Mutual Fund Summary Prospectus (497k)
December 28 2012 - 4:41PM
Edgar (US Regulatory)
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SUMMARY PROSPECTUS December 31, 2012
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AllianceBernstein Conservative Wealth Strategy
Ticker:
Class AABPAX; Class BABPBX;
Class CABPCX; Class RAPPRX;
Class KAPWKX; Class IAPWIX; Advisor ClassABPYX
Before you invest, you may want to
review the Strategys Prospectus, which contains more information about the Strategy and its risks. The Strategys Prospectus and Statement of Additional Information (SAI), both dated December 31, 2012, are incorporated by
reference into this Summary Prospectus. For free paper or electronic copies of the Strategys Prospectus and other information about the Strategy, 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 Strategy. Unless otherwise noted, page number references refer to the current Prospectus for this Strategy.
PRO-0106-CW-1212
INVESTMENT OBJECTIVE
The Strategys investment objective is to achieve a high total return without, in the opinion of the Adviser, undue risk to principal.
FEES AND EXPENSES OF THE STRATEGY
This table describes the fees and expenses that you may pay if you buy and hold shares of the Strategy. 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 StrategiesSales Charge Reduction Programs for
Class A Shares on page 50 of the Prospectus and in Purchase of SharesSales Charge Reduction Programs for Class A Shares on page 99 of the Strategys SAI.
Shareholder Fees
(fees paid directly from your investment)
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Class A
Shares
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Class B Shares
(not currently offered
to new investors)
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Class C
Shares
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Advisor Class
Shares
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Class
R, K and I
Shares
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Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
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4.25%
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None
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None
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None
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None
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Maximum Deferred Sales Charge (Load)
(as a percentage of offering price or redemption proceeds, whichever is lower)
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1.00%(a)
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4.00%(b)
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1.00%(c)
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None
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None
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Exchange Fee
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None
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None
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None
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None
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None
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Annual Strategy Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment)
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Class A
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Class B
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Class C
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Advisor Class
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Class R
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Class K
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Class I
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Management Fees
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.55%
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.55%
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.55%
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.55%
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.55%
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.55%
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.55%
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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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None
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.50%
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.25%
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None
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Other Expenses
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Transfer Agent
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.09%
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.12%
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.10%
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.09%
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.26%
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.17%
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.10%
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Other Expenses
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.08%
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.08%
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.08%
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.08%
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.08%
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.08%
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.08%
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Total Other Expenses
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.17%
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.20%
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.18%
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.17%
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.34%
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.25%
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.18%
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Acquired Fund Fees and Expenses (Underlying Portfolios)
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.03%
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.03%
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.03%
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.03%
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.03%
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.03%
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.03%
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Total Annual Strategy Operating Expenses
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1.05%
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1.78%
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1.76%
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.75%
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1.42%
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1.08%
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.76%
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(a)
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Purchases of Class A shares in amounts of $1,000,000 or more, or by certain group retirement plans, may be subject to a 1%, 1-year contingent deferred sales charge, or CDSC
which may be subject to waiver in certain circumstances.
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(b)
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Class B shares automatically convert to Class A shares after eight years. The CDSC decreases over time. For Class B shares the CDSC decreases 1.00% annually to 0% after the
fourth year.
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(c)
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For Class C shares the CDSC is 0% after the first year.
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S-1
Examples
The Examples are intended to help you compare the cost of investing in the Strategy with the cost of investing in other mutual funds. The Examples assume that you invest $10,000 in the Strategy for the
time periods indicated and then redeem all of your shares at the end of these periods. The Examples also assume that your investment has a 5% return each year and that the Strategys operating expenses stay the same. Although your actual costs
may be higher or lower, based on these assumptions your costs would be:
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Class A
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Class B
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Class C
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Advisor Class
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Class R
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Class K
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Class I
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After 1 Year
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$
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528
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$
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581
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$
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279
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$
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77
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$
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145
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$
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110
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$
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78
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After 3 Years
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$
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745
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$
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760
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$
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554
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$
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240
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$
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449
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$
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343
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$
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243
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After 5 Years
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$
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980
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$
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964
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$
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954
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$
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417
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$
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776
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$
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595
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$
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422
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After 10 Years
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$
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1,653
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$
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1,902
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$
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2,073
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$
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930
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$
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1,702
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$
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1,317
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$
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942
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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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181
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$
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179
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After 3 Years
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$
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560
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$
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554
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After 5 Years
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$
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964
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$
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954
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After 10 Years
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$
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1,902
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$
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2,073
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Portfolio Turnover
The Strategy (or an Underlying 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 Strategy shares are held in a taxable account. These transaction costs, which are not reflected in the Annual Strategy Operating
Expenses or in the Examples, affect the Strategys performance. During the most recent fiscal year, the Strategys portfolio turnover rate (which reflects only purchases and sales of the Underlying Portfolios) was 21% of the average value
of its portfolio.
PRINCIPAL STRATEGIES:
The Strategy seeks to achieve its objective by investing in a combination of Underlying Portfolios representing a variety of asset classes and investment
styles that are also managed by the Adviser. By allocating its assets among the Underlying Portfolios, the Strategy creates a portfolio that is designed as a solution for investors who seek some opportunities for equity returns without regard to
taxes if the related risks are broadly diversified and overall portfolio volatility reflects a preponderance of debt securities. Through investments in the Underlying Portfolios, the Adviser efficiently diversifies between debt and equity components
to produce the desired risk/return profile of the Strategy. The Strategy targets a weighting of approximately 35% in Underlying Portfolios that invest primarily in equity securities and approximately 65% in Underlying Portfolios that invest
primarily in debt securities with a goal of providing reduced volatility and modest upside potential. The Strategys investment in the Multi-Asset Real Return Underlying Portfolio is treated as 100% equity for the purpose of these allocations.
The following table shows the target percentages of its net assets that the Strategy will invest in each of the Underlying Portfolios
indicated as of the date of this Prospectus. The Adviser will allow the relative weightings of the Strategys investments in equity and debt, growth and value, and in U.S. and non-U.S. company Underlying Portfolios to vary in response to market
conditions, but ordinarily only by ±5% of the Strategys net assets. Beyond those ranges, the Adviser will rebalance the Strategy toward the targeted blends. However, under extraordinary circumstances, such as when market conditions
favoring one investment style are compelling, the range may expand to ±10% of the Strategys net assets. The Strategys targeted percentages may change from time to time without notice to shareholders based on the Advisers
assessment of market conditions.
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Asset Class
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Underlying Portfolio
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Targeted Blend
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Stock
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U.S. Large Cap Growth
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5.50%
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U.S. Value
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5.50%
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U.S. Small/Mid-Cap Growth
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0.75%
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U.S. Small/Mid-Cap Value
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0.75%
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International Growth
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4.25%
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International Value
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4.25%
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Volatility Management
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12.50%
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Real Return
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Multi-Asset Real Return
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1.50%
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Bond
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Bond Inflation Protection
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10.00%
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Global Core Bond
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27.50%
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Short Duration Bond
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Short Duration
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27.50%
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S-2
Within the Strategys equity component, the targeted blend is an equal weighting of Underlying
Portfolios that invest in growth and value style stocks (approximately 50% each), with approximately 60% of each equity style invested in Underlying Portfolios that invest in U.S. companies and the remaining 40% in Underlying Portfolios that invest
in non-U.S. companies. The Strategy invests approximately 12% of its assets in the Volatility Management Underlying Portfolio, which is designed to reduce the overall effect of equity market volatility on the Strategys portfolio and the
effects of adverse market conditions on its performance. The Volatility Management Portfolio will normally be considered to be part of the Strategys equity asset allocation. Under normal market conditions, this Underlying Portfolio will invest
predominantly in equity securities. If the Adviser determines that the equity markets pose disproportionate risks, the Adviser will reduce this Underlying Portfolios equity investments and invest in fixed-income securities or other non-equity
asset classes to reduce the risks of the Strategys investments in equity securities.
The Adviser selects growth and value equity
securities by drawing from a variety of its fundamental growth and value investment disciplines to produce a blended equity component. Within each equity investment discipline, the Adviser is able to draw on the resources and expertise of multiple
growth and value equity investment teams, specializing in different capitalization ranges and geographic regions (U.S. and non-U.S.), which are supported equity research analysts specializing in growth research, and equity research analysts
specializing in value research.
Each growth investment team selects stocks using a process that seeks to identify companies with strong
management, superior industry positions, excellent balance sheets and superior earnings growth prospects. This discipline relies heavily upon the fundamental analysis and research of the Advisers large internal growth research staff, which
follows over 1,500 U.S. and non-U.S. companies. The Advisers growth analysts prepare their own earnings estimates and financial models for each company followed. Research emphasis is placed on identifying companies whose substantially
above-average prospective earnings growth is not fully reflected in current market valuations. Each growth investment team constructs a portfolio that emphasizes equity securities of a limited number of carefully selected, high-quality companies
that are judged likely to achieve superior earnings growth.
Each value investment team seeks to identify companies whose long-term earnings
power and dividend paying capability are not reflected in the current market price of their securities. This fundamental value discipline relies heavily upon Bernsteins large internal value research staff, which follows over 1,500 U.S. and
non-U.S. companies. Teams within the value research staff cover a given industry worldwide to better understand each companys competitive position in a global context. Bernsteins staff of company and industry analysts prepares its own
earnings estimates and financial models for each company analyzed. Bernstein identifies and quantifies the critical variables that control a businesss performance and analyzes the results in order to forecast each companys long-term
prospects and expected returns. Through application of this value investment process, each value investment team constructs a portfolio that emphasizes equity securities of a limited number of value companies.
In selecting fixed-income investments, the Adviser may draw on the capabilities of separate investment teams that specialize in different areas that are
generally defined by the maturity of the debt securities and/or their ratings, which may include subspecialties (such as inflation-protected securities). These fixed-income teams draw on the resources and expertise of the Advisers large
internal fixed-income research staff, which includes fixed-income research analysts and economists. All fixed-income securities of the Short-Duration Bond Underlying Portfolio and Global Core Bond Underlying Portfolio in which the Strategy invests
will be of investment grade at the time of purchase. In the event that the rating of any security held by these Underlying Portfolios falls below investment grade, the Strategy will not be obligated to dispose of its investment in such Underlying
Portfolio and may continue to hold such investment if, in the opinion of the Adviser, such investment is appropriate under the circumstances.
Currencies can have a dramatic impact on equity returns, significantly adding to returns in some years and greatly diminishing them in others. Currency
and equity positions are evaluated separately. The Adviser may seek to hedge the currency exposure resulting from securities positions when it finds the currency exposure unattractive. To hedge all or a portion of its currency risk, the Underlying
Portfolios may, from time to time, invest in currency-related derivatives, including forward currency exchange contracts, futures, options on futures, swaps and options. The Adviser may also seek investment opportunities by taking long or short
positions in currencies through the use of currency-related derivatives. The Underlying Portfolios may enter into other derivatives transactions, such as options, futures contracts, forwards, and swaps.
PRINCIPAL RISKS:
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Market Risk:
The value of the Strategys assets will fluctuate as the stock or bond market fluctuates. The value of its investments may
decline, sometimes rapidly and unpredictably, simply because of economic changes or other events that affect large portions of the market. It includes the risk that a particular style of investing, such as growth or value, may be underperforming the
stock market generally.
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Interest Rate Risk:
Changes in interest rates will affect the value of the Strategys investments in Underlying Portfolios that invest 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. Investments in fixed-income securities with lower credit ratings (junk bonds) tend to have a higher probability that an issuer will default or fail to meet its payment
obligations.
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S-3
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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. Investments in fixed-income securities with lower
ratings tend to have a higher probability that an issuer will default or fail to meet its payment obligations.
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Foreign (Non-U.S.) Risk:
The Strategys investments in Underlying Portfolios that invest in securities of non-U.S. issuers may involve more
risk than those of U.S. issuers. These securities may fluctuate more widely in price and may be less liquid due to adverse market, economic, political, regulatory or other factors.
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Currency Risk:
Fluctuations in currency exchange rates may negatively affect the value of the Strategys investments or reduce its returns.
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Capitalization Risk:
Investments in small- and mid-capitalization companies by the Underlying Portfolios may be more volatile than investments
in large-capitalization companies. Investments in small-capitalization companies may have additional risks because these companies have limited product lines, markets, or financial resources.
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Allocation Risk:
The allocation of investments among the Underlying Portfolios different investment styles, such as equity or debt, growth
or value, or U.S. or non-U.S. securities, may have a more significant effect on the Strategys net asset value when one of these investments is performing more poorly than another.
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Derivatives Risk:
Investments in derivatives may be illiquid, difficult to price, and leveraged so that small changes may produce
disproportionate losses for the Strategy, and may be subject to counterparty risk to a greater degree than more traditional investments.
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As with all investments, you may lose money by investing in the Strategy.
BAR CHART AND PERFORMANCE
INFORMATION
The bar chart and performance information provide an indication of the historical risk of an investment in the Strategy by
showing:
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how the Strategys performance changed from year to year over the life of the Strategy; and
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how the Strategys average annual returns for one and five years and over the life of the Strategy compare to those of a broad-based securities
market index.
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You may obtain updated performance information on the Strategys website at
www.AllianceBernstein.com
(click on IndividualsU.S. then Products & Performance).
The
Strategys 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 Strategys Class A shares and do not reflect sales loads. If sales loads were
reflected, returns would be less than those shown. Through September 30, 2012, the year-to-date unannualized return for Class A shares was 5.73%.
During the period shown in the bar chart, the Strategys:
Best Quarter was up 9.90%, 3rd quarter, 2009; and Worst Quarter was down -9.60%, 4th quarter, 2008.
S-4
Performance Table
Average Annual Total Returns
(For the periods ended December 31, 2011)
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1 Year
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5 Years
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Since
Inception*
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Class A**
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Return Before Taxes
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-4.31%
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0.89%
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3.69%
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Return After Taxes on Distributions
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-4.88%
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-0.05%
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2.79%
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Return After Taxes on Distributions and Sale of Strategy Shares
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-2.64%
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0.29%
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2.70%
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Class B
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Return Before Taxes
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-4.70%
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1.04%
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3.51%
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Class C
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Return Before Taxes
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-1.75%
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1.06%
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3.49%
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Advisor Class
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Return Before Taxes
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0.17%
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2.07%
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4.53%
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Class R
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Return Before Taxes
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-0.49%
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1.38%
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3.89%
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Class K
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Return Before Taxes
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-0.07%
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1.75%
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4.21%
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Class I
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Return Before Taxes
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0.22%
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2.06%
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4.53%
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Barclays Capital U.S. Aggregate Bond Index
(reflects no deduction for fees, expenses, or taxes)
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7.84%
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6.50%
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5.67%
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S&P 500 Index
(reflects no deduction for fees, expenses, or taxes)
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2.11%
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-0.25%
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4.61%
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65% Barclays Capital U.S. Aggregate Bond Index/35% S&P 500 Index
#
(reflects no deduction for fees, expenses, or taxes)
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6.11%
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4.52%
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5.59%
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*
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Inception Date for Class A, B, C and Advisor Class shares: 9/2/03, for Class R shares: 2/17/04, for Class K and Class I shares: 3/1/05. Performance information for periods
prior to the inception of Class R, Class K and Class I shares is the performance of the Strategys Class A shares adjusted to reflect the higher expense ratio of Class R shares and the lower expense ratio of Class K and Class I shares,
respectively.
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Are shown for Class A shares only and will vary for Class B, Class C and Advisor Class shares because these Classes have different expense ratios;
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Are estimates based on the highest historical individual federal marginal income tax rates, and do not reflect the impact of state and local taxes; actual after-tax returns
depend on an individual investors tax situation and are likely to differ from those shown; and
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Are not relevant to investors who hold Strategy shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
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#
|
The information in the 65% Barclays Capital U.S. Aggregate Bond Index/35% S&P 500 Index shows how the Strategys performance compares with the returns of an index of
securities similar to those in which the Strategy invests.
|
INVESTMENT ADVISER
AllianceBernstein L.P. is the investment adviser for the Strategy.
PORTFOLIO MANAGERS
The following table lists the persons responsible for day-to-day management of the Strategys portfolio:
|
|
|
|
|
Employee
|
|
Length of Service
|
|
Title
|
Dokyoung Lee
|
|
Since 2008
|
|
Senior Vice President of the Adviser
|
|
|
|
|
|
Seth J. Masters
|
|
Since 2003
|
|
Senior Vice President of the Adviser
|
|
|
|
|
|
Christopher H. Nikolich
|
|
Since 2003
|
|
Senior Vice President of the Adviser
|
|
|
|
|
|
Patrick J. Rudden
|
|
Since 2009
|
|
Senior Vice President of the Adviser
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S-5
PURCHASE AND SALE OF STRATEGY SHARES
Purchase Minimums
|
|
|
|
|
|
|
Initial
|
|
Subsequent
|
Class A/Class C Shares, including traditional IRAs and Roth IRAs
(Class B shares are not currently offered to new shareholders)
|
|
$2,500
|
|
$50
|
Automatic Investment Program
|
|
Less than $2,500
|
|
$50
If initial investment is
less than $2,500, then $200
monthly until account
balance
reaches $2,500
|
Advisor Class Shares (only available to fee-based programs or through other limited arrangements)
|
|
None
|
|
None
|
Class A, Class R, Class K and Class I shares are available at net asset value, or NAV, without an initial sales charge, to 401(k) plans, 457
plans, employer-sponsored 403(b) plans, profit-sharing and money purchase pension plans, defined benefit plans, and non-qualified deferred compensation plans where plan level or omnibus accounts are held on the books of a Strategy.
|
|
None
|
|
None
|
You may sell (redeem) your shares each day the New York Stock Exchange is open. You may sell your shares through your
financial intermediary or by mail (AllianceBernstein Investor Services, Inc., P.O. Box 786003, San Antonio, TX 78278-6003) or telephone (800-221-5672).
TAX INFORMATION
The Strategy may make income
dividends or capital gains distributions, which may be subject to federal income taxes and taxable as ordinary income or capital gains and may also be subject to state and local taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES
If you purchase shares of the Strategy
through a broker-dealer or other financial intermediary (such as a bank or a group retirement plan), the Strategy and its related companies may pay the intermediary for the sale of Strategy 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 Strategy over another investment. Ask your salesperson or visit your financial intermediarys website for more
information.
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|
|
|
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PRO-0106-CW-1212
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|
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S-6
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