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- 1 -
AB FCP I
Additional Information for Hong Kong Investors
Multi -Asset/Asset Allocation
> Dynamic Diversified Portfolio
Equity
> Global Equity Blend Portfolio
> Emerging Markets Growth
Portfolio
> Asia Ex -Japan Equity Portfolio
> Japan Strategic Value Portfolio
> China Low Volatility Equity
Portfolio
Fixed -Income
> Short Duration Bond Portfolio
> Global High Yield 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.
- 2 -
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.
- 3 -
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 i s
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 inv estors
nor is it an endorsement of its suitability for any particular investor or class of investors.
- 4 -
The following classes of shares are offered to the public of Hong Kong1:
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.
1. Dynamic Diversified Portfolio
Class A Shares A USD, A EUR, A EUR H
Class AX Shares# AX USD, AX EUR
Class BX Shares# BX USD
Class C Shares C USD, C EUR
2. Global Equity Blend Portfolio
Class A Shares A USD, A EUR
Class B Shares* B USD
Class C Shares C USD , C EUR
3. Emerging Markets Growth Portfolio
Class A Shares A USD, A EUR, A HKD, A SGD, A AUD H, A SGD H
Class B Shares* B USD
Class C Shares C USD, C EUR, C AUD H
Class I Shares I USD, I EUR, I AUD H
4. Asia Ex -Japan Equity Portfolio
Class A 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
Class C Shares C USD, C EUR, C AUD H
Class I Shares I USD, I EUR, ID USD, I AUD H, ID AUD H
5. Japan Strategic Value 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
Class C Shares C JPY, C EUR, C USD, C EUR H
Class I Shares I JPY, I EUR, I SGD, I USD, I EUR H, I USD H
Class S and S1 Shares S JPY, S1 EUR, S1 USD, S EUR H, S1 USD H
6. China Low Volatility Equity Portfolio
Class A Shares 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
Class B Shares* B USD, B EUR
Class C Shares C USD, C EUR
Class I Shares I USD, I EUR
7. Short Duration Bond Portfolio
Class A Shares 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
- 5 -
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
Class B Shares* B USD
Class C Shares C USD, C2 USD, C2 EUR H
Class I Shares I2 USD, I2 EUR, IT USD, I2 AUD H, I2 EUR H, IT AUD H
Class S and S1 Shares S USD, S EUR H, S1 EUR H
8. Global High Yield Portfolio
Class A Shares 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
Class B Shares* B USD, B2 USD, BT USD, BT AUD H
Class C Shares C USD, C EUR, C2 USD, C2 EUR, CT USD, C2 EUR H
Class I Shares 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
Class S1 Shares S1 USD, S1 EUR
Class W Shares WT USD
9. American Income Portfolio
Class A Shares 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
Class B Shares* B USD, B2 USD, BT USD
Class C Shares C USD, C EUR, C2 USD, C2 EU R, CT USD , C2 EUR H
Class I Shares 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
Class W Shares W2 USD, WT USD, WT HKD, WT GBP H, WT SGD H
10. European Income Portfolio
Class A Shares 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
Class B Shares* B USD , B2 EUR, B2 USD
Class C Shares C EUR, C USD, C2 EUR, C2 USD, C2 USD H, CT USD H
Class I Shares 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
11. Emerging Markets Debt Portfolio
Class A Shares 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
Class B Shares* BT USD
Class C Shares C USD, C EUR, C2 USD, C2 EUR, CT USD , C2 EUR H
Class I Shares I2 USD , I2 EUR, I2 EUR H, IT AUD H, IT SGD H
Class S and S1 Shares S USD , S EUR H, S GBP H, S1 EUR H, S1 GBP H
- 6 -
# 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 P rospectus.
* 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 Sh ares (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).
Investm ent 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, t he 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
AllianceBernstein Australia Limited Asia Ex -Japan Equity Portfolio
AllianceBernstein Hong Kong Limited ,
AllianceBernstein Australia Limited and
AllianceBernstein (Singapore) Ltd. China Low Volatility Equity Portfolio
AllianceBernstein Limited European Income Portfolio
Global Equity Blend Portfolio
Short Duration Bond Portfolio 12. Mortgage Income Portfolio
Class A 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
Class AX and A2X Shares# AX USD, AX EUR, A2X USD, A2X EUR
Class BX Shares# BX USD, BX EUR
Class C Shares C USD , C2 USD, C2 EUR
Class CX Shares# CX USD
Class I Shares I USD , I EUR , I2 USD, I2 EUR
Class IX and I2X Shares# IX USD , I2X USD
- 7 -
AllianceBernstein Limited and
AllianceBernstein Hong Kong Limited Emerging Markets Debt Portfolio
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 R affles Quay, #27- 11 South Tower, Singapore
048583 is a company est ablished 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 cli ents 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 AllianceBernst ein 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 manag e 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
- 8 -
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 securi ties 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 fac tors 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 e xisting 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, Amer ican 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 Asse t 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 cur rency
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 P ortfolio, 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 st ructured 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 signi ficant
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
America n 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 volati lity
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, quantitativ e
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 All ocation 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 der ivative 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 conditi ons 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
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Portfolio s may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory
event aff ecting 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 suc h 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 volatilit y 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 N et 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 ’ investment s 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 D ividends out of C apital
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 Portfolio s at the
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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 class es may be adversely affected by
differences in the interest rates of the reference currency of the currency hedged share class es and the Portfolio’ s base
currency, resulting in an increase in the amount of distribution that is paid out of capit al 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 identic al
replication at any time of the performance of the index.
Risks in connection with the I nvestment 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 overal l
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, c ertain 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 associat ed 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 purchas ed.
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Capital structure inversion risk: In the case of a princ ipal 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 per mit
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 Portfol io 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. T he 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 i dentification, 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 port folio 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.
- 14 -
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 t esting 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 wi th
each such Portfolio’ s obligation to meet redemption reques ts 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 cas e 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 t o 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 m ay 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) wi ll 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
redempt ion 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 ea ch 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
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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 tr ansaction 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 simil ar
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 Representativ e) 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 Offer ed
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 Allot ted
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:
- 16 -
Classes for which an initial sales charge applies (i.e. where sales c harge is payable at subscription)
Example 1: Assume:
Initial sales charge = 4%
No adjustment to purchase price to be made
Purchase price = net asset value – adjustment ∗
100% − initial sales charge%
Thus,
Purchase price = US$10 .00 − 0
100% − 4% = US$10 .00
0.96
Shares allotted = �Investment amount
Purchase price�
=US$10 ,000
US$10 .00
0.96 = 959.693
Example 2: Assume:
Initial sales charge = 1%
No adjustment to purchase price to be made
Purchase price = net asset value – adjustment ∗2
100% − initial sales charge%
Thus,
Purchase price = US$10 .00 − 0
100% − 1% = US$10 .00
0.99
Shares allotted = �Investment amount
Purchase price�
=US$10 ,000
US$10 .00
0.99 = 990.099
The above examples are for illustrative purposes only and are not a forecast or indication of any expectation of performance.
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 enc losed 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.
- 17 -
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 activi ty 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 A gent 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 foll owing 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 nex t
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 def ined 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 redempti ons will be paid by the Depositary or its
agents not later than five Trade Dates aft er 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 ac quired 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
- 18 -
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 waiv ed
under certain circumstances in the sole discretion of the Management Company, on behalf of the Fund.
Investors i nterested 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 connecti on 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 s ubject 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 busines s 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 Com pany 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
- 19 -
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 i ts 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 it s
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 r edemption 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 F und 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 consider ation 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 i nvestors 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 . Liqui dation 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 liquid ation 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.
- 20 -
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 complai nt 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) the Articles of Association of the Management Company;
(b) the Investment Management Agreement;
(c) the Depositary Agreement;
(d) the Management Regulations of the Fund;
(e) the Administration Agreement;
(f) the Distribution Agreement;
(g) the Transfer Agency Agreement between the Management Company and the Transfer Agent relating to each of the Portfolios;
(h) the latest published annual and semi -annual reports and audited accounts of the Fund;
(i) the Agreement appointing the Hong Kong Representative to act as such;
(j) the investment restrictions under the UCITS regulations under which the Fund is currently being managed;
(k) the UCITS Risk Management Statement with respect to the use of financial derivative instruments; and
(l) the list of authorized dealers of the Fund.
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.
PROSPECTUS
AB FCP I
31 MARCH 2023
Multi -Asset/Asset Allocation
> Dynamic Diversified Portfolio
Equity
> Global Equity Blend Portfolio
> Emerging Markets Growth Portfolio
> Asia Ex-Japan Equity Portfolio
> Japan Strategic Value Portfolio
> China Low Volatility Equity Portfolio
Fixed -Income
> Short Duration Bond Portfolio
> Global High Yield Portfolio
> American Income Portfolio
> European Income Portfolio
> Emerging Markets Debt Portfolio
> Mortgage Income Portfolio
ii
Important Informatio n
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 cont aining 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 representat ions 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 acceptanc e by the Distributor and the Management
Company on behalf of the Fund. 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 i nformation 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 ow ners - (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 controll ers) 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 i n 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
iii
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 Dat a 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