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Strategy

Seeks attractive yield over the term of the Portfolio by:

  • Investing primarily in US dollar-denominated fixed-income securities issued by corporate, sovereign and other governmental issuers in developed and emerging markets.

  • Investing in investment grade and below investment grade fixed-income securities

  • Investing in fixed-income securities that mature on or before the Portfolio’s maturity date of 31 January 2023

  • Utilizing financial derivative instruments to alter a significant portion of the income component from fixed rate to floating rate

Effective 8 February 2019, the AB Fixed Maturity Bond 2023 Portfolio is no longer available for subscription

Portfolio Management Team

Investment Risks to Consider

These and other risks are described in the Portfolio's prospectus

Investment in the Portfolio entails certain risks. Investment returns and principal value of the Portfolio will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Some of the principal risks of investing in the Portfolio include:

  • Corporate debt obligations risk: The risk that a particular issuer may not fulfill its payment and other obligations. In addition, an issuer may experience adverse changes to its financial position or a decrease in its credit rating resulting in increased debt obligation price volatility and negative liquidity. There may also be a higher risk of default.

  • Country risk: Where the Portfolio invests in a single country, these assets are generally smaller, more sensitive to economic and political factors, and may be less easily traded which could cause a loss to the Portfolio.

  • Currency risk: Investments may be denominated in one or more currencies which are different from the Portfolio’s base currency. Currency movements in the investments may significantly affect the net asset value of the Portfolio.

  • Currency-hedged share class risk: The risk that, under certain circumstances, the currency hedging transactions used as part of a hedging strategy to mitigate currency exposure risk between the Base currency and the Offered currency, may result in liabilities affecting the Net Asset Value (NAV) of other share classes within the Portfolio.

  • Derivatives risk: The Portfolio may include financial derivative instruments. These may be used to obtain, increase or reduce exposure to underlying assets and may create gearing; their use may result in greater fluctuations of the net asset value.

  • Emerging-markets risk: Where the Portfolio invests in emerging markets, these assets are generally smaller and more sensitive to economic and political factors, and may be less easily traded, which could cause a loss to the Portfolio.

  • Fixed-income securities risk: The value of these investments will change in response to fluctuations in interest rates and currency exchange rates, as well as changes in the credit quality of the issuer. Also, medium, lower and unrated securities may be subject to wider fluctuations in yield and market values than higher-rated securities.

  • Interest-rate risk: As interest rates rise, bond prices fall and vice versa; long-term securities tend to rise and fall more than short-term securities.

  • Lack of operating history risk: Certain portfolios may be recently formed and have no operating history

  • Liquidity risk: The risk that arises when adverse market conditions affect the ability to sell assets when necessary. Reduced liquidity may have a negative impact on the price of the assets.

  • Lower-rated and unrated instruments risk: These securities are subject to a greater risk of loss of capital and interest, and are usually less liquid and more volatile. Some investments may be in high-yielding fixed-income securities, so the risk of depreciation and capital losses may be unavoidable

  • Management risk: The use of derivative transactions may not achieve anticipated benefits or may realise losses, adversely impacting the Portfolio, if the Investment Manager is not able to correctly predict price movements, interest rates or currency exchange rate movements and, in addition, does not appropriately understand the derivative or the underlying instrument.

  • OTC derivatives counterparty risk: Transactions in over-the-counter (OTC) derivatives markets may have generally less governmental regulation and supervision than transactions entered into on organized exchanges. These will be subject to the risk that its direct counterparty will not perform its obligations and that the Portfolio will sustain losses.

  • Prepayment risk: The risk that in periods of falling interest rates, issuers may pay principal sooner than expected, exposing the Portfolio to a lower rate of return upon reinvestment of principal.

  • Sovereign debt obligations risk: The risk that government issued debt obligations will be exposed to direct or indirect consequences of political, social and economic changes in various countries. Political changes or the economic status of a country may impact the willingness or ability of a government to honour its payment obligations.

  • Taxation risk: Securities may be subject to taxation resulting from income or realised capital gains and double-tax treaties may or may not exist within the jurisdictions of these investments. In addition, applicable tax laws and interpretations thereof may change. There is a risk that withholding tax may therefore be applied by the country of residence of the issuer, which is neither refundable or subject to reduction and could adversely affect the Net Asset Value (NAV) of the Portfolio.

Fund Literature

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Past performance, historical and current analyses, and expectations do not guarantee future results.

Investment involves risk. The information contained here reflects the views of AllianceBernstein L.P. or its affiliates and sources it believes are reliable as of the date of this publication. AllianceBernstein L.P. makes no representations or warranties concerning the accuracy of any data. There is no guarantee that any projection, forecast or opinion in this material will be realized. Past performance does not guarantee future results. The views expressed here may change at any time after the date of this publication.  This document is for informational purposes only and does not constitute investment advice.  AllianceBernsteinL.P. does not provide tax, legal or accounting advice. It does not take an investor’s personal investment objectives or financial situation into account; investors should discuss their individual circumstances with appropriate professionals before making any decisions. This information should not be construed as sales or marketing material or an offer or solicitation for the purchase or sale of any financial instrument, product or service sponsored by AllianceBernstein or its affiliates.

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