Mutual Fund Summary Prospectus (497k)
January 31 2013 - 5:17PM
Edgar (US Regulatory)
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SUMMARY PROSPECTUS January 31, 2013
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AllianceBernstein Intermediate New York Municipal Portfolio
Ticker:
Class AANIAX; Class
BANYBX; Class CANMCX
Before you invest, you may want to review the Portfolios Prospectus, which contains more information about the Portfolio and its risks. The Portfolios Prospectus and Statement of Additional
Information (SAI), both dated January 31, 2013, are incorporated by reference into this Summary Prospectus. For free paper or electronic copies of the Portfolios Prospectus and other information about the Portfolio, go to
http://www.alliancebernstein.com/links/mf
, email a request to prorequest@alliancebernstein.com, call (800) 227-4618, or ask any financial advisor, bank, or broker-dealer who offers shares of the Portfolio. Unless otherwise noted, page
number references refer to the current Prospectus for this Portfolio.
PRO-0116-IDNY-0113
INVESTMENT OBJECTIVE:
The investment objective of the Portfolio is to provide safety of principal and maximize total return after taking account of federal, state and local
taxes for New York residents.
FEES AND EXPENSES OF THE PORTFOLIO:
This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio. You may qualify for sales charge reductions if you and members of your family invest, or agree to
invest in the future, at least $100,000 in AllianceBernstein Mutual Funds. More information about these and other discounts is available from your financial intermediary and in Investing in the PortfoliosSales Charge Reduction Programs for
Class A Shares on page 75 of the Prospectus and in Purchase of SharesSales Charge Reduction Programs for Class A Shares on page 73 of the Portfolios SAI.
Shareholder Fees
(fees paid directly from your investment)
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Class A
Shares
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Class B Shares
(not currently offered
to new investors)
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Class C
Shares
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Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
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3.00
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%
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None
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None
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Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption proceeds, whichever is lower)
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None
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3.00%(a)
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1.00%(b)
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Exchange Fee
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None
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None
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None
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Annual Portfolio Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
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Class A
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Class B
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Class C
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Management Fees
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.48%
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.48%
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.48%
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Distribution and/or Service (12b-1) Fees
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.30%
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1.00%
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1.00%
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Other Expenses:
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Transfer Agent
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.03%
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.08%
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.03%
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Other Expenses
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.04%
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.04%
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.04%
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Total Other Expenses
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.07%
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.12%
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.07%
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Total Portfolio Operating Expenses
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.85%
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1.60%
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1.55%
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(a)
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Class B shares automatically convert to Class A shares after six years. The contingent deferred sales charge, or CDSC, decreases over time. For Class B shares the CDSC
decreases 1.00% annually to 0% after the third year.
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(b)
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For Class C shares, the CDSC is 0% after the first year.
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Examples
The Examples are intended to help you
compare the cost of investing in the Portfolio with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Portfolio for the time periods indicated and then redeem all of your shares at the end of those
periods. The Examples also assume that your investment has a 5% return each year and that the Portfolios operating expenses stay the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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Class A
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Class B
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Class C
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After 1 Year
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$
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384
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$
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463
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$
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258
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After 3 Years
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$
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563
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$
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605
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$
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490
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After 5 Years
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$
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757
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$
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871
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$
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845
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After 10 Years
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$
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1,318
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$
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1,514
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$
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1,845
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S-1
For the share classes listed below, you would pay the following expenses if you did not redeem your shares
at the end of the period:
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Class B
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Class C
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After 1 Year
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$
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163
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$
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158
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After 3 Years
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$
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505
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$
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490
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After 5 Years
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$
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871
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$
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845
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After 10 Years
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$
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1,514
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$
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1,845
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Portfolio Turnover
The Portfolio pays transaction costs, such as commissions, when it buys or sells securities (or turns over its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher taxes when Portfolio shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Portfolio Operating Expenses or in the Examples,
affect the Portfolios performance. During the most recent fiscal year, the Portfolios portfolio turnover rate was 14% of the average value of its portfolio.
PRINCIPAL STRATEGIES:
The Portfolio pursues its objective by, under normal circumstances, as a matter of fundamental policy, investing at least 80% of its net assets in municipal securities. In addition, the Portfolio invests,
under normal circumstances, as a matter of fundamental policy, at least 80% of its net assets in a portfolio of municipal securities issued by New York or its political subdivisions, or otherwise exempt from New York state income tax. The interest
paid on these securities is generally exempt from federal and New York state and local personal income tax, although in certain instances, it may be includable in income subject to the federal alternative minimum tax.
The Portfolio also invests at least 80% of its total assets in municipal securities rated A or better by national rating agencies (or, if unrated,
determined by the Adviser to be of comparable quality) and comparably rated municipal notes. The Portfolio may invest up to 20% of the total assets in fixed-income securities rated BB or B by national rating agencies, which are not investment-grade
(commonly known as junk bonds).
The Portfolio may invest more than 25% of its net assets in revenue bonds, which generally do not
have the pledge of the credit of the issuer. The Portfolio may also invest more than 25% of its total assets in securities or obligations that are related in such a way that business or political developments or changes affecting one such security
could also affect the others (for example, securities with interest that is paid from projects of a similar type).
The Portfolio may also
invest up to 20% of its net assets in fixed-income securities of U.S. issuers that are not municipal securities if, in the Advisers opinion, these securities will enhance the after-tax return for New York investors.
The Portfolio may also use derivatives, such as options, futures, forwards and swaps.
In managing the Portfolio, the Adviser may use interest rate forecasting to determine the best level of interest rate risk at a given time. The Adviser may moderately shorten the average duration of the
Portfolio when it expects interest rates to rise and modestly lengthen average duration when it anticipates that interest rates will fall.
The
Portfolio seeks to maintain an effective duration of three and one-half to seven years under normal market conditions. Duration is a measure that relates the expected price volatility of a security to changes in interest rates. The duration of a
debt security is the weighted average term to maturity, expressed in years, of the present value of all future cash flows, including coupon payments and principal repayments.
The Adviser selects securities for purchase or sale based on its assessment of the securities risk and return characteristics as well as the securities impact on the overall risk and return
characteristics of the Portfolio. In making this assessment, the Adviser takes into account various factors including the credit quality and sensitivity to interest rates of the securities under consideration and of the Portfolios other
holdings.
The Portfolio is non-diversified, meaning that it can invest more of its assets in a fewer number of issuers.
PRINCIPAL RISKS:
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Market Risk:
The value of the Portfolios assets will fluctuate as the bond market fluctuates. The value of the Portfolios
investments may decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market.
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Credit Risk:
An issuer or guarantor of a fixed-income security, or the counterparty to a derivatives or other contract, may be unable or
unwilling to make timely payments of interest or principal, or to otherwise honor its obligations. The issuer or guarantor may default, causing a loss of the full principal amount of a security. The degree of risk for a particular security may be
reflected in its credit rating. There is the possibility that the credit rating of a fixed-income security may be downgraded after purchase, which may adversely affect the value of the security.
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S-2
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Below Investment Grade Securities Risk:
Investments in fixed-income securities with lower ratings (commonly known as junk bonds)
tend to have a higher probability that an issuer will default or fail to meet its payment obligations. These securities may be subject to greater price volatility due to such factors as specific corporate developments, interest rate sensitivity,
negative performance of the junk bond market generally and less secondary market liquidity.
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Municipal Market Risk:
This is the risk that special factors may adversely affect the value of municipal securities and have a significant
effect on the yield or value of the Portfolios investments in municipal securities. These factors include economic conditions, political or legislative changes, uncertainties related to the tax status of municipal securities, or the rights of
investors in these securities. Most of the Portfolios investments are in New York municipal securities. Thus, the Portfolio may be vulnerable to events adversely affecting New Yorks economy. New Yorks economy has a relatively large
share of the nations financial activities. With the financial services sector contributing over one-fifth of the states wages, the states economy is especially vulnerable to adverse events affecting the financial markets such as
occurred in 2008-2009. The Portfolios investments in certain municipal securities with principal and interest payments that are made from the revenues of a specific project or facility, and not general tax revenues, may have increased risks.
Factors affecting the project or facility, such as local business or economic conditions, could have a significant effect on the projects ability to make payments of principal and interest on these securities.
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Tax Risk:
There is no guarantee that all of the Portfolios income will remain exempt from federal or state income taxes. From time to
time, the U.S. Government and the U.S. Congress consider changes in federal tax law that could limit or eliminate the federal tax exemption for municipal bond income, which would in effect reduce the income received by shareholders from the
Portfolio by increasing taxes on that income. In such event, the Portfolios net asset value could also decline as yields on municipal bonds, which are typically lower than those on taxable bonds, would be expected to increase to approximately
the yield of comparable taxable bonds. Actions or anticipated actions affecting the tax exempt status of municipal bonds could also result in significant shareholder redemptions of Portfolio shares as investors anticipate adverse effects on the
Portfolio or seek higher yields to offset the potential loss of the tax deduction. As a result, the Portfolio would be required to maintain higher levels of cash to meet the redemptions, which would negatively affect the Portfolios yield.
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Interest Rate Risk:
Changes in interest rates will affect the value of investments in fixed-income securities. When interest rates rise, the
value of investments in fixed-income securities tends to fall and this decrease in value may not be offset by higher income from new investments. Interest rate risk is generally greater for fixed-income securities with longer maturities or
durations.
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Duration Risk:
Duration is a measure that relates the expected price volatility of a fixed-income security to changes in interest rates. The
duration of a fixed-income security may be shorter than or equal to full maturity of a fixed-income security. Fixed-income securities with longer durations have more risk and will decrease in price as interest rates rise. For example, a fixed-income
security with a duration of three years will decrease in value by approximately 3% if interest rates increase by 1%.
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Prepayment and Extension Risk:
Prepayment risk is the risk that a loan, bond or other security might be called or otherwise converted, prepaid
or redeemed before maturity. If this happens, particularly during a time of declining interest rates or credit spreads, the Portfolio may not be able to invest the proceeds in securities providing as much income, resulting in a lower yield to the
Portfolio. Conversely, extension risk is the risk that as interest rates rise or spreads widen, payments of securities may occur more slowly than anticipated by the market. When this happens, the values of these securities may go down because their
interest rates are lower than current market rates and they remain outstanding longer than anticipated.
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Inflation Risk:
This is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value
of money. As inflation increases, the value of the Portfolios assets can decline as can the value of the Portfolios distributions. This risk is significantly greater for fixed-income securities with longer maturities.
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Non-Diversification Risk:
Concentration of investments in a small number of securities tends to increase risk. The Portfolio may have more risk
because it is non-diversified, meaning that it can invest more of its assets in a smaller number of issuers.
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Liquidity Risk:
Liquidity risk exists when particular investments are difficult to purchase or sell, possibly preventing the Portfolio from
selling out of these illiquid securities at an advantageous price. Derivatives and securities involving substantial market and credit risk tend to involve greater liquidity risk. The Portfolio is subject to liquidity risk because the market for
municipal securities is generally smaller than many other markets.
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Derivatives Risk:
The Portfolio may use derivatives as direct investments to earn income, enhance return and broaden portfolio diversification,
which entail greater risk than if used solely for hedging purposes. Investments in derivatives may be illiquid, difficult to price or unwind, and leveraged so that small changes may produce disproportionate losses for the Portfolio, and may be
subject to counterparty risk to a greater degree than more traditional investments.
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Management Risk:
The Portfolio is subject to management risk because it is an actively managed investment fund. The Adviser will apply its
investment techniques and risk analyses in making investment decisions, but there is no guarantee its techniques will produce the intended results.
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As with all investments, you may lose money by investing in the Portfolio.
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S-3
BAR CHART AND PERFORMANCE INFORMATION:
The bar chart and performance information provide an indication of the historical risk of an investment in the Portfolio by showing:
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how the Portfolios performance changed from year to year over ten years; and
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how the Portfolios average annual returns for one, five and ten years compare to those of a broad-based securities market index.
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You may obtain updated performance information on the Portfolios website at www.AllianceBernstein.com (click on
Individuals-U.S. then Products & Performance).
The Portfolios past performance before and after taxes,
of course, does not necessarily indicate how it will perform in the future.
Bar Chart
The annual returns in the bar chart are for the Portfolios Class A shares and do not reflect sales loads. If sales loads were reflected, returns would be less than those shown.
During the period shown in the bar chart, the Portfolios:
Best Quarter was up 4.45%, 3rd quarter, 2009; and Worst Quarter was down -2.10%, 4th quarter, 2010.
Performance Table
Average Annual Total Returns
(For the periods ended December 31, 2012)
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1 Year
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5 Years
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10 Years
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Class A*
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Return Before Taxes
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-0.26%
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3.44%
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3.12%
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Return After Taxes on Distributions
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-0.27%
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3.40%
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3.09%
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Return After Taxes on Distributions and Sale of Portfolio Shares
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0.73%
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3.34%
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3.08%
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Class B
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Return Before Taxes
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-0.86%
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3.34%
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3.01%
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Class C
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Return Before Taxes
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1.17%
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3.36%
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2.72%
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Barclays 5-Year General Obligation Municipal Bond Index
(reflects no deduction for fees, expenses or taxes)
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2.36%
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5.10%
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4.21%
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Are shown for Class A shares only and will vary for Class B and C shares because these Classes have higher expense ratios;
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Are an estimate, which is based on the highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes; actual after-tax
returns depend on an individual investors tax situation and are likely to differ from those shown; and
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Are not relevant to investors who hold Portfolio shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
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INVESTMENT ADVISER:
AllianceBernstein L.P. is the
investment adviser for the Portfolio.
PORTFOLIO MANAGERS:
The following table lists the persons responsible for day-to-day management of the Portfolios portfolio:
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Employee
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Length of Service
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Title
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Michael G. Brooks
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Since 1999
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Senior Vice President of the Adviser
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Fred S. Cohen
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Since 1994
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Senior Vice President of the Adviser
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R.B. Davidson III
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Since Inception
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Senior Vice President of the Adviser
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Wayne Godlin
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Since 2010
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Senior Vice President of the Adviser
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Terrance T. Hults
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Since 2002
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Senior Vice President of the Adviser
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S-4
PURCHASE AND SALE OF PORTFOLIO SHARES
Purchase Minimums
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Initial
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Subsequent
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Class A/Class C Shares, including traditional IRAs and Roth IRAs
(Class B Shares are not currently offered to new shareholders)
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$2,500
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$50
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Automatic Investment Program
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None
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$50
If initial investment is
less than $2,500, then $200
monthly until account balance
reaches
$2,500
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Advisor Class Shares (only available to fee-based programs or through other limited arrangements)
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None
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None
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You may sell (redeem) your shares each day the New York Stock Exchange is open. You may sell your shares through your
financial intermediary or by mail (AllianceBernstein Investor Services, Inc., P.O. Box 786003, San Antonio, TX 78278-6003) or telephone (800-221-5672).
TAX INFORMATION
The Portfolio may make capital
gains distributions, which may be taxable as ordinary income or capital gains, and income dividends. The Portfolio anticipates that substantially all of its income dividends will be exempt from regular federal income tax and New York state and local
personal income taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If you purchase shares of a Portfolio through a broker-dealer or other financial intermediary (such as a bank), the Portfolio and its related companies may pay the intermediary for the sale of Portfolio
shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial intermediary and your salesperson to recommend the Portfolio over another investment. Ask your salesperson or visit
your financial intermediarys website for more information.
S-5
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PRO-0116-IDNY-0113
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S-6
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