NPORT-EX 2 NPORT_3559308860355684.htm HTML

AB National Municipal Income Fund

Portfolio of Investments

January 31, 2021 (unaudited)

 

      Principal
Amount
(000)
       U.S. $ Value  

MUNICIPAL OBLIGATIONS – 155.9%

       

Long-Term Municipal Bonds – 155.9%

       

Alabama – 3.8%

       

Jefferson County Board of Education/AL
Series 2018
5.00%, 02/01/2046

   $ 10,000        $ 12,215,300  

State of Alabama Docks Department

       

AGM Series 2017A
5.00%, 10/01/2034

     2,000          2,418,660  

AGM Series 2017C
5.00%, 10/01/2036

     2,000          2,448,900  
       

 

 

 
              17,082,860  
       

 

 

 

Arizona – 2.0%

       

Arizona Industrial Development Authority

(Equitable School Revolving Fund LLC Obligated Group)
4.00%, 11/01/2045-11/01/2050

     3,955          4,603,989  

Salt Verde Financial Corp.

(Citigroup, Inc.)
Series 2007
5.25%, 12/01/2022-12/01/2023

     4,150          4,604,753  
       

 

 

 
          9,208,742  
       

 

 

 

Arkansas – 0.5%

       

Pulaski County Public Facilities Board

(Baptist Health Obligated Group)
Series 2014
5.00%, 12/01/2042

     2,000          2,230,840  
       

 

 

 

California – 16.2%

       

Anaheim Public Financing Authority

(City of Anaheim CA Lease)
Series 2014A
5.00%, 05/01/2039

     3,500          3,892,910  

Bay Area Toll Authority
Series 2013S
5.00%, 04/01/2032 (Pre-refunded/ETM)

     5,720          6,324,375  

California Housing Finance
Series 20192
4.00%, 03/20/2033

     1,156          1,317,693  

California Pollution Control Financing Authority

(Poseidon Resources Channelside LP)
Series 2012
5.00%, 07/01/2037(a)

     3,075          3,288,743  

California Statewide Communities Development Authority

(Loma Linda University Medical Center)
Series 2016A
5.00%, 12/01/2036(a)

     800          925,520  

Los Angeles County Metropolitan Transportation Authority

(Los Angeles County Metropolitan Transportation Authority Sales Tax)
Series 2013B
5.00%, 07/01/2034

     1,770          1,969,603  

 

1


      Principal
Amount
(000)
       U.S. $ Value  

Los Angeles Department of Water
Series 2013B
5.00%, 07/01/2032

   $ 3,840        $ 4,277,952  

Los Angeles Department of Water & Power Power System Revenue
Series 2013A
5.00%, 07/01/2030 (Pre-refunded/ETM)

     90          98,357  

5.00%, 07/01/2030

     6,165          6,720,467  

Series 2013B
5.00%, 07/01/2030

     10,000          11,137,900  

San Bernardino County Transportation Authority
Series 2015-2
5.00%, 03/01/2032-03/01/2034(b)

     11,340          12,895,242  

State of California
Series 2013
5.00%, 11/01/2030

     5,800          6,539,268  

University of California
Series 2012G
5.00%, 05/15/2031

     3,825          4,055,839  

5.00%, 05/15/2031 (Pre-refunded/ETM)

     3,175          3,373,628  

Series 2013A
5.00%, 05/15/2030

     2,875          3,181,590  

5.00%, 05/15/2030 (Pre-refunded/ETM)

     2,480          2,750,766  
       

 

 

 
          72,749,853  
       

 

 

 

Colorado – 2.9%

       

City & County of Denver Co. Airport System Revenue

(Denver Intl Airport)
Series 2013B
5.25%, 11/15/2031

     6,680          7,525,755  

Colorado Health Facilities Authority

(CommonSpirit Health)
Series 2019A
5.00%, 08/01/2044

     4,335          5,361,441  
       

 

 

 
          12,887,196  
       

 

 

 

Connecticut – 8.5%

       

Connecticut State Health & Educational Facilities Authority

(Sacred Heart University, Inc.)
Series 2017I-1
5.00%, 07/01/2042

     2,410          2,851,536  

Connecticut State Health & Educational Facilities Authority

(University of Hartford (The))
4.00%, 07/01/2049

     1,500          1,591,755  

State of Connecticut
Series 2013C
5.00%, 07/15/2027

     7,165          7,960,602  

Series 2013E
5.00%, 08/15/2029

     4,800          5,341,776  

State of Connecticut Special Tax Revenue
Series 2011A
5.00%, 12/01/2028

     5,000          5,187,500  

Series 2012
5.00%, 01/01/2029

     13,855              15,033,783  
       

 

 

 
          37,966,952  
       

 

 

 

 

2


      Principal
Amount
(000)
       U.S. $ Value  

District of Columbia – 1.5%

       

District of Columbia
Series 2013A
5.00%, 06/01/2029

   $ 5,000        $ 5,534,750  

Metropolitan Washington Airports Authority
Series 2016A
5.00%, 10/01/2035

     1,000          1,201,530  
       

 

 

 
          6,736,280  
       

 

 

 

Florida – 8.5%

       

Alachua County Health Facilities Authority

(Shands Teaching Hospital & Clinics Obligated Group)
Series 2014A
5.00%, 12/01/2044

     4,560          5,209,481  

Brevard County Health Facilities Authority

(Health First, Inc. Obligated Group)
Series 2014
5.00%, 04/01/2033

     1,000          1,115,480  

Florida Ports Financing Commission
Series 2011A
5.00%, 10/01/2025-10/01/2027

     4,205          4,335,173  

Halifax Hospital Medical Center

(Halifax Hospital Medical Center Obligated Group)
Series 2015
5.00%, 06/01/2035

     2,655          3,023,673  

Miami Beach Health Facilities Authority

(Mount Sinai Medical Center of Florida, Inc.)
Series 2014
5.00%, 11/15/2039

     9,250          10,248,907  

Palm Beach County Health Facilities Authority

(Baptist Health South Florida Obligated Group)
3.00%, 08/15/2044

     8,000          8,532,240  

Putnam County Development Authority/FL

(Seminole Electric Cooperative, Inc.)
Series 2018A
5.00%, 03/15/2042

     4,500              5,475,510  
       

 

 

 
              37,940,464  
       

 

 

 

Georgia – 1.7%

       

Augusta Development Authority

(AU Health System Obligated Group)
Series 2018
5.00%, 07/01/2036

     4,170          4,884,196  

City of Atlanta GA Department of Aviation
Series 2014B
5.00%, 01/01/2032

     1,275          1,432,500  

Municipal Electric Authority of Georgia
5.00%, 01/01/2038-01/01/2059

     1,060          1,283,701  
       

 

 

 
          7,600,397  
       

 

 

 

Guam – 1.3%

       

Territory of Guam

(Territory of Guam Business Privilege Tax)
Series 2011A
5.25%, 01/01/2036

     5,720          5,899,093  
       

 

 

 

 

3


      Principal
Amount
(000)
       U.S. $ Value  

Hawaii – 0.6%

       

State of Hawaii Airports System Revenue
Series 2015A
5.00%, 07/01/2045

   $ 2,500        $ 2,858,900  
       

 

 

 

Illinois – 16.0%

       

Chicago Board of Education
Series 2017C
5.00%, 12/01/2034

     1,945          2,325,364  

Series 2019A
5.00%, 12/01/2029

     1,260          1,621,028  

Chicago O’Hare International Airport
Series 2016B
5.00%, 01/01/2041

     8,000          9,400,000  

Series 2016C
5.00%, 01/01/2038

     2,350          2,773,352  

Series 2018A
5.00%, 01/01/2048

     6,300          7,630,875  

Illinois Finance Authority

(OSF Healthcare System Obligated Group)
Series 2015A
5.00%, 11/15/2045

     4,500          5,143,770  

Illinois State Toll Highway Authority
Series 2015B
5.00%, 01/01/2040

     3,000          3,551,550  

Metropolitan Pier & Exposition Authority
5.00%, 06/15/2050

     8,755          10,440,162  

State of Illinois
Series 2014
5.00%, 04/01/2030-02/01/2039

     12,070          13,164,728  

Series 2017D
5.00%, 11/01/2028

     5,000          5,967,500  

Series 2018A
5.00%, 10/01/2027

     1,000          1,215,910  

Series 2019B
4.00%, 11/01/2036-11/01/2037

     7,460              8,382,326  
       

 

 

 
              71,616,565  
       

 

 

 

Indiana – 0.3%

       

Indiana Finance Authority

(Ohio River Bridges)
Series 2013A
5.00%, 07/01/2044

     1,250          1,341,363  
       

 

 

 

Iowa – 0.3%

       

Iowa Finance Authority

(Iowa Fertilizer Co. LLC)
Series 2013B
5.25%, 12/01/2050

     1,205          1,345,599  
       

 

 

 

Kansas – 1.3%

       

City of Lawrence KS

(Lawrence Memorial Hospital/KS)
Series 2018
5.00%, 07/01/2048

     5,000          6,018,100  
       

 

 

 

 

4


      Principal
Amount
(000)
       U.S. $ Value  

Kentucky – 1.3%

       

Kentucky Economic Development Finance Authority

(CommonSpirit Health)
Series 2019A
5.00%, 08/01/2044

   $ 145        $ 179,333  

Kentucky Turnpike Authority
Series 2013A
5.00%, 07/01/2029

     5,000          5,490,800  
       

 

 

 
          5,670,133  
       

 

 

 

Louisiana – 0.3%

       

Parish of St John the Baptist LA

(Marathon Oil Corp.)
2.10%, 06/01/2037

     235          241,735  

2.20%, 06/01/2037

     950          986,461  
       

 

 

 
          1,228,196  
       

 

 

 

Maryland – 1.7%

       

Maryland Health & Higher Educational Facilities Authority

(Meritus Medical Center Obligated Group)
Series 2015
5.00%, 07/01/2045

     6,725          7,605,908  
       

 

 

 

Massachusetts – 3.1%

       

Massachusetts School Building Authority
Series 2011B
5.00%, 10/15/2032 (Pre-refunded/ETM)

     11,000          11,380,930  

Series 2012B
5.00%, 08/15/2030 (Pre-refunded/ETM)

     2,480          2,666,075  
       

 

 

 
          14,047,005  
       

 

 

 

Michigan – 6.0%

       

Detroit City School District
Series 2012A
5.00%, 05/01/2026-05/01/2027

     6,045          6,400,114  

Detroit Downtown Development Authority
AGM Series 2018A
5.00%, 07/01/2043-07/01/2048

     13,020          14,814,102  

Michigan Finance Authority

(Great Lakes Water Authority Water Supply System Revenue)
AGM Series 2014D1
5.00%, 07/01/2035

     1,250          1,425,775  

Michigan Finance Authority

(Public Lighting Authority)
Series 2014B
5.00%, 07/01/2034

     2,250          2,465,392  

Plymouth Educational Center Charter School
Series 2005
5.125%, 11/01/2023(c)

     2,140          1,900,470  
       

 

 

 
              27,005,853  
       

 

 

 

Minnesota – 2.4%

       

City of Rochester MN

(Mayo Clinic)
Series 2018
4.00%, 11/15/2048

     3,000          3,499,020  

 

5


      Principal
Amount
(000)
       U.S. $ Value  

Duluth Economic Development Authority

(Essentia Health Obligated Group)
Series 2018A
5.00%, 02/15/2058

   $ 6,000        $ 7,082,940  
       

 

 

 
              10,581,960  
       

 

 

 

Nebraska – 3.4%

       

Central Plains Energy Project

(Goldman Sachs Group, Inc. (The))
Series 2017A
5.00%, 09/01/2042

     10,000          15,115,000  
       

 

 

 

New Hampshire – 0.2%

       

New Hampshire Business Finance Authority
Series 20201
4.125%, 01/20/2034

     794          901,072  
       

 

 

 

New Jersey – 12.5%

       

New Jersey Economic Development Authority

(New Jersey Economic Development Authority State Lease)
Series 2014P
5.00%, 06/15/2031

     2,500          2,819,675  

Series 2016B
5.50%, 06/15/2030

     5,000          6,207,150  

New Jersey Economic Development Authority

(NYNJ Link Borrower LLC)
Series 2013
5.125%, 01/01/2034

     1,000          1,111,140  

New Jersey Health Care Facilities Financing Authority

(New Jersey Health Care Facilities Financing Authority State Lease)
Series 2017
5.00%, 10/01/2036

     2,500          2,971,650  

New Jersey Health Care Facilities Financing Authority

(RWJ Barnabas Health Obligated Group)
Series 2014
5.00%, 07/01/2044

     6,450          7,365,706  

New Jersey Transportation Trust Fund Authority

(New Jersey Transportation Fed Hwy Grant)
Series 2016
5.00%, 06/15/2029

     4,750          5,681,475  

New Jersey Transportation Trust Fund Authority

(New Jersey Transportation Trust Fund Authority State Lease)
Series 2018A
5.00%, 12/15/2033

     3,370          4,190,696  

Series 2019B 4.00%, 06/15/2037

     800          918,880  

New Jersey Turnpike Authority
Series 2012B
5.00%, 01/01/2029 (Pre-refunded/ETM)

     6,500          7,106,190  

Series 2013A
5.00%, 01/01/2031 (Pre-refunded/ETM)

     5,000          5,345,350  

Series 2020D
5.00%, 01/01/2028(d)

     1,350          1,668,776  

 

6


      Principal
Amount
(000)
       U.S. $ Value  

Tobacco Settlement Financing Corp./NJ
Series 2018A
5.00%, 06/01/2046

   $ 8,990        $ 10,926,716  
       

 

 

 
          56,313,404  
       

 

 

 

New York – 19.3%

 

Broome County Local Development Corp.

(United Health Services Hospitals Obligated Group)
AGM Series 2020I
3.00%, 04/01/2045

     3,000          3,165,900  

4.00%, 04/01/2050

     3,500          4,007,710  

City of New York NY
Series 2012B
5.00%, 08/01/2030 (Pre-refunded/ETM)

     5,070          5,442,392  

Metropolitan Transportation Authority
Series 2012D
5.00%, 11/15/2029

     4,000          4,263,320  

Series 2012F
5.00%, 11/15/2027

     1,575          1,679,265  

Series 2013A
5.00%, 11/15/2029 (Pre-refunded/ETM)

     1,830          2,033,807  

Series 2014B
5.25%, 11/15/2034

     4,000          4,498,400  

Metropolitan Transportation Authority

(Metropolitan Transportation Authority Ded Tax)
Series 2016A
5.25%, 11/15/2035(b)

     14,260          17,532,527  

New York City Municipal Water Finance Authority
Series 2011HH
5.00%, 06/15/2026

     5,000          5,089,900  

Series 2013D
5.00%, 06/15/2034

     3,600          3,990,456  

New York City NY Transitional
Series 2007B
5.00%, 08/01/2034-08/01/2037(b)

     10,000          11,798,660  

New York State Dormitory Authority
Series 2012D
5.00%, 02/15/2029 (Pre-refunded/ETM)

     1,135          1,191,603  

New York State Dormitory Authority

(State of New York Pers Income Tax)
Series 2012B
5.00%, 03/15/2032

     7,600          7,988,132  

Series 2012D
5.00%, 02/15/2029

     6,865          7,195,550  

Port Authority of New York & New Jersey
Series 2013178
5.00%, 12/01/2032

     4,400          4,909,960  

Ulster County Capital Resource Corp.

(Woodland Pond at New Paltz)
Series 2017
5.00%, 09/15/2037

     490          487,236  

5.25%, 09/15/2042-09/15/2053

     1,320          1,298,685  
       

 

 

 
              86,573,503  
       

 

 

 

North Carolina – 2.5%

 

North Carolina Medical Care Commission

(Vidant Health Obligated Group)
Series 2015
5.00%, 06/01/2045

     4,445          5,112,950  

 

7


      Principal
Amount
(000)
       U.S. $ Value  

North Carolina Turnpike Authority
Series 2018
5.00%, 01/01/2040

   $ 5,000        $ 6,148,200  
       

 

 

 
          11,261,150  
       

 

 

 

Ohio – 1.6%

       

City of Chillicothe/OH

(Adena Health System Obligated Group)
Series 2017
5.00%, 12/01/2047

     1,800          2,150,856  

County of Cuyahoga/OH

(MetroHealth System (The))
5.00%, 02/15/2052

     2,240          2,547,104  

Series 2017
5.00%, 02/15/2042

     1,500          1,725,840  

Ohio Higher Educational Facility Commission

(Kenyon College)
4.00%, 07/01/2040

     730          854,523  
       

 

 

 
          7,278,323  
       

 

 

 

Oklahoma – 2.8%

       

Norman Regional Hospital Authority

(Norman Regional Hospital Authority Obligated Group)
3.25%, 09/01/2038

     2,015          2,125,261  

Oklahoma City Airport Trust
Series 2018
5.00%, 07/01/2043-07/01/2047

     7,000          8,381,950  

Tulsa Airports Improvement Trust
BAM Series 2015A
5.00%, 06/01/2045

     1,700          1,898,322  
       

 

 

 
              12,405,533  
       

 

 

 

Oregon – 0.2%

       

Oregon State Lottery
Series 2011A
5.25%, 04/01/2025

     695          700,782  
       

 

 

 

Pennsylvania – 11.5%

       

Allegheny County Hospital Development Authority

(Allegheny Health Network Obligated Group)
Series 2018A
5.00%, 04/01/2047

     5,000          6,050,500  

Butler County Hospital Authority

(Butler Health System Obligated Group)
Series 2015
5.00%, 07/01/2035-07/01/2039

     3,510          3,940,304  

Montgomery County Higher Education and Health Authority

(Thomas Jefferson University Obligated Group)
Series 2018
5.00%, 09/01/2043-09/01/2048

     13,250          16,023,252  

Pennsylvania Economic Development Financing Authority

(PA Bridges Finco LP)
Series 2015
5.00%, 12/31/2034-06/30/2042

     9,270          10,801,267  

 

8


      Principal
Amount
(000)
       U.S. $ Value  

Pennsylvania Turnpike Commission
Series 2014A
5.00%, 12/01/2031-12/01/2033

   $ 6,355        $ 7,410,419  

School District of Philadelphia (The)
Series 2016F
5.00%, 09/01/2035

     5,000          6,042,550  

Scranton School District/PA
BAM Series 2017E
4.00%, 12/01/2037

     1,025          1,193,715  
       

 

 

 
          51,462,007  
       

 

 

 

Puerto Rico – 0.8%

 

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue
Series 2019A
4.329%, 07/01/2040

     615          679,753  

5.00%, 07/01/2058

     2,625          2,986,489  
       

 

 

 
          3,666,242  
       

 

 

 

South Carolina – 4.9%

 

South Carolina Jobs-Economic Development Authority

(Prisma Health Obligated Group)
Series 2018A
5.00%, 05/01/2048

     5,900          7,042,417  

South Carolina Ports Authority
Series 2015
5.00%, 07/01/2045 (Pre-refunded/ETM)

     5,000          6,007,700  

South Carolina Public Service Authority
Series 2014A
5.00%, 12/01/2049

     1,400          1,584,268  

Series 2014C
5.00%, 12/01/2046

     1,000          1,151,150  

Series 2016B
5.00%, 12/01/2041

     5,000          6,128,850  
       

 

 

 
              21,914,385  
       

 

 

 

Tennessee – 2.1%

 

Chattanooga Health Educational & Housing Facility Board

(CommonSpirit Health)
Series 2019A
4.00%, 08/01/2037-08/01/2038

     420          488,881  

5.00%, 08/01/2049

     705          864,126  

Chattanooga-Hamilton County Hospital Authority
Series 2014
5.00%, 10/01/2044

     7,500          8,185,800  
       

 

 

 
          9,538,807  
       

 

 

 

Texas – 7.1%

 

Arlington Higher Education Finance Corp.

(Lifeschool of Dallas)
Series 2014A
5.00%, 08/15/2039

     4,805          5,384,003  

Central Texas Regional Mobility Authority
Series 2016
5.00%, 01/01/2040

     3,500          4,068,225  

 

9


      Principal
Amount
(000)
       U.S. $ Value  

City of Austin TX Water & Wastewater System Revenue
Series 2013A
5.00%, 11/15/2029

   $ 5,000        $ 5,542,950  

City of Houston TX Combined Utility System Revenue
Series 2011D
5.00%, 11/15/2026 (Pre-refunded/ETM)

     6,000          6,231,420  

New Hope Cultural Education Facilities Finance Corp.

(CHF-Collegiate Housing Denton LLC) AGM
Series 2018A-1
5.00%, 07/01/2038-07/01/2048

     1,600          1,870,332  

North Texas Tollway Authority

(North Texas Tollway System)
Series 2015B
5.00%, 01/01/2040

     5,000          5,390,450  

Texas Private Activity Bond Surface Transportation Corp.

(NTE Mobility Partners Segments 3 LLC)
Series 2013
6.75%, 06/30/2043

     3,000          3,434,190  
       

 

 

 
          31,921,570  
       

 

 

 

Utah – 1.9%

 

Salt Lake City Corp. Airport Revenue
Series 2017A
5.00%, 07/01/2047

     4,500          5,384,790  

Series 2018A
5.00%, 07/01/2048

     2,500          3,033,975  
       

 

 

 
          8,418,765  
       

 

 

 

West Virginia – 1.0%

 

West Virginia Hospital Finance Authority

(West Virginia United Health System Obligated Group)
Series 2018A
5.00%, 06/01/2052

     3,875          4,681,853  
       

 

 

 

Wisconsin – 3.9%

 

Wisconsin Center District
AGM Series 2020C
Zero Coupon, 12/15/2036-12/15/2040

     9,555          5,874,934  

Wisconsin Public Finance Authority

(CHF - Wilmington LLC) AGM
5.00%, 07/01/2058

     10,000          11,656,000  
       

 

 

 
          17,530,934  
       

 

 

 

Total Municipal Obligations
(cost $638,655,414)

 

           699,305,589  
       

 

 

 

 

10


Company    Shares        U.S. $ Value  

SHORT-TERM INVESTMENTS – 0.3%

       

Investment Companies – 0.3%

       

AB Fixed Income Shares, Inc. - Government Money Market Portfolio - Class AB, 0.01%(e) (f) (g)
(cost $1,531,462)

     1,531,462        $ 1,531,462  
       

 

 

 

Total Investments – 156.2%
(cost $640,186,876)(h)

          700,837,051  

Other assets less liabilities – (56.2)%

          (252,293,087
       

 

 

 

Net Assets – 100.0%

        $     448,543,964  
       

 

 

 

 

(a)

Security is exempt from registration under Rule 144A of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At January 31, 2021, the aggregate market value of these securities amounted to $4,214,263 or 0.9% of net assets.

(b)

Security represents the underlying municipal obligation of an inverse floating rate obligation held by the Fund.

(c)

Restricted and illiquid security.

 

Restricted & Illiquid
Securities
   Acquisition
Date
     Cost      Market
Value
     Percentage
of
Net Assets
 

Plymouth Educational Center Charter School
Series 2005
5.125%, 11/01/2023

     11/30/2005      $     2,133,758      $     1,900,470        0.42

 

(d)

When-Issued or delayed delivery security.

(e)

Affiliated investments.

(f)

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

(g)

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

(h)

As of January 31, 2021, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $60,971,123 and gross unrealized depreciation of investments was $(320,948), resulting in net unrealized appreciation of $60,650,175.

As of January 31, 2021, the Fund’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity are 7.3% and 0.0%, respectively.

Glossary:

AGM – Assured Guaranty Municipal

BAM – Build American Mutual

ETM – Escrowed to Maturity

OSF – Order of St. Francis

 

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AB National Municipal Income Fund

January 31, 2021 (unaudited)

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

 

   

Level 1 - quoted prices in active markets for identical investments

   

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

   

Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

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

Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.

The following table summarizes the valuation of the Fund’s investments by the above fair value hierarchy levels as of January 31, 2021:

 

     Level 1     Level 2     Level 3      Total  
Assets:          
Long-Term Municipal Bonds    $     $     699,305,589     $      $     699,305,589  
Short-Term Investments          1,531,462                    1,531,462  
Liabilities:          
Variable Rate MuniFund Term Preferred Shares(a)            (231,958,872            (231,958,872
Floating Rate Notes(a)      (26,095,000                  (26,095,000
  

 

 

   

 

 

   

 

 

    

 

 

 
Total Investments in Securities      (24,563,538     467,346,717              442,783,179  
Other Financial Instruments(b)                          
  

 

 

   

 

 

   

 

 

    

 

 

 
Total    $ (24,563,538   $ 467,346,717     $                 —      $ 442,783,179  
  

 

 

   

 

 

   

 

 

    

 

 

 

 

12


(a) 

The Fund may hold liabilities in which the fair value approximates the carrying amount for financial statement purposes.

(b) 

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

A summary of the Fund’s transactions in AB mutual funds for the three months ended January 31, 2021 is as follows:

 

Fund   

Market Value

10/31/2020

(000)

    

Purchases

at Cost

(000)

    

Sales

Proceeds

(000)

    

Market Value

01/31/2021

(000)

    

Dividend

Income

(000)

 
Government Money Market Portfolio    $     1,957      $     8,820      $     9,246      $     1,531      $     0

 

*

Amount less than $500.

 

13