advance government notification or authority.  If deterioration 
occurs in a country's balance of payments, the country could 
impose temporary restrictions on foreign capital remittances.  
A portfolio also could be adversely affected by delays in, or a 
refusal to grant, any required governmental approval for 
repatriation, as well as by the application of other restrictions 
on investment.  Investing in local markets may require a 
portfolio to adopt special procedures that may involve 
additional costs to the portfolio.  These factors may affect the 
liquidity of the portfolio's investments in any country and the 
Investment Manager will monitor the effect of any such factor 
or factors on the portfolio's investments. 

Cybersecurity Risk. As part of the Fund’s business, the 
Management Company and Investment Manager process, 
store and transmit large amounts of electronic information, 
including information relating to the transactions of the Fund 
and personally identifiable information of the Shareholders. 
Similarly, service providers of the Fund may process, store 
and transmit such information. The Management Company 
and Investment Manager have procedures and systems in 
place that they believe are reasonably designed to protect 
such information and prevent data loss and security 
breaches. However, such measures cannot provide absolute 
security. The techniques used to obtain unauthorized access 
to data, disable or degrade service, or sabotage systems 
change frequently and may be difficult to detect for long 
periods of time. Hardware or software acquired from third 
parties may contain defects in design or manufacture or other 
problems that could unexpectedly compromise information 
security. Network connected services provided by third 
parties to the Management Company and Investment 
Manager may be susceptible to compromise, leading to a 
breach of the Management Company’s or Investment 
Manager’s network. Systems, facilities or online services may 
be susceptible to employee error or malfeasance, 
government surveillance, or other security threats. Breach of 
the Management Company’s or Investment Manager’s 
information systems may cause information relating to the 
transactions of the Fund and personally identifiable 
information of the Shareholders to be lost or improperly 
accessed, used or disclosed. 

The service providers of the Management Company, 
Investment Manager and the Fund are subject to similar 
electronic information security threats. If a service provider 
fails to adopt or adhere to adequate data security policies, or 
in the event of a breach of its networks, information relating 
to the transactions of the Fund and personally identifiable 
information of the Shareholders may be lost or improperly 
accessed, used or disclosed.  

The loss or improper access, use or disclosure of the Fund’s 
proprietary information may cause the Fund to suffer, among 
other things, financial loss, the disruption of its business, 

 
 
liability to third parties, regulatory intervention or reputational 
damage. Any of the foregoing events could have a material 
adverse effect on the Fund and the Shareholders’ 
investments therein. 

Liquidity  Risk.    A  security  or  position  of  a  Portfolio  could 
become hard to value, sell, or sell at the at the desired time or 
price  and  as  such  may  impact  the  Portfolio’s  ability  to  meet 
redemption requests.   

Overview 
Liquidity risk can occur due to various factors including the 
types of securities, restrictions on selling, and market 
conditions.   
Some securities are less liquid such as, inter alia,  below 
Investment Grade debt securities, small-capitalization 
equities, securities from emerging market issuers, 144A 
issuances and securities that represent a small issue, trade 
infrequently or are traded on markets that are comparatively 
small or have long settlement times.   

Hard to sell securities often require more time and higher 
costs, including brokerage and other transaction fees, than 
the sale of more liquid securities.  

Liquidity risk may be increased during extreme market 
conditions such as, inter alia, economic, market or political 
events, adverse investor perceptions, or the sudden change, 
possibly without warning, to the market of particular issuers, 
industries, or investment category.  

Liquidity risk and impacts on specific asset classes may 
change overtime and unexpectedly as markets, trading, and 
instruments evolve.  

Impact to the Portfolios 

In extreme market conditions, due to, inter alia, the lack of 
willing buyers, it may be impossible or more expensive for a 
Portfolio to liquidate its positions or holdings. Consequently, 
the Portfolio may be obliged to accept a lower price or may 
not be able to sell the investments at all.  

An inability to sell securities may adversely affect a Portfolio’s 
value or prevent such Portfolio from being able to take 
advantage of new investment opportunities. 

Liquidity risk may also impact the Portfolio’s ability to meet 
redemption requests, raise cash, and/or pay out proceeds 
holdings within the necessary time period.  

Large redemption requests may also cause liquidity risk.  In 
order to meet large redemption requests, the Portfolio will 
typically have to sell the most liquid securities first or sell less 
liquid securities at a potentially discounted price. 

Liquidity risk management tools 

In order to mitigate liquidity risks the Fund has implemented 
liquidity risk management tools to help manage the liquidity of 
the Portfolios in various ways, such as: 

• 
• 
• 

redemption gates 
swing pricing 
temporary borrowing in order to meet redemption 
request 

AB FCP I 

• 

the ability to suspend redemptions in certain 
situations 

Shareholders should be aware that the implementation of 
such liquidity risk management tools may, in certain 
circumstances, affect their redemption rights or the 
redemption price of their Shares.  

For more information on the liquidity risk management tools, 
please refer to the following sections of the Prospectus: “How 
to Redeem Shares”,“Determination of the Net Asset Value” 
and “Borrowing risk”.  

Market risk. Prices and yields of many securities can change 
frequently, sometimes with significant volatility, and can fall, 
based on a wide variety of factors. Examples of these factors 
include: 

• 

• 

• 

• 

• 

• 

• 

• 

• 

political and economic news; 

government policy; 

changes in technology and business practices; 

changes in demographics, cultures and populations; 

health crises (i.e. pandemic and epidemic diseases); 

natural or human-caused disasters;  

weather and climate patterns; 

scientific or investigative discoveries; and 

costs and availability of energy, commodities and 
natural resources. 

The public’s fear and/or response to the above-mentioned 
diseases or events may have now, or in the future, adverse 
effects on a Fund’s investments and NAV and may lead to 
increased market volatility.  The occurrence and duration of 
such diseases or events may also adversely affect the 
economies and financial markets in specific countries or 
worldwide. The effects of market risk can be immediate or 
gradual, short-term or long-term, or narrow or broad. 

Currency Risk.  Underlying investments of a portfolio may 
be denominated in one or more currencies different than that 
in which such portfolio is denominated.  This means currency 
movements in such underlying investments may significantly 
affect the Net Asset Value in respect of such portfolio's 
Shares.  Investments by the portfolios that are denominated 
in a particular currency are subject to the risk that the value 
of such currency will change in relation to one or more other 
currencies. Among the factors that may affect currency 
values are trade balances, the level of short-term interest 
rates, differences in relative values of similar assets in 
different currencies, long-term opportunities for investment 
and capital appreciation and political developments.  The 
portfolios are not limited in the percentage of its assets that 
may be denominated in currencies other than the Currency of 
the Portfolio. 

The Investment Manager will take into account, and may 
hedge to reduce the risk of, such risks by investing in one or 
more currencies, futures contracts on multiple currencies and 
options thereon, forward currency exchange contracts on 
multiple currencies, or any combination thereof.  The 

II-28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Manager is not obligated to engage in such 
currency hedging transactions and may elect to do so in its 
sole discretion.  No assurance can be made that such 
currency hedging strategies will be effective.  In addition, a 
portfolio may seek active speculative investment 
opportunities by taking long or short positions in currencies 
through use of currency-related derivatives such as currency 
options and forward contracts, subject to certain limitations in 
such portfolio’s investment objective and policies.  Such 
currency transactions involve a significant degree of risk and 
the markets in which currency exchange transactions are 
effected may be highly volatile.   

In addition, because the Shares of certain portfolios are 
offered in more than one currency, such portfolio and holders 
of the Shares are subject to certain additional currency risks.  
For example, such portfolio may be subject to the risk of an 
unfavorable change in the Dollar/Euro rate of exchange in 
respect of Euro subscriptions accepted on a particular Trade 
Date but for which actual Euro subscription amounts are not 
received by the Depositary until a subsequent Trade Date.  
Also, the portfolio may be subject to the risk of a decline in 
the value of the Dollar relative to the Euro subsequent to a 
Euro redemption and prior to the payment of Euro 
redemption amounts to the redeeming Shareholder. 

Additionally, when a portfolio quotes its Shares' Net Asset 
Values in a currency other than the Currency of the Portfolio, 
such values are derived from the spot foreign exchange rate 
of the other Offered Currency on each Valuation Point.  
Accordingly, the total return ultimately realized by a 
Shareholder upon redemption in respect of an investment in 
Shares made in such other Offered Currency will be directly 
affected, either positively or negatively, by changes in the 
exchange rate between such other Offered Currency and the 
Currency of the Portfolio from the date of subscription to the 
date of redemption.  All expenses related to converting 
subscription and redemption amounts into and out of the 
Currency of the Portfolio and other Offered Currencies are 
borne by the portfolio concerned and attributed to the Shares 
of such portfolio. 

The Distributor occasionally may arrange for foreign 
exchange facilities that allow investors to use certain 
currencies other than the Offered Currencies of a portfolio for 
subscription and redemption of Shares.  Such transactions 
are conducted outside of the Fund and at the investor's own 
risk and expense.  Investors utilizing such facilities may be 
subject to foreign exchange risks related to timing of 
settlement upon subscription and changes in exchange rates 
during the period of investment in the Fund. 

Currency Hedged Share Class Risk.  The precise hedging 
strategy applied to a particular Currency Hedged Share Class 
will vary from one portfolio offering Currency Hedged Share 
Class(es) to another, as set out in Section I.  Each such 
portfolio will apply a hedging strategy which aims to mitigate 
currency risk between the base currency Net Asset Value 
(NAV) of the Portfolio and the Offered Currency in which the 
Currency Hedged Share Class is denominated, while taking 
account of various practical considerations including 
transaction costs.  The hedging strategy employed is 
designed to reduce, but may not eliminate, currency 
exposure between the Portfolio’s base currency and the 
Offered Currency. 

AB FCP I 

Hedging strategies in connection with Currency Hedged 
Share Classes may be entered into whether the portfolio’s 
base currency is declining or increasing in value relative to 
the relevant Offered Currency in which the Currency Hedged 
Share Class in question is denominated and so, where such 
hedging is undertaken it may substantially protect investors in 
the relevant Currency Hedged Share Class against a 
decrease in the value of the portfolio’s base currency relative 
to the Offered Currency in which such Currency Hedged 
Share Class is denominated, but at the same time it may also 
prevent investors from benefiting from an increase in the 
value of the portfolio’s base currency relative to the Offered 
Currency.   

Given that there is no segregation of liabilities between the 
various share classes within a portfolio, there is a remote risk 
that, under certain circumstances, currency hedging 
transactions in relation to a Currency Hedged Share Class 
could result in liabilities which might affect the Net Asset 
Value of the other share classes of the same Portfolio, in 
which case assets of the other share classes of the Portfolio 
may be used to cover the liabilities incurred by such Currency 
Hedged Share Class. 

Partial Duration Hedged Share Class Risk.  Certain 
portfolio share classes apply a partial duration hedging 
strategy which aims to reduce the impact of an increase in 
interest rates movements. The partial duration hedging 
strategy is designed to reduce, however it may not eliminate, 
the interest rate risk of the overall portfolio in the Partial 
Duration Hedged Share Class.  

Shareholders should be aware that investments in Partial 
Duration Hedged Share Classes of a portfolio are expected 
to outperform the relevant portfolio’s performance when 
interest rates rise. Conversely, there is a risk that, where 
interest rates are stable or falling, Partial Duration Hedged 
Share Classes may underperform the overall portfolio’s 
performance. 

Hedging strategies relating to Partial Duration Hedged Share 
Classes seek to mitigate the effect of rising interest rates 
without impacting credit risk. However, duration risk and 
credit risk in fixed-income products may be negatively 
correlated, and so hedging interest rate risk may in some 
circumstances result in higher exposure to downside credit 
risk.  

With respect to the financial derivative instruments used for 
duration hedging purposes, a portfolio may be required to 
transfer cash or Treasuries to counterparties as collateral. 
Consequently, the Partial Duration Hedged Share Class may 
be allocated a greater proportion of cash than the other 
Share Classes. The impact on performance resulting from 
such larger cash balances may be positive or negative, and 
will impact only the relevant Partial Duration Hedged Share 
Class.  

Shareholders in Partial Duration Hedged Share Classes 
should also be aware that the duration hedging strategies 
employed by the Investment Manager may only partially 
hedge duration. Furthermore, there is no guarantee that such 
hedging strategies will be successful. 

Borrowing Risk.  A portfolio may borrow from a bank or 
other entity in a privately arranged transaction for temporary 
purposes, which includes for purposes of redeeming Shares, 
in an amount not exceeding 10% of the value of the 
Portfolio's total assets. Borrowing creates an opportunity for a 

II-29 

 
 
 
portfolio to finance the limited activities described above 
without the requirement that portfolio securities be liquidated 
at a time when it would be disadvantageous to do so. Any 
investment income or gains on, or savings in transaction 
costs made through the retention of, portfolio securities in 
excess of the interest paid on and the other costs of the 
borrowings will cause the net income or Net Asset Value per 
Share of the Shares to be greater than would otherwise be 
the case.  On the other hand, if the income or gain, if any, on 
the securities retained fails to cover the interest paid on and 
the other costs of the borrowing, the net income or Net Asset 
Value per Share of the Shares will be less than would 
otherwise be the case. 

Loans of Portfolio Securities.  A portfolio may make 
secured loans of its securities.  The risks in lending 
securities, as with other extensions of credit, consist of 
possible loss of rights in the collateral should the borrower fail 
financially.  In addition, a portfolio will be exposed to the risk 
that the sale of any collateral realized upon the borrower's 
default will not yield proceeds sufficient to replace the loaned 
securities.  In determining whether to lend securities to a 
particular borrower, the Investment Manager will consider all 
relevant facts and circumstances, including the 
creditworthiness of the borrower.  While securities are on 
loan, the borrower may pay the portfolio concerned any 
income from the securities.  The portfolio may invest any 
cash collateral in money market instruments, thereby earning 
additional income, or receive an agreed upon amount of 
income from a borrower who has delivered equivalent 
collateral.  The portfolio may have the right to regain record 
ownership of loaned securities or equivalent securities in 
order to exercise ownership rights such as voting rights, 
subscription rights and rights to dividends, interest or 
distributions.  A portfolio may pay reasonable finders,' 
administrative and other fees in connection with a loan. 

Distributions out of capital risk. For Distribution Classes, 
including Classes paying a distribution rate determined by the 
Board of Managers, Classes paying a stable distribution rate 
per Unit, and share classes paying a distribution rate based 
on gross income, a Portfolio may pay distributions equal to all 
or in excess of the net income attributable to such 
Distribution Classes. As a result, distributions in such 
Distribution Classes may be paid out of the capital of a 
Portfolio. Such distributions may come from gross income 
(before reduction for fees and expenses), realized and 
unrealized gains and capital attributable to the relevant 
Distribution Classes.  Investors should note that distributions 
in excess of net income (gross income less fees and 
expenses) may represent a return of the investor’s original 
investment amount and as such may result in a decrease in 
the Net Asset Value per Unit for the relevant share class and 
reduce capital accumulation.  Distributions out of capital may 
be taxed as income in certain jurisdictions.  For further 
information about the distribution policy of a particular share 
class, refer to the relevant portfolio details of a Portfolio in 
Part I. 

There is no guarantee that distributions will be made. A high 
distribution yield does not necessarily imply a positive or high 
return. 

Taxation Risk.  A portfolio may be subject to taxation 
resulting, for example, from income or realized capital gains 
attributable to certain portfolio securities.  In certain cases, a 
double-taxation treaty may exist and serve to eliminate or 

AB FCP I 

ameliorate the effect of such taxation.  In other cases, no 
such double-taxation treaty may exist.  For example, a 
portfolio may invest in equity securities of U.S. issuers.  
Dividends on the equity securities of U.S. corporations 
generally will be subject to a 30% U.S. withholding tax.  
Interest payments on certain debt obligations of U.S. obligors 
similarly may be subject to a 30% U.S. withholding tax.  
Distributions on the non-U.S. securities in which the Portfolio 
invests, including ADRs, EDRs and GDRs, may be subject to 
taxes withheld by the country of residence of the issuer of the 
underlying securities.  In general, these taxes will be neither 
refundable nor subject to reduction under an income tax 
treaty between the country of source and the country of 
residence of the Fund.  No assurance can be given that 
applicable tax laws and interpretations thereof will not be 
changed or amended in the future in a manner that will 
adversely affect the Net Asset Value of the Shares. 

FATCA and Certain Withholding Risk.  The Foreign 
Account Tax Compliance Act ("FATCA"), a portion of the 
2010 Hiring Incentives to Restore Employment Act, became 
law in the United States in 2010. It generally requires 
financial institutions outside the U.S. ("foreign financial 
institutions" or "FFIs") to pass information about "Financial 
Accounts" held by "Specified U.S. Persons", directly or 
indirectly, to the U.S. tax authorities on an annual basis, or 
else become subject to withholding tax on certain U.S. 
source income and possibly gross proceeds. 

In order to avoid a U.S. withholding tax of 30% on certain 
payments (including payments of gross proceeds) made with 
respect to certain actual and deemed U.S. investments, the 
Fund and/or each portfolio generally will be required to timely 
register with the IRS and agree to identify, and report 
information with respect to certain of their direct and indirect 
U.S. account holders (including debtholders and 
equityholders).  Luxembourg has signed a Model 1A 
(reciprocal) inter-governmental agreement with the United 
States (the "US IGA") to give effect to the foregoing 
withholding and reporting rules. So long as the Fund 
complies with the US IGA and the enabling legislation, the 
Investment Manager anticipates that the Fund will not be 
subject to the related U.S. withholding tax. 

A non-U.S. investor in the Fund will generally be required to 
provide to the Fund (or in certain cases, a distributor, 
intermediary or certain other entities through which such non-
U.S. investor invests (each, an "Intermediary")) information 
which identifies its direct and indirect U.S. ownership.  Under 
the US IGA, any such information provided to the Fund will 
be shared with the Luxembourg Minister of Finance or its 
delegate (the "Luxembourg MOF"), unless such U.S. 
ownership is exempt from the reporting rules. The 
Luxembourg MOF will provide the information reported to it 
with the IRS annually on an automatic basis.  A non-U.S. 
investor that is a "foreign financial institution" within the 
meaning of Section 1471(d)(4) of the IRC will also generally 
be required to timely register with the IRS and agree to 
identify, and report information with respect to certain of its 
own direct and indirect U.S. account holders (including 
debtholders and equityholders).  A non-U.S. investor who 
fails to provide such information to the Fund (or, if applicable, 
an Intermediary) or timely register and agree to identify and 
report information with respect to such account holders (as 
applicable), may be subject to the 30% withholding tax with 
respect to its share of any such payments attributable to 
actual and deemed U.S. investments of the Fund, and the 

II-30 

 
 
 
AB FCP I 

Sustainability risks. Sustainability risk means an 
environmental, social, or governance event or condition that, 
if it occurs, could potentially or actually cause a material 
negative impact on the value of a Sub-fund’s 
investment.  Sustainability risks can either represent a risk of 
their own or have an impact on other risks and may 
contribute significantly to risks, such as market risks, 
operational risks, liquidity risks or counterparty 
risks.  Sustainability risks may have an impact on long-term 
risk adjusted returns for investors.  Assessment of 
sustainability risks is complex and may be based on 
environmental, social, or governance data which is difficult to 
obtain and incomplete, estimated, out of date or otherwise 
materially inaccurate.  Even when identified, there can be no 
guarantee that these data will be correctly assessed. 

Consequent impacts to the occurrence of sustainability risk 
can be many and varied according to a specific risk, region or 
asset class.  Generally, when sustainability risk occurs for an 
asset, there will be a negative impact and potentially a loss of 
its value and therefore an impact on the net asset value of 
the concerned Portfolio. 

Management Company may take any action in relation to an 
investor's Shares or redemption proceeds to ensure that such 
withholding is economically borne by the relevant investor 
whose failure to provide the necessary information or comply 
with such requirements gave rise to the withholding, subject 
to applicable laws and regulations and provided that the 
Management Company acts in good faith and on reasonable 
grounds.  Shareholders should consult their own tax advisors 
regarding the possible implications of these rules on their 
investments in the Fund. 

Non-U.S. shareholders may also be required to make certain 
certifications to the Fund as to the beneficial ownership of the 
Shares and the non-U.S. status of such beneficial owner, in 
order to be exempt from U.S. information reporting and 
backup withholding on a redemption of Shares. 
It is possible that further inter-governmental agreements 
("future IGAs") similar to the US IGA may be entered into with 
other third countries by the Luxembourg Government to 
introduce similar regimes for reporting to such third countries' 
fiscal authorities ("foreign fiscal authorities"). 

By investing (or continuing to invest) in the Fund, investors 
shall be deemed to acknowledge that: 

1. 

2. 

3. 

4. 

5. 

6. 

the Fund (or its agent or an Intermediary) may be 
required to disclose to the Luxembourg MOF certain 
confidential information in relation to the investor, 
including, but not limited to, the investor's name, 
address, tax identification number (if any), social 
security number (if any) and certain information 
relating to the investor's investment; 

the Luxembourg MOF may provide information as 
outlined above with the IRS, the Luxembourg 
Minister of Finance and other foreign fiscal 
authorities; 

the Fund (or its agent or an Intermediary) may 
disclose to the IRS, the Luxembourg Minister of 
Finance and other foreign fiscal authorities certain 
confidential information when registering with such 
authorities and if such authorities contact the Fund 
(or its agent directly) with further enquiries; 

the Fund or an Intermediary may require the investor 
to provide additional information and/or 
documentation which the Fund or an Intermediary 
may be required to disclose to the Luxembourg 
MOF; 

in the event an investor does not provide the 
requested information and/or documentation and/or 
has not itself complied with the applicable 
requirements, the Fund reserves the right to take any 
action and/or pursue all remedies at its disposal, 
including, without limitation, action to ensure that any 
withholding imposed in respect of such investor's 
Shares or redemption proceeds is economically 
borne by such investor and compulsory redemption 
of the investor concerned; and 

no investor affected by any such action or remedy 
shall have any claim against the Fund (or its agent) 
for any form of damages or liability as a result of 
actions taken or remedies pursued by or on behalf of 
the Fund in order to comply with FATCA, any of the 
US IGA or any future IGAs, or any of the relevant 
underlying legislation and regulations. 

II-31 

 
 
 
 
 
 
 
 
 
 
 
 
Portfolio Risks. 
The following chart displays the principal risks of each 
Portfolio, but does not purport to provide a complete 
explanation of the risks associated with acquiring and holding 
Shares in each portfolio of the Fund. For information on the 
general risks associated with each Portfolio, please see 

“General Risks” above. Risks not indicated for a particular 
Portfolio may, however, still apply to some extent to that 
Portfolio at various times, and not every risk applicable to an 
investment in a Portfolio may be shown.  Each of these risk 
factors is described in detail on the following pages. 

AB FCP I 

Multi-Asset/Asset Allocation 

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Investment Strategy Risks 

Country Risk—Emerging Markets 

Country Risks – China   

Focused Portfolio Risk 

Dynamic Asset Allocation Risk 
Allocation Risk 

Turnover Risk 

Smaller Capitalization Companies Risk 

Financial Instruments Risk 

Derivatives Risk 

OTC Derivatives Counterparties Risk 

Commodity-Related Risk 

Structured Instruments Risk 

Equity Securities Risks 

Equity Securities Risk 

Debt Securities Risks 

Fixed-Income Securities Risk—General 
Fixed-Income Securities Risk—Lower-Rated 
and Unrated Instruments 
Credit Risk—Sovereign Debt Obligations 

Credit Risk—Corporate Debt Obligations 

Securities Lending Risk  

Sustainability Risks 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

II-32 

 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
Equity 

AB FCP I 

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Investment Strategy Risks 
Country Risk—Emerging 
Markets 
Country Risks – China   

Focused Portfolio Risk 
Dynamic Asset Allocation 
Risk 
Allocation Risk 

Turnover Risk 
Smaller Capitalization 
Companies Risk 
Financial Instruments 
Risks 
Derivatives Risk 
OTC Derivatives 
Counterparty Risk 
Commodity-Related Risk 

Structured Instruments Risk 

Equity Securities Risks 

Equity Securities Risk 

Debt Securities Risks 
Fixed-Income Securities 
Risk—General 
Fixed-Income Securities 
Risk Lower-Rated and 
Unrated Instruments 
Credit Risk—Sovereign 
Debt Obligations 
Credit Risk—Corporate 
Debt Obligations 
Securities Lending Risk 

Sustainability Risks 

II-33 

 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Strategy Risks 
Country Risk—Emerging 
Markets 
Country Risks - China  

Focused Portfolio Risk 
Dynamic Asset Allocation 
Risk 
Allocation Risk 

Turnover Risk 
Smaller Capitalization 
Companies Risk 
Financial Instruments 
Risks 
Derivatives Risk 
OTC Derivatives 
Counterparty Risk 
Commodity-Related Risk 

Structured Instruments Risk 

Equity Securities Risks 

Equity Securities Risk 

Debt Securities Risks 
Fixed-Income Securities 
Risk—General 
Fixed-Income Securities 
Risk Lower-Rated and 
Unrated Instruments 
Credit Risk—Sovereign 
Debt Obligations 
Credit Risk—Corporate 
Debt Obligations 
Securities Lending Risk 

Sustainability Risks 

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AB FCP I 

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II-34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed-Income 

AB FCP I 

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Investment Strategy Risks 
Country Risk—Emerging Markets 

Country Risks – China 

Liquidity Risk 

Focused Portfolio Risk 

Allocation Risk 
Turnover Risk 

Smaller Capitalization Companies 
Risk 
Financial Instruments Risks 

Derivatives Risk 

OTC Derivatives Counterparty Risk 

Commodity-Related Risk 

Structured Investments Risk 

Equity Securities Risks 
Equity Securities Risk 

Debt Securities Risks 
Fixed-Income Securities Risk—
General 
Fixed-Income Securities Risk—
Lower-Rated and Unrated 
Instruments 
Credit Risk—Sovereign Debt 
Obligations 
Credit Risk—Corporate Debt 
Obligations 
Securities Lending Risk 

Sustainability Risks 

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II-35 

 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Strategy Risks 

Each portfolio engages in a business involving special 
considerations and risks, including some or all of those 
discussed below.  There can be no assurance that the 
portfolio's investment objective will be achieved or that there 
will be any return of capital, and investment results may vary 
substantially on a monthly, quarterly or annual basis.  An 
investment in a portfolio does not represent a complete 
investment program. 

Country Risks—Emerging Markets.  A portfolio may be 
permitted to invest in securities of emerging market issuers.  
A portfolio consequently may experience greater price 
volatility and significantly lower liquidity than a portfolio 
invested solely in equity securities of issuers located in more 
developed markets.  Investments in securities of emerging 
market issuers entail significant risks in addition to those 
customarily associated with investing in securities of issuers 
in more developed markets, such as (i) low or non-existent 
trading volume, resulting in a lack of liquidity and increased 
volatility in prices for such securities, as compared to 
securities of comparable issuers in more developed capital 
markets, (ii) uncertain national policies and social, political 
and economic instability, increasing the potential for 
expropriation of assets, confiscatory taxation, high rates of 
inflation or unfavorable diplomatic developments, (iii) possible 
fluctuations in exchange rates, differing legal systems and 
the existence or possible imposition of exchange controls, 
custodial restrictions or other laws or restrictions applicable to 
such investments, (iv) national policies which may limit a 
portfolio's investment opportunities such as restrictions on 
investment in issuers or industries deemed sensitive to 
national interests, and (v) the lack or relatively early 
development of legal structures governing private and foreign 
investments and private property. 

Other risks relating to investments in emerging market 
issuers include:  the availability of less public information on 
issuers of securities; settlement practices that differ from 
those in more developed markets and may result in delays or 
may not fully protect a portfolio against loss or theft of assets; 
the possibility of nationalization of a company or industry and 
expropriation or confiscatory taxation; and the imposition of 
foreign taxes. Investments in emerging markets securities will 
also result in generally higher expenses due to:  the costs of 
currency exchange; higher brokerage commissions in certain 
emerging markets; and the expense of maintaining securities 
with foreign custodians. 

Issuers in emerging markets may not be subject to 
accounting, auditing and financial reporting standards and 
requirements comparable to those to which companies in 
developed markets are subject. In certain emerging market 
countries, reporting standards vary widely. As a result, 
traditional investment measurements used in developed 
markets, such as price/earnings ratios, may not be applicable 
in certain emerging markets. 

In addition to the above risks generic to all emerging markets, 
there are specific risks linked to investing in Russia. Investors 
should be aware that the Russian market presents specific 
risks in relation to the settlement and safekeeping of 
securities as well as in the registration of assets, where 
registrars are not always subject to effective government 

AB FCP I 

supervision. Russian securities are not on physical deposit 
with the Depositary or its local agents in Russia. Therefore, 
neither the Depositary nor its local agents in Russia can be 
considered to be performing a physical safekeeping or 
custody function in the traditional sense. The Depositary's 
liability only extends to its own negligence and willful default 
and to negligence and willful misconduct of its local agents in 
Russia and does not extend to losses due to the liquidation, 
bankruptcy, negligence and willful default of any registrar. In 
the event of such losses, the Fund will have to pursue its 
rights against the issuer and/or its appointed registrar.  

 Country Risks – China.   

The legal rights of investors in China are uncertain, 
government intervention is common and unpredictable, 
investors from outside China are subject to holding limits and 
reporting requirements (which could change at any time 
without notice), and some major trading and custody systems 
are unproven. Investments in China are also subject to 
emerging/frontier markets risks. 

In China, it is uncertain whether a court would protect the 
portfolio’s rights to securities it may purchase, including the 
right to take legal action, via the QFI scheme, the China 
Connect Scheme (defined below), or other methods whose 
regulations are untested and subject to change. 

The China regulatory, legal and tax framework for capital 
markets may not be as well developed as developed 
countries and changes to law, regulations and tax legislation 
could affect a portfolio’s investment in China. Additionally, 
there may be less publicly available information of Chinese 
companies and such information may be less reliable as 
Chinese companies are subject to accounting standard that 
differ in significant respect to those companies established in 
developed countries. As such, the lower levels of disclosure 
and transparency may impact the value of investments in 
China. 

In China, the government maintains two forms of its currency, 
the renminbi (RMB). Internal renminbi (CNY) is used inside 
China only, is not freely convertible and is subject to 
exchange controls. External renminbi (CNH) is used outside 
China, can be owned by anyone and is freely tradeable 
outside of China but still subject to control, limits and 
availability. Currently, the exchange rate between CNY and 
CNH is based on market supply and demand but with an 
element of government management and control as well as 
the potential for the government to impose or modify 
restrictions on conversion of CNY to CNH. Thus the 
portfolio’s investments in China are subject to an additional 
layer of currency risk (between CNH and CNY), which will be 
affected by market forces as well as government policies and 
actions and can result in significant volatility and liquidity risk. 

China Connect. A portfolio may invest directly or 

indirectly in eligible China A shares (“China Connect 
Securities”) through the China Connect Scheme, including 
investment in financial instruments and other market access 
products linked to China Connect Securities. The China 
Connect Scheme is a securities trading and clearing linked 
program developed by, amongst others, The Stock Exchange 
of Hong Kong Limited (SEHK), Shanghai Stock Exchange 
(SSE), Shenzhen Stock Exchange (SZSE) (together with 
SSE, each a China Connect Market), Hong Kong Securities 

II-36 

 
 
Clearing Company Limited (HKSCC) and China Securities 
Depository and Clearing Corporation Limited (ChinaClear), 
with an aim to achieve mutual stock market access between 
mainland China and Hong Kong. Under the China Connect 
Scheme, the Shanghai Connect and the Shenzhen Connect 
operate independently from each other although subject to 
substantially similar regulatory framework and the SEHK is 
subject to potential suspension of trading to ensure an 
orderly and fair market. 

As the China Connect Scheme is relatively new, it remains 
not fully developed, the rules governing it and trading are 
subject to changes, and the availability of securities and 
products may fluctuate. Accordingly, trading on the China 
Connect Scheme has additional risks such as liquidity, 
counterparty and best execution. Additionally, the various 
rights of the portfolio associated with investing in China 
Connect Securities are still undefined and may differ from 
more developed markets. 

A portfolio may invest in China Connect Securities through a 
“Northbound Trading Link” offered by China Connect 
Scheme, subject to applicable rules and regulations issued 
from time to time. Under the Northbound Trading Link, a 
portfolio, through its Hong Kong brokers and a securities 
trading service company established by SEHK respectively in 
Shanghai (for trading under the Shanghai Connect) and 
Shenzhen (for trading under the Shenzhen Connect), place 
orders to trade China Connect Securities listed on each 
relevant China Connect Market by routing orders to that 
relevant China Connect Market. 

Under the China Connect Scheme, HKSCC, also a wholly 
owned subsidiary of Hong Kong Exchanges and Clearing 
Limited (HKEx), will be responsible for the clearing and 
settlement and for the provision of depository, nominee and 
other related services of the trades executed by Hong Kong 
market participants and investors. China Connect Securities 
held in broker and custody account at the Central Clearing 
and Settlement System (CCASS) operated by HKSCC may 
be vulnerable to default or bankruptcy of HKSCC/CCASS. 

China Connect Securities eligible for trading on the 
Northbound Trading Link include certain shares listed on the 
SSE and SZSE and are subject to change and to various 
conditions for eligibility. 

All trading in China Connect Securities is made in RMB which 
may not be the base currency of a portfolio. 

Trading on the China Connect Scheme is subject to a daily 
quota that limits the maximum net buy value of cross-border 
trades via the Northbound Trading Link and such quota may 
change and affect the availability of buy orders. 

China Connect Securities are held in ChinaClear. HKSCC is 
a direct participant in ChinaClear and China Connect 
Securities acquired by investors through Northbound Trading 
will be recorded in the name of HKSCC in the nominee 
securities account opened by HKSCC with ChinaClear, with 
HKSCC the nominee holder of such China Connect 
Securities, and will be held under the depository of 
ChinaClear and registered in the name of HKSCC in the 
shareholders’ register of the listed companies on the relevant 
China Connect Market. 

AB FCP I 

HKSCC will record interests in such China Connect 
Securities in the CCASS stock account of the relevant 
CCASS clearing participant. HKSCC will be deemed the legal 
owner of such securities holding their beneficial entitlement 
on behalf of the clearing participant who has a direct or 
indirect custody arrangement with the portfolio’s custodian. 
Such China Connect Securities will be recorded in a nominee 
account opened by HKSCC with ChinaClear, and 
Northbound investors retain rights and interest in such 
securities according to applicable law. 

A portfolio investing through the Northbound Trading Link will 
be recognised as ultimate owner of China Connect 
Securities. A portfolio may exercise its rights through HKSCC 
as nominee holder and retain actual control of voting rights 
for China Connect Securities. HKSCC, as nominee, does not 
guarantee the title to China Connect Securities held through 
it and is under no obligation to enforce title or other rights 
associated with ownership on behalf of beneficial owners 
(such as the portfolio). As such, the precise nature and rights 
of a portfolio, investing through the Northbound Trading Link, 
as beneficial owner is not fully defined and subject to 
additional risks. 

Should a portfolio suffer losses resulting from the 
performance or insolvency of HKSCC, the portfolio would 
have no direct legal recourse against HKSCC, because 
applicable law does not recognize any direct legal 
relationship between HKSCC and either the portfolio or the 
depositary. Should ChinaClear default, HKSCC’s contractual 
liabilities will be limited to assisting participants with claims. A 
portfolio’s attempts to recover lost assets could involve 
considerable delays and expenses and may not be 
successful. 

Some China Connect Securities, predominantly shares of 
innovative growth enterprises, are traded on ChiNext. 
ChiNext is part of the SZSE’s multitiered capital market. 
Investing on ChiNext may contain different risks from that 
investing China Connect Securities on other markets. 

QFI scheme. A portfolio may invest in mainland 

China securities via the QFI scheme. Investing through a FII 
license involves its own risks. A portfolio’s ability to make the 
relevant investments or to fully implement or pursue its 
investment objective and strategy is subject to the applicable 
laws, rules and regulations (including restrictions on 
investments and repatriation of principal and profits) in the 
People's Republic of China (“PRC”, which are subject to 
change and such change may have potential retrospective 
effect. A portfolio may suffer substantial losses if the approval 
of QFI status ie being revoked / terminated or otherwise 
invalidated as such portfolio may be prohibited from trading 
of relevant securities and repatriation of such portfolio’s 
monies, or if any of the key operators or parties (including 
QFI custodian / brokers) is bankrupt / in default and/or is 
disqualified from performing its obligations (including 
execution or settlement of any transaction or transfer of 
monies or securities).  

Investing through the QFI scheme involves repatriation and 
liquidity risks as the market is regulated by the State 
Administration of Foreign Exchange (SAFE) and the People’s 
Bank of China (“PBOC”), which may take actions outside the 
investment manager’s control. Although the relevant QFI 
regulations have been revised to relax certain regulatory 

II-37 

 
 
restrictions on the onshore investment and capital 
management by QFIs (including but not limited to removing 
investment quota limit and simplifying process for repatriation 
of investment proceeds), it is subject to uncertainties as to 
how well it will be implemented in practice. On the other 
hand, the amended QFI regulations are also enhancing 
ongoing supervision on QFIs in terms of information 
disclosure among other aspects. In particular, QFIs are 
required to procure their underlying clients (such as the 
portfolio investing in mainland China securities via the QFI 
scheme) to comply with PRC disclosure of interests rules and 
make the required disclosure on behalf of such underlying 
clients. In addition, the China Securities Regulatory 
Commission (CSRC) may also require QFIs to report the 
offshore hedging positions related to their domestic 
investment. The information reported may include information 
on the portfolio as applicable.  

In addition, the nature of enforcement actions and future 
regulatory changes cannot be predicted. 

AllianceBernstein Hong Kong Limited, a subsidiary of the 
investment manager, has obtained the QFI status. 

CIBM. A portfolio may invest directly or indirectly in 
debt instruments through the China Interbank Bond Market 
(CIBM). The CIBM is an over-the-counter market outside the 
two main stock exchanges in China and generally amounts to 
over 90% of total trading volume by bond value in China. The 
CIBM is regulated and supervised by PBOC. 

Trading on the CIBM is subject to relevant rules promulgated 
by the PBOC including, but not limited to, the Announcement 
(2016) No. 3 and other rules for listing, trading and 
operations (CIBM Rules). A portfolio is permitted to invest in 
the CIBM as a foreign institutional investor in accordance 
with CIBM Rules such as the Announcement (2016) No. 3 
(Foreign Access Regime) or the Interim Measures for the 
Administration of Mutual Bond Market Access between 
Mainland China and Hong Kong (Decree No.1 [2017]) (Bond 
Connect). 

The main debt instruments traded on the CIBM include 
government bonds, corporate bonds, bond repurchase 
transactions, bond loans, PBOC bills and other financial debt 
instruments. The CIBM is in early stages of development, 
and therefore the market capitalisation and trading volume 
may be lower than those of more developed markets. The 
PBOC is responsible for establishing rules for listing, trading 
and functioning rules of the CIBM, and for supervising the 
market operators of the CIBM. While there are no quota 
restrictions under the current CIBM, the repatriation of funds 
from the PRC may be subject to the restrictions in the futures 
if such restrictions are promulgated by the PBOC. Any future 
restrictions on repatriation of funds from the PRC may impact 
a portfolio’s ability to meet redemptions. 

Trading through the CIBM involves liquidity risk. Bid/offer 
spreads of CIBM-traded securities may be large, and for 
securities with low trading volumes may fluctuate 
significantly. A portfolio may incur significant trading and 
realization costs and may even suffer losses when selling 
such securities. 

Although delivery-versus-payment (DVP) settlement is the 
dominant method used by the China Central Depository & 
Clearing Co., Ltd. (CCDC) and the Shanghai Clearing House 

AB FCP I 

Co., Ltd. (SCH) for all CIBM bond transactions, settlement 
risk still exists. DVP practices in the PRC may differ from 
those in developed markets. For example, settlement may be 
subject to a delay of several hours or longer rather than being 
instantaneous. Where the counterparty does not perform its 
obligations under a transaction or there is otherwise a failure 
due to CCDC or SCH, a portfolio may sustain losses. 

Investments in the CIBM are subject to regulatory and tax 
risks, as the CIBM is relatively new and has a short operating 
history. As the applicable CIBM laws, regulations and legal 
requirements are equally new, they are subject to change, 
including tax exemptions relating to CIBM purchases, and 
their interpretation and enforcement involve significant 
uncertainty. Any change in existing law, regulations, policies 
and practices in the PRC, including potentially retroactive 
changes, may also impact Chinese companies and 
transactions in their securities. PRC laws governing business 
organisations, bankruptcy and insolvency may provide 
substantially less protection to security holders than the laws 
of more developed countries. These factors (individually or 
combined) could adversely affect a portfolio. 

A portfolio may invest in the CIBM as a foreign institutional 
investor (see “Foreign Access Regime” and “Bond Connect” 
below). Although there is no quota limitation under CIBM 
Rules for either of these methods, a portfolio’s onshore 
settlement agent or registration agent must file information 
with the PBOC about the portfolio’s investments and must 
update the filings for any significant changes. The PBOC 
supervises the onshore settlement agent and the Fund’s 
trading, and may take administrative actions such as 
suspension of trading and mandatory exit against the Fund 
and/or the investment manager in the event of non-
compliance with CIBM Rules. CIBM securities may be held 
directly or indirectly by an entity trading on CIBM. 

As a most recent regulatory development, in September 
2020, PBOC, CSRC and SAFE jointly released a consultation 
draft regarding investment in China’s bond markets by 
foreign institutional investors, which, if formally promulgated, 
will bring changes to access filing, custody model and other 
aspects of foreign investor’s investment in CIBM. 

Foreign Access Regime. Under this method, a 

foreign institutional investor that wishes to invest directly in 
the CIBM can do so via an onshore settlement agent, who is 
responsible for making the relevant filings and account 
openings with the relevant authorities. Once an account is 
established, securities may be traded via bilateral negotiation 
or via click-and-deal. Bilateral negotiation is applied to all 
inter-bank products and uses the China Foreign Exchange 
Trading System & National Interbank Funding Centre 
(CFETS), a unified trading platform for the CIBM. One-click 
trading is only applied to cash bonds and interest rate 
derivatives. 

A market-maker mechanism by which a third party entity 
ensures bilateral quotations for bonds was introduced in 2001 
and can provide lower trading and settlement costs. Bond 
transactions must be conducted by way of bilateral trading 
through independent negotiations on a transaction-by-
transaction basis. Bid and ask prices for primary bond 
transactions and repurchase interest rates must be 
determined independently by the parties to the transaction. 
Both parties typically send instructions for delivery of bonds 

II-38 

 
 
and funds and provide for delivery on the agreed date. 
Depending on the type of bonds traded on the CIBM, the 
clearing and settlement institution will be CCDC or SCH. 
When trading via the Foreign Access Regime, CIBM 
securities are held in the name of portfolio in one of its local 
accounts (currently either CCDC or SCH). 

CIBM Direct RFQ Trading.  In September 2020, 

CIBM direct RFQ trading service was launched by CFETS. 
Under such service, foreign investors under Foreign Access 
Regime may solicit cash bond trading with domestic market 
makers by requesting for quotation (RFQ) and confirm the 
trades in CFETS system. As a novel arrangement under 
Foreign Access Regime, CIBM direct RFQ trading may be 
subject to further adjustments and uncertainties in 
implementation, which may have an adverse impact on the 
portfolio’s investment to the extent the portfolio transacts via 
CIBM direct RFQ trading mechanism. 

Under Foreign Access Regime, as all filings, registrations 
and account openings must be carried out by third parties, a 
portfolio may be exposed to counterparty and operational 
risks. 

Bond Connect. In 2017, a second northbound 

trading link, Bond Connect, became available to foreign 
investors. Bond Connect is the common name for the Interim 
Measures for the Administration of Mutual Bond Market 
Access between Mainland China and Hong Kong (Decree 
No.1 [2017]). Governed by the authorities of mainland China, 
Bond Connect allows mutual bond market access between 
Hong Kong and mainland China established by CFETS, 
CCDC, SCH, HKEx and Central Moneymarkets Unit (CMU). 
All bonds traded by eligible foreign investors will be 
registered in the name of the CMU, which holds the bonds as 
nominee. 

Under Bond Connect, eligible foreign investors must appoint 
the CFETS or other institutions recognised by the PBOC as 
registration agents to apply for registration with the PBOC. 
An offshore custody agent recognised by the Hong Kong 
Monetary Authority (currently, CMU) must open omnibus 
nominee accounts with the onshore custody agent 
recognised by the PBOC (currently, CCDC and SCH). 

Credit Ratings. A portfolio may invest in securities 

the credit ratings of which are assigned by the Chinese local 
credit rating agencies. However, the rating criteria and 
methodology used by such agencies may be different from 
those adopted by most of the established international credit 
rating agencies. Therefore, such rating system may not 
provide an equivalent standard for comparison with securities 
rated by international credit rating agencies. 

Urban Investment Bonds. Risks of Urban Investment 

Bonds, which are issued by Local Government Financing 
Vehicles (LGFVs), include the risk of financial difficulties of 
the underlying operations. 

China Taxation. Investments in mainland China 

securities are subject to additional tax regimes. For example, 
certain investment in PRC resident enterprise may be subject 
to a withholding income tax. 

Although the investment manager intends to operate the 
portfolio to minimise the impact of PRC taxation and to take 
action to address any tax impacts, such as income tax on 

AB FCP I 

capital gains arising from the disposal of PRC bonds, it is 
possible the PRC could consider the portfolio subject to PRC 
Corporate Income Tax. This would have various impacts, 
such as taxes on interest, dividends and capital gains. 

Focused Portfolio Risk.  Certain Portfolios may invest in a 
limited number of issuers, industries or sectors or countries 
and may therefore be subject to greater volatility than a 
portfolio invested in a larger or more diverse array of 
securities. Such concentration could expose such investors 
to losses disproportionate to market movements in general if 
there are disproportionately greater adverse price 
movements in securities in which the Portfolio is invested. 
Market or economic factors affecting issuers, industries or 
sectors in which the Portfolio’s investments are concentrated 
could have a significant effect on the value of the portfolio's 
investments. 

Dynamic Asset Allocation Risk. The allocation of 
investments among different global asset classes may have a 
significant effect on the Portfolio’s performance when one of 
these asset classes is performing more poorly than others. 
As both the direct investments and derivative positions may 
be periodically rebalanced to reflect the Investment 
Manager’s view of market and economic conditions, there will 
be transaction costs which may be, over time, significant. In 
addition, there is a risk that certain asset allocation decisions 
may not achieve the desired results and, as a result, the 
Portfolio may incur significant losses. 

Allocation Risk.  This is the risk that the allocation of 
investments between growth and value companies may have 
a more significant effect on a portfolio's Net Asset Value 
when one of these styles is performing more poorly than the 
other.  Also, the transaction costs of rebalancing a portfolio's 
investments may be, over time, significant. 

Turnover Risk.  A portfolio may be actively managed and, in 
some cases in response to market conditions, the portfolio's 
turnover may exceed 100%.  A higher rate of portfolio 
turnover increases brokerage and other expenses, which 
must be borne by a portfolio and its Shareholders.  High 
portfolio turnover also may result in the realization of 
substantial net short term capital gains, which, when 
distributed, may be taxable to Shareholders. 

In addition, a portfolio may experience relatively higher 
turnover attributable to investors in a particular country where 
such portfolio is available for purchase.  This activity may 
adversely affect such portfolio's performance and the 
interests of long-term investors. Volatility resulting from 
excessive purchases and redemptions or exchanges of 
Shares, especially involving large dollar amounts, may 
disrupt efficient portfolio management.  In particular, a 
portfolio may have difficulty implementing long-term 
investment strategies if it is unable to anticipate what portion 
of assets it should retain in cash to provide liquidity to 
Shareholders. Also, excessive purchases and redemptions or 
exchanges of Shares may force a portfolio to maintain a 
disadvantageously large cash position to accommodate short 
duration trading activity. Further, excessive purchases and 
redemptions or exchanges of a portfolio's Shares may force a 
portfolio to sell portfolio securities at inopportune times to 
raise cash to accommodate short duration trading activity.  
Additionally, portfolios may incur increased expenses if one 

II-39 

 
 
or more Shareholders engage in excessive purchase and 
redemption or exchange activity.  For example, a portfolio 
that is forced to liquidate investments due to short duration 
trading activity may incur increased brokerage and tax costs 
without attaining any investment advantage.  Similarly, a 
portfolio may bear increased administrative costs as a result 
of the asset level and investment volatility that accompanies 
patterns of short duration trading activity. 

Smaller Capitalization Companies Risk.  A Portfolio may 
invest in securities of companies with relatively small market 
capitalizations.  Securities of these smaller capitalization 
companies may be subject to more abrupt or erratic market 
movements than the securities of larger, more established 
companies, both because the securities are typically traded 
in lower volume and because the companies are subject to 
greater business risk.  Also, in certain emerging market 
countries, volatility may be heightened by actions of a few 
major investors.  For example, substantial increases or 
decreases in cash flows of mutual funds investing in these 
markets could significantly affect local stock prices and, 
therefore, Share prices of a portfolio. 

Financial Instruments Risks 

Derivatives Risk.  A portfolio may use derivatives, which are 
financial contracts whose value depends on, or is derived 
from, the value of an underlying asset, reference rate, or 
index.  The Investment Manager will sometimes use 
derivatives as part of a strategy designed to reduce other 
risks.  Generally, however, a portfolio may use derivatives as 
direct investments to earn income, enhance yield and 
broaden portfolio diversification.  In addition to other risks 
such as the credit risk of the counterparty, derivatives involve 
the risk of difficulties in pricing and valuation and the risk that 
changes in the value of the derivative may not correlate 
perfectly with relevant underlying assets, rates, or indices. 

While the judicious use of derivatives by experienced 
investment advisers such as the Investment Manager may 
promote portfolio management efficiencies, mitigate certain 
risks, and increase exposure towards certain markets without 
direct purchase in the underlying assets, derivatives also 
involve risks different from, and, in certain cases, greater 
than, the risks presented by more traditional investments.  
The following is a general discussion of important risk factors 
and issues concerning the use of derivatives that investors 
should understand before investing in a portfolio. 

•  Market Risk.  This is the general risk attendant to all 

investments that the value of a particular investment will 
change in a way detrimental to the portfolio's interest. 

•  Management Risk.  Derivative products are highly 
specialized instruments that require investment 
techniques and risk analyses different from those 
associated with stocks and bonds.  The successful use 
of derivative transactions will be subject to the 
Investment Manager's ability to correctly predict price 
movements, interest rates, or currency exchange rate 
movements.  Should prices, interest rates, or exchange 
rates move unexpectedly, a portfolio may not achieve the 
anticipated benefits of the transactions or may realize 
losses and thus be in a worse position than if such 
strategies had not been used.  The use of a derivative 

II-40 

AB FCP I 

requires an understanding not only of the underlying 
instrument but also of the derivative itself, without the 
benefit of observing the performance of the derivative 
under all possible market conditions.  In particular, the 
use and complexity of derivatives require the 
maintenance of adequate controls to monitor the 
transactions entered into, the ability to assess the risk 
that a derivative adds to a portfolio and the ability to 
forecast price, interest rate or currency exchange rate 
movements correctly. 

•  Credit Risk.  This is the risk that a loss may be sustained 
by a portfolio as a result of the failure of another party to 
a derivative (usually referred to as a "counterparty") to 
comply with the terms of the derivative contract.  The 
credit risk for exchange-traded derivatives is generally 
less than for privately negotiated derivatives, since the 
clearing house, which is the issuer or counterparty to 
each exchange-traded derivative, provides a guarantee 
of performance.  This guarantee is supported by a daily 
payment system (i.e., margin requirements) operated by 
the clearing house in order to reduce overall credit risk.  
For privately negotiated derivatives, there is no similar 
clearing agency guarantee.  Therefore, the Investment 
Manager will consider the creditworthiness of each 
counterparty to a privately negotiated derivative in 
evaluating potential credit risk. 

• 

• 

Liquidity Risk.  Liquidity risk exists when a particular 
instrument is difficult to purchase or sell.  If a derivative 
transaction is particularly large or if the relevant market is 
illiquid (as is the case with many privately negotiated 
derivatives), it may not be possible to initiate a 
transaction or liquidate a position at an advantageous 
price. 

Leverage Risk.  Since warrants, options and many 
derivatives (to the extent utilized) have a leverage 
component, adverse changes in the value or level of the 
underlying asset, rate or index can result in a loss 
substantially greater than the amount invested in the 
warrant, option or derivative itself.  In the case of swaps, 
the risk of loss generally is related to a notional principal 
amount, even if the parties have not made any initial 
investment.  Certain derivatives have the potential for 
unlimited loss, regardless of the size of the initial 
investment. 

•  Other Risks.  Other  risks in using derivatives include the 
risk of mispricing or improper valuation of derivatives and  
the inability of derivatives to correlate perfectly with 
underlying assets, rates and indices.  Many derivatives, 
in particular privately negotiated derivatives, are complex 
and often valued subjectively.  Improper valuations can 
result in increased cash payment requirements to 
counterparties or a loss of value to the portfolio 
concerned.  Derivatives do not always perfectly or even 
highly correlate or track the value of the assets, rates or 
indices they are designed to track.  Consequently, a 
portfolio's use of derivatives may not always be an 
effective means of, and sometimes could be 
counterproductive to, furthering the portfolio's investment 
objective. 

 
 
Securities lending Risk. If a Portfolio lends securities, it 
takes on counterparty risk with respect to the borrower as 
well as the risk that any collateral from the counterparty may 
prove insufficient to cover all costs and liabilities incurred. 

Repurchase/reverse repurchase agreement Risk. If a 
Portfolio uses repurchase and reverse repurchase 
agreements, it takes on counterparty risks such as the 
counterparty defaulting on its obligations. A default by a 
counterparty could result in the Portfolio suffering a loss to 
the extent that the proceeds from the sale of securities are 
insufficient to replace the cash owed by the counterparty or to 
the extent that cash received by the Portfolio as part of the 
transaction is insufficient to replace the securities to be 
returned by the counterparty.   

OTC Derivatives Counterparty Risk.  In addition to the 
general risks of derivatives discussed above, transactions in 
the OTC derivatives markets may involve the following 
particular risks. 

•  Absence of regulation; counterparty default.    In general, 
there is less governmental regulation and supervision of 
transactions in the OTC markets (in which currencies, 
forward, spot and option contracts, credit default swaps, 
total return swaps and certain options on currencies are 
generally traded) than of transactions entered into on 
organised exchanges. In addition, many of the 
protections afforded to participants on some organised 
exchanges, such as the performance guarantee of an 
exchange clearing house, may not be available in 
connection with OTC transactions. Therefore, any 
portfolio entering into OTC transactions will be subject to 
the risk that its direct counterparty will not perform its 
obligations under the transactions and that the portfolio 
will sustain losses. A portfolio will only enter into 
transactions with counterparties which it believes to be 
creditworthy, and may reduce the exposure incurred in 
connection with such transactions through the receipt of 
letters of credit or collateral from certain counterparties. 
Regardless of the measures the Fund may seek to 
implement to reduce counterparty credit risk, however, 
there can be no assurance that a counterparty will not 
default or that the Fund will not sustain losses as a 
result. 

• 

Liquidity; requirement to perform. From time to time, the 
counterparties with which the Fund effects transactions 
might cease making markets or quoting prices in certain 
of the instruments. In such instances, the Fund might be 
unable to enter into a desired transaction in currencies, 
credit default swaps or total return swaps or to enter into 
an offsetting transaction with respect to an open position, 
which might adversely affect its performance. Further, in 
contrast to exchange‑traded instruments, forward, spot 
and option contracts on currencies do not provide the 
Investment Adviser with the possibility to offset the 
Fund’s obligations through an equal and opposite 
transaction. For this reason, in entering into forward, spot 
or options contracts, the Fund may be required, and 
must be able, to perform its obligations under the 
contracts. 

AB FCP I 

•  Necessity for counterparty trading relationships. As noted 
above, participants in the OTC market typically enter into 
transactions only with those counterparties which they 
believe to be sufficiently creditworthy, unless the 
counterparty provides margin, collateral, letters of credit 
or other credit enhancements. While the Fund and the 
Investment Manager believe that the Fund will be able to 
establish multiple counterparty business relationships to 
permit the Fund to effect transactions in the OTC market 
and other counterparty markets (including credit default 
swaps, total return swaps and other swaps market as 
applicable), there can be no assurance that it will be able 
to do so. An inability to establish or maintain such 
relationships would potentially increase the Fund's 
counterparty credit risk, limit its operations and could 
require the Fund to cease investment operations or 
conduct a substantial portion of such operations in the 
futures markets. Moreover, the counterparties with which 
the Fund expects to establish such relationships will not 
be obligated to maintain the credit lines extended to the 
Fund, and such counterparties could decide to reduce or 
terminate such credit lines at their discretion. 

Commodity Related Risk.  Investing in commodity-linked 
derivative instruments may subject a portfolio to greater 
volatility than investments in traditional securities. The value 
of commodity-linked derivative instruments may be affected 
by changes in overall market movements, commodity index 
volatility, changes in interest rates, or factors affecting a 
particular industry or commodity, such as drought, floods, 
weather, livestock disease, embargoes, tariffs and 
international economic, political and regulatory 
developments.  

Structured Instruments Risk. Structured instruments are 
potentially more volatile and carry greater market risks than 
traditional debt instruments. Depending on the structure of 
the particular structured instrument, changes in a Benchmark 
may be magnified by the terms of the structured instrument 
and have an even more dramatic and substantial effect upon 
the value of the structured instrument. The prices of the 
structured instrument and the Benchmark or Underlying 
Asset may not move in the same direction or at the same 
time. Structured instruments may be less liquid and more 
difficult to price than less complex securities or instruments or 
more traditional debt securities. The risk of these investments 
can be substantial; possibly all of the principal is at risk.   

Equity Securities Risks 

Equity Securities Risk.  The value of underlying equity 
investments of a portfolio may fluctuate, sometimes 
dramatically, in response to the activities and results of 
individual companies or because of general market and 
economic conditions and changes in currency exchange 
rates.  The value of a portfolio's investments may decline 
over short- or long-term periods. 

Debt Securities Risks 

Fixed-Income Securities Risk—General.  The Net Asset 
Value of a portfolio invested in fixed-income securities will 
change in response to fluctuations in interest rates and 
currency exchange rates, as well as changes in credit quality 

II-41 

 
 
 
of the issuer.  Some portfolios may invest in high yielding 
fixed-income securities where the risk of depreciation and 
realization of capital losses on some of the fixed-income 
securities held will be unavoidable.  In addition, medium- and 
lower-rated and unrated fixed-income securities of 
comparable quality may be subject to wider fluctuations in 
yield and market values than higher-rated fixed-income 
securities. 

Fixed-Income Securities and Interest Rates.  The 

value of a portfolio's Shares will fluctuate with the value of its 
investments.  The value of a portfolio's investments in fixed-
income securities will change as the general level of interest 
rates fluctuates.  During periods of falling interest rates, the 
values of fixed-income securities generally rise, although if 
falling interest rates are viewed as a precursor to a recession, 
the values of a portfolio's securities may fall along with 
interest rates.  Conversely, during periods of rising interest 
rates, the values of fixed-income securities generally decline.  
Changes in interest rates have a greater effect on fixed-
income securities with longer maturities and durations than 
those with shorter maturities and durations. 

Fixed-Income Securities and Prepayment.  Many 

fixed-income securities, especially those issued at high 
interest rates, provide that the issuer may repay them early. 
Issuers often exercise this right when interest rates decline. 
Accordingly, holders of securities that may be called or 
prepaid may not benefit fully from the increase in value that 
other fixed-income securities experience when rates decline.  
Furthermore, in such a scenario a portfolio may reinvest the 
proceeds of the payoff at then-current yields, which would be 
lower than those paid by the security that was paid off.  
Prepayments may cause losses on securities purchased at a 
premium, and unscheduled prepayments, which will be made 
at par, will cause a portfolio to experience a loss equal to any 
unamortized premium. 

Rating Agencies.  Future actions of any rating agency 
can  adversely  affect  the  market  value  or  liquidity  of  fixed-
income securities, and a rating agency may, at any time and 
without  any  change  in  its  published  ratings  criteria  or 
methodology,  lower  or  withdraw  any  rating  assigned  by  it  to 
any class of securities.  Any such revision or withdrawal of a 
rating as a result of such a failure might adversely affect the 
liquidity and value of a fixed-income security. 

Fixed-Income Securities Risk—Lower-Rated and Unrated 
Instruments.  A portfolio's assets may be invested, in whole 
or in part, in high yield, high risk debt securities that are rated 
in the lower rating categories (i.e., below Investment Grade) 
or which are unrated but are of comparable quality as 
determined by the Investment Manager.  Debt securities 
rated below Investment Grade are commonly referred to as 
"junk bonds" and are considered to be subject to greater risk 
of loss of principal and interest than higher-rated securities 
and are considered to be predominantly speculative with 
respect to the issuer's capacity to pay interest and repay 
principal, which may in any case decline during sustained 
periods of deteriorating economic conditions or rising interest 
rates. Lower-rated securities generally are considered to be 
subject to greater market risk than higher-rated securities in 
times of deteriorating economic conditions. In addition, lower-
rated securities may be more susceptible to real or perceived 
adverse economic and competitive industry conditions than 

AB FCP I 

Investment Grade securities, although the market values of 
lower-rated securities tend to react less to fluctuations in 
interest rate levels than do those of higher-rated securities. 
The market for lower-rated securities may be thinner and less 
active than that for higher-quality securities, which can 
adversely affect the prices at which these securities can be 
sold. To the extent that there is no regular secondary market 
trading for certain lower-rated securities, the Investment 
Manager may experience difficulty in valuing such securities 
and, in turn, a portfolio's assets. In addition, adverse publicity 
and investor perceptions about lower-rated securities, 
whether or not based on fundamental analysis, may tend to 
decrease the market value and liquidity of such lower-rated 
securities. Transaction costs with respect to lower-rated 
securities may be higher, and in some cases information may 
be less available, than is the case with Investment Grade 
securities. 
Since the risk of default is higher for lower-rated securities, 
the Investment Manager's research and credit analysis are a 
correspondingly important aspect of its program for managing 
a portfolio's investment in these securities. In considering 
investments for a portfolio, the Investment Manager will 
attempt to identify those high-yielding securities the financial 
condition of which is adequate to meet future obligations or 
has improved, or is expected to improve in the future. The 
Investment Manager's analysis focuses on relative values 
based on such factors as interest or dividend coverage, asset 
coverage, earnings prospects, and the experience and 
managerial strength of the issuer. 

Unrated securities will be considered for investment by a 
portfolio when the Investment Manager believes that the 
financial condition of the issuers of such securities, or the 
protection afforded by the terms of the securities themselves, 
limits the risk to the portfolio to a degree comparable to that 
of rated securities which are consistent with the portfolio's 
objectives and policies. 

In seeking to achieve a portfolio's primary objective, there will 
be times, such as during periods of rising interest rates, when 
depreciation and realization of capital losses on securities in 
the portfolio will be unavoidable. Moreover, medium- and 
lower-rated securities and unrated securities of comparable 
quality may be subject to wider fluctuations in yield and 
market values than higher-rated securities under certain 
market conditions. Such fluctuations after a security is 
acquired do not affect the cash income received from that 
security but are reflected in the Net Asset Value of a portfolio.  

Distressed Securities.  Certain securities may become 
distressed when the issuer of such securities enters into 
default or is in high risk of default. Such securities often have 
a credit rating of CC or below. An issuer of securities may 
experience a risk of default for a number of reasons, 
including weak financial condition, poor operating results, 
substantial capital needs, negative cash flow or net worth, 
and changes in market or competitive conditions which 
adversely affect the issuer’s business, among other factors. A 
Portfolio may invest in distressed securities where the 
Investment Manager believes that the market valuation of 
such securities is below their fair value. While higher in risk, 
distressed securities generally offer a correspondingly 
greater potential for higher returns. Distressed securities may 
be difficult to value due to legal and market uncertainties, and 
the level of analytical sophistication, both financial and legal, 

II-42 

 
 
 
 
necessary for successful investment in companies 
experiencing significant business and financial distress is 
high. Accordingly, there can be no assurance that 
investments in such securities will generate returns to 
compensate Shareholders adequately for the risks assumed 
and without experiencing a loss. Distressed securities may 
also be affected by laws concerning issuer reorganization, 
bankruptcy, and creditor and shareholder rights, and such 
laws may vary considerably in various jurisdictions, leading to 
uncertainty as to the enforceability of claims by investors and 
lenders and delay in the recoupment of an investment. 

Credit Risk—Sovereign Debt Obligations.  By investing in 
debt obligations of governmental entities, a portfolio will be 
exposed to the direct or indirect consequences of political, 
social and economic changes in various countries. Political 
changes in a particular country may affect the willingness of a 
particular government to make or provide for timely payments 
of its debt obligations. The country's economic status, as 
reflected, among other things, in its inflation rate, the amount 
of its external debt and its gross domestic product, will also 
affect the government's ability to honor its obligations. 

The ability of governments to make timely payments on their 
debt obligations is likely to be influenced strongly by the 
issuer's balance of payments, including export performance, 
and its access to international credits and investments. To 
the extent that a particular country receives payment for its 
exports in currencies other than the Currency of the Portfolio, 
such country's ability to make debt payments denominated in 
the Currency of the Portfolio could be adversely affected. To 
the extent that a particular country develops a trade deficit, 
such country will need to depend on continuing loans from 
foreign governments, supranational entities or private 
commercial banks, aid payments from foreign governments 
and on inflows of foreign investment. The access of a 
particular country to these forms of external funding may not 
be certain, and a withdrawal of external funding could 
adversely affect the capacity of such country to make 
payments on its debt obligations. In addition, the cost of 
servicing debt obligations can be affected by a change in 
global interest rates since the majority of these debt 
obligations carry interest rates that are adjusted periodically 
based upon global rates. 

A portfolio may invest in debt obligations of governmental 
entities and supranational entities, for which a limited or no 
established secondary markets may exist. Reduced 
secondary market liquidity may have an adverse effect on the 
market price and a portfolio's ability to dispose of particular 
instruments when necessary to meet its liquidity 
requirements or in response to specific economic events 
such as deterioration in the creditworthiness of the issuer. 
Reduced secondary market liquidity for such debt obligations 
may also make it more difficult for a portfolio to obtain 
accurate market quotations for the purpose of valuing its 
portfolio. Market quotations are generally available on many 
sovereign debt obligations only from a limited number of 
dealers and may not necessarily represent firm bids of those 
dealers or prices for actual sales. 

A portfolio may have limited legal recourse in the event of a 
default with respect to certain sovereign debt obligations it 
holds. For example, remedies from defaults on certain debt 
obligations of governmental entities, unlike those on private 

II-43 

AB FCP I 

debt, must, in some cases, be pursued in the courts of the 
defaulting party itself. Legal recourse therefore may be 
significantly diminished. Bankruptcy, moratorium and other 
similar laws applicable to issuers of sovereign debt 
obligations may be substantially different from those 
applicable to issuers of private debt obligations.  The political 
context, expressed as the willingness of an issuer of 
sovereign debt obligations to meet the terms of the debt 
obligation, for example, is of considerable importance. In 
addition, no assurance can be given that the holders of 
commercial bank debt will not contest payments to the 
holders of securities issued by foreign governments in the 
event of default under commercial bank loan agreements. 

In addition, a portfolio's investment in debt obligations of 
supranational entities is subject to the additional risk that one 
or more member governments may fail to make required 
capital contributions to a particular supranational entity and, 
as a result, such supranational entity may be unable to meet 
its obligations with respect to its debt obligations held by the 
portfolio. 

Credit Risk—Corporate Debt Obligations.  By investing in 
debt obligations issued by companies and other entities, a 
portfolio will be subject to the risk that a particular issuer may 
not fulfill its payment or other obligations in respect of such 
debt obligations. Additionally, an issuer may experience an 
adverse change in its financial condition which may in turn 
result in a decrease in the credit rating assigned by an IRSO 
to such issuer and its debt obligations, possibly below 
Investment Grade. Such adverse change in financial 
condition or decrease in credit rating(s) may result in 
increased volatility in the price of an issuer's debt obligations 
and negatively affect liquidity, making any such debt 
obligation more difficult to sell. 

General Risks of CDO Investments. The value of any 
CDOs owned by a Portfolio generally will fluctuate with, 
among other things, the financial condition of the obligors or 
issuers of the underlying portfolio of assets of the related 
CDO (“CDO Collateral”), general economic conditions, the 
condition of certain financial markets, political events, 
developments or trends in any particular industry and 
changes in prevailing interest rates. Consequently, holders of 
CDOs must rely solely on distributions on the CDO Collateral 
or proceeds thereof for payment in respect thereof. CDO 
Collateral may consist of high yield debt securities, loans, 
ABS and other instruments, which often are rated below 
investment grade (or of equivalent credit quality). The lower 
ratings of high yield securities and below investment grade 
loans reflect a greater possibility that adverse changes in the 
financial condition of an issuer or in general economic 
conditions or both may impair the ability of the related issuer 
or obligor to make payments of principal or interest. In 
addition, the lack of an established, liquid secondary market 
for some CDOs (CDO equity securities in particular) may 
have an adverse effect on the market value of those CDOs 
and will in most cases make it difficult to dispose of such 
CDOs at market or near-market prices. 

Rating Agencies.  Future actions of any rating agency can 
adversely affect the market value or liquidity of CDOs, and a 
rating agency may, at any time and without any change in its 
published ratings criteria or methodology, lower or withdraw 
any rating assigned by it to any class of CDO security.  Any 

 
 
 
such revision or withdrawal of a rating as a result of such a 
failure might adversely affect the liquidity and value of the 
CDO security. 

Effects of Regulation on CDO Market.  Legislative or 
regulatory action taken by the U.S. federal government or 

AB FCP I 

any U.S. regulatory body (or other non-U.S. authority or 
regulatory body) in response to economic conditions or 
otherwise may negatively impact the liquidity and value of 
CDOs. 

II-44 

 
 
Meetings and Reports to Shareholders 

Shareholders' Information 

The latest audited annual reports and unaudited semi-annual 
reports will be made available to the Shareholders at no cost 
to them at the offices of the Management Company and the 
Depositary.  Electronic copies of such annual and semi-
annual reports are also available on the following website: 
www.alliancebernstein.com. The accounts of each portfolio 
will be established in the relevant Currency of the Portfolio 
and consolidated accounts of the Fund are established in 
Dollars.  Any other financial information to be published 
concerning any portfolio of the Fund or the Management 
Company, including the daily Net Asset Value of the Shares 
of any class of any portfolio and any suspension of such 
valuation, will be made available to the Shareholders at no 
cost to them at the offices of the Management Company and 
the Depositary. 

If required by law and applicable regulations, notices to 
Shareholders will be published in the RESA and in such other 
newspaper(s) in such countries as the Management 
Company may from time to time determine.

AB FCP I 

In addition the Net Asset Value of the Shares is published as 
provided for in Section I for each Portfolio. 

The Management Company draws the investors’ 
attention to the fact that any investor will only be able to 
fully exercise his investor rights directly against the 
Fund if the investor is registered himself and in his own 
name in the Shareholders’ register of the Fund. In cases 
where an investor invests in the Fund through an 
intermediary investing into the Fund in his own name but 
on behalf of the investor, it may not always be possible 
for the investor to exercise certain shareholder rights 
directly against the Fund. Investors are advised to take 
advice on their rights. 

Shareholder Meetings 

The Management Regulations do not provide for meetings of 
Shareholders, and the Fund does not intend to call any such 
meetings. 

II-45 

 
 
 
 
 
 
 
Management and Administration 

Investment Management 
AllianceBernstein L.P., a Delaware limited partnership with 
principal offices at 501 Commerce Street, Nashville TN 
37203, U.S.A., a leading global investment manager 
providing diversified services to institutions and individuals 
through a broad line of investments, has been appointed as 
the investment manager for the Fund pursuant to the terms of 
an Investment Management Agreement.  The Investment 
Management Agreement may be terminated by the 
Management Company on behalf of the Fund or by the 
Investment Manager upon sixty days' written notice to the 
other.  AllianceBernstein Corporation, the Investment 
Manager's general partner, is an indirect wholly owned 
subsidiary of AXA Financial, Inc., which in turn is a wholly 
owned subsidiary of AXA, a French company. 

The Investment Manager is registered with the U.S. 
Securities and Exchange Commission (the "SEC") as an 
investment adviser under the U.S. Investment Advisers Act of 
1940, as amended. Additional information about the 
Investment Manager is available on the SEC's website at 
www.adviserinfo.sec.gov. Registration with the SEC or with 
any U.S. state securities authority does not imply a certain 
level of skill or training. 

In providing discretionary investment management services to 
the Fund, the Investment Manager may sub-delegate some of 
its  investment  management  services  to  one  or  more  of  its 
wholly  owned  subsidiaries  (the  “Affiliated  Sub-Investment 
Managers”).  The  Affiliated  Sub-Investment  Managers  may, 
under the Investment Manager’s responsibility and oversight, 
take investment decisions on a discretionary basis as well as 
acquire and dispose of securities and assets of the Portfolios 
to  which  they  provide  such  sub-delegated  services.  All 
Affiliated Sub-Investment Managers are authorised, registered, 
or approved to provide investment management services and 
are  subject  to  prudential  supervision  by  their  supervisory 
authority. 

The  Affiliated  Sub-Investment  Managers  involved  in  the 
management of the Fund are: 

•  AllianceBernstein Limited, whose principal office is 
situated at 60 London Wall, London, EC2M 5SJ, 
United Kingdom  

•  AllianceBernstein Hong Kong Limited, whose 

principal office is situated at 39th Floor, One Island 
East, Taikoo Place, 18 Westlands Road, Quarry 
Bay, Hong Kong 

•  AllianceBernstein (Singapore) Ltd., whose 

principal office is situated at One Raffles Quay, #27-
11 South Tower. Singapore 048583 

•  AllianceBernstein (Japan) Ltd., whose principal 
office is situated at Hibiya Park Front Building 14F, 
2-1-6 Uchisaiwaicho, Chiyoda-ku, 14th Floor 
Tokyo 100-001, Japan 

II-46 

AB FCP I 

•  AllianceBernstein Australia Limited, Aurora Place, 
Level  32F,  88  Phillip  Street,  Sydney,  New  South 
Wales, 2000, Australia  

Further details on the Affiliated Sub-Investment Managers 
involved in the management of the Fund, including the 
portfolios of the Fund in scope are provided on  
www.alliancebernstein.com/go/Sub-Inv-Manager-
Affiliates. 

The  Investment  Manager  and  the  Affiliated  Sub-Investment 
Managers provide their investment managements services (i) 
under  the  supervision  of  the  Management  Company,  (ii)  in 
accordance  with  instructions  received  from  and  investment 
allocation  criteria  laid  down  by  the  Management  Company 
from  time  to  time,  and  (iii)  in  compliance  with  the  stated 
investment objectives and restrictions of the relevant Portfolios. 

The Management Company 
AllianceBernstein (Luxembourg) S.à r.l. (formerly known 
AllianceBernstein (Luxembourg) S.A.), the principal 
shareholder of which is AllianceBernstein Holdings Limited, a 
wholly owned subsidiary of the Investment Manager, was 
organized as a société anonyme under the laws of the Grand 
Duchy of Luxembourg by notarial deed dated 31 July 1990, 
and published in the Mémorial on 9 November 1990.  It has 
been incorporated for an undetermined period and its 
registered and principal office is at 2-4, rue Eugène Ruppert, 
L-2453, Luxembourg.  Effective as of April 11th, 2011, 
AllianceBernstein (Luxembourg) S.A. has changed its 
corporate form from a “société anonyme” (public limited 
company) to a “société à responsabilité limitée” (private 
limited company). It therefore changed its name from 
AllianceBernstein (Luxembourg) S.A. to AllianceBernstein 
(Luxembourg) S.à r.l.. 

It constitutes the same legal entity and will continue to 
operate as a UCITS-compliant Management Company 
subject to the supervision of the Commission de Surveillance 
du Secteur Financier, the Luxembourg financial supervisory 
authority.  Its articles of incorporation were amended for the 
last time on 1 February 2019. It is registered with the 
Registre de Commerce et des Sociétés in Luxembourg under 
No. B 34.405.  The issued capital of the Management 
Company is €16,300,000, divided into 163,000 registered 
shares with no par value, all of which are fully paid. The 
Management Company is (i) a management company 
authorized under chapter 15 of the Law of 2010 and (ii) an 
alternative investment fund manager in Luxembourg 
authorized under chapter 2 of the law of 12 July 2013 on 
alternative investment fund managers. 

The object of the Management Company is the creation and 
management of collective investment undertakings on behalf 
of their respective shareholders.  It will carry out the 
administration and management of the Fund on behalf of the 
Shareholders, including the purchase, sale, subscription and 
exchange of securities, and it may exercise all rights related 
to the Fund's assets. 

 
 
 
 
 
 
 
 
 
 
 
 
The Management Company may also be appointed to act as 
management company for other investment funds, the list of 
which will be available, upon request, at the registered office 
of the Fund and the Management Company. 

Remuneration Policy. The Management Company has 
established remuneration policies for those categories of 
staff, including senior management, risk takers, control 
functions, and any employees receiving total remuneration 
that takes them into the same remuneration bracket as senior 
management and risk takers whose professional activities 
have a material impact on the risk profiles of the 
Management Company or the Fund, that: 

 are consistent with and promote a sound and 

- 
effective risk management and do not encourage risk-taking 
which is inconsistent with the risk profiles of the Fund or with 
its Management Regulations; 

are in line with the business strategy, objective 

- 
values and interests of the Management Company and the 
Fund and of the shareholders of the Fund, and includes 
measures to avoid conflict of interest;  

include an assessment of performance set in a multi-

- 
year framework appropriate to the holding period 
recommended to the shareholders of the Fund in order to 
ensure that the assessment process is based on the longer-
term performance of the Fund and its investment risks and 
that the actual payment of performance-based components 
of remuneration is spread over the same period; and 

fixed and variable components of total remuneration 

- 
are appropriately balanced and the fixed components 
represents a sufficiently high proportion of the total 
remuneration to allow the operation of a fully flexible policy 
on variable remuneration components, including the 
possibility to pay no variable remuneration component. 

In particular, based on established remuneration policies, no 
employee of the Management Company is paid based on the 
investment performance of the Fund. Moreover variable 
remuneration of employees is based on function-specific 
objectives and company-wide performance criteria and it 
does not usually exceed 40% of the total compensation. 

In accordance with ESMA Guidelines on sound remuneration 
policies under the UCITS Directive and AIFMD, the 
Management Company has not established a remuneration 
committee separated from the remuneration committee 
established at the AB Group level. 

The up-to-date remuneration policy of the Management 
Company, including, but not limited to, a description of how 
remuneration and benefits are calculated, the identity of 
persons responsible for awarding the remuneration and 
benefits, are available at 
www.alliancebernstein.com/go/renumeration_policy. A paper 
copy is available free of charge upon request at the 
Management Company’s registered office. 

The managers of the Management Company are: 

Silvio D. Cruz, Managing Director, AllianceBernstein 
(Luxembourg) S.à r.l. and Senior Vice President and 
Managing Director, AllianceBernstein Limited, 60 London 
Wall, London, EC2M 5SJ, United Kingdom; 

AB FCP I 

Bertrand Reimmel, Managing Director and Senior Vice 
President, AllianceBernstein (Luxembourg) S.à r.l., 2-4, rue 
Eugène Ruppert L-2453, Luxembourg; 

Steven M. Eisenberg, Senior Vice President and Chief 
Operating Officer, AllianceBernstein L.P., 1345 Avenue of the 
Americas, New York, New York 10105, U.S.A.;  

Eileen Koo, Senior Vice President and Chief Compliance 
Officer (Asia ex-Japan), AllianceBernstein Hong Kong 
Limited, One Island East, Taikoo Place, 18 Westlands Road, 
Quarry Bay, Hong Kong and 

John Schiavetta, Senior Vice President and Chief Risk 
Officer, AllianceBernstein L.P., 501 Commerce Street, 
Nashville, TN 37203 USA. 

Administrator  
Brown Brothers Harriman (Luxembourg) S.C.A. has been 
appointed as the administrator of the Fund pursuant to the 
terms of the Administration Agreement.  In such capacity it is 
responsible for the general administrative functions of the 
Fund required by Luxembourg law, such as the calculation of 
the Net Asset Value of the Shares and the maintenance of 
accounting records.  Brown Brothers Harriman (Luxembourg) 
S.C.A. also acts as paying agent of the Fund.  Either the 
Administrator or the Management Company may terminate 
the Administrator's appointment at any time on giving ninety 
days' written notice. 

Depositary 

Brown Brothers Harriman (Luxembourg) S.C.A. (the 
“Depositary”) has been appointed as depositary of the Fund 
for (i) the safekeeping of the assets of the Fund (ii) the cash 
monitoring, (iii) the oversight functions and (iv) such other 
services as agreed from time to time and reflected in the 
Depositary Agreement. 

The Depositary is a credit institution established in 
Luxembourg, whose registered office is situated at 80, route 
d’Esch, L-1470 Luxembourg, and which is registered with the 
Luxembourg register of commerce and companies under 
number B29923. It is licensed to carry out banking activities 
under the terms of the Luxembourg law of 5 April 1993 on the 
financial services sector, as amended.  

Duties of the Depositary. The Depositary is entrusted with 
the safekeeping of the Fund's assets. For the financial 
instruments which can be held in custody, they may be held 
either directly by the Depositary or, to the extent permitted by 
applicable laws and regulations, through every third-party 
custodian/sub-custodian providing, in principle, the same 
guarantees as the Depositary itself, i.e. for Luxembourg 
institutions to be a credit institution within the meaning of the 
law of 5 April 1993 on the financial sector or for foreign 
institutions, to be a financial institution subject to the rules of 
prudential supervision considered as equivalent to those 
provided by EU legislation. The Depositary also ensures that 
the Fund's cash flows are properly monitored, and in 
particular that the subscription monies have been received 
and all cash of the Fund has been booked in the cash 
account in the name of (i) the Fund, (ii) the Management 
Company on behalf of the Fund or (iii) the Depositary on 
behalf of the Fund. 

II-47 

 
 
In addition, the Depositary shall also ensure: 

(i) 

that the sale, issue, repurchase, redemption and 
cancellation of the Shares of the Fund are carried 
out in accordance with Luxembourg law and the 
Management Regulations; 

(ii)  that the value of the Shares of the Fund is calculated 

in accordance with Luxembourg law and the 
Management Regulations; 

(iii)  to carry out the instructions of the Fund and the 

Management Company acting on behalf of the Fund, 
unless they conflict with Luxembourg law or the 
Management Regulations; 

(iv)  that in transactions involving the Fund’s assets any 

consideration is remitted to the Fund within the usual 
time limits;  

(v)  that the Fund’s incomes are applied in accordance 

with Luxembourg law and the Management 
Regulations. 

The Depositary regularly provides the Fund and its 
Management Company with a complete inventory of all 
assets of the Fund. 

Delegation of functions. Pursuant to the provisions of 
Article 34bis of the Law of 2010 and of the Depositary 
Agreement, the Depositary may, subject to certain conditions 
and in order to more efficiently conduct its duties, delegate 
part or all of its safekeeping duties over the Fund's assets set 
out in Article 34(3) of the Law of 2010, including but not 
limited to holding assets in custody or, where assets are of 
such a nature that they cannot be held in custody, verification 
of the ownership of those assets as well as record-keeping 
for those assets, to one or more third-party delegates 
appointed by the Depositary from time to time (the 
“Correspondents”). 

In relation to the Correspondents, the Depositary has a 
process in place designed to select the highest quality third-
party provider(s) in each market. The Depositary shall 
exercise due care and diligence in choosing and appointing 
each Correspondent so as to ensure that each 
Correspondent has and maintains the required expertise and 
competence. The Depositary shall also periodically assess 
whether Correspondents fulfill applicable legal and regulatory 
requirements and shall exercise ongoing supervision over 
each Correspondent to ensure that the obligations of the 
Correspondents continue to be appropriately discharged. The 
fees of any Correspondents appointed by the Depositary 
shall be paid by the Fund. 

The liability of the Depositary shall not be affected by the fact 
that it has entrusted all or some of the Fund's assets in its 
safekeeping to such Correspondents.  

In the case of a loss of a financial instrument held in custody, 
the Depositary shall return a financial instrument of an 
identical type or the corresponding amount to the Fund 
without undue delay, except if such loss results from an 
external event beyond the Depositary's reasonable control 
and the consequences of which would have been 
unavoidable despite all reasonable efforts to the contrary. 

AB FCP I 

Conflicts of interest. In carrying out its functions, the 
Depositary shall act honestly, fairly, professionally, 
independently and solely in the interest of the Fund and the 
Shareholders of the Fund. 

The Depositary maintains comprehensive and detailed 
corporate policies and procedures requiring the Depositary to 
comply with applicable laws and regulations.  

The Depositary has policies and procedures governing the 
management of conflicts of interest (“CoI”). These policies 
and procedures address CoIs that may arise through the 
provision of services to the Fund.  

The Depositary's policies require that all material CoIs 
involving internal or external parties are promptly disclosed, 
escalated to senior management, registered, mitigated and/or 
prevented, as appropriate. In the event a conflict of interest 
may not be avoided, the Depositary shall maintain and 
operate effective organizational and administrative 
arrangements in order to take all reasonable steps to 
properly (i) disclosing conflicts of interest to the Fund and to 
Shareholders (ii) managing and monitoring such conflicts.  

The Depositary ensures that employees are informed, trained 
and advised of CoI policies and procedures and that duties 
and responsibilities are segregated appropriately to prevent 
CoI issues.  

Compliance with CoI policies and procedures is supervised 
and monitored by the Board of Managers as general partner 
of the Depositary and by the Depositary’s Authorized 
Management, as well as the Depositary’s compliance, 
internal audit and risk management functions.  

The Depositary shall take all reasonable steps to identify and 
mitigate potential CoIs.  This includes implementing its CoI 
policies that are appropriate for the scale, complexity and 
nature of its business. This policy identifies the 
circumstances that give rise or may give rise to a CoI and 
includes the procedures to be followed and measures to be 
adopted in order to manage CoIs.  A CoI register is 
maintained and monitored by the Depositary.  

Potential conflicts of interest may nevertheless arise from 
time to time from the provision by the Depositary and/or its 
affiliates of other services to the Fund, the Management 
Company and/or other parties. Depositary’s affiliates may 
also be appointed as third-party delegates of the Depositary. 
Potential conflicts of interest which have been identified 
between the Depositary and its affiliates may include mainly 
fraud (unreported irregularities to the competent authorities to 
avoid bad reputation), legal recourse risk (reluctance or 
avoidance to take legal steps against the Depositary), 
selection bias (the choice of the Depositary not based on 
quality and price), insolvency risk (lower standards in asset 
segregation or attention to the Depositary's solvency) or 
single group exposure risk (intragroup investments). 

The Depositary (or any of its affiliates) may in the course of 
its business have conflicts or potential conflicts of interest 
with those of the Fund and/or other funds for which the 
Depositary (or any of its affiliates) acts. For example, the 
Depositary and/or its affiliates may act as the depositary, 
custodian and/or administrator of other funds.  

The Depositary also acts as administrator pursuant to the 
terms of the Administration Agreements between the 

II-48 

 
 
 
 
 
 
Depositary and the Fund. The Depositary has implemented 
appropriate segregation of activities between the Depositary 
and the administration services, including escalation 
processes and governance. In addition, the depositary 
function is hierarchically and functionally segregated from the 
administration services business unit. 

A potential risk of conflicts of interest may occur in situations 
where the Correspondents may enter into or have a separate 
commercial and/or business relationship with the Depositary 
in parallel to the safekeeping delegation relationship. In the 
conduct of its business, conflicts of interest may arise 
between the Depositary and the Correspondent. Where a 
Correspondent shall have a group link with the Depositary, 
the Depositary undertakes to identify potential conflicts of 
interest arising from that link, if any, and to take all 
reasonable steps to mitigate those conflicts of interest. 

The Depositary does not anticipate that there would be any 
specific conflicts of interest arising as a result of any 
delegation to any Correspondent.  The Depositary will notify 
the Fund and the Management Company of any such conflict 
should it so arise. 

To the extent that any other potential conflicts of interest exist 
pertaining to the Depositary, they have been identified, 
mitigated and addressed in accordance with the Depositary’s 
policies and procedures.   

Where a conflict or potential conflict of interest arises, the 
Depositary will have regard to its obligations to the Fund and 
will treat the Fund and the other funds for which it acts fairly 
and such that, so far as is practicable, any transactions are 
effected on terms which are based on objective pre-defined 
criteria and meet the sole interest of the Fund and the 
Shareholders of the Fund.  

Information. Information about the safekeeping functions 
which have been delegated and the list of the 
Correspondents are available at https://www.bbh.com/en-
us/investor-services/custody-and-fund-services/depositary-
and-trustee. This list may be updated from time to time and is 
available from the Depositary upon written request.  

Updated information regarding the description of the 
Depositary’s duties and of conflicts of interest that may 
arise as well as of any safekeeping functions delegated 
by the Depositary and any conflicts of interest that may 
arise from such a delegation, may be obtained, free of 
charge and upon written request, from the Depositary. 

Miscellaneous. The Depositary or the Management 
Company may terminate the Depositary Agreement at any 
time upon ninety (90) calendar days' written notice (or earlier 
in case of certain breaches of the Depositary Agreement, 
including the insolvency of any party), provided that the 
Depositary Agreement shall not be terminated until a 
replacement depositary is appointed. 

Registrar and Transfer Agent 

AllianceBernstein Investor Services, a unit of the 
Management Company, acts as registrar and transfer agent 
of the Fund.  In such capacity, the Transfer Agent is 
responsible for processing purchases, redemptions, 
exchanges and transfers of Shares of the Fund. 

AB FCP I 

Distributor 
Pursuant to the Distribution Agreement, AllianceBernstein 
Investments, a unit of the Management Company acts as the 
Distributor for the Shares on a best efforts basis.  The 
Distribution Agreement possesses an unlimited duration and 
may be terminated by either party thereto upon sixty days' 
notice.  The Distributor has contracted with dealers for the 
distribution of Shares outside the United States. 

Auditors 
The Management Company has appointed Ernst & Young 
S.A., Independent Public Accountants, 35E, avenue John F. 
Kennedy, L-1855 Luxembourg, as independent auditor of the 
Fund.  Ernst & Young will, with respect to the assets of the 
Fund, carry out the duties prescribed by the Law of 2010. 

Qualified Foreign Investor 
Foreign institutional investors who wish to invest directly in 
the PRC domestic securities market may apply to be a 
qualified foreign investor (QFI) pursuant to the prevailing QFI 
regulations of the PRC. The Management Company or an 
affiliate (the “QFI Holder”) acquire the QFI status for 
investment in mainland Chinese securities.  
The QFI regime is governed by rules and regulations as 
promulgated by the mainland Chinese authorities, i.e., the 
CSRC, the SAFE and the PBOC).  Such rules and 
regulations may be amended from time to time and include 
(but are not limited to):  
(i)  
Securities and Futures Investment by Qualified Foreign 
Institutional Investors and RMB Qualified Foreign Institutional 
Investors jointly issued by the CSRC, the PBOC and the 
SAFE on 25 September 2020 and effective from 1 November 
2020 (《合格境外機構投資者和人民幣合格境外機構投資者境

the Measures for the Administration of Domestic 

內證券期貨投資管理辦法》);  
(ii)  
the Provisions on Issues Concerning the 
Implementation of the Measures for the Administration of 
Domestic Securities and Futures Investment by Qualified 
Foreign Institutional Investors and RMB Qualified Foreign 
Institutional Investors jointly issued by the CSRC, the PBOC 
and the SAFE on 25 September 2020 and effective from 1 
November 2020 (關於實施《合格境外機構投資者和人民幣合

格境外機構投資者境內證券期貨投資管理辦法》有關問題的規

the “Regulations on Funds of Securities and Futures 

定);  
(iii)  
Investment by Foreign Institutional Investors” issued by the 
PBOC and the SAFE on 7 May 2020 and effective from 6 
June 2020 (境外機構投資者境內證券期貨投資資金管理規定》
) ; and 
(iv)  
relevant authorities. 

any other applicable regulations promulgated by the 

Co-Management of Assets 

For the purpose of effective management, where the 
investment policies of a portfolio so permit, the Management 
Company may choose to co-manage assets of certain 
portfolios within or outside the Fund.  In such cases, assets 
of different portfolios or strategies will be managed in 
common.  The assets which are co-managed shall be 
referred to as a "pool."  These pooling arrangements are an 
administrative device designed to reduce operational and 

II-49 

 
 
 
 
 
 
other expenses and do not change the legal rights and 
obligations of Shareholders.  The pools do not constitute 
separate entities and are not directly accessible to investors.  
Each of the co-managed portfolios or strategies shall remain 
entitled to its specific assets.  Where the assets of more than 
one portfolio or strategy are pooled, the assets attributable to 
each participating portfolio or strategy will initially be 
determined by reference to its initial allocation of assets to 
such a pool and will change in the event of additional 
allocations or withdrawals.  The entitlements of each 
participating portfolio or strategy to the co-managed assets 
apply to each and every line of investments of such pool.  
Additional investments made on behalf of the co-managed 

AB FCP I 

portfolios or strategies shall be allotted to such portfolios or 
strategies in accordance with their respective entitlement, 
whereas assets sold shall be levied similarly on the assets 
attributable to each participating portfolio or strategy.  
A review of the tax impact of the pooling arrangements has 
been undertaken in Luxembourg. It is not anticipated that any 
material Luxembourg taxes will arise due to the 
implementation of the pooling arrangements as described in 
this Prospectus. There may be a risk of taxation impacts in 
other jurisdictions where securities located in those countries 
are pooled as described in this Prospectus, though any 
additional taxes arising are not anticipated to be material. 

II-50 

 
Additional Information 

Management Regulations 
The Fund is managed by the Management Company in 
accordance with the Management Regulations.  The initial 
Management Regulations of the Fund, dated 21 August 1991, 
were published in the Mémorial on 26 September 1991.  
Initially, the Fund was established under the name "Alliance 
Global Growth Trends Portfolio."  Subsequently, the 
Management Regulations were amended and the new name 
"Alliance Global Investments" and the umbrella structure were 
adopted on 22 July 1992.  The Management Regulations were 
then amended when the name of the Fund was changed to 
"ACM Global Investments," and this amendment became 
effective on 1 January 1997 and to "ACMBernstein" as of 31 
July 2006.  Thereafter, the Management Regulations were 
amended at various points in time.  The Management 
Regulations were amended on 5 February 2016 when the 
name was changed to "AB FCP I". The Management 
Regulations have been amended for the last time on 5 July 
2021 and such amendment has been published in the RESA 
through a notice advising of the deposit of such document with 
the Registre de Commerce et des Sociétés of Luxembourg.    

The Management Regulations may be amended from time 
to time by the Management Company, subject to the 
approval of the Depositary.  Amendments to the 
Management Regulations are deposited with the Registre 
de Commerce et des Sociétés in Luxembourg and they will 
become effective the day of the publication in the 
Mémorial of a notice of such deposit.   

Applicable Law and Jurisdiction 
The Management Regulations are governed by the laws of the 
Grand Duchy of Luxembourg and any dispute arising among 
the shareholders, the Management Company and the 
Depositary will be subject to the jurisdiction of the District Court 
of Luxembourg.   

Notwithstanding the foregoing, the Management Company and 
the Depositary may subject themselves and the Fund to the 
jurisdiction of the courts of the countries in which the Shares of 
the Fund are offered and sold with respect to claims by 
investors resident in such countries, and with respect to 
matters relating to subscriptions and repurchases of such 
Shares by Shareholders resident in such countries, to the laws 
of such countries.  The claims of the Shareholders against the 
Management Company or the Depositary will lapse five years 
after the date of the event which gave rise to such claims. 

The Management Regulations in their consolidated form are on 
file with the Registre de Commerce et des Sociétés in 
Luxembourg where they may be inspected and where copies 
thereof may be obtained. 

By acquiring Shares, every Shareholder approves and fully 
accepts that the Management Regulations will govern the 
relationship among the Shareholders, the Management 
Company and the Depositary.  The Management Regulations 
place certain restrictions and limitations on the Management 
Company in connection with its operation of the Fund and the 
portfolios.  Such restrictions and limitations are set out in 
Appendix A.  The Management Company may from time to 
time impose further investment restrictions other than those set 

II-51 

AB FCP I 

out in Appendix A as are compatible with or in the interest 
of the Shareholders, in order to comply with the laws and 
regulations of the various countries where the Shares of the 
Fund's portfolios are sold. 

Investor Suitability 

Investors should consult the section titled “Profile of the 
Typical Investor” in Section I of the Portfolio in which they 
are interested in investing for information on the suitability 
of the Portfolio for such investor’s investment goals. AB 
Portfolios that are not deemed to be cash-equivalent or 
identified as short-term are described as suitable for 
investors seeking a medium to long term investment 
horizon in the Section I of the relevant Portfolio. A particular 
investor’s view as to their and the Portfolio’s appropriate 
investment horizon may vary depending on a number of 
factors, including the intended use of the Portfolio (whether 
as a stand-alone strategy or as part of a larger asset 
allocation strategy), the relevant Shares in which such 
investor invests, risks and general market conditions 
applicable to the Portfolio in which such investor invests, 
and circumstances unique to the investor’s situation. 
Investors are encouraged to consult their independent 
financial advisors regarding the suitability of Shares of the 
Portfolio for their investment goals. Independent financial 
advisors may work with individual investors to assess 
suitability based on a more holistic approach that takes into 
consideration factors unique to such investor, including their 
financial situation, life circumstances and goals, and other 
factors. 

Fees and Expenses 
In addition to the sales charge and contingent deferred 
sales charge that investors purchasing Shares may incur, 
the Fund and each portfolio are also subject to ongoing 
fees and expenses.  Distribution fees are accrued and 
charged as expenses of the portfolio to which they relate. 

Management Fee.  The Management Company is entitled 
to a management fee with respect to each portfolio, 
accrued daily and payable monthly, at the annual rate, 
based on the average daily Net Asset Value of the Shares, 
indicated under "Summary Information" in Section I. 

From the management fee paid to the Management 
Company by a portfolio, the Investment Manager is entitled 
to the payment of an investment management fee with 
respect to such portfolio, accrued daily and payable 
monthly, at the annual rate, based on the average daily Net 
Asset Value of the Shares of such portfolio.  Class S, SP, 
SK and S2  shares are reserved for institutional investors 
that have entered into an agreement with the Management 
Company and are being charged an investment 
management fee separately.  With respect to certain share 
classes, the management fee may also include a 
component that is paid to distributors or other financial 
intermediaries and service providers to cover shareholder 
servicing and other administrative expenses.  In the event 
that the Investment Manager does not act as investment 
manager for a complete month, the management fee 
payable by such portfolio for such month will be prorated to 
reflect the portion of such month in which the Investment 

 
 
Manager acted as such under the Investment Management 
Agreement.   

The Management Company or the Investment Manager, or an 
affiliate thereof, may make cash payments from time to time 
from such entity's own resources to distributors, dealers or 
other entities in connection with the sale of Shares of a 
portfolio.  Such payments may include payments to reimburse 
directly or indirectly the costs associated with these firms' 
marketing, educational and training efforts and other support 
activities.  A number of factors are considered in determining 
the amount of these payments, including each firm's AB funds 
sales, assets and redemption rates, and the willingness and 
ability of the firm to provide access to its financial advisors for 
educational and marketing purposes.  In some cases, firms 
may include AB funds on a "preferred list."  The goal is to make 
the financial advisors who interact with current and prospective 
Shareholders more knowledgeable about AB funds so that they 
can provide suitable information and advice about AB funds 
and related investor services. 

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

Those considering an investment in AB funds should speak 
with their financial advisor to learn more about the total 
amounts paid to the financial advisor and his or her firm by the 
Management Company, the Investment Manager and their 
affiliates and by sponsors of other funds he or she may 
recommend and should also consult disclosures made by their 
financial advisor at the time of purchase.  Under certain 
circumstances, an investor in class S, S1 and S1 2 shares may 
receive payments from the Management Company or the 
Investment Manager, or an affiliate thereof, out of such entity's 
own resources. 

Distribution Fee.  Distribution fees with respect to a class of 
Shares will be paid to the Distributor as compensation for 
providing distribution-related services to the Fund with respect 
to such Shares at the rate indicated under "Summary 
Information" in Section I.  Any shareholder servicing fees with 
respect to a class of shares will be paid by the Management 
Company out of the Management Fee to the Distributor as 
compensation for providing ongoing shareholder services to 
the Fund for holders of such Shares.  The Distributor may pay 
some or all of such distribution or shareholder servicing fees to 
dealers who distribute Shares based on the average daily Net 
Asset Value of shares owned by such dealers' clients during 
such month.  The distribution fee and the shareholder servicing 
fee of a particular class will not be used to subsidize the sale of 
shares of any other class. 

Management Company Fee.  The Management Company is 
entitled to receive out of the assets of the portfolios a fee that is 
intended to cover the expenses of the services it provides in 
connection with the operation and central administration of the 
portfolios in Luxembourg. The amount of the fee payable with 
respect to each share class of a portfolio is set forth in Section 
I with respect to each portfolio.  The Management Company 
fee is accrued daily and paid monthly. 

II-52 

AB FCP I 

Administrator, Depositary and Transfer Agent Fees.  
Each of the Administrator, Depositary and Transfer Agent is 
entitled to receive out of the assets of each portfolio a fee in 
accordance with the usual practice in Luxembourg. Such 
fees are a combination of asset-based fees and transaction 
fees as described in "Other Portfolio Information—
Management Company, Administrator, Depositary and 
Transfer Agent Fees" in Section I with regard to each 
portfolio. 

Unless otherwise provided for in the relevant part of Section 
I relating to a specific portfolio, the Administrator, 
Depositary and Transfer Agent fees will generally be of a 
maximum of 1.00% per year, calculated on the basis of the 
Net Asset Value of a portfolio. The Depositary fees do not 
comprise the costs of correspondent banks, certain other 
taxes, brokerage (if applicable) and interest on borrowings 
which will be charged separately. The Administrator, 
Depositary and Transfer Agent fees are eligible for the total 
expense ratio caps disclosed in the relevant part of Section 
I relating to a specific portfolio. The actual amounts of such 
fees are detailed in the annual report of the Fund. 

Other Expenses.  Each portfolio bears all of its other 
expenses, including, but not limited to (a) all taxes which 
may be due on the assets and the income of the portfolio 
and any entity-level taxes, (b) the reasonable 
disbursements and out-of-pocket expenses (including, 
without limitation, telephone, telex, cable and postage 
expenses) incurred by the Depositary and any custody 
charges of banks and financial institutions to which custody 
of assets of the portfolio is entrusted, (c) usual banking fees 
due on transactions involving securities held in the portfolio 
(such fees to be included in the acquisition price and to be 
deducted from the selling price), (d) any remuneration and 
out-of-pocket expenses of the Transfer Agent which will be 
payable monthly, (e) legal expenses incurred by the 
Management Company or the Depositary while acting in the 
interest of the Shareholders, and (f) the cost of printing 
certificates, the cost of preparing and/or filing the 
Management Regulations and all other documents 
concerning the portfolio, including registration statements, 
prospectuses and explanatory memoranda with all 
authorities (including local securities dealers' associations) 
having jurisdiction over the portfolio and any other costs of 
qualifying or registering the Shares of the portfolio for offer 
or sale in any jurisdiction, the cost of preparing, in such 
languages as are necessary for the benefit of the 
Shareholders, including the beneficial holders of the 
Shares, and distributing annual and semiannual reports and 
such other reports or documents as may be required under 
the applicable laws or regulations of the above-cited 
authorities; the cost of accounting, bookkeeping and 
calculating the daily Net Asset Value; the cost of preparing 
and distributing public notices to the Shareholders; lawyers' 
and auditor's fees; the costs incurred with the admission 
and the maintenance of the Shares on the stock exchanges 
on which they are listed; annual Luxembourg registration 
fees; and all similar administrative charges, including, 
unless otherwise decided by the Management Company, all 
other expenses directly incurred in offering or distributing 
the Shares, including the printing costs of copies of the 
above-mentioned documents or reports, which are utilized 

 
 
by the distributors or dealers of the Shares in the course of 
their business activities. 

Unless otherwise provided for in the relevant part of Section I 
relating to a specific share class of a portfolio, all recurring 
charges will be charged first against income, then against 
capital gains and then against assets.  Expenses attributable to 
a particular portfolio are charged to that portfolio, while 
expenses not attributable to a specific portfolio will be allocated 
among the Fund's portfolios on such basis as the Board of 
Managers of the Management Company determines is fair and 
equitable.  Different classes of Shares within a portfolio will 
bear all expenses attributable to that class of Shares, and if 
expenses of a portfolio are not attributable to a specific class of 
Shares of such portfolio, such expenses will be allocated 
among the classes of Shares of such portfolio on such basis as 
the Board of Managers of the Management Company 
determines is fair and equitable. 

The Management Company expects the annual expense ratio 
of each portfolio to be comparable to that of other collective 
investment undertakings with similar investment objectives. 

Risk Management 
The Management Company will employ, or will ensure that the 
Investment Manager will employ, a risk management process 
with respect to the Fund that enables the Management 
Company to monitor and measure at any time the risk of the 
positions in the portfolios and their contribution to the overall 
risk profile of the portfolios. 

In relation to financial derivative instruments, the risk 
management process is designed to ensure accurate and 
independent assessment of the value of OTC derivatives and 
to ensure that each portfolio's global risk exposure relating to 
financial derivative instruments does not exceed the limits 
specified in the prospectus, the Law of 2010 and the relevant 
circulars of the Luxembourg Commission de Surveillance du 
Secteur Financier. 

The global risk exposure is calculated taking into account the 
current value of the underlying assets, the counterparty risk, 
future market movements and the time necessary to liquidate 
the positions. 

Each portfolio also may invest according to its investment 
objectives and policies and within the limitations contained in 
"Investment Restrictions" in Appendix A in financial derivative 
instruments.  When a transferable security or money market 
instrument embeds a derivative, the latter must be taken into 
account when complying with such limitations. 

Conflicts of Interest.  The Management Company, the 
Investment Manager, the Depositary, the Administrator, 
distributors and other service providers and their respective 
affiliates, directors, officers and unitholders are or may be 
involved in other financial, investment and professional 
activities that may create conflicts of interest with the 
management and administration of the Fund. These include 
the management of other funds, purchases and sales of 
securities, brokerage services, custodian and safekeeping 
services, and serving as directors, officers, advisors or agents 
for other funds or other companies, including companies that a 
portfolio may invest in. Each of the parties will ensure that the 
performance of their respective duties will not be impaired by 
any such other involvement that they might have. In the event 

II-53 

AB FCP I 

that a conflict of interest does arise, the managers of the 
Management Company and the relevant parties involved 
shall endeavour to resolve it fairly, within a reasonable time 
and in the interest of the Fund. 
Potential investors should also be aware that the Fund is 
subject to a number of actual and potential conflicts of 
interest involving the AB Group. While conflicts of interest 
are inherent to the relationships among the AB Group, 
merely because an actual or potential conflict of interest 
exists does not mean that it will be acted upon to the 
detriment of the Fund.  The Investment Manager will, in 
such event, have regard to its obligations under the 
Investment Management Agreement and, in particular, to its 
obligations to act in the best interests of the Fund, so far as 
practicable having regard to its obligations to other clients, 
when undertaking any investments where potential conflicts 
of interest may arise.  Should a conflict of interest arise, the 
Investment Manager will endeavor to ensure that it is 
resolved fairly.  Without limitation, these conflicts may 
include the following: 

•  Other Funds Managed by the Investment Manager. An 
Interested Party may make investments for other 
clients without making the same available to the Fund.  
In the event any investment is made in funds already 
managed or advised directly or indirectly by the 
Investment Manager itself or a company with which it is 
linked by way of common management or control or by 
way of a direct or indirect stake of more than 10% of 
the capital or votes, such investment will be effected 
only on terms which either avoid, or make appropriate 
provision to effectively eliminate, double charging of 
investment management or advisory fees.  
Furthermore, the Management Company or other 
company will not charge subscription or redemption 
fees in connection with an acquisition or disposal of 
such investments.  

•  Allocation Among Clients.  An Interested Party may 

make investments for other clients without making the 
same available to the Fund.  In addition, to the extent 
that the Investment Manager deems it advisable to 
seek investments for the Fund and for its other client 
accounts in the same security at the same time, the 
Fund may not be able to acquire as large an allocation 
of such security as it desires, or it may have to pay a 
higher price or obtain a lower yield for such security.  
Allocation will be made in a manner deemed equitable 
by the Investment Manager, taking into account size of 
account, amount purchased or sold and any other 
factor it may deem relevant. 

•  Services to Other Clients.  An Interested Party may 
enter into financial, banking, currency, advisory 
(including corporate finance advice) or other 
transactions on an arm's-length basis with the Fund or 
any company in the investment portfolio of the Fund for 
which it may receive and retain fees.Cross Trades.  To 
the extent permitted by applicable law, an Interested 
Party may engage in cross trades of securities between 
its clients as well cross trades between its clients and 
brokerage clients of its affiliates for whom the 
Investment Manager does not provide asset 
management services.  In the event that the Investment 
Manager effects a cross trade to which the Fund is a 

 
 
 
party, the Investment Manager will act on behalf of both 
the Fund and the other party to the cross trade, and thus 
may have a potentially conflicting division of loyalty to such 
parties.  In order to address such potentially conflicting 
divisions of loyalty, the Investment Manager has 
established policies and procedures with respect to cross 
trades so that neither party to a cross trade is unfairly 
advantaged or disadvantaged relative to the other party. 
All cross trades will be executed on an agency basis at the 
current fair market value and otherwise consistent with the 
Investment Manager’s fiduciary obligations.  None of the 
foregoing activities should interfere substantially with the 
commitment of time necessary for the Investment Manager 
or its principals to perform their responsibilities to the 
Fund. 

•  Sales to and from the Fund.  An Interested Party may sell 

or purchase investments to or from the Fund, provided that 
(i) the sale or purchase is effected on an official stock 
exchange or other organized market where the purchaser 
or vendor is undisclosed at the time of the sale or 
purchase or in other circumstances where the vendor and 
purchaser are not identified to each other; or (ii) the terms 
and conditions of any such sale or purchase are effected 
on an arm's-length basis and approved by the Board of 
Managers of the Management Company before such sale 
or purchase is effected. 

•  Transactions with Affiliated Broker/Dealers.  The 

Investment Manager may, in the normal course of 
business, utilize the brokerage services of affiliated 
broker/dealers including, but not limited to, Sanford C. 
Bernstein & Co., LLC and Sanford C. Bernstein Limited 
subject to the Investment Manager's obligation to execute 
transactions on behalf of the Fund consisted with best 
execution standards. 

•  Soft-Dollar Arrangements.  Although currently the 

Management Company does not receive or enter into soft-
dollar commissions/arrangements, the Investment 
Manager does receive and has entered into soft-dollar 
commissions/arrangements with brokers relating to 
portfolios of the Fund that invest in equity securities, in 
respect of which certain goods and services used to 
support the investment decision making process were 
received. The soft commission arrangements were entered 
into on the basis that the execution of transactions on 
behalf of the Fund will be consistent with best execution 
standards and brokerage rates will not be in excess of 
customary institutional full-service brokerage rates.  The 
goods and services received include specialist industry, 
company and consumer research, portfolio and market 
analysis and computer software used for the delivery of 
such services.  The nature of the goods and services 
received is such that the benefits provided under the 
arrangement must be those which assist in the provision of 
investment services to the Fund and may contribute to an 
improvement in the Fund's performance.  For the 
avoidance of doubt, such goods and services do not 
include travel, accommodations, entertainment, general 
administrative goods or services, general office equipment 
or premises, membership fees, employees' salaries or 
direct money payments.  Disclosure of soft commission 
arrangements will be made in the periodic reports of the 
Fund.  

II-54 

AB FCP I 

•  Research. The principal portfolio themes for the Fund 

may take into account forecast information provided by 
equity, credit, quantitative, economic, and structured 
asset fixed-income research analysts employed by an 
Interested Party and other research firms.  Accordingly, 
estimates of earnings and dividends related to 
investments of the Fund may differ from estimates of 
the Interested Party's institutional research analysts.  
Further, the Investment Manager's buy-sell actions for 
the Fund may differ from those recommended by the 
Interested Party's institutional research analysts. 

•  No Independent Legal Counsel. The Fund is 

represented by Dechert LLP with respect to U.S. law. 
The Fund is represented by Elvinger Hoss Prussen, 
société anonyme, with respect to Luxembourg law.  
Dechert LLP and Elvinger Hoss Prussen, société 
anonyme, have been selected to act as independent 
legal counsel to the Interested Parties and the Fund, as 
applicable, by the AB Group.  Dechert LLP and 
Elvinger Hoss Prussen, société anonyme, each also 
acts as legal counsel to certain other investment funds, 
accounts, and vehicles managed by the AB Group and 
its affiliates.  Conflicts could arise due to these multiple 
legal representations.  Prospective and existing 
investors in the Fund have not been, and will not be, 
represented by Dechert LLP or Elvinger Hoss Prussen, 
société anonyme, and are encouraged to seek the 
advice of their own legal counsel in evaluating the 
merits and risks of this offering and the operations of 
the Fund. 

Restrictions on Ownership 

U.S. Persons.  Pursuant to its powers as set out in the 
Management Regulations, the Management Company has 
resolved to restrict or prevent the ownership of shares by 
any "U.S. Person." Investors will be required to provide 
assurances satisfactory to the Distributor, the dealer or the 
Fund indicating that the prospective purchaser is not a U.S. 
Person.  Shareholders are required to notify the 
Management Company immediately of any change in such 
information. IT IS THE RESPONSIBILITY OF EACH 
SHAREHOLDER TO VERIFY THAT IT IS NOT A U.S. 
PERSON THAT WOULD BE PROHIBITIED FROM 
OWNING SHARES IN THE FUND.     

In addition, the Management Company, in its discretion, 
may permit the ownership of Shares by U.S. Persons in 
certain circumstances. 

If it shall come to the attention of the Management 
Company at any time that Shares of the Fund are 
beneficially owned by a U.S. Person, either alone or in 
conjunction with any other person, the Management 
Company, on behalf of the Fund, may in its discretion 
compulsorily repurchase such Shares at their redemption 
price as described herein.  Not less than ten days after the 
Fund gives notice of such compulsory repurchase, the 
Shares will be redeemed and Shareholders will cease to be 
the owners of such Shares. 

Class S, SK, SHK, SQ, SD, SA, SP, S1P, SA GB, SB GB, 
S1A GB, S1B GB,  S2, S1,  S1D, S1D2, S1NN, S1QD, 
S1X and  S1 2 Shares (and corresponding H shares) 
(the “Institutional Share Classes”).  The sale of the 

 
 
Institutional Share Classes in the Fund is restricted to persons 
who qualify as institutional investors within the meaning of 
Article 174 of the Law of 2010. Class S, SP, SK, and S2 shares 
(and corresponding H shares) are reserved for institutional 
investors that have entered into an agreement with the 
Management Company and are being charged an investment 
management fee separately.   

The Management Company will, at its discretion, refuse to 
issue shares of Institutional Share Classes if there is not 
sufficient evidence that the person to whom such shares of 
Institutional Share Classes are sold is an institutional investor 
or in any other circumstances where any such issue would be 
detrimental to the Fund or its shareholders.   

In considering the qualification of a subscriber as an 
institutional investor, the Management Company will have due 
regard to the guidelines or recommendations of the competent 
supervisory authority. 

Institutional investors subscribing for shares of Institutional 
Share Classes in their own name, but on behalf of a third party, 
must certify to the Management Company that such 
subscription is made on behalf of an institutional investor as 
aforesaid, and the Management Company may require, at its 
sole discretion, evidence that the beneficial owner of the 
shares of Institutional Share Classes is an institutional investor. 

If it shall come to the attention of the Management Company at 
any time that shares of Institutional Share Classes are 
beneficially owned by a United States Person, non-institutional 
investor or by another person who is not authorized to hold 
such shares of Institutional Share Classes, either alone or in 
conjunction with any other person, the Management Company, 
on behalf of the Fund, may in its discretion compulsorily 
repurchase such shares of Institutional Share Classes at their 
redemption price as described herein.  Not less than ten days 
after the Fund gives notice of such compulsory repurchase, the 
shares of Institutional Share Classes will be redeemed and 
Shareholders will cease to be the owners of such shares of 
Institutional Share Classes. 

Listing 
Share Classes of each portfolio of the Fund may be listed on 
the Luxembourg Stock Exchange.  It is unlikely that a trading 
market for the Shares will develop or continue. 

Portfolio Holdings 
For certain portfolios, the Management Company publishes a 
complete schedule of the portfolio holdings monthly on 
www.alliancebernstein.com.  This posted information generally 
remains accessible on the website for three months.  In 
addition, the Management Company may post information 
concerning the number of securities a portfolio holds, a 
summary of the portfolio ten largest holdings (including name 
and the percentage of the portfolio's assets invested in each 
holding), and a percentage breakdown of the portfolio's 
investments by country, sector and industry, as applicable.  
Monthly portfolio holdings information is generally posted 
between 30 and 90 days after the end of that month. 

Taxation 

The following summaries do not purport to be complete in 
all respects and do not constitute investment or tax advice 
and investors should consult their own professional 

II-55 

AB FCP I 

advisers as to the tax implications under the laws of 
the countries of their nationality, residence, domicile or 
incorporation of an investment in the portfolios. 

The taxation of income and capital gains of the Fund and 
Shareholders is subject to the fiscal law and practice of 
Luxembourg, any jurisdiction in which the Fund makes 
investments and of the jurisdictions in which Shareholders 
are resident or otherwise subject to tax. The following 
general summary of the anticipated tax treatment in 
Luxembourg and the United States does not constitute legal 
or tax advice and applies only to Shareholders holding 
Shares as an investment. 

Prospective Shareholders should inform themselves of, and 
where appropriate take advice on, the laws and regulations 
(such as taxation and exchange controls) applicable to the 
subscription, purchase, redemption, exchange, conversion, 
holding and realization of Shares and the receipt of 
distributions (whether or not on redemption) in the place of 
their citizenship, residence, domicile or incorporation. 

The information below is based on current law and 
interpretations thereof on the date of this document.  No 
assurance can be given that applicable tax law and 
interpretations thereof will not be changed in the future.  
The following tax summary is not a guarantee to any 
Shareholder of the tax results of investing in the Fund. 

No Payment of Additional Taxes or Assessments.  Each 
Shareholder will assume and be responsible to the proper 
governmental or regulatory authority for any and all taxes of 
any jurisdiction or governmental or regulatory authority, 
including, without limitation, any state or local taxes or other 
like assessments or charges that may be applicable to any 
payment in respect of the Shares made by the Fund, the 
Management Company or the Administrator.  None of the 
Fund, the Management Company or the Administrator will 
pay any additional amounts to Shareholders to reimburse 
them for any tax, assessment or charge required to be 
withheld or deducted from payments on the Shares by the 
Fund, the Management Company or the Administrator.  
None of the Fund, the Management Company or the 
Administrator will be responsible for the payment of any 
additional amount of withholding tax which may become 
payable due to an increase in any applicable withholding 
tax rates. 

Luxembourg Taxation.  The following is a general 
summary of the anticipated tax treatment in Luxembourg. 

The Fund.  The Fund is subject to Luxembourg law in 
respect of its tax status.  Under legislation and regulations 
currently prevailing in Luxembourg, each portfolio is subject 
to an annual tax on  their Net Asset Value attributable to the 
Shares at the annual rate indicated under "Summary 
Information" in Section I, accrued daily and calculated and 
payable quarterly.  No such tax is applicable in respect of 
assets invested in Luxembourg undertakings for collective 
investment which are themselves subject to such tax.  
Under present law the Fund is not subject to any 
Luxembourg tax on income or capital gains nor to any 
estate tax. The Fund may however be subject to taxation, 
including withholding tax, on income and/or gains in 
countries where the assets are located (including 
Luxembourg). 

 
 
Shareholders.  Under current legislation Shareholders holding 
Shares of the Fund are not subject to any capital gains, 
income, withholding, estate, inheritance or other taxes in 
Luxembourg (except for those resident or having permanent 
establishment in Luxembourg). 

Automatic Exchange of Information. The Organisation for 
Economic Co-operation and Development (“OECD”) has 
developed a Common Reporting Standard (“CRS”) to achieve 
a comprehensive and multilateral Automatic Exchange Of 
Information (“AEOI”) on a global basis. On 9 December 2014, 
Council Directive 2014/107/EU amending Directive 2011/16/EU 
as regards mandatory automatic exchange of information in the 
field of taxation (the “Euro-CRS Directive”) was adopted in 
order to implement the CRS among the Member States. For 
Austria, the Euro-CRS Directive applies the first time by 30 
September 2018 for the calendar year 2017, i.e. the Council 
Directive 2003/48/EC on the taxation of savings income in the 
form of interest payments will apply one year longer.  

The Euro-CRS Directive was implemented into Luxembourg 
law by the law of 18 December 2015 on the automatic 
exchange of financial account information in the field of 
taxation ("CRS Law").The CRS Law requires Luxembourg 
financial institutions to identify financial assets holders and 
establish if they are fiscally resident in countries with which 
Luxembourg has a tax information sharing agreement. 
Luxembourg financial institutions will then report financial 
account information of the asset holder to the Luxembourg tax 
authorities, which will thereafter automatically transfer this 
information to the competent foreign tax authorities on a yearly 
basis.  

Accordingly, the Fund may require its investors to provide 
information in relation to the identity and fiscal residence of 
financial account holders (including certain entities and their 
controlling persons) in order to ascertain their CRS status and 
report information regarding an investor and his/her/its account 
to the Luxembourg tax authorities (Administration des 
Contributions Directes), if such account is deemed a CRS 
reportable account under the CRS Law. The Fund shall 
communicate any information to the investor according to 
which (i) the Fund is responsible for the treatment of the 
personal data provided for in the CRS Law; (ii) the personal 
data will only be used for the purposes of the CRS Law; (iii) the 
personal data may be communicated to the Luxembourg tax 
authorities (Administration des Contributions Directes); (iv) 
responding to CRS-related questions is mandatory and 
accordingly the potential consequences in case of no 
response; and (v) the investor has a right of access to and 
rectification of the data communicated to the Luxembourg tax 
authorities (Administration des Contributions Directes). 

Under the CRS Law, the first exchange of information will be 
applied by 30 September 2017 for information related to the 
calendar year 2016. Under the Euro-CRS Directive, the first 
AEOI must be applied by 30 September 2017 to the local tax 
authorities of the Member States for the data relating to the 
calendar year 2016. 

In addition, Luxembourg signed the OECD's multilateral 
competent authority agreement ("Multilateral Agreement") to 
automatically exchange information under the CRS Law. The 
Multilateral Agreement aims to implement the CRS among 
non-Member States; it requires agreements on a country-by-
country basis.  

II-56 

AB FCP I 

The Fund reserves the right to refuse any application for 
Shares if the information provided or not provided does not 
satisfy the requirements under the CRS Law. 

Investors in the Fund may therefore be reported to the 
Luxembourg and other relevant tax authorities in 
accordance with applicable rules and regulations. 

Investors should consult their professional advisors on the 
possible tax and other consequences with respect to the 
implementation of the CRS Law. 

United States Taxation. 

THE DISCUSSION HEREIN IS FOR INFORMATIONAL 
PURPOSES ONLY AND IS A DISCUSSION PRIMARILY 
OF THE U.S. TAX CONSEQUENCES TO PROSPECTIVE 
SHAREHOLDERS.  EACH PROSPECTIVE 
SHAREHOLDER SHOULD CONSULT ITS 
PROFESSIONAL TAX ADVISOR WITH RESPECT TO 
THE TAX ASPECTS OF AN INVESTMENT IN THE FUND.  
TAX CONSEQUENCES MAY VARY DEPENDING UPON 
THE PARTICULAR STATUS OF A PROSPECTIVE 
SHAREHOLDER.  IN ADDITION, SPECIAL 
CONSIDERATIONS (NOT DISCUSSED HEREIN) MAY 
APPLY TO PERSONS WHO ARE NOT DIRECT 
SHAREHOLDERS IN THE FUND BUT WHO ARE 
DEEMED TO OWN SHARES AS A RESULT OF THE 
APPLICATION OF CERTAIN ATTRIBUTION RULES. 

The Fund has not sought a ruling from the IRS or any other 
U.S. federal, state or local agency with respect to any of the 
tax issues affecting the Fund, nor has it obtained an opinion 
of counsel with respect to any tax issues.. 

The following is a summary of certain potential U.S. federal 
tax consequences which may be relevant to prospective 
shareholders.  The discussion contained herein is not a full 
description of the complex tax rules involved and is based 
upon existing laws, judicial decisions and administrative 
regulations, rulings and practices, all of which are subject to 
change, retroactively as well as prospectively.  A decision 
to invest in the Fund should be based upon an evaluation of 
the merits of the trading program, and not upon any 
anticipated U.S. tax benefits. 

U.S. Tax Status.  The U.S. federal tax classification of 
segregated portfolios of a non-U.S. entity such as the Fund 
is not entirely clear.  The Fund intends to take the position 
that each Portfolio of the Fund is  a separate entity for U.S. 
federal tax purposes due to the segregation of a Portfolio's 
assets and liabilities under the laws of Luxembourg.  The 
remainder of the U.S. tax discussion herein assumes that 
the each Portfolio will be treated as a separate corporation 
for U.S. federal tax purposes. The references to "the Fund" 
below shall be read to apply to each Portfolio, unless 
otherwise indicated. 

U.S. Trade or Business.  Section 864(b)(2) of the IRC, 
provides a safe harbor (the "Safe Harbor") applicable to a 
non-U.S. corporation (other than a dealer in securities) that 
engages in the U.S. in trading securities (including 
contracts or options to buy or sell securities) for its own 
account pursuant to which such non-U.S. corporation will 
not be deemed to be engaged in a U.S. trade or business.  
The Safe Harbor also provides that a non-U.S. corporation 
(other than a dealer in commodities) that engages in the 

 
 
U.S. in trading commodities for its own account is not deemed 
to be engaged in a U.S. trade or business if "the commodities 
are of a kind customarily dealt in on an organized commodity 
exchange and if the transaction is of a kind customarily 
consummated at such place."  Pursuant to proposed 
regulations, a non-U.S. taxpayer (other than a dealer in stocks, 
securities, commodities or derivatives) that effects transactions 
in the United States in derivatives (including (i) derivatives 
based upon stocks, securities, and certain commodities and 
currencies, and (ii) certain notional principal contracts based 
upon an interest rate, equity, or certain commodities and 
currencies) for its own account is not deemed to be engaged in 
a United States trade or business.  Although the proposed 
regulations are not final, the IRS has indicated in the preamble 
to the proposed regulations that for periods prior to the 
effective date of the proposed regulations, taxpayers may take 
any reasonable position with respect to the application of 
Section 864(b)(2) of the IRC to derivatives, and that a position 
consistent with the proposed regulations will be considered a 
reasonable position.   

The Fund intends to conduct its business in a manner so as to 
meet the requirements of the Safe Harbor.  Thus, based on the 
foregoing, the Fund's securities and commodities trading 
activities are not expected to constitute a U.S. trade or 
business and, except in the limited circumstances discussed 
below, the Fund does not expect to be subject to the regular 
U.S. income tax on any of its trading profits.  However, if 
certain of the Fund's activities were determined not to be of the 
type described in the Safe Harbor, the Fund's activities may 
constitute a U.S. trade or business, in which case the Fund 
would be subject to U.S. income and branch profits tax on the 
income and gain from those activities.   

Even if the Fund's securities trading activity does not constitute 
a U.S. trade or business, gains realized from the sale or 
disposition of stock or securities (other than debt instruments 
with no equity component) of U.S. Real Property Holding 
Corporations (as defined in Section 897 of the IRC) 
("USRPHCs"), including stock or securities of certain Real 
Estate Investment Trusts ("REITs"), will be generally subject to 
U.S. income tax on a net basis.  However, a principal exception 
to this rule of taxation may apply if such USRPHC has a class 
of stock which is regularly traded on an established securities 
market and the Fund generally did not hold (and was not 
deemed to hold under certain attribution rules) more than 5% 
(10% in the case of a REIT) of the value of a regularly traded 
class of stock or securities of such USRPHC at any time during 
the five year period ending on the date of disposition. 3  
Moreover, if the Fund were deemed to be engaged in a U.S. 
trade or business as a result of owning a limited partnership 
interest in a U.S. business partnership or a similar ownership 
interest, income and gain realized from that investment would 
be subject to U.S. income and branch profits tax.    

AB FCP I 

Identity of Beneficial Ownership; Withholding on 
Certain Payments.   

United States.  In order to avoid a U.S. withholding tax of 
30% on certain payments (including payments of gross 
proceeds) made with respect to certain actual and deemed 
U.S. investments, the Fund generally will be required to 
timely register with the Service and agree to identify certain 
direct and indirect U.S. account holders (including 
debtholders and equityholders).  Luxembourg has signed a 
Model 1A (reciprocal) inter-governmental agreement with 
the United States (the "US IGA") to give effect to the 
foregoing withholding and reporting rules.  So long as the 
Fund complies with the US IGA and the enabling 
legislation, the Investment Manager anticipates that the 
Fund will not be subject to the related U.S. withholding tax. 

A non-U.S. investor in the Fund will generally be required to 
provide to the Fund (or in certain cases, a distributor, 
intermediary or certain other entities through which a non-
U.S. investor invests (each, an "Intermediary")) information 
which identifies its direct and indirect U.S. ownership.  
Under the US IGA, any such information provided to the 
Fund will be shared with the Luxembourg Minister of 
Finance or its delegate (the "Luxembourg MOF"), unless 
such U.S. ownership is exempt from the reporting rules.  
The Luxembourg MOF will provide the information reported 
to it with the Service annually on an automatic basis.  A 
non-U.S. investor that is a "foreign financial institution" 
within the meaning of Section 1471(d)(4) of the IRC will 
also generally be required to timely register with the Service 
and agree to identify certain of its own direct and indirect 
U.S. account holders (including debtholders and 
equityholders).  A non-U.S. investor who fails to provide 
such information to the Fund (or, if applicable, an 
Intermediary) or timely register and agree to identify and 
report information with respect to such account holders (as 
applicable), may be subject to the 30% withholding tax with 
respect to its share of any such payments attributable to 
actual and deemed U.S. investments of the Fund, and the 
Fund may take any action in relation to an investor's Shares 
or redemption proceeds to ensure that such withholding is 
economically borne by the relevant investor whose failure to 
provide the necessary information or comply with such 
requirements gave rise to the withholding, subject to 
applicable laws and regulations and provided that the 
Management Company acts in good faith and on 
reasonable grounds.  Shareholders should consult their 
own tax advisors regarding the possible implications of 
these rules on their investments in the Fund. 

Non-U.S. shareholders may also be required to make 
certain certifications to the Fund as to the beneficial 
ownership of the Shares and the non-U.S. status of such 
beneficial owner, in order to be exempt from U.S. 
information reporting and backup withholding on a 

3  

The  Fund  will  also  be  exempt  from  tax  on  dispositions  of  REIT 
shares, whether or not those shares are regularly traded, if less 
than 50% of the value of such shares is held, directly or indirectly, 
by non-U.S. persons at all times during the five-year period ending 
on  the  date  of  disposition.    However,  even  if  the  disposition  of 
REIT  shares  would  be  exempt  from  tax  on  a  net  basis, 
distributions  from  a  REIT  (whether  or  not  such  REIT  is  a 

II-57 

USRPHC), to the extent attributable to the REIT's disposition 
of interests in U.S. real property, are subject to tax on a net 
basis when received by the Fund and may be subject to the 
branch profits tax.  Distributions from certain publicly traded 
REITs  to  non-U.S.  shareholders  owning  10%  or  less  of  the 
shares are subject to a 30% gross withholding tax on those 
distributions and are not subject to tax on a net basis. 

 
 
 
 
 
redemption of Shares. 

In General.  It is possible that further inter-governmental 
agreements ("future IGAs") similar to the US IGA may be 
entered into with other third countries by the Luxembourg 
Government to introduce similar regimes for reporting to such 
third countries' fiscal authorities ("foreign fiscal authorities"). 

By investing (or continuing to invest) in the Fund, investors 
shall be deemed to acknowledge that: 

(i) 

(ii) 

(iii) 

(iv) 

(v) 

the Fund (or its agent or an Intermediary) may be 
required to disclose to the Luxembourg MOF certain 
confidential information in relation to the investor, 
including, but not limited to, the investor's name, 
address, tax identification number (if any), social 
security number (if any) and certain information relating 
to the investor's investment; 

the Luxembourg MOF may provide information as 
outlined above with the Service, the Luxembourg 
Minister of Finance and other foreign fiscal authorities; 

the Fund (or its agent or an Intermediary) may disclose 
to the Service, the Luxembourg Minister of Finance and 
other foreign fiscal authorities certain confidential 
information when registering with such authorities and if 
such authorities contact the Fund (or its agent directly) 
with further enquiries; 

the Fund or an Intermediary may require the investor to 
provide additional information and/or documentation 
which the Fund or an Intermediary may be required to 
disclose to the Luxembourg MOF; 

in the event an investor does not provide the requested 
information and/or documentation and/or has not itself 
complied with the applicable requirements, the Fund 
reserves the right to take any action and/or pursue all 
remedies at its disposal, including, without limitation, 
action to ensure that any withholding imposed in respect 
of such investor's Shares or redemption proceeds is 
economically borne by such investor and compulsory 
redemption of the investor concerned; and 

(vi)  no investor affected by any such action or remedy shall 

have any claim against the Fund (or its agent) for any 
form of damages or liability as a result of actions taken 
or remedies pursued by or on behalf of the Fund in 
order to comply with FATCA, any of the US IGA or any 
future IGAs, or any of the relevant underlying legislation 
and regulations. 

U.S. Withholding Tax.  In general, under Section 881 of the 
IRC, a non-U.S. corporation which does not conduct a U.S. 
trade or business is nonetheless subject to tax at a flat rate of 
30% (or lower tax treaty rate) on the gross amount of certain 
U.S. source income which is not effectively connected with a 
U.S. trade or business, generally payable through withholding.  
Income subject to such a flat tax rate is of a fixed or 
determinable annual or periodic nature, including dividends, 
certain "dividend equivalent payments" and certain interest 
income.  In some cases, dividend income subject to the 30% 
(or lower tax treaty rate), can be imputed to holders of certain 
equity interests or equity derivative instruments, such as 

II-58 

AB FCP I 

options or convertible debt, as a result of an adjustment by 
the issuing corporation to the exercise or conversion ratio, 
or as a result of other corporate action which has the effect 
of increasing a holder's interest in the earnings and profits, 
or assets of the issuing corporation. 

Certain types of income are specifically exempted from the 
30% tax and thus withholding is not required on payments 
of such income to a non-U.S. corporation.  The 30% tax 
does not apply to U.S. source capital gains (whether long or 
short-term) or to interest paid to a non-U.S. corporation on 
its deposits with U.S. banks.  The 30% tax also does not 
apply to interest which qualifies as portfolio interest.  The 
term "portfolio interest" generally includes interest (including 
original issue discount) on an obligation in registered form 
which has been issued after July 18, 1984 and with respect 
to which the person who would otherwise be required to 
deduct and withhold the 30% tax receives the required 
statement that the beneficial owner of the obligation is not a 
U.S. person within the meaning of the IRC.  In addition, if 
any credit default swap is characterized as a contract of 
insurance or a guarantee, payments received under such 
credit default swap may be subject to an excise tax or a 
withholding tax.  

Redemption of Shares.  Gain realized by shareholders 
who are not U.S. persons within the meaning of the IRC 
("non-U.S. shareholders") upon the sale, exchange or 
redemption of Shares held as a capital asset should 
generally not be subject to U.S. federal income tax provided 
that the gain is not effectively connected with the conduct of 
a trade or business in the U.S.  However, in the case of 
nonresident alien individuals, such gain will be subject to 
the 30% (or lower tax treaty rate) U.S. tax if (i) such person 
is present in the U.S. for 183 days or more during the 
taxable year (on a calendar year basis unless the 
nonresident alien individual has previously established a 
different taxable year) and (ii) such gain is derived from 
U.S. sources. 

Generally, the source of gain upon the sale, exchange or 
redemption of Shares is determined by the place of 
residence of the shareholder.  For purposes of determining 
the source of gain, the IRC defines residency in a manner 
that may result in an individual who is otherwise a 
nonresident alien with respect to the U.S. being treated as a 
U.S. resident only for purposes of determining the source of 
income.  Each potential individual shareholder who 
anticipates being present in the U.S. for 183 days or more 
(in any taxable year) should consult his tax advisor with 
respect to the possible application of this rule. 

Gain realized by a non-U.S. shareholder engaged in the 
conduct of a U.S. trade or business will be subject to U.S. 
federal income tax upon the sale, exchange or redemption 
of Shares if such gain is effectively connected with its U.S. 
trade or business.   

Estate and Gift Taxes.  Individual holders of Shares who 
are neither present nor former U.S. citizens or U.S. 
residents (as determined for U.S. estate and gift tax 
purposes) are not subject to U.S. estate and gift taxes with 
respect to their ownership of such Shares. 

 
 
 
 
Claims of U.S. Treaty Benefits by Certain Investors in 
Fiscally Transparent Share Classes. The Fund is generally 
subject to U.S. withholding tax on U.S. source dividends paid 
to the Fund at the standard statutory rate of 30 percent. A 
lower rate is possible under certain circumstances, however. 

Residents of countries that have a double taxation treaty with 
the United States are generally entitled to rates of withholding 
on U.S. source dividends that are lower than the standard 30 
percent rate provided by U.S. law. When such a person invests 
in a non-U.S. investment vehicle, that person may be able to 
claim a reduced withholding rate on U.S. source income paid to 
the investment vehicle, provided that three conditions are met: 

1. 

The investment vehicle is treated as fiscally transparent by 

the country in which the investor is a tax resident; 

2. 

The investor is not itself treated as fiscally transparent by 
the country in which the investor is a tax resident; and 

3. 

The investor’s country of tax residence and the U.S. take a 

similar approach to fiscal transparency. 

Under these provisions, a non-U.S. investment vehicle is 
generally treated as fiscally transparent with respect to an item 
of income to the extent that the country in which the investor is 
a tax resident requires the investor to separately take into 
account, on a current basis, its respective share of an item of 
income paid to the investment vehicle, whether or not the item 
of income is distributed to the investor by the investment 
vehicle, and provided the character and source of the item of 
income in the hands of the investor are determined as if such 
item were realized directly from the source from which it was 
realized by the investment vehicle. 

However, a non-U.S. investment vehicle will not be treated as 
fiscally transparent for this purpose if the investor is required to 
include in gross income a share of all or part of the entity's 
income on a current basis under any type of anti-deferral 
regime or comparable mechanism. 

The Fund has obtained rulings from the taxing authorities or 
opinions of counsel concerning the laws of the United 
Kingdom, Ireland, and the Netherlands confirming the fiscal 
transparency of the Fund under the income tax laws of those 
countries. Therefore, an investor in one of the above-named 
classes that is not itself treated as fiscally transparent by one of 
the foregoing countries in which it is a tax resident and that 
satisfies certain documentation requirements may be able to 
claim a reduced (or in some cases, zero) rate of U.S. tax 
withholding with respect to a U.S. source item of income under 
the relevant treaty as if the item of income in-question were 
realized directly from the source from which it is realized by the 
Fund. A non-U.S. investor who claims such a benefit under the 
relevant double-taxation treaty also may be required to 
disclose that it has done so on Form 8833 filed with the U.S. 
tax authorities. Persons who are considering an investment 
in the above-referenced fiscally transparent share classes 
should consult a U.S. tax advisor. 

Other Fiscal Transparency Issues 

In addition, certain countries treat investors in the Fund as if 
they had directly purchased a pro rata interest in the assets of 
the Fund.  Accordingly, a non-U.S. investor may be required to 
take into account its proportionate share of the Fund’s income 
currently for income tax purposes in its country of tax residence 
regardless of whether the Fund makes any distributions or 

II-59 

AB FCP I 

redemptions.   An investor should consult with its own tax 
advisor prior to investing in the Fund to determine if it is 
required to do so.  The Fund, the Management Company, 
and the Depositary do not intend to provide investors with 
investment reports more extensive than currently provided.  
An investor should consult with its own tax advisor prior to 
investing in the Fund to ensure that the investor is able to 
comply with tax laws in its country of tax residence.   

People’s Republic of China (“PRC”) Taxation 

By investing in shares of PRC resident enterprises 
(including China A-, B- and H-shares), RMB denominated 
corporate and government bonds, securities investment 
funds and warrants listed on the PRC stock exchanges or 
PRC inter-bank bond markets, a Portfolio may be subject to 
withholding income tax (“WIT”) and other taxes imposed in 
the PRC.  

(a)  PRC Corporate Income Tax (“CIT”): 

Lacking specific guidance, it is uncertain whether the QFI or 
the relevant investing Portfolios would be considered the 
taxpayer with respect to the PRC-sourced income derived 
from the investment in bonds, shares and other securities in 
the PRC.  In the event the QFI were considered to be the 
taxpayer, any PRC taxes levied against the QFI would be 
reimbursed and ultimately borne by the relevant Portfolios 
of the Fund.  

If the relevant Portfolios are deemed to be the taxpayer, 
then such Portfolios will be subject to PRC CIT at 25% on 
its worldwide taxable income if it is considered to be a tax 
resident enterprise of the PRC. If a Portfolio is considered 
to be a non-tax resident enterprise with an establishment or 
place of business (“PE”) in the PRC, the PRC sourced 
profits attributable to that PE would be subject to CIT at 
25%. 

Under the PRC CIT Law effective from 1 January 2008, a 
foreign enterprise without a PE in the PRC will generally be 
subject to a WIT at the current rate of 10% on its PRC 
sourced income, including but not limited to passive income 
(e.g. dividends, interest, gains arising from transfer of 
assets, etc.), subject to the application of treaty relief.  

The Investment Manager intends to manage and operate 
the Portfolios in such a manner that the Portfolios and the 
Fund not be treated as a tax resident enterprise of the PRC 
or a non-tax resident enterprise with a PE in the PRC for 
CIT purposes, although this cannot be guaranteed. As 
such, it is expected that the Portfolios should only be 
subject to WIT at 10% to the extent the relevant Portfolio 
directly derives PRC sourced income in respect of its 
investment in bonds, shares and other securities in the 
PRC.   

(i) 

Interest  

Unless a specific exemption is applicable, non-PRC tax 
residents, including the Fund is subject to PRC WIT on 
interest received on debt instruments issued by PRC tax 
residents, including bonds issued by enterprises 
established within mainland China. The general WIT rate 
applicable is 10%, subject to reduction under an applicable 
double tax treaty.   

 
 
 
Interest derived from government bonds issued by the PRC 
Ministry of Finance and local governments is exempt from PRC 
CIT under the PRC CIT Law.  Local government bonds refer to 
bonds issued by a government of a province, autonomous 
region, municipality directly under the Central Government, or 
municipality separately listed on the PRC’s state plan. 

Under the "Arrangement between the mainland of China and 
the Hong Kong Special Administrative Region for the 
Avoidance of Double Taxation and the Prevention of Fiscal 
Evasion with respect to Taxes on Income" (the “Mainland-HK 
Arrangement”), if a Hong Kong tax resident derives interest 
income from the PRC, the WIT rate can be reduced to 7% 
provided that the Hong Kong tax resident is the beneficial 
owner of the interest income under the Mainland-HK 
Arrangement.  Pre-approval from the PRC tax authorities is 
required before the reduced 7% rate can apply.  Under the 
PRC-Luxembourg Double Taxation Agreement (the “PRC-
Luxembourg DTA”), no treaty relief is available to the Fund with 
respect to PRC-sourced interest income, and thus a 10% WIT 
rate will apply.  There are still uncertainties as to how the PRC 
tax authorities will assess the beneficial ownership issue for 
investment funds and whether the QFI or the Fund would be 
considered the taxpayer in respect of interest income on 
bonds.  If the relevant approval is not obtained or a Portfolio is 
considered to be the taxpayer, the general rate of 10% will be 
applicable to the Fund’s Portfolios that invest in the PRC.   

(ii) 

Dividends 

The Fund will be subject to 10% WIT on PRC-sourced 
dividends (including dividends on A-shares, B-shares and H-
shares), which may be reduced by the relevant double tax 
treaty.  The Fund may not be eligible for treaty relief on PRC-
sourced dividends pursuant to the Mainland-HK Arrangement 
or PRC-Luxembourg DTA as it is unlikely that the Fund would 
own a 25% or greater equity interest in a PRC enterprise due 
to regulatory restriction.   

(iii)  Capital gain 

Debt investments 

There are no specific rules or regulations governing the CIT 
treatment of gains derived from the disposal of debt 
instruments in the PRC by the Fund, and thus the general 
principles of the CIT law should be followed if no special 
exemption is granted by the Chinese government.   

The tax treatment for a Fund investing in debt instruments in 
the PRC is governed by the general taxation provisions of the 
CIT Law. Under such general principles, a Fund may not be 
subject to 10% PRC WIT on gains derived from the disposal of 
bonds in the PRC as such gains may not be considered to be 
PRC-source income.   

In the event gains derived from the disposal of bonds in the 
PRC are considered to be PRC-sourced income, the Fund may 
be eligible for treaty relief under the Capital Gains Article of the 
Mainland-HK Arrangement or PRC-Luxembourg DTA with 
respect to such gains.   

For tax residents in Hong Kong or Luxembourg that have no 
PE in the PRC, capital gains arising from the disposal of bonds 
in the PRC, pursuant to the Mainland-HK Arrangement or 
PRC-Luxembourg DTA, may be exempted from the PRC WIT, 
subject to the approval of the PRC tax authorities. 

II-60 

AB FCP I 

The Investment Manager or QFI Holder will further assess 
and seek to apply with PRC tax authorities to enjoy the 
above capital gain tax exemption under the Mainland-HK 
Arrangement or PRC-Luxembourg DTA (as applicable), 
although this cannot be guaranteed. Without the relevant 
approval, the general rate of 10% may be applicable to the 
capital gains derived by the Fund on bonds in the PRC. 

Equity investments 

With the approval from the PRC State Council, the PRC 
State Administration of Taxation, the PRC Ministry of 
Finance and the CSRC have jointly issued Caishui [2014] 
79 (“Circular 79”) to clarify the WIT treatment with respect 
to gains derived by QFIIs and RQFIIs from the disposal of 
equity investments, including shares in PRC enterprises.  
According to Circular 79, QFIIs and RQFIIs are temporarily 
exempt from WIT with respect to gains derived from the 
disposal of equity investments, including shares in PRC 
enterprises (e.g. A-Shares), via the QFII or RQFII schemes, 
effective from 17 November 2014.  With respect to gains 
derived prior to 17 November 2014, QFIIs and RQFIIs are 
subject to WIT in accordance with the relevant laws.   

(b)  Business Tax ("BT"), Value-Added Tax (“VAT”) and 

surtaxes  

With effect from 1 May 2016, all industries formerly subject 
to BT have transited to VAT pursuant to the Circular on 
Overall Replacement of Business Tax by Value-added Tax 
on A Pilot Basis (Caishui [2016] No. 36) jointly issued by 
MOF and SAT on 24 March 2016 (“Circular 36”).  Circular 
36 provides for a 6% VAT rate for financial services 
(including trading financial instruments), replacing the 5% 
tax rate formerly applied under the BT regime.  VAT for 
trading securities by QFIs in China is provisionally 
exempted according to the Supplemental Notice on the 
VAT Policies of Inter-bank Transactions (Caishui [2016] No. 
70) jointly issued by MOF and SAT on 30 June 2016, with a 
retrospective effect from 1 May 2016.  

(c) 

Stamp Duty (“SD”) 

SD under the PRC laws generally applies to the execution 
and receipt of all taxable documents listed in the PRC's 
Provisional Rules on SD. SD is generally imposed on the 
seller of shares of Chinese companies listed on the PRC 
stock exchanges at a rate of 0.1% of the sales 
consideration.  The Fund will be subject to this tax on each 
disposal of such PRC listed shares. 

Shareholders should seek their own tax advice on their tax 
position with regard to their investment in the Fund and a 
particular Portfolio. 

Various tax reform policies have been implemented by the 
PRC government in recent years, and existing tax laws and 
regulations may be revised or amended in the future.  
There is a possibility that the current tax laws, regulations 
and practice in the PRC will be changed with retrospective 
effect in the future and any such change may have an 
adverse effect on the net asset value of the Fund. 
Moreover, there is no assurance that tax incentives 
currently offered to companies, if any, will not be abolished 
and that existing tax laws and regulations will not be revised 
or amended in the future. Any changes in tax policies may 
reduce the after-tax profits of the companies in the PRC in 

 
 
which the Fund invests, thereby reducing the income from, 
and/or value of such investments. 

In light of the uncertainty on the income tax treatment on 
capital gains arising from the disposal of PRC bonds, and 
in order to meet this potential tax liability for capital gains, 
the Investment Manager currently intends to make 
provisions from the relevant Portfolios of the Fund for any 
PRC WIT that is potentially payable by the such Portfolios 
at a rate of 10% on the gross realised and unrealised 
capital gains derived from the disposal of PRC bonds 
since the launch of the  relevant Portfolio of the Fund.  

Upon the availability of a definitive tax assessment by the 
competent authorities, any sums withheld in excess of the tax 
liability incurred or is expected to be incurred by the relevant 
Portfolios of the Fund shall be released and transferred to such 
Portfolio’s accounts. The amount of any such tax provision will 
be disclosed in the accounts of the Fund. 

It should be noted that the actual applicable tax rates imposed 
by SAT may be different from the WIT provision.  There is a 
possibility of taxes being applied retrospectively.  As such, any 
provision for taxation made by the Investment Manager may be 
inadequate to meet actual PRC tax liabilities on gains derived 
from PRC securities held by the Fund. In such event, the Fund 
may experience a drop in NAV which may cause losses to 
investors. 

PRC tax disclosure regarding the China Connect Scheme  

In addition to investing in A-Shares via the QFI status of the 
QFI Holder, the Fund may gain exposure to A-Shares through 
the China Connect Scheme, under which the Shanghai 
Connect has commenced trading as of 17 November 2014 and 
the Shenzhen Connect has commenced trading as of 5 
December 2016.   

With the approval from the PRC State Council, the PRC State 
Administration of Taxation, the PRC Ministry of Finance and 
the CSRC have jointly issued (i) Caishui [2014] 81 (“Circular 
81”) to clarify the PRC tax treatment regarding the trading 
under the Shanghai Connect; and (ii) Caishui [2016] 127 
("Circular 127") to expand the PRC tax treatment under 
Circular 81 to cover the tradings under the Shenzhen Stock 
Connect Scheme and clarify certain other tax issues under the 
China Connect Scheme.  Circular 81 is effective on 17 
November 2014, and Circular 127 is effective on 5 December 
2016.   

According to Circular 155, Circular 36, Circular 81 and Circular 
127, the Fund is subject to the following PRC income tax 
treatment with respect to the Northbound Trading under the 
China Connect Scheme (i.e. trading of certain A-Shares on 
SSE/SZSE): 

•  Temporarily exempt from PRC WIT with respect to 

gains derived from trading A-Shares. 

•  Subject to PRC WIT at 10% with respect to dividends 
received from A-Shares (refund may be applied based 
on applicable tax treaties).   

•  Temporarily exempt from PRC BT (before 1 May 
2016) and VAT (after 1 May 2016) with respect to 
gains derived from trading A-Shares. 

II-61 

AB FCP I 

•  Subject to PRC SD at 0.1% with respect to the 
sale, inheritance and gift of A-Shares (i.e. the 
purchase of A-Shares is not subject to PRC SD).   

•  Temporarily exempt from PRC SD with respect to 
the borrowing and returning of the China Connect 
Securities under covered short selling. 

Investors should note that the China Connect Scheme has 
limited or no history, and, accordingly, the taxation rules 
applicable to the China Connect Securities traded on 
SSE/SZSE are not long established and subject to change 
in the future. Investors should seek advice from their 
professional tax advisors with any questions regarding the 
China Connect Securities. 

Fiscal Year 
The Fund's financial year ends 31 August. 

Duration of the Fund, Liquidation, Amalgamation 
The Fund and the various portfolios have been established 
for an indefinite period.  Shareholders, their heirs and any 
other beneficiaries may not demand the dissolution or 
division of the Fund or of a portfolio.  A portfolio may be 
dissolved by the Management Company at any time. Any 
notice of dissolution will be published in the Mémorial and in 
at least two newspapers with appropriate distribution, at 
least one of which must be a Luxembourg newspaper, to be 
determined jointly by the Management Company and the 
Depositary.  No Shares of such portfolio may be issued 
after the date of such decision of the Management 
Company.  The Fund will be dissolved when the last 
portfolio is dissolved.  In the event of the liquidation of the 
last portfolio, the Management Company will realize the 
assets of that portfolio in the best interest of the 
Shareholders, and the Depositary will distribute the net 
liquidation proceeds corresponding to each class of Shares 
of that portfolio, after deduction of liquidation charges and 
expenses, to the holders of Shares of each class in the 
proportion of the respective rights of each class, all in 
accordance with the directions of the Management 
Company.  Liquidation proceeds which cannot be 
distributed to the persons entitled thereto at the close of 
liquidation will be deposited with the Caisse de 
Consignation in Luxembourg until the applicable 
prescription period shall have elapsed. 

If the Management Company decides to dissolve any 
portfolio without terminating the Fund, it will refund to the 
Shareholders of each class of such portfolio the full Net 
Asset Value of the Shares within each class of such 
portfolio.  Such action will be publicized by the Management 
Company and the proceeds of the refund which can not be 
distributed to the persons entitled thereto will be deposited 
with the Caisse de Consignation in Luxembourg within nine 
months following the decision of the Board of Managers of 
the Management Company to dissolve the relevant 
portfolio.  By decision of the Management Company, two or 
more portfolios may be amalgamated and the 
corresponding class of Shares converted into Shares of the 
corresponding class of another portfolio.  The rights of the 
different Share classes will in such event be determined in 
the proportion of the respective Net Asset Values.  Notice of 
such an amalgamation will be given at least one month 
prior thereto in order to allow investors to request 

 
 
redemption of their Shares without cost if they do not wish to 
participate in the portfolio so established. 

Governing Language 
English will be the governing language of the Management 
Regulations, provided, however, that the Management 
Company and the Depositary may, on behalf of themselves 
and the Fund, consider as binding the translation into 
languages of the countries in which the Shares are offered and 
sold with respect to Shares of the Fund sold to investors in 
such countries. 

Documents Available for Inspection 
The following documents are available for inspection during 
normal business hours at the office of the Management 

AB FCP I 

Company:  (1) the Management Regulations; (2) the 
Depositary Agreement; (3) the Administration Agreement; 
(4) the Investment Management Agreement relating to each 
portfolio; (5) the articles of incorporation of the Management 
Company; (6) the Distribution Agreement; (7) the latest 
semi-annual and annual reports relating to the Fund and, if 
available, each portfolio; (8) the Prospectus of the Fund; 
and (9) KIDs of the Fund.  Copies of the Fund's Prospectus, 
Management Regulations, latest annual report and, if 
issued thereafter, the latest semi-annual report, as well as 
copies of the KIDs of each Portfolio of the Fund, may be 
obtained at the offices of the Management Company and 
the Distributor without cost. 

II-62 

 
 
Local Information 

Information in relation to facilities for investors related to Article 92.1. b) to f) of the UCITS Directive and other local information. 

AB FCP I 

II-63 

 
 
Country 

Where information in relation to facilities for investors related to Article 92 1. b) to f) of the UCITS 
Directive is made available. 

AB FCP I 

Available at www.eifs.lu/alliancebernstein 

Facilities requirements for investors related to Article 92 1. a) of the UCITS Directive will be processed by 
AllianceBernstein (Luxembourg) S.à r.l. 

Austria 

Croatia 

Czech Republic 

Denmark 

Finland 

Hungary 

Iceland 

Liechtenstein 

Luxembourg 

Netherlands 

Norway 

Sweden 

Portugal 

Romania 

Slovakia 

Where information in relation to 
facilities for investors related to Article 
92 1. b) to f) of the UCITS Directive is 
made available: 

Additional Country Information 

France 

Available at www.eifs.lu/alliancebernstein  

BNP Paribas Securities Services, 3, rue d’Antin – 75002 
Paris, France is the Centralizing Correspondent of the Fund.  

Facilities requirements for investors 
related to Article 92 1. a) of the UCITS 
Directive will be processed by 
AllianceBernstein (Luxembourg) S.à r.l. 

II-64 

 
 
 
 
 
 
 
 
 
 
 
 
 
Germany 

Available at www.eifs.lu/alliancebernstein  

Facilities requirements for investors 
related to Article 92 1. a) of the UCITS 
Directive will be processed by 
AllianceBernstein (Luxembourg) S.à r.l. 

AB FCP I 

Any notices will be sent to the registered shareholders at their 
address registered in the register of shareholders and will be 
published on www.alliancebernstein.com. In the following 
cases, a notice to shareholders will be published by means of 
a durable medium: suspension of the redemption of the 
shares; termination of the management of the Fund or the 
winding-up of the Fund; amendments to the Fund rules which 
are inconsistent with existing investment principles, 
amendments to material investor rights to the detriment of 
investors, or amendments to the detriment of investors 
relating to remuneration or the reimbursement of expenses 
that may be taken out of the Fund (including the reasons for 
the amendments and the rights of investors); the merger of 
the Fund or a Portfolio; and the conversion of the Fund or a 
Portfolio into a feeder fund. 

German Taxation 

At least 50% of the following Portfolios’ respective net assets 
will be invested in equities in the meaning of Art. 2 Par. 8 of 
the German Investment Tax Act: 

Asia Ex-Japan Equity Portfolio 

China Low Volatility Equity Portfolio 

Emerging Markets Growth Portfolio 

Global Equity Blend Portfolio 

Japan Strategic Value Portfolio 

At least 25% of the following Portfolios’ respective net assets 
will be invested in equities in the meaning of Art. 2 Par. 8 of 
the German Investment Tax Act: 

Dynamic Diversified Portfolio 

Hong Kong 

N/A 

Representative of the Fund 

AllianceBernstein Hong Kong Limited, 
39th floor, One Island East, 
Taikoo Place, 18 Westlands Road Quarry Bay,  
Hong Kong 

The Hong Kong Representative is authorized to receive 
requests from Hong Kong investors (including Shareholders) 
for subscription for Shares and receive requests from 
Shareholders in Hong Kong for redemption of Shares. The 
Hong Kong Representative will forward such requests to the 
Transfer Agent upon receipt. The Hong Kong Representative 
has, however, no authority to agree, on behalf of the Fund, 
that requests will be accepted. The Hong Kong 
Representative and the Fund cannot, in absence of 
negligence, accept responsibility for any failure by the Hong 
Kong Representative to forward any application, exchange or 
redemption instruction of the Fund or for any delay in doing 
so. 

II-65 

 
 
 
 
 
 
 
 
Italy 

Paying agents 

BNP Paribas Securities Services SA, 
Milan Branch  
Via Ansperto 5 
Milan, Italy 

Allfunds Bank, S.A., Milan branch  
Via Santa Margherita 7 
Milan, Italy 

Société Générale Securities Services 
S.p.A. 
Santa Chiara 19 
Turin, Italy 

Banca Sella Holdings S.p.A., 
Piazza Gaudenzio Sella 
Biella, Italy 

CACEIS Bank, Italy  
Branch Piazza Cavour n°5 
20121 Milan, Italy 

Poland 

Representative 

ProService Finteco Sp. z o.o. 
Konstruktorska 12A 
02-673 Warsaw, Poland 

Paying Agent 

Bank Polska Kasa Opieki Spółka Akcyjna 
ul. Grzybowska 53/57 
00-950 Warsaw, Poland 

Singapore 

N/A 

The paying agents in Italy may charge a commission in 
respect of each request for subscription, exchange or 
redemption of shares. 

AB FCP I 

Representative of the Fund 

AllianceBernstein (Singapore) Ltd. 
One Raffles Quay, 
#27-11 South Tower 
Singapore 048583 

Copies of the Fund's Prospectus, Management Regulations 
and the latest annual and semi-annual reports are available 
for inspection, free of charge, at the registered office of the 
Representative of the Fund, during Singapore business hours.  

Spain 

Representative of the Fund 

AllFunds Bank, S.A. 
calle Nuria no. 57, 
Colonia Mirasierra 
28034 Madrid, 
Spain 

II-66 

 
 
 
 
 
 
 
 
 
 
 
 
 
Switzerland 

Representative and Paying Agent of the 
Fund 

BNP Paribas Paris, 
Succursale de Zurich  
Selnaustrasse 16 
8002 Zurich, 
Switzerland 

AB FCP I 

1. Location where the relevant documents may be obtained 

The Prospectus, KIDs relaed to the portfolios of the Fund, 
Management Regulations and the annual and semi-annual 
reports of the Fund may be obtained free of charge from the 
Swiss Representative. 

2. Publications 

The Fund's publications in Switzerland are made on 
www.fundinfo.com. Each time Shares are issued or 
redeemed, the issue and redemption prices of the Shares of 
all of the portfolios of the Fund, respectively the Net Asset 
Value per Share (with the mention “excluding commissions”), 
are published jointly and on a daily basis on 
www.fundinfo.com. 

3. Payment of retrocessions and rebates 

The Management Company and its agents on behalf of the 
Fund may pay retrocessions as remuneration for distribution 
activity in respect of Shares of the Fund distributed in or from 
Switzerland. This remuneration may be deemed payment for 
the following services in particular:  

• 

• 

• 

client relations and management of investor accounts 
and activity;  

assistance in marketing Shares of the Fund and 
assessment of suitability of Shares for investors; and 

cooperation in respect of regulatory compliance, AML 
and other laws applicable to investor accounts. 

Retrocessions are not deemed to be rebates even if they are 
ultimately passed on, in full or in part, to the investors. The 
recipients of the retrocessions must ensure transparent 
disclosure and inform investors, unsolicited and free of 
charge, about the amount of remuneration they may receive 
for distribution. On request, the recipients of retrocessions 
must disclose the amounts they actually receive for 
distributing the collective investment schemes of the investors. 

In the case of distribution activity in or from Switzerland, the 
Management Company and its agents may, upon request, pay 
rebates directly to investors. The purpose of rebates is to 
reduce the fees or costs incurred by the investor in question. 
Rebates are permitted provided that  

• 

• 

• 

they are paid from fees received by the Management 
Company and therefore do not represent an 
additional charge on the Fund assets;  

they are granted on the basis of objective criteria; and  

all investors who meet these objective criteria and 
demand rebates are also granted these within the 
same timeframe and to the same extent.  

The objective criteria for the granting of rebates by the 
Management Company are as follows:  

• 

• 

the volume subscribed by the investor or the total 
volume they hold in the collective in-vestment 
scheme or, where applicable, in the product range of 
the promoter; 

support provided in the launch phase of the Fund; 

II-67 

 
 
United Arab 
Emirates (Dubai) 

N/A 

AB FCP I 

• 

• 

strategic market of the investor; and 

legal and regulatory considerations applicable to an 
investor. 

At the request of the investor, the Management Company 
must disclose the amounts of such rebates free of charge. 

4.Place of performance and jurisdiction 

In respect of the Shares distributed in and from Switzerland, 
the place of performance is at the registered office of the 
Swiss Representative and the place of jurisdiction is at the 
registered office of the Swiss Representative or at the 
seat/domicile of the investor. 

This Prospectus relates to a fund which is not subject to any 
form of regulation or approval by the Dubai Financial Services 
Authority (“DFSA”). The DFSA has no responsibility for 
reviewing or verifying any Prospectus or other documents in 
connection with the Fund. Accordingly, the DFSA has not 
approved this Prospectus or any other associated documents 
nor taken any steps to verify the information set out in this 
Prospectus, and has no responsibility for it. The Shares to 
which this Prospectus relates may be illiquid and/or subject to 
restrictions on their resale. Prospective purchasers of the 
Shares offered should conduct their own due diligence on the 
Shares. If you do not understand the contents of this 
document you should consult an authorised financial adviser. 

United Kingdom 

See “Appendix D:  Additional Information for UK Investors” 

II-68 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB FCP I 

of which one or more Member States of the EU are 
members or any other non Member State; 

(iii)  The above limit of 10% shall be 25% in respect of 

certain authorized bonds when these are issued by a 
credit institution which has its registered office in a 
Member State and is subject by law to special public 
supervision designed to protect bondholders.  In 
particular, sums deriving from the issue of these 
bonds must be invested in conformity with the law in 
assets which, during the whole period of validity of 
the bonds, are capable of covering claims attaching 
to the bonds and which, in the event of failure of the 
issuer, would be used on a priority basis for the 
reimbursement of the principal and payment of the 
accrued interest. 

  When the Fund may invest more than 5% of the 

assets of a portfolio in the bonds referred to above 
and issued by one issuer, the total value of these 
investments may not exceed 80% of the value of the 
assets of the portfolio concerned. 

(iv)  The transferable securities and the money market 

instruments referred to in items (ii) and (iii) shall not 
be included in applying the limit of 40% set out in this 
paragraph; and 

(v)  Notwithstanding the foregoing, the Fund may 

invest up to 100% of the assets of any portfolio in 
different transferable securities or money market 
instruments issued or guaranteed by any Member 
State of the EU, its local authorities, or public 
international bodies of which one or more of 
such Member States are members, or by any 
Member State of the OECD, provided that the 
Fund holds within such portfolio transferable 
securities or money market instruments from at 
least six different issues, and transferable 
securities or money market instruments from any 
one issue shall not account for more than 30% of 
the net assets of such portfolio. 

The limits provided for in paragraphs (i), (ii) and (iii) may 
not be combined, and thus investments in transferable 
securities or money market instruments issued by the 
same body or in deposits made with this body carried out 
in accordance with paragraphs (i), (ii) and (iii) shall under 
no circumstances exceed in total 35% of the net assets of 
a portfolio. 

Issuers which are included in the same group for the 
purposes of consolidated accounts, as defined in 

Appendix A:  Investment Restrictions 

Investment Restrictions 
The following restrictions apply individually to each portfolio of 
the Fund and not in aggregate to the Fund as a whole, unless 
specifically so stated.  The Management Regulations place the 
following restrictions on the Management Company: 

 (1)  The Fund may not borrow money except from banks on 
a temporary basis, which includes for purposes of 
redeeming Shares, and only if the aggregate of the 
amount borrowed would not exceed 10% of the value of 
the total net assets of the portfolio concerned, provided, 
however, that this restriction shall not prevent the Fund 
from acquiring foreign currencies by means of a back to 
back loan; 

(2)  The Fund may not mortgage, pledge, hypothecate or in 
any manner transfer, as security for indebtedness, any 
securities owned or held by the Fund except as may be 
necessary in connection with (i) borrowings mentioned in 
(1) above, and then such mortgaging, pledging or 
hypothecating may not exceed 10% of the total net assets 
of the portfolio concerned, and/or (ii) margin requirements 
which the Fund may have with respect to its transactions in 
forward or futures contracts or in options, and/or (iii) swap 
transactions; 

(3)  Without prejudice to other provisions contained herein, the 
Fund may not grant loans to or act as a guarantor on 
behalf of third parties; 

(4)  (i) The Fund may not invest in the transferable securities or 
money market instruments of any single issuer if more 
than 10% of the total net assets of the portfolio concerned 
would consist of the transferable securities or money 
market instruments of such issuer. The Fund may not 
invest more than 20% of its assets in deposits made with 
the same body. The total value of the transferable 
securities and the money market instruments held by the 
Fund in issuers in which it invests more than 5% of the 
total net assets of a portfolio may not exceed, at the time 
of any investment, 40% of the total net assets of such 
portfolio provided, this limitation does not apply to deposits 
made with financial institutions subject to prudential 
supervision. This limitation does not apply to deposits and 
OTC derivative transactions made with financial institutions 
subject to prudential supervision. 

Notwithstanding the individual limits laid down in 
paragraph (1), the Fund may not combine: 

-  investments in transferable securities or money market 

instruments issued by, and/or 

-  deposits made with, 

-  exposures arising from OTC derivative transactions 

undertaken with, 

-   a single body in excess of 20% of the net assets of a 

portfolio. 

(ii)  The above limit of 10% shall be 35% in respect of the 

transferable securities or the money market instruments 
issued or guaranteed by any Member State of the EU or 
any local authority thereof, or public international bodies 

II-69 

 
 
 
AB FCP I 

exchange or the market has been provided for in the 
constitutional documents of the UCITS; 

- 

such admission is secured within one year of issue; 

(e)  Money market instruments other than those dealt in 
on a regulated market and which fall under Article 1 
of the Law of 2010, if the issue or the issuer of such 
instruments are themselves regulated for the purpose 
of protecting investors and savings, and provided that 
such instruments are: 

- 

- 

- 

- 

issued or guaranteed by a central, regional or local 
authority or by a central bank of a Member State, the 
European Central Bank, the EU or the European 
Investment Bank, a non-Member State or, in case of 
a Federal State, by one of the members making up 
the federation, or by a public international body to 
which one or more Member States belong, or 

issued by an undertaking any securities of which are 
dealt in on regulated markets referred to in 
subparagraphs (a), (b) or (c) above, or 

issued or guaranteed by an establishment subject to 
prudential supervision, in accordance with criteria 
defined by Community law, or by an establishment 
which is subject to and complies with prudential rules 
considered by the CSSF to be at least as stringent as 
those laid down by Community law; or 

issued by other bodies belonging to the categories 
approved by the CSSF provided that investments in 
such instruments are subject to investor protection 
equivalent to that laid down in the first, the second or 
the third indent and provided that the issuer is a 
company whose capital and reserves amount to at 
least ten million euro (10,000,000 euro) and which 
presents and publishes its annual accounts in 
accordance with Directive 78/660/EEC, is an entity 
which, within a group of companies which includes 
one or several listed companies, is dedicated to the 
financing of the group or is an entity which is 
dedicated to the financing of securitization vehicles 
which benefit from a banking liquidity line. 

(6)   (i) The Fund may not purchase securities of any issuer 
if, upon such purchase, the Fund owns more than 10% 
of any class of the securities of such issuer, or if, as a 
result of such purchase, the Management Company 
may exercise a significant influence over the 
management of the issuer. 

(ii)  Moreover, the Fund may acquire no more than: 

- 

- 

- 

10% of the debt securities of the same issuer 

25% of the units of any single collective investment 
undertaking except in connection with a merger or 
amalgamation 

10% of the money market instruments of any single 
issuing body 

accordance with Directive 83/349/EEC1 or in accordance 
with recognized international accounting rules, are regarded 
as a single body for the purpose of calculating the limits 
contained therein. 

The Fund may invest concurrently in transferable securities 
and money market instruments of issuers within the same 
group up to a limit of 20% of the net assets of the portfolio 
concerned. 

(4bis) (i) Without prejudice to the limits set forth in investment 
restriction (6) the limits laid down in investment restriction 
(4) may be raised to a maximum of 20% for investment in 
shares and/or debt securities issued by the same body 
when the aim of the portfolio's investment policy as 
described in this Prospectus is to replicate the composition 
of a certain stock or debt securities index which is 
recognized by the Luxembourg Commission de 
Surveillance du Secteur Financier (the "CSSF") on the 
following basis: 

- 

- 

- 

the composition of the index is sufficiently diversified, 

the index represents an adequate benchmark for the 
market to which it refers, 

it is published in an appropriate manner. 

(ii)  The limit laid down in item (i) may be raised to a 

maximum of 35% where that proves to be justified by 
exceptional market conditions in particular in regulated 
markets where certain transferable securities or money 
market instruments are highly dominant. The investment 
up to this limit is only permitted for one single issuer. 

(5)  The Fund may not on behalf of a portfolio invest more than 
10% of its assets in transferable securities and money 
market instruments other than: 

(a)  transferable securities and money market instruments 

admitted to or dealt in on a regulated market; 

(b)  transferable securities and money market instruments 

dealt in on another market in a Member State of the EU 
which is regulated, operates regularly and is recognized 
and open to the public; 

(c)  transferable securities and money market instruments 
admitted to official listing on a stock exchange in a non-
Member State of the EU or dealt in on another market in 
a non-Member State of the EU which is regulated, 
operates regularly and is recognized and open to the 
public provided that the choice of the stock exchange or 
market has been provided for in the constitutional 
documents of the UCITS; 

(d)  recently issued transferable securities and money 

market instruments, provided that:  

- 

the terms of issue include an undertaking that 
application will be made for admission to official listing 
on a stock exchange or on another regulated market 
which operates regularly and is recognized and open to 
the public, provided that the choice of the stock 

1  

Seventh Council Directive 83/349/EEC of 13 June 1983 based on the 

Article 54(3)(g) of the Treaty on consolidated accounts (OJ L 193, 18.7.1983, p. 1).  
Directive repealed by Directive 2013/34/EU. 

II-70 

 
 
 
 
The limits laid down in the indents above may be 
disregarded at the time of acquisition if at that time the gross 
amount of such money market instruments or debt securities, 
or the net amount of the securities in issue, cannot be 
calculated. 

(iii) The limits set forth in items (i) and (ii) shall not apply to (i) 
transferable securities or money market instruments 
issued or guaranteed by any Member State of the EU or 
any local authority thereof, or issued by public 
international bodies of which one or more Member 
States of the EU are members or issued or guaranteed 
by any member state of the OECD, or (ii) shares held by 
the Fund in the capital of a company incorporated in a 
State which is not a Member State of the EU investing its 
assets mainly in the securities of issuing bodies having 
their registered offices in that State, where under the 
legislation of that State such a holding represents the 
only way in which the Fund can invest in the securities of 
issuing bodies of that State, if that company, in its 
investment policy, complies with the limits laid down in 
Articles 43 and 46 and in paragraphs (1) and (2) of 
Article 48 of the Law of 2010 or  (iii) shares held by an 
investment company or investment companies in the 
capital of subsidiary companies carrying on only the 
business of management, advice or marketing in the 
country where the subsidiary is located, in regard to the 
repurchase of units at unitholders' request exclusively on 
its or their behalf. 

(7)  The Fund may not underwrite or subunderwrite securities 
of other issuers except to the extent that, in connection 
with the disposition of portfolio securities, the Fund may be 
deemed to be an underwriter under applicable securities 
laws; 

(8)  The Fund may not purchase securities of other 

undertakings for collective investment of the open-ended 
type, except in compliance with the following 

- 

- 

- 

- 

it may invest in collective investment undertakings 
qualifying as undertakings for collective investment in 
transferable securities authorized according to the UCITS 
Directive and/or undertakings for collective investments 
within the meaning of the first and second indent of Article 
1 (2) of the UCITS Directive whether they are situated in a 
EU Member State or not provided that: 

such undertakings for collective investment must be 
authorized under laws which provide that they are subject 
to supervision considered to be equivalent to that laid 
down in Community law, and that cooperation between 
authorities is sufficiently ensured, 

the level of protection for unitholders in these undertakings 
for collective investment must be equivalent to that 
provided for unitholders in an undertaking for collective 
investment in transferable securities registered in a EU 
Member State, and in particular that the rules on assets 
segregation, borrowing, lending, and uncovered sales of 
transferable securities and money market instruments are 
equivalent to the requirements of the UCITS Directive, 

the business of these undertakings for collective 
investment must be reported in half-yearly and annual 
reports to enable an assessment to be made of the assets 

II-71 

AB FCP I 

and liabilities, income and operations over the reporting 
period, 

- 

no more than 10% of the assets of such an undertaking 
for collective investments, whose acquisition is 
contemplated, may, according to their constitution 
documents, in aggregate be invested in units of other 
undertakings for collective investment, and/or 

provided that it may not invest more than 10% of the net 
assets of a portfolio in units or shares of undertakings for 
collective investment as mentioned above; 

When the Fund invests in units of other undertakings for 
collective investment in transferable securities and/or other 
undertakings for collective investment that are managed, 
directly or by delegation, by the Management Company or 
by any other company with which the Management 
Company is linked by common management or control, or 
by a substantial direct or indirect holding, the Management 
Company or other company may not charge subscription or 
redemption fees in connection with an acquisition or 
disposal of the units of such other undertakings for 
collective investment. 

(9)  The Fund may not trade in options on securities or 
money market instruments unless the following 
limitations are observed: 

(i) 

individual purchases of call and put options and the 
writing of call options shall be limited so that upon 
exercise thereof none of the preceding restrictions 
would be infringed; 

(ii)  put options may be written by the Fund provided 

adequate liquid assets are set aside until the expiry 
of said put options to cover the aggregate exercise 
price of the securities to be acquired by the Fund 
pursuant thereto; 

(iii)  call options will only be written if such writing does 

not result in a short position; in such event the Fund 
will maintain within the relevant portfolio the 
underlying securities until the expiry date of the 
relevant call options granted by the Fund, except that 
the Fund may dispose of said securities in declining 
markets under the following circumstances: 

(a)  the market must be sufficiently liquid to enable the 

Fund to cover its position at any time; 

(b)  the aggregate of the exercise prices payable under 
such options written shall not exceed 25% of the 
net assets of each portfolio concerned; and 

(c)  no option will be purchased or sold unless it is 
quoted on a stock exchange or dealt in on a 
regulated market and provided, immediately after 
its acquisition, the aggregate of the acquisition 
prices of all options held by the Fund (in terms of 
premiums paid) does not exceed 15% of the net 
assets of each portfolio concerned; 

(10) The Fund may for the purpose of hedging currency 
risks hold forward currency contracts or currency 
futures or acquire currency options for amounts not 
exceeding, respectively, the aggregate value of 
securities and other assets held within each portfolio 
concerned denominated in a particular currency, 

 
 
provided, however, that the Fund may also purchase the 
currency concerned through a cross transaction (entered 
into through the same counterparty), or, within the same 
limits, enter into currency swaps, should the cost thereof 
be more advantageous to the Fund.  Contracts on 
currencies must either be quoted on a stock exchange or 
dealt in or on a regulated market except that the Fund may 
enter into currency forward contracts or swap 
arrangements with highly rated financial institutions; 

(11) The Fund may not trade in index options except that 

1. 

for the purpose of hedging the risk of the fluctuation of the 
value of the securities within a portfolio, the Fund may, 
on behalf of such portfolio, sell call options on stock 
indices or acquire put options on stock indices.  In 
such event the value of the underlying securities 
included in the relevant stock index options shall not 
exceed, together with outstanding commitments in 
financial futures contracts entered into for the same 
purpose, the aggregate value of the portion of the 
assets of the portfolio concerned to be hedged; and 

2. 

for the purpose of the efficient management of its 

securities portfolio, the Fund may acquire call options 
on stock indices mainly in order to facilitate changes in 
the allocation of the assets of a portfolio between 
markets or in anticipation of or in a significant market 
sector advance, provided the value of the underlying 
securities included in the relevant stock index options 
is covered within such portfolio by uncommitted cash 
reserves, short dated debt securities and instruments 
or securities to be disposed of at predetermined 
prices; 

Such options on stock index futures must either be listed 
on an exchange or dealt in on a regulated market, except 
that the Fund may purchase or sell OTC options on 
financial instruments, if such transactions are more 
advantageous to the Fund or if quoted options having the 
required features are not available, provided such 
transactions are made with highly rated counterparties 
specializing in these types of transactions. Further, the 
aggregate acquisition cost (in terms of premiums paid) of 
all options on securities and such options on interest rate 
futures and other financial instruments purchased by the 
Fund for purposes other than hedging, shall not exceed 
15% of the net assets of each of the portfolios concerned; 

(12) The Fund may not enter into interest rate futures contracts, 

trade in options on interest rates or enter into interest rate 
swap transactions except that 

1. 

for the purpose of hedging the risk of fluctuations of the 
value of the assets of a portfolio, the Fund may sell 
interest rate futures or write call options or purchase 
put options on interest rates or enter into interest rate 
swaps.  Such contracts or options must be 
denominated in the currencies in which the assets of 
such portfolio are denominated, or in currencies which 
are likely to fluctuate in a similar manner, and they 
must be listed on an exchange or dealt in on a 
regulated market, provided, however, that interest rate 
swap transactions may be entered into by private 
agreement with highly rated financial institutions; and 

II-72 

2. 

for the purpose of efficient portfolio management, the 

AB FCP I 

Fund may enter into interest rate futures purchase 
contracts or acquire call options on interest rate 
futures, mainly in order to facilitate changes in the 
allocation of the assets of a portfolio between 
shorter or longer term markets, in anticipation of or 
in a significant market sector advance, or to give a 
longer term exposure to short term investments, 
provided, always, that sufficient uncommitted cash 
reserves, short dated debt securities or instruments 
or securities to be disposed of at predetermined 
value exist to match the underlying exposure of 
both such futures positions and the value of the 
underlying securities included in call options on 
interest rate futures acquired for the same purpose 
and for the same portfolio; 

Such options on interest rate futures must either be 
listed on an exchange or dealt in on a regulated 
market, except that the Fund may purchase or sell OTC 
options on financial instruments, if such transactions 
are more advantageous to the Fund or if quoted 
options having the required features are not available, 
provided such transactions are made with highly rated 
counterparties specializing in these types of 
transactions.  Further, the aggregate acquisition costs 
(in terms of premiums paid) of all options on securities 
and such options on interest rate futures and other 
financial instruments purchased by the Fund for 
purposes other than hedging, shall not exceed 15% of 
the net assets of each of the portfolios concerned; 

(13) The Fund may not trade in stock index futures except 

that 

1. 

2. 

for the purpose of hedging the risk of fluctuations of the 
value of the assets of a portfolio, the Fund may 
have outstanding commitments on behalf of such 
portfolio in respect of index futures sales contracts 
not exceeding the corresponding risk of fluctuation 
of the value of the corresponding portion of such 
assets; and 

for the purpose of efficient portfolio management, the 
Fund may enter into index futures purchase 
contracts, mainly in order to facilitate changes in 
the allocation of a portfolio's assets between 
markets or in anticipation of or in a significant 
market sector advance, provided that sufficient 
uncommitted cash reserves, short dated debt 
securities or instruments owned by the portfolio 
concerned or securities to be disposed of by such 
portfolio at a predetermined value exist to match 
the underlying exposure of both such futures 
positions and the value of the underlying securities 
included in call stock index options acquired for the 
same purpose; 

provided, further, that all such index futures must either 
be listed on an exchange or dealt in on a regulated 
market; 

(14) The Fund may not lend portfolio investments except 

against receipt of adequate security either in the form 
of bank guarantees of highly rated financial institutions 
or in the form of a pledge of cash or securities issued 

 
 
 
by governments of member states of the OECD. No 
securities lending may be made, except through 
recognized clearing houses or highly rated financial 
institutions specializing in these types of transactions and 
for more than one half of the value of the securities of each 
portfolio and for periods exceeding 30 days; 

(15) The Fund may not purchase real estate, but the Fund may 
make investments in companies which invest in or own 
real estate; 

(16) The Fund may not enter into transactions involving 
commodities, commodity contracts or securities 
representing merchandise or rights to merchandise, and 
for purposes hereof commodities includes precious metals, 
except that the Fund may purchase and sell securities that 
are secured by commodities and securities of companies 
which invest or deal in commodities and may enter into 
derivative instruments transactions on commodity indices 
provided that such financial indices comply with the criteria 
laid down in Article 9 of the Grand-Ducal Regulation dated 
8 February 2008 relating to certain definitions of the Law of 
2010 and in the CSSF Circular 08/339 dated 19 February 
2008 regarding guidelines of the Committee of European 
Securities Regulators (CESR) concerning eligible assets 
for investment by UCITS; and 

 (17)The Fund may not purchase any securities on margin 

(except that the Fund may obtain such short-term credit as 
may be necessary for the clearance of purchases and 
sales of portfolio securities) or make short sales of 
securities or maintain a short position, except that it may 
make initial and maintenance margin deposits in respect of 
futures and forward contracts (and options thereon). 

(18) The Fund must employ a risk-management process which 

enables it to monitor and measure at any time the risk of 
the positions and their contribution to the overall risk profile 
of each portfolio; it must employ a process for accurate 
and independent assessment of the value of OTC 
derivative instruments. 

Under no circumstances shall these operations cause the 
Fund to diverge from its investment objectives as laid 
down in the description of the portfolio concerned as 
specified in the relevant portion of Section I hereof. 

The Fund shall ensure that its global exposure relating to 
derivative instruments of each portfolio does not exceed 
the total net value of the relevant securities portfolio. 

The exposure is calculated taking into account the current 
value of the underlying assets, the counterparty risk, future 
market movements and the time available to liquidate the 
positions.  This shall also apply to the following 
subparagraphs. 

The Fund also may invest in financial derivative 
instruments provided that the exposure to the underlying 
assets does not exceed in aggregate the investment limits 
laid down in investment restriction (4).  When the Fund 
invests in index-based financial derivative instruments, 
these investments do not have to be combined to the limits 
laid down in investment restriction (4). 

When a transferable security or money market instrument 
embeds a derivative, the latter must be taken into account 

II-73 

AB FCP I 

when complying with the requirements of this 
investment restriction 18. 

(19) The Fund may invest in financial derivative instruments, 
including equivalent cash-settled instruments, dealt in 
on a regulated market, and/or financial derivative 
instruments dealt in over-the-counter ("OTC 
derivatives"), provided that: 

-      the underlying consists of securities covered by 

Article 41(1) of the Law of 2010, financial indices, 
interest rates, foreign exchange rates or currencies, 
in which the portfolios may invest according to their 
investment objective; 

-      the counterparties to OTC derivative transactions are 
institutions subject to prudential supervision, and 
belonging to the categories approved by the 
Luxembourg supervisory authority;  

-      the OTC derivatives are subject to reliable and 

verifiable valuation on a daily basis and can be sold, 
liquidated or closed by an offsetting transaction at 
any time at their fair value at the Fund's initiative.  

If provided otherwise in Section I of this prospectus for 
any specific portfolio, the Fund may invest in financial 
derivative instruments.    

To the extent a portfolio invests in financial derivative 
instruments, the investment policy of the relevant portfolio 
will describe the financial derivative instruments which will 
be used. 

(20) A portfolio of the Fund may subscribe, acquire and/or 

hold shares to be issued or issued by one or more 
portfolios of the Fund (the “Target Portfolio(s)”) under 
the condition that: 

the Target Portfolio(s) do(es) not, in turn, invest in 

– 
the portfolio;  

–  no more than 10% of the assets of the Target 
Portfolio(s) whose acquisition is contemplated may be 
invested in units of other funds;  

in any event, for as long as these shares are held 

– 
by the portfolio, their value will not be taken into 
consideration for the calculation of the net assets of 
the Fund for the purposes of verifying the minimum 
threshold of the net assets imposed by the Law of 
2010; and 

there is no duplication of management/subscription 

– 
or redemption fees between those at the level of the 
portfolio and the Target Portfolio(s). 

Master Feeder Structure. Notwithstanding the above and 
under the conditions laid down by the Law of 2010 and 
regulations, each portfolio may act as a feeder fund (the 
“Feeder”) of a UCITS or of a portfolio of such UCITS (the 
“Master”), which shall neither itself be a feeder fund nor 
hold units/shares of a feeder fund. In such a case the 
Feeder shall invest at least 85% of its assets in shares/units 
of the Master. 

The Feeder may not invest more than 15% of its assets in 
one or more of the following: 

 
 
(a) 
second paragraph of the Law of 2010; 

ancillary liquid assets in accordance with Article 41 (2), 

financial derivative instruments, which may be used 

(b) 
only for hedging purposes, in accordance with Article 41 (1) g) 
and Article 42 (2) and (3) of the Law of 2010; 

When a portfolio qualifying as a Feeder invests in the 
shares/units of a Master, the Master may not charge 
subscription or redemption fees on account of the portfolio’s 
investment in the shares/units of the Master. 

Should a portfolio qualify as a Feeder, a description of all 
remuneration and reimbursement of costs payable by the 
Feeder by virtue of its investments in shares/units of the 
Master, as well as the aggregate charges of both the Feeder 
and the Master, shall be disclosed in the relevant section of the 
prospectus relating to such Portfolio. 

Note on Investment Restrictions.  The Management 
Company need not comply with the investment limit 
percentages set forth above when exercising subscription 
rights attaching to transferable securities or money market 
instruments which form part of the assets of the Fund. 

If, by reason of subsequent fluctuations in values of the Fund's 
assets or as a result of the exercise of subscription rights, the 
investment limit percentages above are infringed, priority will 
be given, when sales of securities are made, to correcting the 
situation, having due regard to the interests of Shareholders. 

The Management Company may from time to time impose 
further investment restrictions as are compatible with or in the 
interest of the Shareholders, in order to comply with the laws 
and regulations of the countries where the Shares are sold. 

If provided otherwise in Section I of this prospectus for any 
specific portfolio, the Fund may derogate from the above 
investment restrictions to the extent that it does not exceed any 
investment restriction laid down in the UCITS Directive. 

Taiwan Investment Restrictions.  For a portfolio registered 
with the Taiwan Securities and Futures Bureau, the following 
shall apply in addition to the Investment Restrictions set out in 
the Prospectus.  The total value of the non-offset short position 
in derivatives shall not exceed the total market value of the 
relevant securities held by the portfolio and the total value of 
the non-offset long position in derivatives shall not exceed 40% 
of the Net Asset Value of such portfolio (determined in 
accordance with any applicable interpretations from the Taiwan 
Securities and Futures Commission Bureau), unless approval 
for waiver of such 40% derivatives limit is obtained from the 
Taiwan Securities and Futures Bureau. 

In addition, the following restrictions shall apply to investments 
related to the PRC: a portfolio's direct investment in securities 
issued in the PRC's securities markets is limited to listed 
securities and securities traded in the Chinese Interbank Bond 
Market and the total amount of such investment is not 
permitted to exceed 20% of the Net Asset Value of such 
portfolio, unless approval for extending such limit to 40% is 
obtained from the Taiwan Securities and Futures Bureau. 

Restrictions on Investments in Russia.  Currently, certain 
markets in Russia do not qualify as regulated markets under 

II-74 

AB FCP I 

the Fund's investment restrictions, and, therefore, 
investments in securities dealt on such markets are subject 
to the 10% limit set forth in paragraph (5) above (however, 
exposure to Russia through other regulated markets is not 
subject to this restriction).  As of the date of this 
Prospectus, the Russian Trading Stock Exchange and the 
Moscow Interbank Currency Exchange qualify as regulated 
markets under the Fund’s investment restrictions.  

Restrictions on Investments in Korea.  For a Portfolio 
registered with the Korean Financial Services Commission, 
such Portfolio may invest no more than 40% of its net 
assets in Korean Won-denominated assets. 

Restrictions on Investments in Hong Kong. For a 
Portfolio authorized by the Securities and Futures 
Commission, unless otherwise specifically stated in a 
Portfolio’s investment objective and policies, the following 
shall apply in addition to the Investment Restrictions set out 
in the Prospectus. A Portfolio’s exposure to Loss-absorption 
Products as defined by the Securities and Futures 
Commission, including, but not limited to, contingent 
convertible securities shall be less than 30% of its Net 
Assets.  

Environmental, Social, and Governance Integration 
Policy. Environmental, social and governance (ESG) 
considerations are integrated into the Investment 
Manager’s research and investment processes through the 
the AB Stewardship Approach.  Investment Manager’s 
research analysts are experts in the specific industries and 
the companies and issuers they cover. Using their own 
proprietary research, third-party research and findings from 
other sources incorporated in Investment Manager’s 
research collaboration platform, they analyze firms’ and 
issuers’ ESG practices to identify potentially material ESG 
factors that can vary company by company and issuer by 
issuer.  ESG considerations are incorporated into the 
Investment Manager’s research and investment process 
and are one of several considerations for making 
investment decisions. After consideration of all ESG factors 
including those that could negatively impact a security of 
issuers or companies, the Investment Manager may still 
purchase the security and/or retain it in the Portfolio. ESG 
considerations may not be applicable to all types of 
instruments or investments.  Analysts also may monitor and 
engage with companies and issuers in which Investment 
Manager’s invest or intend to invest. More information on 
the AB Stewardship Approach can be found at the 
responsible investment section under the Management 
Company website.  

Controversial Weapons Policy. The Management 
Company arranges for the screening of companies globally 
for their corporate involvement in anti-personnel mines, 
cluster munitions and/or munitions made with depleted 
uranium. Where such corporate involvement has been 
verified, the Management Company’s policy is not to permit 
the Fund to invest in securities issued by such companies. 

 
 
 
 
Appendix B:  Excessive and Short-Term Trading Policy and Procedures 

AB FCP I 

Purchases and exchanges of Shares should be made for 
investment purposes only. The Management Company of 
the Fund does not permit market-timing or other excessive 
trading practices. Excessive, short-term trading practices 
may disrupt portfolio management strategies and harm 
Fund performance. The Management Company reserves 
the right to restrict, reject or cancel, without any prior notice, 
any purchase or exchange order for any reason, including 
any purchase or exchange order accepted by any 
Shareholder's financial intermediary. The Management 
Company will not be held liable for any loss resulting from 
rejected orders. 

Surveillance procedures. The Management Company of 
the Fund has adopted policies and procedures designed to 
detect and deter frequent purchases and redemptions of 
Shares or excessive or short-term trading that may 
disadvantage long-term Shareholders. The Management 
Company, through its agents, maintains surveillance 
procedures to detect excessive or short-term trading in 
Shares. This surveillance process involves several factors, 
which include scrutinizing transactions in Shares that 
exceed certain monetary thresholds or numerical limits 
within a specified period of time. For purposes of these 
transaction surveillance procedures, the Management 
Company may consider trading activity in multiple accounts 
under common ownership, control, or influence. Trading 
activity identified by either, or a combination, of these 
factors, or as a result of any other information available at 
the time, will be evaluated to determine whether such 
activity might constitute excessive or short-term trading. 
Despite the efforts of the Management Company and its 
agents to detect excessive or short duration trading in 
Shares, there is no guarantee that the Management 
Company will be able to identify these Shareholders or 
curtail their trading practices. 

Account Blocking Procedures. If the Management 
Company determines, in its sole discretion, that a particular 
transaction or pattern of transactions identified by the 
transaction surveillance procedures is excessive or short-
term trading in nature, the relevant AB funds account(s) will 
be immediately "blocked" and no future purchase or 
exchange activity will be permitted. However, redemptions 

will continue to be permitted in accordance with the terms of 
the Prospectus.  A blocked account will generally remain 
blocked unless and until the account holder or the 
associated financial intermediary provides evidence or 
assurance acceptable to the Management Company that 
the account holder did not or will not in the future engage in 
excessive or short-term trading.   

Application of Surveillance Procedures and 
Restrictions to Omnibus Accounts. Omnibus account 
arrangements are common forms of holding Shares, 
particularly among financial intermediaries. The 
Management Company seeks to apply its surveillance 
procedures to these omnibus account arrangements. The 
Management Company will monitor turnover of assets as a 
result of purchases and redemptions in the omnibus 
account.  If excessive turnover, in the opinion of the 
Management Company or its agents, is detected, the 
Management Company will notify the intermediary and 
request that the financial intermediary review individual 
account transactions for excessive or short-term trading 
activity and take appropriate action to curtail the activity, 
which may include applying blocks to accounts to prohibit 
future purchases and exchanges of Shares. The 
Management Company will continue to monitor the turnover 
attributable to a financial intermediary’s omnibus account 
arrangement and may consider whether to terminate the 
relationship if the financial intermediary does not 
demonstrate that appropriate action has been taken. 

Limitations on Ability to Detect and Curtail Excessive 
Trading Practices. While the Management Company will 
try to prevent market timing by utilizing adopted procedures, 
these procedures may not be successful in identifying or 
stopping excessive or short-term trading. Shareholders 
seeking to engage in excessive short-term trading activities 
may deploy a variety of strategies to avoid detection and, 
despite the efforts of the Management Company and its 
agents to detect excessive or short duration trading in 
Shares, there is no guarantee that the Management 
Company will be able to identify these Shareholders or 
curtail their trading practices.  

II-75 

 
 
 
Appendix C:  Additional Information relating to Financial Derivative Instruments, Financial Techniques and 
Instruments and Collateral Management 

AB FCP I 

The following provisions apply individually to each portfolio 
of the Fund that invests in financial derivative instruments 
and/or enters into the financial techniques and instruments 
as described below. 

Financial Derivative Instruments 

General 

To the extent provided for in its investment policy a portfolio 
may invest in financial derivative instruments within the 
limits laid down in (i) the Appendix A “Investment 
Restrictions” and (ii) the relevant part of Section I of the 
prospectus relating to such portfolio.  

A portfolio may use financial derivative instruments for 
hedging, efficient portfolio management and, to the extent 
permitted by its investment policy, for investment purposes. 
Under no circumstances shall the use of these financial 
derivative instruments cause a portfolio to diverge from its 
investment policy or objective.  

When a portfolio invests in financial derivative instruments; 
the underlying of which is an eligible index, such 
investment will not be taken in account to determine the 
concentration limits and investment restrictions laid down in 
Appendix A “Investment Restrictions”. 

Unless otherwise provided for in its investment policy, a 
portfolio shall not enter into financial derivative instruments 
the counterparty of which may assume any discretion over 
the composition of the underlying of the financial derivative 
instruments. 

When a transferable security or money market instrument 
embeds a financial derivative instrument, such financial 
derivative instrument must be taken into account when 
complying with the limits laid down either in Appendix A 
“Investment Restrictions” or in the relevant part of Section I  
of the prospectus relating to a specific portfolio. 

Whenever a portfolio enters into financial derivative 
instruments, it shall ensure that it holds sufficient liquid 
assets to cover at any time the portfolio’s obligations 
resulting from such financial derivative instruments. 

Agreements on OTC derivatives 

Unless otherwise provided for in its investment policy, a 
portfolio may enter into OTC derivatives transactions to the 
extent that the counterparties to such transactions are 
institutions which are either credit institutions or investment 
firms subject to prudential supervision, and belonging to the 
categories approved by the CSSF. Each counterparty is 
selected on the basis of the following combined criteria: 
regulatory status, protection provided by local legislation, 
operational processes and creditworthiness analysis 
including review of available credit spreads and/or external 
credit ratings. 

The identity of the counterparties will be disclosed in the 
annual report of the Fund. 

II-76 

Finally, the risk exposure to a single counterparty 
generated through OTC financial derivative instruments 
and efficient portfolio management techniques may not 
exceed 10% of the portfolio’s assets when the counterparty 
is a credit institution referred to in Article 41(1) (f) of the 
Law of 2010 or 5% of the portfolio’s assets in other cases. 

Total return swaps and other financial derivative 
instruments with similar characteristics 

A total return swap is an agreement in which one party 
(total return payer) transfers the total economic 
performance of a reference obligation to the other party 
(total return receiver). Total economic performance 
includes income from interest and fees, gains or losses 
from market movements, and credit losses. The 
counterparties to these transactions are subject to 
prudential supervision rules considered by the CSSF as 
equivalent to those prescribed by Community law. Each 
counterparty is selected on the basis of the following 
combined criteria: regulatory status, protection provided by 
local legislation, operational processes and 
creditworthiness analysis including review of available 
credit spreads and/or external credit ratings. 

Total return swaps entered into by a Portfolio may be in the 
form of funded and/or unfunded swaps. Total return swaps 
are in principle unfunded. However, the Investment 
Manager reserves the right to enter into funded swaps. An 
unfunded swap means a swap where no upfront payment is 
made by the total return receiver at inception. A funded 
swap means a swap where the total return receiver pays an 
upfront amount in return for the total return of the reference 
asset and can therefore be costlier due to the upfront 
payment requirement. 

In case where a specific portfolio enters into total return 
swaps and/or other financial derivative instruments with 
similar characteristics (“TRSs”), the type of underlying 
assets to which exposure will be gained through such TRSs 
have to comply with the relevant portfolio’s investment 
policy in Section I of this prospectus.  

In case where a specific portfolio enters into TRSs, the 
maximum and the expected proportions of the portfolio’s 
assets under management that could be subject to TRSs 
are disclosed in the relevant part of Section I relating to 
such portfolio. 

All revenues resulting from TRSs relating to a specific 
portfolio are allocated to such portfolio and neither the 
Investment Manager nor the Management Company will 
take any fees out of those revenues. 

Global exposure 

As per Article 42(3) of the Law of 2010, a Portfolio “shall 
ensure that its global exposure relating to derivative 
instruments does not exceed the total net value of its 
portfolio. The exposure is calculated taking into account the 
current value of the underlying assets, the counterparty 
risk, future market movements and the time available to 
liquidate the positions.” 

 
 
 
The Management Company shall ensure that the global 
exposure of each portfolio relating to financial derivative 
instruments does not exceed the total net assets of the 
portfolio. The portfolio's overall risk exposure shall 
consequently not exceed 200% of its total net assets. This 
overall risk limit may be increased by 10% by means of 
temporary borrowing. 

The global exposure relating to financial derivative 
instruments of a portfolio may be calculated through either 
the “Value-at-Risk” or the “Commitment” approach. 

The “Value-at-Risk”  approach 

The “Value-at-Risk” (“VaR”) approach is an approach for 
measuring the global exposure based on the maximum 
potential loss that can arise at a given confidence level over 
a specific time period under normal market conditions. 

VaR reports will be produced and monitored on a daily 
basis based on the following criteria: 

- 

- 

- 
basis. 

1 month holding period; 

99% confidence level; and 

stress testing will also be applied on an ad hoc 

VaR may be expressed either in absolute terms (“Absolute 
VaR”)  or  in  relative  terms,  where  the  VaR  of  a  portfolio  is 
compared to the VaR of the portfolio’s benchmark (“Relative 
VaR”). 

Absolute VaR – The Absolute VaR methodology is generally 
used in the absence of an identifiable reference portfolio or 
benchmark. Under the Absolute VaR approach, the limit is 
set as a percentage of the net asset value of the portfolio. 
The 
the  Absolute  VaR 
methodology is set at 20% of the portfolio’s NAV. 

the  portfolio  using 

limit 

for 

Relative VaR – The Relative VaR methodology is used for 
any portfolio where a benchmark reflecting the investment 
strategy of the portfolio is identifiable and available. Under 
the Relative VaR methodology a limit is set as a 
percentage of the VaR of the benchmark or the reference 
portfolio. The maximum VaR limit of a portfolio using the 
Relative VaR methodology is set up at 200% of the 
portfolio's benchmark which is disclosed in the relevant part 
of Section I of the prospectus.  

The Commitment Approach 

The commitment approach converts the financial derivative 
instruments into equivalent positions in the underlying 
assets of those financial derivative instruments, after 
netting and hedging arrangements where the market value 
of underlying security positions may be offset by other 
commitments related to the same underlying positions. 
Under the commitment approach, the global exposure of a 
portfolio related solely to financial derivative instruments 
may not exceed 100% of total net assets of such portfolio. 

II-77 

AB FCP I 

Efficient Portfolio Management Techniques 

Subject  to  the  conditions  and  within  the  limits  laid  down  in 
the Law of 2010 as well as any circulars issued by the CSSF 
from time to time, and in particular the CSSF Circular 14/592 
transposing  the  ESMA/2014/937  Guidelines  for  competent 
authorities and UCITS management companies - Guidelines 
on ETFs and other UCITS issues (the “ESMA Guidelines”), 
a portfolio may employ techniques and instruments relating 
to  transferable  securities  and  money  market  instruments, 
such  as  securities  lending  and  repurchase  agreement 
transactions, provided that such techniques and instruments 
are used for the purpose of efficient portfolio management. 
These  techniques  will  be  used  in  accordance  with  the 
investment policy of the relevant Portfolio in order to seek to 
achieve  the  investment  objective  and/or  increase  financial 
returns for the Portfolio.  Securities Lending will be used on 
a  continuous  basis.  Other  SFTs  will  be  used  where  the 
opportunity arises in the opinion of the Investment Manager. 

Under no circumstances shall these operations cause the 
portfolio to diverge from its investment objectives as 
specified in the relevant portion of Section I hereof nor 
entail any substantial supplementary risks. 

All the revenues arising from efficient portfolio management 
techniques, net of direct and indirect operational costs and 
fees, will be returned to the portfolio. These costs and fees 
should not include hidden revenue. 

The annual report of the Fund shall contain details of (i) the 
revenues arising from efficient portfolio management 
techniques for the entire reporting period together with (ii) 
the direct and indirect operational costs and fees incurred 
by each Portfolio in this respect, as well as the identity of 
the entities to which such costs and fees are paid and any 
affiliation they may have with the Depositary, the 
Investment Manager or the Management Company, if 
applicable. 

The Management Company will maintain the volume of 
these transactions at a level such that it is able, at all times, 
to meet redemption requests. 

Securities Lending Transactions.  A portfolio may enter 
into securities lending transactions which are transactions 
through which the portfolio lends its securities to another 
party, the borrower, which is contractually obliged to return 
equivalent securities at the end of an agreed period. While 
securities are on loan, the borrower pays the portfolio 
concerned (i) a loan fee and (ii) any income from the 
securities.  A portfolio may enter only into securities lending 
transactions provided that it complies with the following 
rules: 

(i) 

the portfolio may lend securities to a borrower 
either directly or through a standardized system 
organized by a recognized clearing institution or 
through a lending system organized by a financial 
institution subject to prudential supervision rules 

 
 
 
 
 
(ii) 

considered by the CSSF  as equivalent to those 
provided by Community law and specializing in this 
type of transaction; 

the counterparty to the securities lending 
agreement must be subject to prudential 
supervision rules considered by the CSSF as 
equivalent to those prescribed by Community law. 
Securities Lending counterparties are based in 
OECD countries and are selected by the Lending 
Agent subject to the Lending Agent’s credit review. 
Each counterparty is selected on the basis of the 
following combined criteria: regulatory status, 
protection provided by local legislation, operational 
processes and creditworthiness analysis including 
review of available credit spreads and/or external 
credit ratings. 

(iii) 

the risk exposure to a single counterparty 
generated through a securities lending transaction 
or other efficient portfolio management techniques 
and OTC financial derivative instruments may not 
exceed 10% of the portfolio’s assets when the 
counterparty is a credit institution referred to in 
Article 41(1) (f) of the Law of 2010 or 5% of the 
portfolio’s assets in other cases. 

Securities Lending will be used to generate income and this 
income only comes through a fee paid by the borrower to 
the Portfolio. 

The Management Company will receive, for each portfolio 
that participates in the securities lending programme, 
collateral that is at least equivalent to 105% of the value of 
the lent securities. 

A portfolio may only enter into securities lending 
transactions provided that (i) it is entitled at all times to 
request the return of the securities lent or to terminate any 
securities lending transactions and (ii) that these 
transactions do not jeopardize the management of the 
portfolio’s assets in accordance with its investment policy. 

In case where a specific portfolio enters into securities 
lending transactions, the maximum and the expected 
proportions of the portfolio’s assets under management that 
could be subject to securities lending transactions are 
disclosed in the relevant part of Section I of the prospectus 
relating to such portfolio. 

The Management Company, acting on behalf of the Fund, 
has appointed Brown Brothers Harriman & Co., a New York 
limited partnership with an office in Boston, Massachusetts 
(the "Lending Agent") to carry out the securities lending 
transactions, and notably for the counterparties’ selection, 
subject to the Management Company’s pre-approval, and 
the management of the collateral. To the extent a portfolio 
enters into securities lending transactions, it will receive 
80% of the associated revenue generated. The outstanding 
20% will be allocated to the Lending Agent in consideration 

II-78 

AB FCP I 

for its services and the guaranty provided. As securities 
lending revenue sharing does not increase the costs of 
running the portfolio, the amount allocated to the Lending 
Agent has been excluded from the ongoing charges. 

Repurchase and Reverse Repurchase Agreements. To 
the extent permitted by its investment policy, a portfolio 
may enter either into reverse repurchase agreements or 
repurchase agreements. A repurchase agreement 
transaction consists in a transaction where a portfolio sells 
securities to a counterparty and simultaneously commits 
itself to repurchase the securities from the counterparty at 
an agreed-upon date and price. Repurchase agreements 
will be used for financing purposes primarily. Reverse 
repurchase agreements will be used to take advantage of 
opportunities where securities “trade special”. A reverse 
repurchase agreement is a transaction where a portfolio 
buys securities from a counterparty and simultaneously 
commits itself to resell the securities to the counterparty at 
an agreed-upon date and price. A portfolio may enter into 
repurchase and reverse repurchase agreements provided it 
complies with the following rules: 

(i) 

the counterparties to these transactions are subject 
to prudential supervision rules considered by the 
CSSF as equivalent to those prescribed by 
Community law. Each counterparty is selected on 
the basis of the following combined criteria: 
regulatory status, protection provided by local 
legislation, operational processes and 
creditworthiness analysis including review of 
available credit spreads and/or external credit 
ratings; 

(ii)  securities purchased with a repurchase option or 

through a reverse repurchase agreement 
transaction must be compliant with the relevant 
CSSF circulars and the portfolio’s investment 
policy and must together with the other securities 
that the portfolio holds, comply with the portfolio’s 
investment restrictions; 

(iii) 

the risk exposure to a counterparty generated 
through such transactions or other efficient 
portfolio management techniques and OTC 
financial derivative instruments may not exceed 
10% of the portfolio’s assets when the counterparty 
is a credit institution referred to in Article 41(1) (f) 
of the Law of 2010 or 5% of the portfolio’s assets in 
other cases. 

A portfolio may only enter into (i) a repurchase agreement 
provided that it shall be able at any time to recall any 
securities or to terminate the agreement and (ii) a reverse 
repurchase agreement provided that it shall be able at any 
time to recall the full amount of cash or to terminate the 
agreement on either an accrued basis or a mark-to-market 
basis, it being understood that when the cash is recallable 

 
 
at any time on a mark-to-market basis, the mark-to-market 
value of the reverse repurchase agreement should be used 
for the calculation of the net asset value.  

Fixed-term repurchase and reverse repurchase 
agreements that do not exceed seven days are considered 
as arrangements on terms that allow the assets to be 
recalled at any time by the portfolio. 

All revenues resulting from repurchase and reverse 
repurchase agreements relating to a specific portfolio are 
allocated to such portfolio. 

In case where a specific portfolio enters into repurchase 
agreements and/or reverse repurchase agreements, the 
maximum and the expected proportions of the portfolio’s 
assets under management that could be subject to such 
transactions are disclosed in the relevant part of Section I 
of the prospectus relating to such portfolio. 

Management of collateral received with respect to OTC 
derivative transactions and efficient portfolio 
management techniques 

As per the ESMA Guidelines, the risk exposures to a 
counterparty arising from OTC derivative transactions and 
efficient portfolio management techniques should be 
combined when calculating the counterparty risk limits 
referred to in Article 43 of the Law of 2010. 

All assets received by a portfolio in the context of OTC 
derivative transactions or efficient portfolio management 
techniques should be considered as collateral and should 
comply with all the criteria laid down below. 

Where a portfolio enters into OTC derivative transactions 
and efficient portfolio management techniques, all collateral 
used to reduce counterparty risk exposure of such portfolio 
should comply at all times with the following criteria: 

a) Liquidity – Any collateral received other than cash should 
be highly liquid and traded on a regulated market or 
multilateral trading facility with transparent pricing to ensure 
that it can be sold quickly at a price that is close to pre-sale 
valuation. Collateral received should also comply with the 
provisions of Article 43 of the Law of 2010. 

b) Valuation –  Collateral received should be valued on at 
least a daily basis and assets that exhibit high price 
volatility should not be accepted as collateral unless 
suitably conservative haircuts are in place. 

c) Issuer credit quality – Collateral received should be of 
high quality. 

d) Correlation – the collateral received by a portfolio should 
be issued by an entity that is independent from the 
counterparty and is expected not to display a high 
correlation with the performance of such counterparty. 

e) Collateral diversification (asset concentration) – 
Collateral received should be sufficiently diversified in 

II-79 

AB FCP I 

terms of country, markets and issuers. As per the ESMA 
Guidelines, the criterion of sufficient diversification with 
respect to issuer concentration is considered to be 
respected if a portfolio receives from a counterparty of 
efficient portfolio management and OTC derivative 
transactions a basket of collateral with a maximum 
exposure to a given issuer of 20% of its net asset value. In 
addition, if a portfolio is exposed to different counterparties, 
the different baskets of collateral should be aggregated to 
calculate the 20% limit of exposure to a single issuer. 
Notwithstanding the above provisions, a portfolio may be 
fully collateralized in transferable securities and money 
market instruments issued or guaranteed by sovereign or 
other governmental issuers with a short term credit rating of 
at least A-1+ or its equivalent by at least one major 
recognized rating agency, provided that such portfolio must 
receive securities from at least six different issues and 
securities from one issue do not account for more than 30% 
of the total assets of such portfolio. 

f) Risks linked to the management of collateral – Risks 
linked to the management of collateral such as operational 
and legal risks, should be identified, managed and 
mitigated by the risk management process. 

g) Title of transfer of the collateral – Where there is a title 
transfer, the collateral received should be held by the 
depositary of the portfolio. For other types of collateral 
arrangement, the collateral can be held by a third party 
custodian which is subject to prudential supervision, and 
which is unrelated to the provider of the collateral. 

h) Collateral received should be capable of being fully 
enforced by the portfolio at any time without reference to or 
approval from the counterparty. 

i) Non-cash collateral received should not be sold, re-
invested or pledged. 

j) Cash collateral received should only be: 

- 

- 

- 

- 

placed on deposit with entities prescribed in Article 
41 (f) of the Law of 2010; 

invested in high-quality government bonds; 

used for the purpose of reverse repo transactions 
provided the transactions are with credit 
institutions subject to prudential supervision and 
the portfolio is able to recall at any time the full 
amount of cash on accrued basis; and 

invested in short-term money market funds as 
defined in the CESR Guidelines 10-049 on a 
Common Definition of European Money Market 
Funds . 

As long as it complies with the above mentioned conditions, 
the collateral may consist of (i) cash, (ii) corporate bonds 

 
 
and/or (iii) debt securities (as further described in the table 
hereinafter). 

The Management Company will receive, for each portfolio 
that participates in the securities lending programme, 
collateral that is at least equivalent to 105% of the value of 
the lent securities. With respect to bilateral OTC financial 
derivative instruments, the valuation of such instruments 
has to be marked-to-market daily. As a result of such 
valuations, the counterparty, subject to minimum transfer 
amounts, will have to post additional collateral when the 
market value of its obligation has risen or remove collateral 
when it has fallen. 

Re-invested cash collateral should be diversified in 
accordance with the diversification requirements applicable 
to non-cash collateral. As of the date of this Prospectus, the 
Fund does not re-invest cash collateral. Should the Fund 
decide in the future to re-invest the cash collateral of a 
specific portfolio, the re-investment policy will be reflected 
in the next update of the Prospectus. 

Where a portfolio receives collateral for at least 30% of its 
assets, the Management Company will put in place an 
appropriate stress testing policy to ensure regular stress 
tests are carried out under normal and exceptional liquidity 

AB FCP I 

conditions to enable the Management Company to assess 
the portfolio’s liquidity risk attached to the collateral. Finally,  
the Management Company has applied a haircut policy 
adapted for each class of assets received as collateral with 
respect to OTC derivative transactions and efficient 
portfolio management techniques. A haircut is a 
percentage, deducted from the market value of the asset 
received as collateral, meant to reflect the perceived risk 
associated with holding the asset. The haircut policy takes 
account of the characteristics of the relevant securities 
received as collateral such as the maturity and the credit 
rating of the issuer of such securities, the historical price 
volatility of the securities as well as the results of any stress 
tests which may be performed from time to time in 
accordance with the rules laid down in the ESMA 
Guidelines. 

The following haircuts for collateral in OTC derivative 
transactions are used by the Management Company to 
enter into negotiations with counterparties.  Generally the 
final arrangements with counterparties as defined in the 
respective derivative transaction documentation will 
conform with these haircut ranges (the Management 
Company reserves the right to vary this policy at any time 
and will update the Prospectus as soon as practicable): 

Collateral  
1. Cash 
2. money market instruments with an external credit 

Haircut 
0% - 1% 
0% - 2%  

rating A or above 

3. bonds issued or guaranteed by a central, regional 

or local authority or by a central bank of an 
eligible jurisdiction (and in the case of a Federal 
State, by one of the members making up the 
federation) or by a public international body to 
which one or more eligible jurisdiction belong. 

4.  corporate debt instruments (US denominated) 

Residual Maturity 
1 to 5 years 
2% - 5% 

5 to 10 years 
2% - 10% 

Beyond 10 Years 
3% - 25%  

Credit Rating 
At least AA or 
equivalent 
6% - 10% 

At least A or 
equivalent 
10% - 15% 

At least BBB or 
equivalent 
20% - 25% 

5. Equity security part of a main market index 

10% -30% 

Risk and potential Conflicts of Interest associated with 
OTC derivative transactions and efficient portfolio 
management techniques  

There are certain risks involved in OTC derivative 
transactions, efficient portfolio management techniques and 
the management of collateral in relation to such activities. For 
more information on the risks applicable to such type of 
transactions, investors should refer to the section “Risk 
Factors” of this Prospectus and more specifically to the 
“Derivatives Risk” and “Conflicts of Interest” provisions 
thereof.

II-80 

 
 
 
 
 
 
 
Appendix D:  Additional Information for UK Investors 

General 

This Supplement should be read in conjunction with the 
Fund's Prospectus, of which it forms part. References to the 
"Prospectus" are to be taken as references to that 
document as supplemented or amended hereby.  

Potential investors should note that the investments of the 
Fund are subject to risks inherent in investing in shares and 
other securities. The risks associated with an investment in 
the Fund are set out in Section II of this Prospectus in the 
sub-section entitled "Risk Factors." 

The value of investments and the income from them, and 
therefore the value of, and income from, the Shares of each 
class can go down as well as up and an investor may not 
get back the amount he invests. Changes in exchange 
rates between currencies may also cause the value of the 
investment to diminish or increase. 

UK Taxation 

The summary below is intended to be a general outline of 
the anticipated United Kingdom tax treatment applicable to 
Shareholders who are resident and domiciled (in the case 
of individuals) in the United Kingdom and are the beneficial 
owners of their Shares. 

The Fund.  As a Luxembourg mutual investment fund 
(fonds commun de placement), the Fund will be treated for 
the purposes of United Kingdom income tax and 
corporation tax on income (but not for the purposes of 
United Kingdom capital gains tax or corporation tax on 
chargeable gains, as to which see below) as a "tax-
transparent" entity.  Accordingly, the Fund will not be liable 
for United Kingdom taxation on its income (although it may 
receive interest and certain other kinds of income after 
deduction of United Kingdom income tax withheld at 
source, where that income has a United Kingdom source). 

For the purposes of United Kingdom capital gains tax and 
corporation tax on chargeable gains, the Fund, as an entity 
that is an "offshore fund" for United Kingdom tax purposes 
but that is not a company, a partnership or a unit trust 
scheme, will be treated as if it were a "tax-opaque" 
company.  The Management Company of the Fund intends 
to conduct the affairs of the Fund in such a way that the 
Fund is neither resident for tax purposes in the United 
Kingdom nor carrying on a trade in the United Kingdom.  In 
such circumstances, the Fund will not be liable to United 
Kingdom taxation on capital gains arising from the disposal 
of its assets. 

The Management Company has obtained UK reporting fund 
status in respect of the following classes of Shares of the 
Fund at the date of this prospectus and intend to comply 
with the regime going forward (although there can be no 
guarantee that this status will continue to be available): 

Portfolio 

Asia Ex-Japan Equity 
Portfolio 

Share 
Class 

I 

Currency 

Dollar 
Sterling 
(denominated) 

II-81 

AB FCP I 

Emerging Markets Growth 
Portfolio 

Japan Strategic Value 
Portfolio 

I 

I 

Dollar 

Yen 

Where a Shareholder disposes of Shares of a class that 
has had "reporting fund" status continuously throughout the 
period that the Shareholder has held those Shares, and 
provided the Shares are not held as trading stock, the gain 
realised by the Shareholder on disposal of those Shares will 
be subject to capital gains tax in the case of an individual 
Shareholder (in which case the amount of the 
Shareholder's chargeable gain may be reduced by the 
annual CGT exemption) or corporation tax on chargeable 
gains for corporate entities (in which case the amount of the 
Shareholder's chargeable gain may be reduced by 
indexation allowance). Losses on disposals of Shares will 
be eligible for capital gains loss relief. 

Shareholders should, however, be aware that “reporting 
fund” status must be maintained throughout the 
Shareholder’s entire period of holding in order for the 
Shareholder to avail itself of such capital gains treatment. 
Where a Shareholder holds Shares of a class that has not 
had "reporting fund" status throughout the entire period of 
holding, the entirety of any gains realised on a disposal of 
Shares will be taxed as "offshore income gain" at the rates 
of tax applicable to income and not as capital gain. 

For as long as a class of Shares has "reporting fund" 
status, the Fund will be required (as a condition of the 
"reporting fund" regime) to calculate on an annual basis the 
"reportable income" (which excludes capital gains) 
attributable to the relevant class of Shares and “report” that 
income to the Shareholders holding Shares of that class. 
The method of computation of "reportable income" is set 
out in the Offshore Funds (Tax) Regulations 2009 (the 
“Regulations”). "Reportable income" reported to 
Shareholders in accordance with the Regulations will be 
treated as though it were in fact distributed. Accordingly, 
Shareholders holding Shares of the relevant class on the 
register on the last day of the period will be subject to tax 
on this deemed distribution as at the “fund distribution date” 
(i.e. the date six months after the last day of the reporting 
period) or such earlier date as the reported income is 
recognised in the Shareholder's accounts. Relief will be 
available for such reported but undistributed income when 
the Shareholder ultimately calculates their capital gain on 
disposal of Shares, so that these amounts will not be 
subject to UK taxation a second time.  

Special rules apply to certain categories of United Kingdom 
investors, including pension funds, insurance companies, 
investment trusts, authorised unit trusts and open ended 
investment companies.  Such investors should consult their 
legal counsel for further information. 

 
 
 
 
 
 
 
 
Important 

A United Kingdom investor who enters into an investment 
agreement with the Fund to acquire Shares in response to 
the Prospectus will not have the right to cancel the 
agreement under the cancellation rules made by the 
Financial Services Authority (“FSA”). The agreement will be 
binding upon acceptance of the order by the Fund. 

The Fund does not carry on any regulated activity from a 
permanent place of business in the United Kingdom and 
United Kingdom investors are advised that most of the 
protections afforded by the United Kingdom regulatory 
system will not apply to an investment in the Fund.  
Shareholders in the Fund may not be protected by the 
Financial Services Compensation Scheme established in 
the United Kingdom. The registered address of the 
Management Company is set out in the "Directory" to the 
Prospectus. 

Dealing Arrangements and Information 

AllianceBernstein Limited (the "Facilities Agent") will act as 
the facilities agent for the Fund in the United Kingdom and it 
has agreed to provide certain facilities at its offices at 60 
London Wall, London, EC2M 5SJ, United Kingdom, in 
respect of the Fund.  

Publication of Information 

The Net Asset Value per Share of each class of Shares is 
available on each Business Day at the registered office of 
the Management Company and from the Facilities Agent by 
telephone on +44-207-470-0100 and at its above-
mentioned offices. Details of the determination of the Net 
Asset Value per Share are set out in the paragraph entitled 
"Determination of the Net Asset Value of Shares" to the 
sub-section headed "Additional Information" in Section II of 
the Prospectus.  

Subscription and Redemption Procedures 

The attention of investors is drawn to the purchase and 
redemption procedures set out in Section II of the 
Prospectus in the sub-sections entitled "How to Purchase 
Shares" and "How to Redeem Shares", in particular with 
regard to the deadline for receipt of purchase orders or 
redemption requests for Shares on a Trade Date. Orders 

AB FCP I 

for the purchase of Shares and redemption requests should 
be sent to the Management Company's transfer agent 
division, details of which are contained in the Directory to 
the Prospectus or alternatively, requests for redemption can 
be made directly to the Facilities Agent at the above-
mentioned offices, attn: Managing Director of 
AllianceBernstein Global Wealth Management, phone 
number: 0207 959 4900, fax number:  0207 1980854. 

Documents Available For Inspection 

Copies of the following documents may be inspected free of 
charge during usual business hours on any week day 
(Saturday and public holidays excepted) at the offices of the 
Facilities Agent: 

(a)  the Management Regulations of the Fund and any 

amendments thereto; 

(b)  the Articles of Association of the Management 
Company and any amendments thereto; 

(c)  the Prospectus most recently issued by the Fund 

together with any supplements; 

(d)  the key investor information documents s most recently 

issued by the Fund; and 

(e)  the most recently published annual and half yearly 

reports relating to the Fund. 

The above documents may be delivered to interested 
investors at their request. 

Facilities available in English at the offices of the Facilities 

Agent are: 

(1) 

(2) 
(3) 
(4) 
(5) 
(6) 
(7) 

Arrangement for redemption requests and payment 
of redemption proceeds 
Payments of dividends  
Details/copies of notices to participants  
Nature of right represented by the Shares  
Details of voting rights 
Information on NAVs 
 Receipt of complaints (complaints about the 
operation of the Fund may be submitted to the 
Management Company of the Fund directly or 
through the Facilities Agent at the above-
mentioned address).

II-82 

 
 
AB FCP I 

Economic  activity  that  contributes  to 
environmental  and/or  social  objectives 
provided 
that  such  corresponding 
investments  do  not  significantly  harm 
any  of  the  applicable  environmental 
and/or  social  objectives  and  that  the 
good 
investee 
governance practices. 

issuers 

follow 

of 

an 

value 

ESG  events  or  conditions  that,  if  it 
occurred,  could  cause  an  actual  or  a 
potential  material  negative  impact  on 
the 
investment. 
Sustainability risks may have an impact 
on  long-term  risk  adjusted  returns  for 
investors.    Consequent  impacts  to  the 
occurrence of sustainability risk can be 
many  and  vary  according  to  a  specific 
risk,  region  or  asset  class.    Generally, 
when a sustainability risk occurs for an 
asset,  there  will  be  a  negative  impact 
and  potentially  a  loss  of  its  value  and 
therefore  an  impact  on  the  net  asset 
value of the concerned Portfolio. 

EU Taxonomy 
Regulation 

(EU)  2020/852  of 

Regulation 
the 
European Parliament and of the Council 
of 18 June 2020 on the establishment of 
a  framework  to  facilitate  sustainable 
investment,  and  amending  Regulation 
(EU) 2019/2088. 

Appendix E: SFDR Pre-Contractual Disclosures 

The following disclosures are made in accordance with and for 
the purposes of Regulation (EU) 2019/2088, as amended and 
supplemented from time to time (“SFDR”) and are not meant 
to  provide  exhaustive  information  on  the  suitability  of  a 
Portfolio for a prospective investor’s investment needs.  

information  on 

For  more 
Sustainability-Related  Disclosures,  please 
Management Company website. 

the  Management  Company’s 
the 

refer 

to 

Sustainable 
Investments 

Sustainability 
Risks 

indirectly 

Any  reference  to  “AB”  herein  refers  to  the  Investment 
Manager,  the  Management  Company,  and/or  another  ABLP 
subsidiary  providing  directly  or 
investment 
management services to the Portfolios, as the case may be. 
For Portfolios classified as Article 8 or 9 under SFDR, AB has 
assessed the impact of Sustainability Risks in connection with 
their respective investment strategy and considers such risks 
to be relevant as environmental, social or governance event or 
conditions that, if to occur, would cause an actual or a potential 
material negative impact on the value of their investments. The 
likely  impacts  of  Sustainability  Risks  will  differ  between 
investment  objectives,  strategies,  and  policies  but,  given  the 
that  an 
investment  universe,  AB  believes 
respective 
environmental,  social,  or  governance  event  is  likely  to  have 
materially  negative  impacts  on,  inter  alia,  the  value,  quality, 
and/or stability of a security, the financial health of an investee 
issuer, the credit quality of an issuer, and/or the ability of an 
issuer of debt to pay coupons or meet their other obligations. 

Key definitions 

AB 
Stewardship 
Approach 

AB Global Stewardship Statement: 
AB’s policy on responsible investing, 
ESG integration, engagement and 
collaboration which can be found here 
as well as a summary provided below.   

ESG 

Environmental, social and/or 
governance 

ESG Factors 

ESG issues that may present risks or 
opportunities as well as Sustainability 
Risks. 

Exclusion 
Policy 

A Portfolio’s separate Exclusion Policy 
which includes both exclusions based 
on various metrics as well as details on 
alignment criteria with respect to the 
Portfolio’s investment strategy. The 
general purpose of the Exclusion Policy 
is to identify the Portfolio’s investible 
universe from which sustainable 
investments will be selected.  

II-83 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AB’s  Strategies  That  Integrate  Sustainability  Risks  Into 
(Neutral) 
Their 
Portfolios 

Investment  Decisions  —  Article  6 

Portfolio in scope: 

•  Emerging Markets Debt Portfolio 

The  above  Neutral  Portfolio  does  not  have  an  objective  of 
sustainable investments and does not promote environmental 
and/or  social  characteristics,  but  integrates  Sustainability 
Risks as part of the investment decision making process. 

AB  has  assessed  the  impact  of  Sustainability  Risks  in 
connection  with  this  Neutral  Portfolio’s  investment  strategy 
and considers such risks to be relevant as an environmental, 
social or governance event or conditions that, if to occur, could 
have material negative impact on the value of the investments 
of  the  Neutral  Portfolio.  The  likely  impacts  of  Sustainability 
Risks will differ between investment objectives, strategies, and 
policies  but,  given  the  respective  investment  universe,  AB 
believes an environmental, social, or governance event would 
have  some  negative  impacts  on  the  value,  quality,  and/or 
stability of a security, the financial health of a investee issuer, 
the  credit  quality  of  an  issuer,  and  the  ability  of  an  issuer  of 
debt to pay coupons or meet their other obligations. 

Additionally,  when  implementing  the  respective  investment 
strategy, while AB may use the AB Stewardship Approach, it 
does not do so robustly and therefore may not integrate ESG 
considerations  or  Sustainability  Risks  into  all  its  investment 
decisions. 

Accordingly,  AB  may  not  consider  the  negative  impacts  of 
investment  decisions  on  sustainability  factors,  as  taking  into 
account  such  risks  and  impacts  would  affect  or  possibly 
prevent AB from achieving  the specific investment objective. 
For  the  sake  of  clarity,  AB  does  not  consider  the  principal 
adverse impacts of its investment decisions on sustainability 
factors for the above-mentioned reason. 

While this Neutral Portfolio does not consider the impacts of 
this  Neutral 
investment  decisions  sustainability 
Portfolio  complies  with  AB’s  commitment  to  environmental 
stewardship  and  responsible  investing  which  includes,  inter 
alia, screening out of certain types of investments. 

factors, 

As  this  Neutral  Portfolio  does  not  have  an  objective  in 
Sustainable  Investments,  the  investments  underlying  these 
financial products do not take into account the EU criteria for 
environmentally sustainable economic activities. Accordingly, 
the  obligations  under  the  EU  Taxonomy  Regulation  are 
inapplicable.  

AB Stewardship Approach  

I. 

Introduction 

AB FCP I 

performance  of  an  AB  Product.    The  AB  Stewardship 
Approach outlines the various ESG considerations, including 
sustainability risks (defined as those ESG events or conditions 
that, if they occur, could cause an actual or a potential material 
negative impact on the value of an investment) (herein, “ESG 
Factors”  ).    AB  has  analyzed  and  systematically  integrated 
these  ESG  Factors  into  all  steps  of  its  investment  process 
which  AB  believes  leads  to  improved  investment  decisions, 
enhanced financial outcomes, progress to  AB’s commitment 
to  responsible  investment  and  global  advancement  towards 
ESG objectives.   

When  AB  became  a  “Principles  for  Responsible  Investment 
signatory” in November 2011, AB formalized the integration of 
ESG Factors into AB’s investment processes for most actively-
managed strategies, with the exception of certain strategies, 
where the integration of ESG Factors is either not relevant to 
the strategy or would possibly prevent AB from achieving the 
specific  AB  Product’s  investment  objective  (i.e.  Neutral 
products).    For  certain  AB  Products,  language  regarding  the 
integration  of  ESG  Factors  was  included  in  the  applicable 
offering document.   

AB  created  a  management  infrastructure  for  responsible 
investment  leadership  that  today  drives  AB’s  firm’s  strategy 
and  commitment  to  these  issues  firmwide.    AB’s  Global 
Stewardship Statement and Annual Stewardship Report detail 
AB’s 
see 
activities. 
https://www.alliancebernstein.com/corporate-
responsibility/responsible-investing.htm for more information.  

Please 

When  implementing  an  investment  strategy  that  integrates 
ESG Factors, AB takes into account the desired level of risk 
and return of the strategy and the financial or economic impact 
of ESG Factors in the risk and return assessment.  Analyzing 
and  assessing  issuers  through  the  lens  of  long-term  value 
creation often allows AB to achieve strong financial outcomes 
while  reducing  risks  through  a  more  thorough  analysis  of  all 
the factors, including ESG Factors,  that will impact a security 
throughout the course of the investment horizon and beyond. 

As further discussed below, when integrating ESG Factors and 
making  investment  decisions,  AB  will  also  consider  the 
principal  adverse  impacts  of  investment  decisions  on  those 
ESG  Factors.  These  impacts  are  documented  as  part of  the 
AB Stewardship Approach.   

II. 

Integration of Sustainability Risks 

  Equip, 

AB integrates ESG Factors as part of its investment decision 
process 
Identify,  Engage, 
through  six  steps: 
Document, Incorporate and Integrate.   
Depending  on  the  AB  Product,  the  degree  and  focus  of 
integration may differ but the goal will be the same of seeking 
to  achieve  the  investment  objective  where  the  relevant  AB 
investment  teams  utilize  AB’s  ESG-experts  and  responsible 
investing  professionals  (“Responsible  Investing  Team”)  to 
integrate ESG at every step of its research process. 

AB has long recognized that ESG considerations present both 
the 
potential  risks  and  opportunities 

that  can 

impact 

II-85 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
AB FCP I 

•  Extensive training programs.  In addition to AB’s Climate 
Change  Curriculum,  AB  offers  AB’s  investment  teams 
ongoing ESG training. This includes peer-to-peer learning 
for  CIOs  and  portfolio  managers,  during  which  a  select 
group of managers present how ESG is integrated in their 
specific strategies. AB has also systematized training on 
external data, systems and tools and educational sessions 
across  a  suite  of  topics  ranging  from  modern  slavery, 
corporate governance, sector-specific themes, and how to 
integrate ESG in portfolio decision making. 

•  Broad  participation.    AB  has  broad  participation  in  the 
development  of  intellectual  property,  frameworks,  tools 
and  systems.    In  addition  to  the  Responsible  Investing 
Team,  approximately  100  additional  AB  personnel 
participate in one or more ESG working teams. 

(2) Identify 

AB  investment  teams  begin  the  ESG  integration  process  by 
identifying and assessing  material ESG  Factors with respect 
to the relevant investment strategy.  Materiality of ESG Factors 
differs by sector, industry and geographical location.  

Working  with  over  120  AB  analysts  within  AB’s  investment 
teams  across  asset  classes,  AB  developed  a  proprietary 
materiality matrix that covers more than 40 ESG Factors and 
spans  almost  70  subsectors.  AB  can  apply  the  matrix  as 
appropriate,  giving  AB’s 
teams  valuable 
perspective on the impact of ESG Factors and therefore AB’s 
long-term financial forecast for a target issuer.  In AB’s view, a 
consistent  framework  for  identifying  adverse  sustainability 
impacts  helps  AB’s  investment  teams  make  better-informed 
investment  decisions  and  ultimately  enables  AB  to  deliver 
better  investment  outcomes.    These  ESG  Factors  currently 
include:  

investment 

Environmental Factors 

• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 

Carbon Emissions 
Product Carbon Footprint 
Climate Change Vulnerability 
Water Management 
Resource Management 
Biodiversity & Land Use 
Toxic Emissions & Hazardous Waste 
COVID-19 and the Environment 
Packaging Waste 
Electronic Waste 
Supply Chain – Environmental 
Opportunities in Clean Tech 
Opportunities in Green Buildings 
Opportunities in Renewable Energy 

Social Factors 

• 
• 

Labor Management 
Human Capital Development 

II-86 

(1) Equip 

The process starts with equipping AB’s investment teams with 
frameworks, tools and training to enable them to adequately 
understand,  research  and  integrate  material  ESG  Factors.  
This includes: 

tools 

•  Proprietary toolsets.  To augment third-party data and tool 
sets,  AB  has  developed  proprietary  research  and 
collaboration 
to  strengthen  ESG  and  climate 
research  and  systematize  integration  across  the  firm–
for  research  and 
including  AB’s  ESIGHT  platform 
collaboration and PRISM for credit ratings and scoring. AB 
has  also  created  an  Alternative  Data  Dashboard  that 
combines 
industry-specific  knowledge  of  AB’s 
fundamental  analysts  with  the  capabilities  of  AB’s  Data 
Science  Team  to  create  better  insights  from  alternative 
data and AB research. 

the 

•  Third-party data and toolsets.  All AB’s investment teams 
have access to a range of data services that enable them 
to gain a broad understanding of the ESG characteristics 
of, inter alia, an issuer or a sector.  These include but are 
not  limited  to  ESG  data  from  Bloomberg  and  FactSet, 
MSCI  ESG  Ratings,  Carbon  Delta  and  MSCI  Carbon 
Emissions  data,  Sustainalytics  Risk  Ratings,  Global 
ISS-Ethix 
Norms 
Controversial  Weapons  Analysis,  and  ISS  and  Glass-
Lewis  corporate  governance  and  proxy  research.  The 
Responsible  Investing  Team  continually  evaluates  its 
current and new providers to ensure AB is providing AB’s 
investment  teams  with  the  best  possible  data  and 
information. 

and  Controversies 

analysis, 

•  Strategic  partnerships  with  world-class  institutions.    AB 
has collaborated on climate change with the Earth Institute 
at  Columbia  University.  Phase  One  of  the  collaboration 
involved the joint development of a Climate Science and 
Portfolio  Risk  curriculum  that  addresses  the  science, 
regulatory,  legal  and  public  policy  aspects  of  climate 
change  as  well  as  how  to  integrate  climate  change  into 
company  and  issuer  financial  analysis.  Phase  Two  will 
involve  joint  research  with  the  scientists  on  an  array  of 
climate-change topics. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 

Employee Health & Safety 
Product Safety & Quality  
COVID-19 & Social Issues 
Financial Product Safety 
Privacy & Data Security 
Supply Chain – Social 
Responsible Investment 
Insuring Health & Demographic Risk 
Opportunities in Communications 
Opportunities in Financial Inclusion 
Opportunities in Healthcare 
Opportunities in Nutrition & Healthier Products 
Opportunities in Education 

Governance Factors 

Board 
• 
• 
• 
• 

Board Independence 
Board Gender Diversity 
Combined CEO & Chair   
Entrenched Board 

Oversight and Risk Management 
• 
• 
• 
• 
• 
• 
• 
• 
• 

Accounting 
Anti-Competitive Practices 
Business Ethics 
Corruptions and Instability 
Financial System Instability 
Organizational Culture 
Pay 
Sanctions 
COVID-19 & Governance 

Shareholder Access Rights 
• 
• 
• 

One Share, One Vote 
Proxy Access 
Right to Call Special Meetings 

AB  also  adheres  to  internationally  recognized  standards  for 
due diligence and reporting, such as the UN Global Compact, 
to  help  guide  AB’s  research.    All  issuers  deemed  to  be  in 
breach of these global norms are flagged for in-depth research 
on their suitability for inclusion in an AB Product. This in-depth 
analysis  will  assess  the  reason  for  an  issuer’s  breach  and 
whether the issuer could still be suitable, taking into account 
the investment strategy of the relevant AB Product.  
ESG  Factors  and  corresponding 
applicable to all types of instruments or investments.  

impacts  may  not  be 

(3) Engage 

AB’s investment teams also engage with issuers on these ESG 
Factors.    ESG  Engagement  has  always  been  a  vital  part  of 
AB’s investment process.  Each year, AB’s investment teams 
engage with the leaders of public and private issuers and non-
corporate entities, including municipalities, supranational and 
sovereign issuers. In 2020, AB logged over 15,000 meetings, 
including issuer-specific engagements and strategic thematic 

II-87 

AB FCP I 

and collaborative engagements.  AB will engage on topics and 
goals other than ESG Factors as part of its engagement policy.  

Engaging on ESG issues is a key part of AB’s research and 
stewardship  processes  as  part  of  AB’s  commitment  to  be  a 
leader in responsible investing.  

inter  alia,  provide  progress 

Engagement  helps  AB  to  better  understand  issuers,  protect 
AB  Products’  interests  as  shareholders  and  bondholders  of 
such issuers, and encourages issuers to deploy strategies that 
may, 
toward  ESG  goals.  
Engagement allows AB to encourage issuers to take actions 
that AB believes will improve financial outcomes of the issuers 
and/or AB Products.  AB does not outsource engagement. AB’ 
investment  teams  engage  directly  with    issuers,  often 
collaborating  with  the  Responsible  Investing  team.  In  AB’s 
view, a hands-on engagement approach is the path to better 
research, better outcomes and better service to AB Products.  

AB’s Engagement Policy, found at:  
https://www.alliancebernstein.com/content/dam/corporate/cor
porate-pdfs/ABGlobalStewardship.pdf,  describes 
in  more 
detail AB’s engagement with issuers. AB’s Engagement Policy 
also  outlines  AB  collaboration  in  industry  engagement  and 
AB’s  identification  and  resolution  of  potential  conflicts  of 
interest when engaging with issuers.  AB’s engagement policy 
includes, inter alia, how AB exercises voting rights and other 
rights attached to shares, cooperates with other shareholders, 
communicates  with  relevant  stakeholders  of  the  investee 
issuers and manages actual and potential conflicts of interests 
in relation to their engagement.  

(4) Document and (5) Incorporate 

ESIGHT,  a  proprietary  research  and  collaboration  platform, 
integrates AB’s ESG issuer assessments, proxy-voting history, 
engagements  and 
from  MSCI  and 
third-party  research 
Sustainalytics.  ESIGHT  is  also  a  knowledge  center  that 
houses ESG information, including thematic sell-side research 
reports,  academic  studies,  non-government  entity  reports, 
specialist sustainability and climate-change think-tank papers, 
and AB’s own proprietary ESG ratings.  

With  ESIGHT,  AB’s  corporate  bond  and  equity  investment 
teams can access and share information during all steps of the 
investment  process  about  issuers’  ESG  practices.  When  AB 
investment  teams  conduct  research  or  prepare  for  an 
engagement, they can explore previous interactions, querying 
by  issuer,  AB  investment  team,  or  ESG  topic  and  theme. 
ESIGHT also enhances portfolio management and reporting: 
AB  professionals  can  assess  ESG  topics  by  company  or 
issuer, industry, or portfolio and share engagement statistics, 
examples and outcomes with clients. 

PRISM,  a  proprietary  credit  rating  and  scoring  system 
integrates  fixed-income  ESG  research  into  a  fully  digitalized 
data and security analysis platform. With PRISM, analysts can 
develop and share views on individual issuers in a consistent, 
comparable  and  quantifiable  way  across  industries,  ratings 
categories  and  geographies.  Analysts  also  have  access  to 
MSCI  scores  through  the  system.  Analysts  evaluate  each 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
issuer  on  multiple  dimensions,  using 
research  and 
engagement insights to assign specific ESG scores, which are 
used in credit scoring. PRISM scoring will weigh ESG Factors 
differently depending on   the industry being analysed and are 
based on what AB analysts view as the most important ESG 
Factors for the company or issuer. Any fixed income portfolio 
manager  or  analyst  can  access  PRISM’s  ESG  scores  at  all 
times during the investment process. 

(6) Integrate 

and  toolsets,  manages  AB’s  strategic  ESG  partnerships, 
develops training programs and executes proxy votes. 
AB’s  Corporate  Responsibility  Team  develops  AB’s 
• 
approach  to  responsibility.  The  team  is  responsible  for 
designing  and  delivering  AB’s  purpose  and  values,  diversity 
and inclusion (D&I), sustainability, and corporate philanthropy 
activities.  
• 
AB’s investment teams engage with issuers, analyze 
and quantify ESG Factors, and incorporate these inputs in their 
investment decisions. 

AB FCP I 

investment  decision. 

AB’s  investment  teams  integrate  ESG  Factors  into  the 
investment  decision-making  process, 
to  better 
informed 
  Analysts  within  AB’s 
investment  teams  are  responsible  for  considering  ESG 
Factors at the beginning of the investment decision process by 
identifying them, researching them, engaging with issuers, and 
incorporating 
the  AB  Products 
investment models and frameworks, as applicable.     

the  ESG  Factors 

leading 

into 

An AB analyst’s recommendation and evaluation of the ESG 
Factors may impact investment decisions in multiple ways, not 
just whether or not to buy a security.  For example, the impact 
of ESG Factors on cash flows, credit ratings or discount rates 
may have an influence on the investment decision and position 
sizing. 

After  considering  ESG  Factors,  including  any  applicable 
scoring, depending on the investment objective and upon the 
type of AB Product (i.e. Dark Green vs. Light Green v. Neutral), 
AB may still purchase the security and/or retain it as a holding. 

III. 

Structure  and  Governance  to  Support  ESG 
Sustainability Integration 

To  oversee  AB’s  ESG  and  sustainability  activities,  including 
the  AB  Stewardship  Approach,  AB  created  a  structure  that 
reflects AB’s commitment to responsibility at all levels of AB’s 
organization.  

AB’s Board of Directors and CEO established the position of 
Chief Responsibility Officer (CRO) in 2020. This position has 
direct  supervisory  control  over  AB’s  corporate  responsibility 
and responsible investing efforts. The CRO is also a member 
of  AB’s  Operating  Committee.  AB’s  CRO  oversees  AB’s 
Responsibility  Strategic  Business  Unit  (SBU),  which  include 
the  Responsible 
the  Corporate 
Responsibility  Team.  AB’s  responsible  investing  strategy  is 
also supported by other AB investment teams: 

Investing  Team  and 

• 
The  Audit  and  Risk  committee  of  AB’s  Board  of 
Directors  provides  formal  oversight  for  Responsibility  and 
Responsible Investing. 
• 
The  Responsibility  Steering  Committee,  co-chaired 
by AB’s CRO, develops strategy and oversees execution.  This 
Committee  is  composed  of  senior  professionals  from  across 
AB. 
• 
AB’s  Responsible  Investing  team  of  subject-matter 
experts partners with AB’s investment teams in this effort. In 
conjunction  with  AB’s  various  ESG  working  groups,  the 
Responsible Investing team develops proprietary frameworks 

Investing 

In  addition  to  the  Responsibility  Steering  Committee,  AB 
maintains  three  other  committees  that  are  crucial  to  the 
and 
oversight  Responsibility,  Responsible 
Stewardship: 
• 
Proxy  Voting  and  Governance  Committee.      This 
committee consists of senior representatives from AB’s equity 
and  fixed  income  investment  teams,  responsible  investing 
team, operations, and legal and compliance department.  This 
committee  establishes  AB’s  proxy  voting  policy,  oversees 
proxy  voting  activities,  and  provides  formal  oversight  of  the 
proxy voting process, maintains and updates AB’s firm's proxy 
policies  and  procedures  to  ensure  it  captures  AB’s  latest 
thinking,  formulates  AB's  position  on  new  proposals,  and 
consults on votes not covered by AB’s formal Proxy Voting and 
Governance policy. 
• 
Controversial  Investments  Advisory  Council.    This 
council consists of senior representatives from across AB.  It 
is  co-chaired  by  AB’s  CEO  and  CRO.    The  purpose  of  the 
council  is  to  provide  a  forum  for  discussion  and  debate  on 
issues  such  as  controversial  weapons, 
tobacco,  or 
international norms.  The council discussion will not only inform 
specific investment decisions but help to establish AB policy in 
these areas. 
• 
Diversity Champions Council (DCC). The mission of 
the  DCC  is  to  ensure  that  D&I  remain  at  the  center  of  AB’s 
culture,  policies  and  practices.    The  members  of  the  DCC, 
champion  and  role  model  D&I  by  increasing  accountability 
within SBUs for hiring, promoting and retaining diverse talent.  
DCC members are charged with helping to monitor and review 

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SBU  specific  D&I  goals  and  share  best  practices  across  the 
firm.  

AB FCP I 

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AB FCP I 
Directory 

Management Company 

AllianceBernstein (Luxembourg) S.à r.l. 
2-4, rue Eugène Ruppert 
L-2453 Luxembourg 

Investment Manager 

AllianceBernstein L.P.  
501 Commerce Street 
Nashville, TN 37203 
U.S.A. 

Distributor 

AllianceBernstein Investments 
a unit of the Management Company 
2-4, rue Eugène Ruppert 
L-2453 Luxembourg 

Depositary and Administrator 

Brown Brothers Harriman (Luxembourg) S.C.A. 
80, route d’Esch 
L-1470 Luxembourg 

Transfer Agent 

AllianceBernstein Investor Services 
a unit of the Management Company  
2-4, rue Eugène Ruppert 
L-2453 Luxembourg 

Auditor 

Ernst & Young S.A. 
35E, avenue John F. Kennedy 
L-1855 Luxembourg 

Legal Advisers in Luxembourg 

Elvinger Hoss Prussen, société anonyme 
2, Place Winston Churchill 
B.P. 425 
L-2014 Luxembourg 

Legal Advisers in the United States of America 

Dechert LLP 
One International Place 
40th Floor 
100 Oliver Street 
Boston, MA 02110-2605 
U.S.A. 

Website 

www.alliancebernstein.com