Mutual Fund Summary Prospectus (497k)
October 15 2013 - 4:22PM
Edgar (US Regulatory)
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SUMMARY PROSPECTUS October 15, 2013
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AllianceBernstein Global Risk Allocation Fund
Ticker:
Class ACABNX; Class BCABBX; Class
CCBACX; Advisor ClassCBSYX; Class RCBSRX; Class KCBSKX; Class ICABIX
Before you invest, you may want to review the Funds Prospectus, which contains more information
about the Fund and its risks. The Funds Prospectus and Statement of Additional Information (SAI), both dated October 15, 2013, are incorporated by reference into this Summary Prospectus. For free paper or electronic copies of the
Funds Prospectus and other information about the Fund, go to
http://www.alliancebernstein.com/links/mf
, email a request to prorequest@alliancebernstein.com, call
(800) 227-4618,
or ask any
financial advisor, bank, or broker-dealer who offers shares of the Fund. Unless otherwise noted, page number references refer to the current Prospectus for this Fund.
PRO-0103-GRA-0313
INVESTMENT OBJECTIVE
The Funds investment objective is total return consistent with reasonable risks through a combination of income and long-term growth of capital.
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge reductions if you and members of your family invest, or agree to invest
in the future, at least $100,000 in AllianceBernstein Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the FundSales Charge Reduction Programs for Class A
Shares on page 26 of the Prospectus and in Purchase of SharesSales Charge Reduction Programs for Class A Shares on page 114 of the Funds SAI.
Shareholder Fees
(fees paid directly from your investment)
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Class A
Shares
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Class B Shares
(not currently offered
to new investors)
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Class C
Shares
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Advisor Class
Shares
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Class
R, K, and I
Shares
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Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
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4.25%
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None
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None
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None
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None
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Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption proceeds, whichever is lower)
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None(a)
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4.00%(b)
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1.00%(c)
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None
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None
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Exchange Fee
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None
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None
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None
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None
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None
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Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
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Class A
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Class B
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Class C
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Advisor
Class
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Class R
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Class K
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Class I
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Management Fees
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.51%
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.51%
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.51%
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.51%
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.51%
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.51%
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.51%
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Distribution and/or Service (12b-1) Fees
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.29%
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1.00%
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1.00%
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None
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.50%
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.25%
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None
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Other Expenses:
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Transfer Agent
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.20%
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.22%
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.20%
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.20%
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.26%
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.20%
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.02%
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Other Expenses
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.15%
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.15%
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.15%
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.15%
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.15%
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.15%
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.11%
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Total Other Expenses
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.35%
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.37%
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.35%
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.35%
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.41%
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.35%
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.13%
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Total Annual Fund Operating Expenses
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1.15%
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1.88%
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1.86%
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.86%
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1.42%
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1.11%
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.64%
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(a)
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Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge, or CDSC,
which may be subject to waiver in certain circumstances.
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(b)
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Class B shares automatically convert to Class A shares after eight years. The CDSC decreases over time. For Class B shares the CDSC decreases 1.00% annually to 0% after the
fourth year.
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(c)
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For Class C shares, the CDSC is 0% after the first year.
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S-1
Examples
The Examples are intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Fund for the time
periods indicated and then redeem all of your shares at the end of those periods. The Examples also assume that your investment has a 5% return each year and that the Funds operating expenses stay the same. Although your actual costs may be
higher or lower, based on these assumptions your costs would be:
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Class A
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Class B
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Class C
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Advisor Class
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Class R
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Class K
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Class I
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After 1 Year
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$
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537
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$
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591
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$
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289
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$
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88
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$
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145
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$
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113
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$
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65
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After 3 Years
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$
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775
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$
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791
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$
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585
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$
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274
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$
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449
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$
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353
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$
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205
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After 5 Years
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$
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1,031
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$
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1,016
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$
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1,006
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$
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477
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$
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776
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$
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612
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$
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357
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After 10 Years
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$
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1,763
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$
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2,011
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$
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2,180
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$
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1,061
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$
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1,702
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$
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1,352
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$
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798
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For the share classes listed below, you would pay the following expenses if you did not redeem your shares at the end of
the period:
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Class B
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Class C
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After 1 Year
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$
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191
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$
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189
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After 3 Years
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$
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391
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$
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585
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After 5 Years
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$
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1,016
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$
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1,006
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After 10 Years
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$
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2,011
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$
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2,180
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Portfolio Turnover
The Fund pays transaction costs, such as commissions, when it buys or sells securities (or turns over its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Fund Operating Expenses or in the Examples, affect the
Funds performance. During the most recent fiscal year, the Funds portfolio turnover rate was 163% of the average value of its portfolio.
PRINCIPAL STRATEGIES
The Fund invests dynamically
in a number of global asset classes, including equity/credit, fixed-income, and inflation-linked instruments. In making decisions on the allocation of assets among asset classes, the Adviser will use a tail risk parity strategy. This strategy
attempts to provide investors with favorable long-term total return while minimizing exposure to material downside (tail) events. To execute this strategy, an average tail loss for each asset class is calculated based on historical
market behavior and on a forward-looking basis through options prices. Fund assets are then allocated among asset classes so that each asset class will contribute equally to the expected tail loss of the Fund. This will generally result in the Fund
having greater exposures to lower risk asset classes (such as fixed-income) than to higher risk asset classes. The Adviser will make frequent adjustments to the Funds asset class exposures based on these tail risk parity determinations.
The asset classes in which the Fund may invest include:
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equity/creditequity securities of all types and corporate fixed-income securities (regardless of credit quality, but subject to the limitations
on high-yield securities set forth below);
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fixed-incomefixed-income securities of the U.S. and foreign governments and their agencies and instrumentalities; and
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inflation-linkedglobal inflation-linked securities (including Treasury Inflation Protected Securities).
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The Funds investments within each asset class are generally index-basedtypically, portfolios of individual securities intended to track the
performance of the particular asset class and, primarily for certain types of assets such as credit assets, derivatives intended to track such performance. Equity securities will comprise no more than 75% of the Funds investments. The Fund may
invest in fixed-income securities with a range of maturities from short- to long-term. The Fund may invest up to 20% of its assets in high-yield securities (securities rated below BBB- by Standard & Poors Ratings Services,
Moodys Investors Service, Inc., or Fitch Ratings, which are commonly known as junk bonds). As an operating policy, the Fund will invest no more than 5% of its assets in securities rated CCC- or below. With respect to the
inflation-linked asset class, the Fund may also seek exposure, at times significantly, to commodities and commodities-related instruments and derivatives since these instruments are typically affected directly or indirectly by the level and change
in inflation.
The Funds investments in each asset class will generally be global in nature, and will generally include investments in
both developed and emerging markets. The Fund typically invests at least 40% of its assets in securities of non-U.S. companies and/or foreign countries and their agencies and instrumentalities unless conditions are not deemed favorable by the
Adviser, in which case the Fund will invest at least 30% of its assets in such foreign securities.
Derivatives, particularly futures and
swaps, often provide more efficient and economical exposure to market segments than direct investments, and the Funds exposure to certain types of assets may at times be achieved partially or substantially through investment in derivatives.
Derivatives transactions may also be a quicker and more efficient way to alter the Funds exposure than buying and selling direct investments. In determining when and to what extent to enter into derivatives transactions, the Adviser will
con-
S-2
sider factors such as the risk and returns of these investments relative to direct investments and the cost of such transactions. Because derivatives transactions frequently require cash outlays
that are only a small portion of the amount of exposure obtained through the derivative, a portion of the Funds assets may be held in cash or invested in cash equivalents to cover the Funds derivatives obligations, such as short-term
U.S. Government and agency securities, repurchase agreements and money market funds. At times, a combination of direct securities investments and derivatives will be used to gain asset class exposure so that the Funds aggregate exposure will
substantially exceed its net assets (
i.e.
, so that the Fund is effectively leveraged). Overall Fund exposure and the allocation to equity/credit will typically increase during bull markets, while overall exposure and allocations to
equity/credit and inflation-linked securities will typically decrease during bear markets. In addition, the Fund may at times invest in shares of exchange-traded funds in lieu of making direct investments in securities.
While the Fund may seek to gain exposure to physical commodities traded in the commodities markets through investments in a variety of derivative
instruments, the Adviser expects that the Fund will seek to gain exposure to commodities and commodities-related instruments and derivatives primarily through investments in AllianceBernstein Global Risk Allocation Fund (Cayman) Ltd., a wholly-owned
subsidiary of the Fund organized under the laws of the Cayman Islands (the Subsidiary). The Subsidiary is advised by the Adviser and has the same investment objective and substantially similar investment policies and restrictions as the
Fund except that the Subsidiary, unlike the Fund, may invest, without limitation, in commodities and commodities-related instruments. The Fund will be subject to the risks associated with the commodities, derivatives and other instruments in which
the Subsidiary invests, to the extent of its investment in the Subsidiary. The Fund limits its investment in the Subsidiary to no more than 25% of its total assets. Investment in the Subsidiary is expected to provide the Fund with commodity exposure
within the limitations of federal tax requirements that apply to the Fund.
Currency exchange rate fluctuations can have a dramatic impact on
returns. The Adviser may seek to hedge all or a portion of the currency exposure resulting from Fund investments or decide not to hedge this exposure. To hedge all or a portion of its currency risk, the Fund may invest in currency-related
derivatives, including forward currency exchange contracts.
PRINCIPAL RISKS
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Market Risk:
The value of the Funds investments will fluctuate as the stock or bond market fluctuates. The value of its investments may
decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.
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Allocation Risk:
The allocation of investments among asset classes may have a significant effect on the Funds net asset value, or NAV,
when the asset classes in which the Fund has invested more heavily perform worse than the asset classes invested in less heavily.
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Interest Rate Risk:
Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the
value of investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or
durations.
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Credit Risk:
An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or
unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be
reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.
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Commodity Risk:
Investing in commodities and commodity-linked derivative instruments, either directly or through the Subsidiary, may subject the
Fund 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.
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Foreign (Non-U.S.) Risk:
Investments in securities of non-U.S. issuers may involve more risk than those of U.S. issuers. These securities may
fluctuate more widely in price and may be less liquid due to adverse market, economic, political, regulatory or other factors.
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Currency Risk:
Fluctuations in currency exchange rates may negatively affect the value of the Funds investments or reduce its returns.
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Emerging Market Risk:
Investments in emerging market countries may have more risk because the markets are less developed and less liquid as well
as being subject to increased economic, political, regulatory or other uncertainties.
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Subsidiary Risk:
By investing in the Subsidiary, the Fund is indirectly exposed to the risks associated with the Subsidiary. The derivatives and
other investments held by the Subsidiary are generally similar to those that are permitted to be held by the Fund and are subject to the same risks that apply to similar investments if held directly by the Fund. The Subsidiary is not registered
under the Investment Company Act of 1940, as amended (the 1940 Act), and, unless otherwise noted in this Prospectus, is not subject to all of the investor protections of the 1940 Act. However, the Fund wholly owns and controls the
Subsidiary, and the
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S-3
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Fund and the Subsidiary are managed by the Adviser, making it unlikely the Subsidiary will take actions contrary to the interests of the Fund or its shareholders. In addition, changes in federal
tax laws applicable to the Fund or interpretations thereof could limit the Funds ability to gain exposure to commodities investments through investments in the Subsidiary.
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Derivatives Risk:
Investments in derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce
disproportionate losses for the Fund, and may be subject to counterparty risk to a greater degree than more traditional investments.
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Leverage Risk:
Because the Fund uses leveraging techniques, its NAV may be more volatile because leverage tends to exaggerate the effect of
changes in interest rates and any increase or decrease in the value of the Funds investments.
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Management Risk:
The Fund is subject to management risk because it is an actively managed investment fund. The Adviser will apply its investment
techniques and risk analyses in making investment decisions for the Fund, but there is no guarantee that its techniques will produce the intended results.
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As with all investments, you may lose money by investing in the Fund.
BAR CHART AND PERFORMANCE
INFORMATION
The bar chart and performance information provide an indication of the historical risk of an investment in the Fund by
showing:
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how the Funds performance changed from year to year over ten years; and
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how the Funds average annual returns for one, five and ten years compare to those of a broad-based securities market index.
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You may obtain updated performance information on the Funds website at
www.AllianceBernstein.com
(click on
IndividualsU.S. then Products & Performance).
The Funds past performance before and after taxes,
of course, does not necessarily indicate how it will perform in the future.
Effective October 8, 2012, the Fund changed its name from
AllianceBernstein Balanced Shares to AllianceBernstein Global Risk Allocation Fund, eliminated its non-fundamental policies that the Funds investments will normally consist of about 60% in stocks and about 40% in fixed-income securities and
that fixed-income securities will not normally exceed 60% of the Funds investments, and made certain material changes to its investment strategy, including implementation of the tail risk parity strategy described herein and adoption of a
global rather than a U.S. focus. In addition, the Funds portfolio management team was changed. Substantially all of the performance information shown below is for periods prior to implementation of these changes and may not be representative
of performance the Fund will achieve under its current policies. The index performance information shown below is intended to provide appropriate comparisons to the Fund performance shown below.
S-4
Bar Chart
The annual returns in the bar chart are for the Funds Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown. Through September 30,
2013, the year-to-date unannualized return for the Class A shares was -1.59%.
During the period shown in the bar chart, the Funds:
Best Quarter was up 12.80%, 2nd quarter, 2003; and Worst Quarter was down -13.42%, 4th quarter, 2008.
Performance Table
Average Annual Total Returns
(For the periods ended December 31, 2012)
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1 Year
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5 Years
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10 Years
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Class A*
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Return Before Taxes
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10.98%
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2.18%
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6.20%
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Return After Taxes on Distributions
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9.57%
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1.56%
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5.44%
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Return After Taxes on Distributions and Sale of Fund Shares
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8.82%
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1.69%
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5.24%
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Class B
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Return Before Taxes
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11.14%
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2.29%
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6.04%
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Class C
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Return Before Taxes
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14.17%
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2.33%
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5.90%
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Advisor Class
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Return Before Taxes
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16.25%
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3.36%
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6.98%
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R**
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Return Before Taxes
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15.67%
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2.79%
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6.39%
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K**
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Return Before Taxes
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15.99%
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3.10%
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6.70%
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I**
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Return Before Taxes
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16.48%
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3.53%
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7.08%
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MSCI World Index***
(reflects no deduction for fees, expenses or taxes)
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15.83%
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-1.18%
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7.51%
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Russell 1000 Value Index***
(reflects no deduction for fees, expenses or taxes)
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17.51%
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0.59%
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7.38%
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Barclays Global Aggregate Bond Index
(reflects no deduction for fees, expenses or taxes)
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4.32%
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5.44%
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5.98%
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60% MSCI World Index/40% Barclays Global Aggregate Bond Index
(reflects no deduction for fees, expenses or taxes)
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11.26%
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1.85%
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7.18%
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Are shown for Class A shares only and will vary for Class B, Class C and Advisor Class shares because these Classes have different expense ratios;
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Are estimates based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns
depend on an individual investors tax situation and are likely to differ from those shown; and
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Are not relevant to investors who hold fund shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
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**
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Inception dates: 11/3/03 for Class R shares, and 3/1/05 for Class K and Class I shares. Performance information for periods prior to the inception of Class R, Class K and Class I
shares is the performance of the Funds Class A shares adjusted to reflect the higher expense ratio of Class R shares and the lower expense ratios of Class K and Class I shares, respectively.
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***
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The Funds broad-based index used for comparison purposes has changed from the Russell 1000 Value Index to the MSCI World Index because the new index more closely
reflects the Funds investments and performance.
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INVESTMENT ADVISER
AllianceBernstein L.P. is the investment adviser for the Fund.
S-5
PORTFOLIO MANAGERS
The following table lists the persons responsible for day-to-day management of the Funds portfolio:
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Employee
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Length of Service
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Title
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Ashwin G. Alankar
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Since 2012
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Senior Vice President of the Adviser
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Michael DePalma
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Since 2012
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Senior Vice President of the Adviser
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Leon Zhu
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Since 2012
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Senior Vice President of the Adviser
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PURCHASE AND SALE OF FUND SHARES
Purchase Minimums
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Initial
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Subsequent
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Class A/Class C Shares, including traditional IRAs and Roth IRAs
(Class B Shares are not currently offered to new shareholders)
|
|
$2,500
|
|
$50
|
Automatic Investment Program
|
|
None
|
|
$50
If initial minimum investment is
less than $2,500, then
$200 monthly until account
balance reaches $2,500
|
Advisor Class Shares (only available to fee-based programs or through other limited arrangements)
|
|
None
|
|
None
|
Class A, Class R, Class K and Class I Shares are available at NAV, without an initial sales charge, to 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit-sharing and money purchase pension plans, defined benefit plans, and non-qualified deferred compensation plans where plan level or omnibus accounts are held on the books of the Fund.
|
|
None
|
|
None
|
You may sell (redeem) your shares each day the New York Stock Exchange is open. You may sell your shares through your
financial intermediary or by mail (AllianceBernstein Investor Services, Inc., P.O. Box 786003, San Antonio, TX 78278-6003) or telephone (800-221-5672).
TAX INFORMATION
The Fund may pay income dividends
or make capital gains distributions, which may be subject to federal income taxes and taxable as ordinary income or capital gains, and may also be subject to state and local taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If you purchase shares of the Fund
through a broker-dealer or other financial intermediary (such as a bank or a group retirement plan), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict
of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediarys website for more information.
|
|
|
|
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PRO-0103-GRA-0313
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S-6
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