AB Municipal Income Fund II
AB Massachusetts Portfolio
Portfolio of Investments
February 28, 2026 (unaudited)
| Principal Amount (000) |
U.S. $ Value | |||||||||||
| MUNICIPAL OBLIGATIONS – 97.5% |
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| Long-Term Municipal Bonds – 96.5% |
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| Massachusetts – 83.1% |
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| City of Quincy MA (City of Quincy MA) |
$ | 3,060 | $ | 3,502,746 | ||||||||
| Series 2025 |
7,255 | 7,329,478 | ||||||||||
| City of Worcester MA (City of Worcester MA) |
2,600 | 2,075,932 | ||||||||||
| Commonwealth of Massachusetts (Commonwealth of Massachusetts) |
5,000 | 5,173,718 | ||||||||||
| Series 2021-B |
1,000 | 607,528 | ||||||||||
| Series 2022-B |
2,965 | 2,453,086 | ||||||||||
| 4.11%, 07/15/2031 |
346 | 349,124 | ||||||||||
| Series 2022-C |
2,005 | 2,085,703 | ||||||||||
| Series 2022-D |
2,000 | 2,155,022 | ||||||||||
| Series 2024 |
5,000 | 5,246,557 | ||||||||||
| Series 2024-E |
1,670 | 1,749,788 | ||||||||||
| Series 2025-A |
1,500 | 1,646,878 | ||||||||||
| Series 2025-G |
2,000 | 2,181,310 | ||||||||||
| 5.00%, 12/01/2055 |
1,500 | 1,577,954 | ||||||||||
| Commonwealth of Massachusetts Transportation Fund Revenue (Commonwealth of Massachusetts Transportation Fund Revenue) |
2,000 | 2,075,603 | ||||||||||
| Series 2022-B |
3,000 | 3,115,159 | ||||||||||
| Series 2023 |
1,405 | 1,466,129 | ||||||||||
| Series 2023-B |
3,000 | 3,138,277 | ||||||||||
| Marthas Vineyard Land Bank (Marthas Vineyard Land Bank) |
1,000 | 1,010,066 | ||||||||||
| Massachusetts Bay Transportation Authority Sales Tax Revenue (Massachusetts Bay Transportation Authority Sales Tax Revenue) |
2,000 | 2,056,413 | ||||||||||
| Series 2020 |
3,000 | 3,053,340 | ||||||||||
1
| Principal Amount (000) |
U.S. $ Value | |||||||||||
| Series 2023-A |
$ | 1,000 | $ | 1,075,448 | ||||||||
| 5.25%, 07/01/2053 |
4,000 | 4,251,004 | ||||||||||
| Series 2025-B |
500 | 551,282 | ||||||||||
| 5.25%, 07/01/2055 |
3,500 | 3,758,543 | ||||||||||
| Massachusetts Clean Water Trust (The) (Massachusetts Clean Water State Revolving Fund) |
600 | 677,350 | ||||||||||
| 5.00%, 02/01/2042 |
1,050 | 1,166,153 | ||||||||||
| 5.00%, 02/01/2044 |
1,500 | 1,635,872 | ||||||||||
| Massachusetts Development Finance Agency (Baystate Medical Obligated Group) |
7,150 | 7,154,975 | ||||||||||
| Massachusetts Development Finance Agency (Beth Israel Lahey Health Obligated Group) |
3,000 | 3,020,806 | ||||||||||
| Series 2023 |
2,000 | 2,315,681 | ||||||||||
| AG Series 2025 |
1,000 | 1,111,270 | ||||||||||
| Massachusetts Development Finance Agency (Boston Medical Center Obligated Group) |
3,755 | 3,756,942 | ||||||||||
| Series 2023 |
2,000 | 1,814,539 | ||||||||||
| 5.25%, 07/01/2052 |
2,000 | 1,993,426 | ||||||||||
| Massachusetts Development Finance Agency (Brandeis University) |
1,795 | 1,914,235 | ||||||||||
| 5.00%, 10/01/2039 |
1,780 | 1,880,075 | ||||||||||
| Massachusetts Development Finance Agency (Care Communities Obligated Group) |
600 | 616,491 | ||||||||||
| Massachusetts Development Finance Agency (CHF Merrimack, Inc.) |
2,200 | 2,160,222 | ||||||||||
| Massachusetts Development Finance Agency (Children’s Hospital Obligated Group) |
2,000 | 2,122,107 | ||||||||||
| Massachusetts Development Finance Agency (Emerson College) |
1,000 | 992,154 | ||||||||||
| 5.25%, 01/01/2042 |
1,000 | 1,005,454 | ||||||||||
| Series 2025 |
1,210 | 1,340,171 | ||||||||||
| 5.25%, 01/01/2041 |
1,230 | 1,319,829 | ||||||||||
| 5.25%, 01/01/2043 |
1,000 | 1,050,024 | ||||||||||
2
| Principal Amount (000) |
U.S. $ Value | |||||||||||
| Massachusetts Development Finance Agency (Emmanuel College/MA) |
$ | 2,000 | $ | 2,011,220 | ||||||||
| 5.00%, 10/01/2034 |
2,100 | 2,108,237 | ||||||||||
| Massachusetts Development Finance Agency (Equitable School Revolving Fund Obligated Group) |
1,000 | 938,690 | ||||||||||
| Massachusetts Development Finance Agency (GingerCare Living Obligated Group) |
1,000 | 937,046 | ||||||||||
| Massachusetts Development Finance Agency (Lesley University) |
2,055 | 2,058,526 | ||||||||||
| Massachusetts Development Finance Agency (Mass General Brigham) |
5,855 | 5,607,897 | ||||||||||
| Series 2016 |
1,000 | 1,008,892 | ||||||||||
| Massachusetts Development Finance Agency (Massachusetts Institute of Technology) |
2,050 | 2,325,444 | ||||||||||
| Massachusetts Development Finance Agency (MCPHS University) |
1,000 | 1,000,551 | ||||||||||
| Massachusetts Development Finance Agency (Merrimack College) |
3,200 | 3,149,946 | ||||||||||
| Series 2022 |
1,000 | 970,912 | ||||||||||
| Massachusetts Development Finance Agency (NewBridge on the Charles) |
2,000 | 2,002,889 | ||||||||||
| Massachusetts Development Finance Agency (Northeastern University) |
1,500 | 1,666,397 | ||||||||||
| 5.00%, 10/01/2042 |
3,000 | 3,300,277 | ||||||||||
| Massachusetts Development Finance Agency (Prerefunded - US Treasuries) |
1,400 | 1,521,947 | ||||||||||
| Massachusetts Development Finance Agency (President & Fellows of Harvard College) |
700 | 855,837 | ||||||||||
3
| Principal Amount (000) |
U.S. $ Value | |||||||||||
| Massachusetts Development Finance Agency (PRG Medford Properties) |
$ | 3,250 | $ | 3,401,821 | ||||||||
| 5.50%, 06/01/2050 |
4,000 | 4,318,442 | ||||||||||
| Massachusetts Development Finance Agency (Salem Community Obligated Group) |
1,020 | 1,041,852 | ||||||||||
| Massachusetts Development Finance Agency (Simmons University) |
1,000 | 689,611 | ||||||||||
| Massachusetts Development Finance Agency (South Shore Hospital Obligated Group) |
2,080 | 2,069,882 | ||||||||||
| 5.00%, 07/01/2041 |
2,500 | 2,502,547 | ||||||||||
| Massachusetts Development Finance Agency (Southcoast Health System Obligated Group) |
1,750 | 1,660,961 | ||||||||||
| Series 2021-G |
1,750 | 1,527,127 | ||||||||||
| 5.00%, 07/01/2037 |
1,000 | 1,081,034 | ||||||||||
| 5.00%, 07/01/2050 |
3,550 | 3,558,043 | ||||||||||
| Massachusetts Development Finance Agency (Springfield College) |
3,000 | 2,267,177 | ||||||||||
| Series 2021-B |
1,000 | 789,318 | ||||||||||
| Massachusetts Development Finance Agency (Suffolk University) |
1,000 | 838,830 | ||||||||||
| Series 2025 |
3,000 | 2,985,330 | ||||||||||
| Massachusetts Development Finance Agency (Trustees of Boston College) |
1,000 | 1,027,771 | ||||||||||
| Series 2021-V |
1,000 | 1,096,077 | ||||||||||
| Massachusetts Development Finance Agency (Tufts Medicine Obligated Group) |
1,000 | 1,014,893 | ||||||||||
| Series 2026 |
1,250 | 1,416,727 | ||||||||||
| 7.375%, 10/01/2035 |
1,000 | 1,030,840 | ||||||||||
| Massachusetts Development Finance Agency (UMass Memorial Health Care Obligated Group) |
1,500 | 1,508,263 | ||||||||||
| Series 2025 |
3,500 | 3,323,481 | ||||||||||
| 5.00%, 07/01/2045 |
1,000 | 1,042,258 | ||||||||||
4
| Principal Amount (000) |
U.S. $ Value | |||||||||||
| Massachusetts Development Finance Agency (Woods Hole Oceanographic Institution State Lease) |
$ | 3,000 | $ | 3,053,237 | ||||||||
| Massachusetts Health & Educational Facilities Authority (Trustees of Boston College) |
1,710 | 2,054,408 | ||||||||||
| Massachusetts Port Authority (Bosfuel Corp.) |
2,000 | 2,136,257 | ||||||||||
| Massachusetts Port Authority (Massachusetts Port Authority) |
1,765 | 1,877,857 | ||||||||||
| Series 2019-A |
4,685 | 5,020,833 | ||||||||||
| 5.00%, 07/01/2036 |
4,000 | 4,237,714 | ||||||||||
| 5.00%, 07/01/2038 |
2,500 | 2,630,395 | ||||||||||
| Series 2019-C |
1,000 | 1,011,486 | ||||||||||
| Series 2021-E |
5,000 | 5,066,577 | ||||||||||
| Massachusetts School Building Authority (Massachusetts School Building Authority Sales Tax) |
4,000 | 4,248,467 | ||||||||||
| Massachusetts Transportation Trust Fund Metropolitan Highway System Revenue (Massachusetts Transportation Trust Fund Metropolitan Highway System Rev State Lease) |
1,000 | 1,077,956 | ||||||||||
| Massachusetts Water Resources Authority (Prerefunded - US Treasuries) |
5,500 | 5,567,858 | ||||||||||
| Town of Weymouth MA (Town of Weymouth MA) |
2,000 | 1,365,260 | ||||||||||
| University of Massachusetts Building Authority (University of Massachusetts) |
2,500 | 2,600,748 | ||||||||||
| Series 2020 |
2,000 | 1,591,169 | ||||||||||
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|
|
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| 217,931,079 | ||||||||||||
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|
|
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| Alabama – 3.0% |
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| Black Belt Energy Gas District (BP PLC) |
1,000 | 1,103,131 | ||||||||||
| Black Belt Energy Gas District (Nomura Holdings, Inc.) |
1,200 | 1,232,325 | ||||||||||
5
| Principal Amount (000) |
U.S. $ Value | |||||||||||
| Black Belt Energy Gas District (Pacific Life Insurance) |
$ | 1,000 | $ | 1,084,127 | ||||||||
| Southeast Alabama Gas Supply District (The) (Morgan Stanley) |
1,200 | 1,311,082 | ||||||||||
| Southeast Alabama Gas Supply District (The) (Pacific Life Insurance) |
1,000 | 1,084,881 | ||||||||||
| Southeast Energy Authority A Cooperative District (Athene Annuity & Life Co.) |
1,000 | 1,052,329 | ||||||||||
| Southeast Energy Authority A Cooperative District (Deutsche Bank AG) |
1,000 | 1,075,510 | ||||||||||
|
|
|
|||||||||||
| 7,943,385 | ||||||||||||
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|
|
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| American Samoa – 0.7% |
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| American Samoa Economic Development Authority (American Samoa Economic Development Authority) |
1,200 | 1,298,432 | ||||||||||
| American Samoa Economic Development Authority (Territory of American Samoa) |
395 | 422,500 | ||||||||||
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|
|
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| 1,720,932 | ||||||||||||
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|
|
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| Arizona – 0.4% |
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| Salt Verde Financial Corp. (Citigroup, Inc.) |
1,000 | 1,113,768 | ||||||||||
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|
|
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| California – 0.6% |
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| M-S-R Energy Authority (Citigroup, Inc.) |
1,300 | 1,626,789 | ||||||||||
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|
|
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| Florida – 0.0% |
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| Palm Beach County Health Facilities Authority (Federation CCRC Operations Obligated Group) |
100 | 82,766 | ||||||||||
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|
|
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| Georgia – 0.5% |
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| Main Street Natural Gas, Inc. (Citigroup, Inc.) |
1,200 | 1,235,539 | ||||||||||
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|
|
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6
| Principal Amount (000) |
U.S. $ Value | |||||||||||
| Guam – 2.5% |
||||||||||||
| Antonio B Won Pat International Airport Authority (Antonio B Won Pat Intl Airport Authority) |
$ | 210 | $ | 187,192 | ||||||||
| Series 2023 |
100 | 111,119 | ||||||||||
| 5.375%, 10/01/2043 |
200 | 212,545 | ||||||||||
| Series 2024-A |
615 | 652,336 | ||||||||||
| Guam Government Waterworks Authority (Guam Waterworks Authority Water And Wastewater System) |
1,125 | 1,164,345 | ||||||||||
| Guam Power Authority (Guam Power Authority) |
350 | 358,196 | ||||||||||
| 5.00%, 10/01/2040 |
1,420 | 1,444,208 | ||||||||||
| Territory of Guam (Territory of Guam Business Privilege Tax) |
2,255 | 2,242,395 | ||||||||||
| Territory of Guam (Territory of Guam) |
150 | 159,495 | ||||||||||
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|
|
|||||||||||
| 6,531,831 | ||||||||||||
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|
|
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| Indiana – 0.0% |
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| Indiana Finance Authority (Brightmark Plastics Renewal Indiana) |
250 | 12,500 | ||||||||||
|
|
|
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| Kentucky – 0.8% |
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| Kentucky Public Energy Authority (BP PLC) |
1,000 | 1,099,158 | ||||||||||
| Kentucky Public Energy Authority (Goldman Sachs Group) |
1,000 | 1,071,484 | ||||||||||
|
|
|
|||||||||||
| 2,170,642 | ||||||||||||
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|
|
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| New Jersey – 0.5% |
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| New Jersey Transportation Trust Fund Authority (New Jersey Transportation Fed Hwy Grant) |
1,170 | 1,178,749 | ||||||||||
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|
|
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7
| Principal Amount (000) |
U.S. $ Value | |||||||||||
| North Carolina – 0.6% |
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| North Carolina Medical Care Commission (Aldersgate United Methodist Retirement Community) |
$ | 540 | $ | 522,816 | ||||||||
| North Carolina Turnpike Authority (North Carolina Turnpike Authority) |
1,000 | 1,019,252 | ||||||||||
|
|
|
|||||||||||
| 1,542,068 | ||||||||||||
|
|
|
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| Puerto Rico – 2.1% |
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| Commonwealth of Puerto Rico (Commonwealth of Puerto Rico) |
120 | 128,178 | ||||||||||
| Puerto Rico Commonwealth Aqueduct & Sewer Authority (Puerto Rico Commonwealth Aqueduct & Sewer Authority) |
610 | 650,353 | ||||||||||
| 5.00%, 07/01/2035(a) |
500 | 522,292 | ||||||||||
| Puerto Rico Electric Power Authority (Puerto Rico Electric Power Authority) |
240 | 248,353 | ||||||||||
| NATL Series 2007-V |
300 | 307,721 | ||||||||||
| Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Auth (AES Puerto Rico LP) |
52 | 52,091 | ||||||||||
| 6.625%, 01/01/2028 |
397 | 398,071 | ||||||||||
| Puerto Rico Industrial Tourist Educational Medical & Environmental Control Facilities Financing Auth (San Juan Cruise Port LLC) |
1,600 | 1,832,918 | ||||||||||
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue (Puerto Rico Sales Tax Financing Sales Tax Revenue) |
1,000 | 357,891 | ||||||||||
| Series 2019-A |
165 | 165,287 | ||||||||||
| 4.55%, 07/01/2040 |
22 | 22,140 | ||||||||||
| 5.00%, 07/01/2058 |
815 | 798,242 | ||||||||||
|
|
|
|||||||||||
| 5,483,537 | ||||||||||||
|
|
|
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| Tennessee – 0.2% |
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| Bristol Industrial Development Board (Bristol Industrial Development Board Sales Tax) |
560 | 553,159 | ||||||||||
|
|
|
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8
| Principal Amount (000) |
U.S. $ Value | |||||||||||
| Texas – 1.0% |
||||||||||||
| New Hope Cultural Education Facilities Finance Corp. (SLF CHP LLC) |
$ | 100 | $ | 101,753 | ||||||||
| Texas Municipal Gas Acquisition & Supply Corp. IV (BP PLC) |
1,200 | 1,290,993 | ||||||||||
| Texas Municipal Gas Acquisition & Supply Corp. V (Bank of America Corp.) |
1,000 | 1,094,261 | ||||||||||
|
|
|
|||||||||||
| 2,487,007 | ||||||||||||
|
|
|
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| Wisconsin – 0.5% |
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| Wisconsin Public Finance Authority (SR 400 Peach Partners LLC) |
1,100 | 1,223,903 | ||||||||||
|
|
|
|||||||||||
| Total Long-Term Municipal Bonds |
252,837,654 | |||||||||||
|
|
|
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| Short-Term Municipal Notes – 1.0% |
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| Massachusetts – 1.0% |
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| City of Quincy MA (City of Quincy MA) |
2,000 | 2,030,217 | ||||||||||
| Massachusetts Health & Educational Facilities Authority (Mass General Brigham) |
615 | 615,000 | ||||||||||
|
|
|
|||||||||||
| Total Short-Term Municipal Notes |
2,645,217 | |||||||||||
|
|
|
|||||||||||
| Total Municipal Obligations |
255,482,871 | |||||||||||
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|
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| Shares | ||||||||||||
| PREFERRED STOCKS – 0.0% |
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| Industrials – 0.0% |
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| AES Guayama Holdings |
8,741 | 25,436 | ||||||||||
|
|
|
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9
| Principal Amount (000) |
U.S. $ Value | |||||||||||
| SHORT-TERM INVESTMENTS – 1.4% |
||||||||||||
| U.S. Treasury Bills – 1.1% |
||||||||||||
| U.S. Treasury Bill |
$ | 3,000 | $ | 2,986,428 | ||||||||
|
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|
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| Shares | ||||||||||||
| Investment Companies – 0.3% |
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| AB Fixed Income Shares, Inc. - Government Money Market Portfolio - Class AB, 3.53%(h) (i) (j) |
736,042 | 736,042 | ||||||||||
|
|
|
|||||||||||
| Total Short-Term Investments |
3,722,470 | |||||||||||
|
|
|
|||||||||||
| Total Investments – 98.9% |
259,230,777 | |||||||||||
| Other assets less liabilities – 1.1% |
2,922,064 | |||||||||||
|
|
|
|||||||||||
| Net Assets – 100.0% |
$ | 262,152,841 | ||||||||||
|
|
|
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CENTRALLY CLEARED INFLATION (CPI) SWAPS
| Rate Type | ||||||||||||||||||||||||
| Notional Amount (000) |
Termination Date |
Payments made by the Fund |
Payments received by the Fund |
Payment Frequency Paid/ Received |
Market Value |
Upfront Premiums Paid (Received) |
Unrealized Appreciation (Depreciation) |
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| USD | 7,250 | 10/15/2029 | 2.569% | CPI# | Maturity | $ | (35,054 | ) | $ | — | $ | (35,054 | ) | |||||||||||
| USD | 7,000 | 10/15/2029 | 2.485% | CPI# | Maturity | (4,961 | ) | — | (4,961 | ) | ||||||||||||||
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| $ | (40,015 | ) | $ | — | $ | (40,015 | ) | |||||||||||||||||
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| # | Variable interest rate based on the rate of inflation as determined by the Consumer Price Index (CPI). |
INTEREST RATE SWAPS
| Rate Type | ||||||||||||||||||||||||||||
| Swap Counterparty | Notional Amount (000) |
Termination Date |
Payments made by the Fund |
Payments received by the Fund |
Payment Frequency Paid/ Received |
Market Value |
Upfront Premiums Paid (Received) |
Unrealized Appreciation (Depreciation) |
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| Citibank NA | USD | 3,025 | 10/09/2029 | 1.125% | 1 Week SIFMA* | Quarterly | $ | 123,006 | $ | — | $ | 123,006 | ||||||||||||||||
| * | Variable interest rate based on the Securities Industry & Financial Markets Association (SIFMA) Municipal Swap Index. |
| (a) | Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities are considered restricted, but liquid and may be resold in transactions exempt from registration. At February 28, 2026, the aggregate market value of these securities amounted to $9,265,137 or 3.5% of net assets. |
| (b) | Defaulted. |
| (c) | Non-income producing security. |
10
| (d) | Security is exempt from registration under Rule 144A or Regulation S of the Securities Act of 1933. These securities, which represent 0.00% of net assets as of February 28, 2026, are considered illiquid and restricted. Additional information regarding such securities follows: |
| 144A/Restricted & Illiquid Securities | Acquisition Date |
Cost | Market Value |
Percentage of Net Assets | ||||||||
| Indiana Finance Authority |
03/29/2019 | $ | 257,806 | $ | 12,500 | 0.00% | ||||||
| (e) | Variable Rate Demand Notes are instruments whose interest rates change on a specific date (such as coupon date or interest payment date) or whose interest rates vary with changes in a designated base rate (such as the prime interest rate). This instrument is payable on demand and is secured by letters of credit or other credit support agreements from major banks. |
| (f) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
| (g) | Fair valued by the Adviser. |
| (h) | The rate shown represents the 7-day yield as of period end. |
| (i) | Affiliated investments. |
| (j) | To obtain a copy of the fund’s shareholder report, please go to the Securities and Exchange Commission’s website at www.sec.gov. Additionally, shareholder reports for AB funds can be obtained by calling AB at (800) 227-4618. |
| (k) | As of February 28, 2026, the cost basis of investment securities owned was substantially identical for both book and tax purposes. Gross unrealized appreciation of investments was $3,751,121 and gross unrealized depreciation of investments was $(5,817,187), resulting in net unrealized depreciation of $(2,066,066). |
As of February 28, 2026, the Portfolio’s percentages of investments in municipal bonds that are insured and in insured municipal bonds that have been pre-refunded or escrowed to maturity are 1.9% and 0.0%, respectively.
Glossary:
AG – Assured Guaranty Inc.
BAM – Build American Mutual
CCRC – Congregate Care Retirement Center
CHF – Collegiate Housing Foundation
NATL – National Interstate Corporation
11
AB Municipal Income Fund II
AB Massachusetts Portfolio
February 28, 2026 (unaudited)
In accordance with U.S. GAAP regarding fair value measurements, fair value is defined as the price that the Portfolio would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP establishes a framework for measuring fair value, and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability (including those valued based on their market values). Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Portfolio. Unobservable inputs reflect the Portfolio’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-tier hierarchy of inputs is summarized below.
| • | Level 1 - quoted prices in active markets for identical investments |
| • | Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| • | Level 3 - significant unobservable inputs (including the Portfolio’s own assumptions in determining the fair value of investments) |
The fair value of debt instruments, such as bonds, and over-the-counter derivatives is generally based on market price quotations, recently executed market transactions (where observable) or industry recognized modeling techniques and are generally classified as Level 2. Pricing vendor inputs to Level 2 valuations may include quoted prices for similar investments in active markets, interest rate curves, coupon rates, currency rates, yield curves, option adjusted spreads, default rates, credit spreads and other unique security features in order to estimate the relevant cash flows which is then discounted to calculate fair values. If these inputs are unobservable and significant to the fair value, these investments will be classified as Level 3. In addition, non-agency rated investments are classified as Level 3.
Other fixed income investments, including non-U.S. government and corporate debt, are generally valued using quoted market prices, if available, which are typically impacted by current interest rates, maturity dates and any perceived credit risk of the issuer. Additionally, in the absence of quoted market prices, these inputs are used by pricing vendors to derive a valuation based upon industry or proprietary models which incorporate issuer specific data with relevant yield/spread comparisons with more widely quoted bonds with similar key characteristics. Those investments for which there are observable inputs are classified as Level 2. Where the inputs are not observable, the investments are classified as Level 3.
Where readily available market prices or relevant bid prices are not available for certain equity investments, such investments may be valued based on similar publicly traded investments, movements in relevant indices since last available prices or based upon underlying company fundamentals and comparable company data (such as multiples to earnings or other multiples to equity). Where an investment is valued using an observable input, by pricing vendors, such as another publicly traded security, the investment will be classified as Level 2. If management determines that an adjustment is appropriate based on restrictions on resale, illiquidity or uncertainty, and such adjustment is a significant component of the valuation, the investment will be classified as Level 3. An investment will also be classified as Level 3 where management uses company fundamentals and other significant inputs to determine the valuation.
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The following table summarizes the valuation of the Portfolio’s investments by the above fair value hierarchy levels as of February 28, 2026:
| Investments in Securities: |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| Assets: | ||||||||||||||||
| Long-Term Municipal Bonds | $ | — | $ | 252,837,654 | $ | — | $ | 252,837,654 | ||||||||
| Short-Term Municipal Notes | — | 2,645,217 | — | 2,645,217 | ||||||||||||
| Preferred Stocks | — | — | 25,436 | 25,436 | ||||||||||||
| Short-Term Investments: | ||||||||||||||||
| U.S. Treasury Bills |
— | 2,986,428 | — | 2,986,428 | ||||||||||||
| Investment Companies |
736,042 | — | — | 736,042 | ||||||||||||
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|
|||||||||
| Total Investments in Securities | 736,042 | 258,469,299 | 25,436 | 259,230,777 | ||||||||||||
| Other Financial Instruments(a): | ||||||||||||||||
| Assets: | ||||||||||||||||
| Interest Rate Swaps | — | 123,006 | — | 123,006 | ||||||||||||
| Liabilities: | ||||||||||||||||
| Centrally Cleared Inflation (CPI) Swaps | — | (40,015 | ) | — | (40,015 | ) | ||||||||||
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|
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| Total | $ | 736,042 | $ | 258,552,290 | $ | 25,436 | $ | 259,313,768 | ||||||||
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| (a) | Other financial instruments include derivative instruments, such as futures, forwards and swaps. Derivative instruments are valued at the unrealized appreciation (depreciation) on the instrument. Other financial instruments may also include swaps with upfront premiums, written options and written swaptions which are valued at market value. |
A summary of the Portfolio’s transactions in AB mutual funds for the nine months ended February 28, 2026 is as follows:
| Fund | Market Value 05/31/2025 (000) |
Purchases at Cost (000) |
Sales Proceeds (000) |
Market Value 02/28/2026 (000) |
Dividend Income (000) |
|||||||||||||||
| AB Government Money Market Portfolio | $ | 887 | $ | 72,617 | $ | 72,768 | $ | 736 | $ | 174 | ||||||||||
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